FOR DELIVERY: 9:30 A.M., E.S.T.
                            FRIDAY, DECEMBER 8, 2000

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 8, 2000


     Good morning.  I am pleased to have this opportunity to
comment on the November employment and unemployment
statistics that we released this morning.

     The unemployment rate was 4.0 percent in November,
essentially unchanged from October.  In fact, this key labor
market measure has remained within 0.1 percentage point of
its current level since the fall of 1999.

     A large decline in government employment in November
held the overall gain in nonfarm payroll jobs to a modest
94,000.  The private sector added 148,000 jobs; by
comparison, the average monthly gain for all of 1999 was
202,000 and for the first half of 2000, it was 186,000.  In
the last 5 months, however, private-sector job growth has
slowed to an average of 122,000 a month.  In November, a
number of service-producing industries showed healthy job
growth, although employment in both manufacturing and
construction was flat.

     In manufacturing, employment has been steady for 2
months after losses in August and September.  Overall factory
employment stagnated in November even though several durable
goods industries had substantial gains, most notably
electronic components, industrial machinery, and instruments.
(An employment increase in transportation equipment reflected
returning strikers in shipbuilding.)  In contrast, job losses
continued in nondurable goods industries, especially
textiles, apparel, and rubber and miscellaneous plastics.
Meanwhile, the factory workweek resumed its recent downward
trend.  In fact, after peaking this spring, manufacturing
hours now are at their lowest level since the early 1990s
(with the exception of the few months affected by severe
winter storms).

     Construction employment also was about unchanged in
November, following 2 months of substantial gains.  The
weakness in November occurred among such outdoor activities
as heavy construction, concrete, roofing, and masonry, which
were affected by the unusually cold weather in much of the
country and heavy rain in the South.

     The largest downward pull on November’s job growth came
from government, where losses from the various components
totaled 54,000.  Both state and local education employment
fell after seasonal adjustment, as school hiring failed to
meet seasonal expectations.  A decline in federal employment
resulted from weak seasonal hiring by the Postal Service and
continued losses in other agencies.

     Services employment rose by only 65,000 in November
following no change in October.  This slow pace of growth is
in sharp contrast to the average monthly gain of 109,000 for
the first 9 months of the year.  Gains in business
services were held down by its help supply component, which
lost 10,000 jobs in November and has lost 71,000 since April,
after having added jobs consistently over the prior several
years.  Amusement and recreation services shed even more jobs
than normal for this time of year, resulting in a seasonally
adjusted employment drop of 15,000.

     In contrast to the industries I have just discussed,
many of the other service-producing industries actually fared
quite well in November.  For example, within services, above-
average employment increases occurred in hospitals, private
education, and membership organizations, while social
services and engineering and management services continued
their strong growth trends.  Also, within business services,
there was continued strength in computer services and a large
job gain in building services.

     An increase in retail trade employment (46,000) was
concentrated in department stores, where seasonal hiring was
unusually strong.  This may have been influenced by a
particularly late survey reference period coupled with an
early Thanksgiving holiday.  Interestingly, miscellaneous
retail establishments (such as drug, jewelry, and toy
stores), which tend to mirror the seasonal pattern in
department stores, saw their employment decline on a
seasonally adjusted basis.  Those establishments, however,
had been adding workers all year, while department stores had
shed about 60,000 workers over the prior year and a half.

     Transportation and public utilities employment rose by
16,000, reflecting a large seasonal gain among air couriers
and a job increase in telephone communications.  Employment
in finance, insurance, and real estate rose for the fourth
consecutive month, and wholesale trade had its second
consecutive sizable gain.

     Average hourly earnings, at $13.94 in November, rose 6
cents over the month and 53 cents (4.0 percent) over the
year.

     Looking at some of the measures obtained from the survey
of households, the unemployment rate, at 4.0 percent, was
essentially unchanged in November and has remained between
3.9 and 4.1 percent since October 1999.  The jobless rate for
Hispanics rose to 6.1 percent, from a record low of 5.0
percent in October.  This measure often jumps around from one
month to the next, so I would not read too much into this
month's rise.  Jobless rates for other major worker groups
were little changed in November.  The number of part-time
workers who would prefer full-time work rose to 3.5 million,
and the rate of multiple jobholding declined over the year to
5.5 percent of employment (not seasonally adjusted).

     In summary, many private service-producing industries
continued to expand their payrolls in November, but the
overall gain in payroll employment was tempered by a large
decline in government payrolls and by a lack of job growth in
construction, manufacturing, and several services industries.
The unemployment rate remained within the narrow range it has
occupied since October 1999.



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

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