FOR DELIVERY: 9:30 A.M., E.D.T.
                            FRIDAY, APRIL 6, 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 Daylight Time.

                        Statement of

                    Katharine G. Abraham
                        Commissioner
                 Bureau of Labor Statistics

                    Friday, April 6, 2001


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

     The unemployment rate was 4.3 percent in March.  It has
edged up since its recent low of 3.9 percent in October of
last year.  Payroll employment declined by 86,000 in March.
Significant developments included the continued employment
declines in both manufacturing and help supply services, and
another large over-the-month rise in average hourly earnings.

     Manufacturing employment declined by 81,000 in March.
Factory job losses in the first 3 months of 2001 totaled
270,000, and followed a loss of 181,000 manufacturing jobs in
the second half of last year.  March declines occurred
throughout manufacturing.  Job declines in industrial
machinery appear to have accelerated this year, and the
electronic components industry sustained its second
consecutive monthly job loss in March.  Fabricated metals,
auto manufacturing, and rubber and plastics also had sharp
job declines.  Only the aircraft industry has posted job
gains in each of the last 2 months, but they barely offset a
January decline.  The manufacturing workweek did not decline
further in March, although factory overtime continued to edge
down.  Over the last year, the factory workweek has dropped
by 1.0 hour and factory overtime by 0.8 hour.

     Employment in the services industry edged up by just
11,000 in March.  The unusually small net gain reflected the
sharp decline of 83,000 in help supply services, an industry
comprised largely of temporary help firms, which provide
workers to other businesses, including those in
manufacturing.  In the 11 months since its peak last April,
help supply employment has declined by nearly 300,000.
Elsewhere in the services industry, strong job growth
continued in health services and in computer and data
processing services.  Employment also rose in social,
educational, and legal services.  Engineering and management
services continued to add jobs in March, although the pace of
job gains thus far in 2001 has been far slower than in recent
years.

     Retail trade employment declined by 46,000 in March,
following combined gains in January and February of more than
twice that amount.  The March decline was concentrated in
eating and drinking places and in department stores.

     Employment gains in the construction industry continued,
with strength in highway construction and components of
special trades.  Since last October, employment gains in
construction have averaged about 30,000 per month.  In
mining, oil and gas extraction has continued to post large
employment gains.

     Reflecting the strong demand for mortgage refinancing
associated with relatively low interest rates, employment
grew in mortgage banking for the third consecutive month.
Government employment was little changed in March, following
strong job gains in the prior 2 months.

     Average hourly earnings rose 6 cents in March, following
an even larger increase in February of 9 cents (as revised).
Over the year, earnings were up by 4.3 percent.  Prior to
last November, over-the-year increases in hourly earnings had
not strayed outside the 3.5- to 3.8-percent range for nearly
2 years.

     As I mentioned earlier, the unemployment rate was 4.3
percent in March, slightly above the narrow 3.9- to 4.1-
percent range that held for all of 2000.  In March, the rate
for adult men rose to 3.8 percent, its highest level since
mid-1998.  The unemployment rate for blacks rose by 1.1
percentage point over the month to 8.6 percent, though we
should bear in mind that this rate can be quite volatile.
The unemployment rate for manufacturing workers increased by
0.5 percentage point in March, to 5.0 percent.  Consistent
with the employment decline in the industry since the middle
of last year, the jobless rate for factory workers has risen
by about a point and a half over the period.

     Another sign of labor market softness is the recent
increase in the number of unemployed job losers who did not
expect to be recalled to their jobs.  Since the last quarter
of 2000, this number has risen by more than 250,000, to
nearly 1.9 million in the first quarter of this year.

     In summary, our March survey results provide further
indication of weakness in the labor market.  The unemployment
rate was 4.3 percent, up a bit from the levels of late last
year.  Employment in manufacturing and help supply services
declined sharply.  Still, other industries continued to
register job gains, including components of finance, mining,
and construction and most industries within services.

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

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