FOR DELIVERY: 9:30 A.M., E.S.T.
                            FRIDAY, DECEMBER 6, 1996


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 Standard Time.

Statement of

Katharine G. Abraham
Commissioner
Bureau of Labor Statistics

Friday, December 6, 1996



	Good morning.  I am pleased to have this opportunity
to comment on the employment and unemployment data released
this morning.
	Nonfarm payroll employment increased modestly in
November, and the unemployment rate edged up to 5.4
percent; it had been 5.2 percent in September and October.
	Total nonfarm employment rose by 118,000 in November;
this increase is about equal to the average for September
and October, but less than half of the average for the
first 8 months of the year.  The declines in government
employment that we have reported in recent months have
contributed to slower overall employment growth.  As I will
discuss later, however, these declines are mostly an
artifact of changing seasonal patterns in local education.
Still, employment gains in the private sector (140,000 in
November) also have been more modest recently than they had
been earlier in the year.  The rate of private-sector job
growth over the last 3 months has been about three-fourths
as large, on average, as that during the prior 8 months
(152,000 vs. 207,000).
Within the private sector, employment in the services
industry increased by 70,000, continuing a pattern of
slower growth evident since the summer.  In the business
services component, an employment gain of 14,000 in
computer and data processing services partially offset a
drop of 32,000 in help supply services.  Help supply
employment had surged from 1992 to 1994, slowed
considerably last year, and picked up again this spring and
early summer.  Since August, however, employment in the
industry appears to have fallen somewhat.  Health services
added 32,000 jobs in November; hospitals have led a recent
resurgence of employment in that industry.  Private
education added 14,000 workers.
	Employment growth continued in finance, insurance, and
real estate, which added 16,000 jobs for the second month
in a row.  This industry group has rebounded from a slump
in 1994 and early 1995, adding 235,000 workers since May
1995.
	Retail trade employment rose modestly in November, as
greater-than-usual holiday-related hiring appears to have
occurred in October.  Job gains for October and November
combined were 110,000, after seasonal adjustment.  The
November increase occurred in eating and drinking places,
auto dealers and service stations, furniture stores, and
miscellaneous retail shops.  Department and apparel stores
lost jobs (after seasonal adjustment); hiring in those
industries had been robust in October.  Employment in
wholesale trade was essentially flat in November, but has
had very steady gains since late 1993.
Construction added 14,000 jobs in November, after
seasonal adjustment, despite unseasonably cold weather
throughout the East and Midwest.  As is typically the case,
nearly all of the gains were in special trade contractors,
including electrical, carpentry, and concrete work.
	Manufacturing employment rose by 9,000 in November,
following a gain of the same amount in October.  The number
of factory jobs had declined by more than 300,000 jobs over
the prior year and a half.  A November increase in the job
count in food and kindred products reflected light summer
hiring that resulted in fewer-than-usual fall layoffs.
Employment in aircraft and parts rose by 6,000 in November
and has increased by 23,000 since July.  In contrast, long-
term declines continued in apparel and textile plants.
Plant shutdowns due to retooling and parts shortages have
contributed to an employment loss of 22,000 in motor
vehicle manufacturing over the last 3 months.
	Government employment fell for the third consecutive
month.  Much of this apparent weakness has reflected
changes in the seasonal pattern of school hiring, which
caused the survey to record more growth in the summer than
it normally does, and, consequently, to record less growth
in the fall.  Federal employment continued its long-term
decline, dropping by 8,000 jobs in November.
	Average weekly hours of production and nonsupervisory
workers rose by 0.2 hour to 34.5 hours, partly offsetting a
decline in the previous month.  The factory workweek was
unchanged at 41.7 hours.  That measure has been quite
stable since May.
Average hourly earnings of workers on private nonfarm
payrolls increased by 9 cents to $11.99, following gains
totaling 9 cents over the prior 3 months.  As I mentioned
in June, when we had a similarly large jump, the monthly
movements in earnings can be quite erratic.  Over the year,
hourly earnings were up a total of 40 cents, or 3.5
percent.
Turning to data from the household survey, the
unemployment rate returned to 5.4 percent, following three
months of slightly lower rates.  The number of unemployed
persons rose to 7.2 million in November.  Much of the gain
in unemployment occurred in a narrow age group--18- and 19-
year olds--though I would hesitate to attach any analytical
significance to this single month’s movement.  Most other
groups also had small increases in joblessness, but these
generally were not statistically significant.
Total employment was essentially flat over the month.
The number of workers who were part time for economic
reasons, sometimes called involuntary part-time workers,
fell by 361,000 to 3.9 million in November.  While this
series is relatively volatile on a month-to-month basis,
the November decline was unusually large.  In addition, the
incidence of multiple jobholding in November stood at 6.6
percent of all employed persons, about the same level as in
October.  This monthly series had held at around 6.0
percent from its inception in January 1994 through
September of this year.
	In summary, labor market indicators were mixed in
November.  Payroll employment continued to grow, although
the pace appears to have slowed from earlier this year.
Employment in virtually all of the major private industry
groups increased modestly over the month, the workweek
recouped half of its October decline, and hourly earnings
rose 9 cents.   At the same time, unemployment rose
slightly, with the rate edging up to 5.4 percent.

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

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