FOR DELIVERY: 9:30 A.M., E.S.T.
                         FRIDAY, DECEMBER 7, 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

                          Lois Orr
                     Acting Commissioner
                 Bureau of Labor Statistics

                         before the

                  Joint Economic Committee

                   UNITED STATES CONGRESS

                  Friday, December 7, 2001




Mr. Chairman and Members of the Committee:

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

     The job market continued to deteriorate in November.
The unemployment rate rose three-tenths of a percentage
point to 5.7 percent, following a jump of half a percentage
point in October.  Payroll employment fell by 331,000 in
November in the wake of deep job cuts totaling 468,000 (as
revised) in October.  Job losses were widespread again in
November, although the largest declines continued to be
concentrated in manufacturing and help supply services.
Since its recent peak in March, total nonfarm employment has
fallen by 1.2 million.  I would note that the March peak in
payroll employment coincides with the onset of the
recession, as recently announced by the National Bureau of
Economic Research.

     In terms of the sheer number of jobs lost,
manufacturing continued to bear the brunt of the downturn in
the economy.  In November, the industry shed 163,000 jobs,
and employment in the nation’s factories has fallen by
almost 1 million since March and 1.4 million since July
2000.  Although nearly all manufacturing industries lost
jobs over the month, declines continued to be pronounced
among durable-goods producers.  Particularly large declines
occurred in electrical equipment (down 29,000 in November),
industrial machinery (-26,000), and fabricated metals
(-19,000).  The factory workweek and factory overtime also
continued to trend down over the month, to 40.3 and 3.7
hours, respectively.  Manufacturing hours have been drifting
down since the spring of 2000.

     Reflecting the declining demand for factory workers as
well as the softening demand for labor throughout much of
the rest of the economy, employment in the help supply
industry fell by 87,000 in November, on the heels of an even
steeper decline in October.  Employment in this industry has
declined by 629,000 since its most recent peak in September
2000, a drop of nearly 18 percent.  Elsewhere in the
services industry, employment in amusement and recreation
services declined by 25,000.  In addition, hotels lost 7,000
jobs, following a much larger decrease in October.  One
services industry that is growing in the aftermath of the
terrorist attacks is guard services, which added 15,000 jobs
in November after adding 14,000 jobs in October.  Health
services continued to record steady job growth, adding
32,000 jobs in November and nearly 300,000 over the past
year.

     The wholesale trade industry continued to be adversely
affected by the slump in manufacturing.  In November,
wholesale trade employment fell by 25,000, with almost all
of the job cuts in durable goods distribution.  In retail
trade, overall employment was down slightly in November
after seasonal adjustment, following large losses in the
prior 2 months.  Employment in department stores and apparel
stores fell for the second month in a row, as hiring has
fallen short of the normal seasonal buildup.  Elsewhere in
retail trade, there were small job gains in November among
car dealers and in eating and drinking establishments.

     In the transportation industry, employment in air
transportation and transportation services fell sharply for
the second month in a row, with November declines of 45,000
and 12,000, respectively.  As in October, these declines
were likely related to reductions in travel since September
11.

     Employment in finance expanded by 14,000 in November,
aided by low interest rates that continue to spur activity
in banking and mortgage brokerages.  Construction employment
was unchanged in November at 6.9 million, and the job total
in the industry has held at this level since February.
Construction employment is normally quite cyclical, falling
sharply during recessions.  This year, however, the industry
has been buoyed by high levels of residential building
activity, due in part to the favorable lending rates, and by
growth in heavy construction, like road work.

     Finally from the payroll data, average hourly earnings
rose 5 cents in November; over the year, hourly earnings
have risen 3.9 percent.

     As I mentioned at the beginning of my remarks, the
jobless rate was 5.7 percent in November, up three-tenths of
a percentage point over the month.  The rate increased from
3.9 to 4.3 percent between October 2000 and the start of the
recession in March; since March, the rate has risen by an
additional 1.4 percentage points.  The number of jobless
persons, at 8.2 million in November, is up by 2.6 million
since October of last year.

     Unemployment rates were up in November for adult men
and whites; those two groups and the other major worker
groups--adult women, teenagers, blacks and Hispanics--have
experienced increases since October of last year.  The
November increase in unemployment occurred principally among
those persons who had lost their jobs and did not expect to
be recalled.

     The deteriorating job market is making it increasingly
difficult for jobseekers to find work.  Indeed, the number
of unemployed who have been searching for work for 6 months
or more has nearly doubled since July, to 1.2 million in
November.

     Finally from the household data, total civilian
employment fell by nearly 500,000 in November and the
proportion of the population with a job declined three-
tenths of a percentage point to 63.0 percent.


     In summary, nonfarm payroll employment fell by 331,000
in November, the second extremely large drop in a row.
Losses were widespread, with the largest employment declines
occurring in manufacturing and help supply services.  The
unemployment rate rose three-tenths of a percentage point to
5.7 percent.


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

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