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


                        Statement of

                    Katharine G. Abraham
                        Commissioner
                 Bureau of Labor Statistics

                         before the

                  Joint Economic Committee

                   UNITED STATES CONGRESS

                   Friday, October 5, 2001





Mr. Chairman and Members of the Committee:



     I am pleased to have the opportunity to comment on the
September labor market data we released this morning.

     Nonfarm payroll employment fell by nearly 200,000 in
September.  Heavy job losses continued in manufacturing,
wholesale trade employment fell sharply, and there was
weakness in most other major industries.  The unemployment
rate, at 4.9 percent, was unchanged over the month.

     The tragic events of September 11th occurred during the
reference periods for both our establishment and household
surveys.  In the establishment survey, persons who lost a
job because of these events but who had worked at all in the
pay period that included the 12th of the month, or who had
received any paid leave, would be included in the September
job count.  Similarly, in the household survey, anyone who
worked for even one hour during the week that began on
September 9th, or who was temporarily absent from a job
during that week, would be counted as employed.  Thus, it is
likely that the events of September 11 had little effect on
the September employment and unemployment figures.  Job loss
related directly or indirectly to the events of September
11th should begin to be reflected in the October data,
although we doubt that we will be able to isolate those
effects as distinct from the effects of other economic
developments.  Perhaps the most direct measure will come
from our Mass Layoff Statistics program, which identifies
layoff events affecting 50 or more workers as measured by
filings for unemployment insurance.  Following the events of
September 11, employers have been able to identify layoffs
directly or indirectly attributable to "non-natural
disasters," using a special code added for this purpose.

     The September decline in nonfarm payroll employment was
the fourth in the past 6 months, resulting in a net decline
of 488,000 jobs since March.  Employment in manufacturing
eroded further, as another 93,000 jobs were shed in
September.  Industrial machinery and electrical equipment
continued to post the largest losses within manufacturing,
with over-the-month declines of 20,000 and 18,000,
respectively.  Together, these two industries account for
nearly two-fifths of the 900,000 manufacturing jobs lost so
far this year.  Over the month, employment also fell
substantially in motor vehicles (-10,000), printing and
publishing (-8,000), fabricated metals (-8,000), and
apparel (-6,000); other manufacturing industries
generally had smaller losses.

     Wholesale trade continued to feel the impact of
declining manufacturing activity.  Employment in the
industry fell by 21,000 in September, its sharpest decline
since peaking last November.  Retail trade employment also
was down over the month, largely due to job losses in eating
and drinking places.

     Employment growth in services has faltered in recent
months, with virtually no net job gains since March.  While
health services continued to add jobs in September,
employment in business services was down again over the
month.  Amusement and recreation employment also fell
significantly in September.

     Average weekly hours from our establishment survey
showed no obvious effect of the economic disruptions that
followed the September 11th attacks.  These data are based
on an hours paid concept, meaning that the work week
estimates include paid leave.  In September, average weekly
hours were up by one-tenth of an hour.

     Turning now to measures obtained from our household
survey, both the number of unemployed people and the
unemployment rate were unchanged over the month, following
sharp increases in August.  The unemployed numbered 7.0
million in September, an increase of nearly 1.5 million
since late last year.  The unemployment rate remained at
4.9 percent, one full percentage point above the 30-year low
recorded last September and October.  Civilian employment
rose by almost 800,000 over the month, mostly offsetting a
large decline in August.

     Although there is no reason to think that the civilian
employment and unemployment counts were substantially
affected by the events of September 11th, measures of part-
time work from the September household survey confirm that
many Americans' hours at work were shortened that week.  In
particular, the number who usually work full time but worked
part time during the reference period was significantly
higher than normal.

     Before concluding, I would like to provide you with a
preliminary estimate of the effect on our payroll employment
figures of the benchmark revision scheduled for release next
June.  Once a year, the Bureau adjusts the payroll survey's
sample-based employment estimates to incorporate the
previous year's March universe employment counts in a
process known as benchmarking.  These universe employment
counts are derived principally from state unemployment
insurance tax reports that nearly all employers are required
to file.  In the fall of each year, we typically have
completed preliminary tabulations of these universe counts
for the first quarter of the year.  We routinely share our
estimate of the anticipated size of the benchmark revision
for the prior March in the fall.

     Preliminary tabulations for the first quarter of 2001
indicate that the estimate of overall payroll employment
will require a downward revision of approximately 76,000, or
less than one-tenth of one percent, for the March 2001
reference month.  The historical average for benchmark
revisions over the past decade has been plus or minus
0.3 percent.

     In summary, nonfarm payroll employment fell by nearly
200,000 in September, the fourth decline in the past 6
months.  The unemployment rate was unchanged at 4.9 percent.



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

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