FOR DELIVERY: 9:30 A.M., E.S.T.
                            FRIDAY, JANUARY 5, 2001

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, January 5, 2001



     Good morning.  I appreciate this opportunity to comment
on the labor market data we released this morning.

     While the unemployment rate remained low by historical
standards in December, the pace of job growth in the private
sector continued to slow.  The jobless rate, at 4.0 percent,
was unchanged from November; it has been in the narrow range
of 3.9 to 4.1 percent since October 1999.  Total payroll
employment rose by 105,000 in December, with just over half
of the growth accounted for by government.  Private-sector
employment edged up by 49,000, as job gains in services were
partly offset by losses in manufacturing, help supply, and
construction.  Private-sector job growth in the fourth
quarter averaged 84,000 per month, only about half of the
monthly average growth in the first 9 months of the year.

     Looking in more detail at the data from our survey of
employers, job losses occurred throughout the goods-producing
sector of the economy.  In manufacturing, the downward trend
in employment continued in December, as the number of factory
jobs fell by 62,000.  Notable losses occurred in motor
vehicles and primary metals and in construction-related
industries, including lumber and wood products, furniture,
and stone, clay, and glass products.  Both apparel and
textiles continued their long-term employment declines.
Overall, nearly 180,000 factory jobs were lost in 2000 and
factory job losses have totaled 580,000 since the most recent
peak in manufacturing employment in April 1998.  Electrical
equipment has been the one bright spot within manufacturing;
after losing 4,000 jobs in 1999, the industry added 54,000
jobs in 2000.

     The factory workweek, which had already declined by one
full hour between April and November, fell by an additional
0.8 hour in December.  It is likely, however, that the
December decrease was partly attributable to a series of
storms in the Midwest during the survey reference period.

     Construction employment was down slightly for the second
month in a row, reflecting extreme weather conditions in both
November and December.  The average monthly job gain in
construction for all of 2000 was 14,000, just over half the
average monthly increase for 1999.

     In mining, employment fell by 3,000 in December,
reflecting a loss in nonmetallic minerals; this industry
provides materials such as stone, sand, and gravel to the
construction industry.  Over the year, however, mining posted
its first employment gain since 1997, with all of the
increase occurring in oil and gas extraction.

     Services employment rose by 81,000 in December, despite
an unusually large drop in help supply services employment.
Job gains occurred in health services, private educational
services, social services, and engineering and management
services.  This last industry, which makes up less than 3
percent of total employment, added 161,000 jobs in 2000, more
than 8 percent of the net over-the-year increase in total
payroll employment.  Overall job growth in services averaged
95,000 per month in 2000, somewhat below the average monthly
increase of 124,000 for all of 1999.  Business services, an
industry that had exhibited above-average growth in recent
years, weakened most dramatically, growing by only 21,000 per
month in 2000, compared with 52,000 per month during 1999.

     Retail trade employment was little changed in December.
Job growth in this industry totaled 302,000 in 2000, the
smallest over-the-year increase since 1997.  The holiday
retail employment buildup, which normally runs from August
through December, was the smallest since 1992.

     Two major industry divisions have not experienced a
recent employment slowdown.  Transportation and public
utilities posted a job gain of 23,000 in December, with most
of the increase concentrated in trucking, warehousing, and
air transportation.  Employment in finance, insurance, and
real estate also continued to increase, rising by 19,000 in
December.  Since experiencing job losses from March to July
of 2000, employment in this industry has risen by 78,000,
with much of the increase concentrated in security and
commodity brokers and in real estate.

     December gains in state education and in both the
education and non-education components of local governments
merely reversed recent declines.  More than anything else,
these movements point out the inherent difficulty in
seasonally adjusting these series.

     Average hourly earnings of production or nonsupervisory
workers in the private sector grew by 5 cents in December to
$14.01, following an increase of 8 cents in November (as
revised) and 5 cents in October.  Over the year, average
hourly earnings were up 4.2 percent, compared to 3.5 percent
in 1999.

     Focusing on some of the key indicators from our survey
of households, December’s 4.0 percent unemployment rate was
the same as the rate for November.  Unemployment rates for
the major demographic groups showed little or no change over
the month.  Civilian employment rose by 358,000 over the
month.  The proportion of the population that was employed
edged up to 64.5 percent.

     Before concluding, I would like to note that this is the
month in which we update our seasonal adjustment factors and
make revisions to previously published seasonally adjusted
household survey estimates going back 5 years.  All of the
seasonally adjusted household data in today’s news release
reflect these revisions.

     To summarize, nonfarm payroll employment grew modestly
in December and the unemployment rate was unchanged.
Reflecting slower growth in a number of industries, payroll
employment rose by 1.9 million in 2000, compared with an
increase of 2.8 million in 1999.



     My colleagues and I now would be glad to answer any
questions you might have.

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