FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, SEPTEMBER 3, 1999


Advance copies of this statement are made available to the
press under lock-up conditions with the explicit
understanding that the data are embargoed until 8:30 a.m.
Eastern Daylight Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

Friday, September 3, 1999



Good morning.  I am pleased to have this opportunity to
discuss the August employment and unemployment estimates
that we released this morning.
The unemployment rate, at 4.2 percent in August, was
little changed over the month, and has been either 4.2 or
4.3 percent each month since March.  Nonfarm payroll
employment, as measured by our establishment survey, rose a
modest 124,000 in August, following a strong increase of
338,000 in July.  Over these 2 months, job growth averaged
231,000, compared with an average monthly increase of
210,000 for the first half of 1999.
In August, job losses in the goods-producing sector of
the economy totaled 95,000.  Manufacturing employment
declined by 63,000 (after seasonal adjustment).  This
followed an increase of 51,000 in July, as revised.  The
August loss would have been 7,000 larger if not for the
return of workers to the shipbuilding industry following the
settlement of a strike that began several months earlier.
Although manufacturing employment fell by 19,000 between
June and August, after accounting for the strike return, the
pace of manufacturing jobs losses has been much slower over
the past 2 months than during the first half of the year. In
durable goods, substantial August employment declines in
several industries reversed or partially reversed July
employment gains.  Industrial machinery, fabricated metals,
instruments and related products, and stone, clay, and glass
products experienced net employment losses over the 2 months
(although only the loss in industrial  machinery was
substantial).  Among the industries showing net employment
gains over the period were motor vehicles, electrical
equipment, furniture, and primary metals.  In nondurable
goods, employment declines continued in apparel and
textiles.
The factory workweek edged down in August to 41.7
hours, returning to its June level.  Factory overtime also
edged down in August, to 4.6 hours.
Employment in construction declined by 29,000 in
August, largely offsetting the gains of the prior 2 months.
Mining employment fell, following an increase in July.
Within mining, however, oil and gas extraction posted its
second consecutive monthly gain.
In the service-producing sector, job growth of 219,000
(after seasonal adjustment) was slightly below the monthly
average of the prior 12 months (247,000).  In the services
industry, the recent pattern of alternating weak and strong
job growth continued in August.  The industry added 132,000
jobs over the month, well above the gain of 78,000 in July.
In August, business services employment expanded by 46,000,
with computer and data processing services accounting for a
third of the increase.  Following no growth in July,
employment in amusement and recreation services rose by
17,000, after seasonal adjustment.  Job growth in health
services totaled 19,000 in August, with the largest gains
coming in doctors’ offices and in hospitals.  Strong
employment increases in both social and legal services more
than offset declines in July.  Job growth continued in
engineering and management services, but the increase of
10,000 was only half its recent monthly average.
Retail trade employment was about unchanged in August.
An employment decline of 38,000 in eating and drinking
places followed a large gain of 74,000 in July.  Elsewhere
in retail trade, employment in food stores was up 11,000
over the month, but the industry has had virtually no net
job growth in 2 years.  Automobile dealers and furniture
stores each added 8,000 jobs in August, employment in
general merchandise stores was up only slightly, and
employment in apparel stores was down.
Elsewhere in the services-producing sector, employment
in finance, insurance, and real estate rose by 11,000.
Finance employment increased by 8,000 over the month, with
strong job growth continuing in securities brokerages.
Employment growth in both insurance and real estate was
somewhat sluggish.
Transportation job growth slowed in August, and
substantial employment gains continued in wholesale trade.
Government added 47,000 workers, after seasonal adjustment,
mostly in state and local education.
Average hourly earnings of private production or
nonsupervisory workers edged up 2 cents in August to $13.30,
following a rise of 10 cents over the prior 2 months.  Over
the year, average hourly earnings have risen by 3.5 percent.
	Turning now to the data from our survey of households,
the unemployment rate was little changed at 4.2 percent in
August and has remained under 4.4 percent since March.
Following a 1-1/2 percentage point rise in July, the rate
for blacks fell back a point to 7.8 percent in August.  The
rate for adult women fell to 3.7 percent.  The rates for the
other major demographic groups were either unchanged or
little changed from July.
Civilian employment was about unchanged over the month,
and the employment-population ratio held steady at 64.1
percent.  The number of persons who held more than one job
in August totaled 7.3 million (not seasonally adjusted).
These multiple jobholders made up 5.4 percent of the total
employed, down slightly from 5.6 percent a year earlier.
In summary, payroll employment rose by 124,000 over the
month, and the unemployment rate was little changed at 4.2
percent.

	My colleagues and I now would be glad to answer your
questions.

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