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Economic News Release

Commissioner's Statement on the Employment Situation News Release

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
                           Keith Hall
                   Bureau of Labor Statistics
                           before the
                    Joint Economic Committee
                     UNITED STATES CONGRESS
                    Friday, February 1, 2008

Mr. Chairman and Members of the Committee:

   I appreciate this opportunity to comment on the employment
and unemployment data that we released this morning.

   Nonfarm payroll employment was essentially unchanged in
January, at 138.1 million, as was the unemployment rate, at 4.9
percent.  Employment declined in construction and in
manufacturing, while the number of jobs increased in health care.
In 2007, payroll employment grew by an average of 95,000 per
month, compared with an average of 175,000 per month in 2006.
Average hourly earnings rose by 4 cents in January, or 0.2
percent.  From December 2006 to December 2007, average hourly
earnings rose by 3.7 percent, compared with a rise in the
Consumer Price Index for Urban Wage Earners and Clerical Workers
of 4.4 percent.

   Construction employment decreased by 27,000 in January, with
the decline concentrated among the residential components.
Construction has lost 284,000 jobs since its employment peak in
September 2006; the residential components lost 315,000 jobs over
that period.

   Manufacturing employment fell by 28,000 in January, with
small but widespread declines occurring in both durable and
nondurable goods industries.  Manufacturing has lost 269,000 jobs
over the last 12 months.  Both the factory workweek and overtime
were unchanged in January, at 41.1 and 4.0 hours, respectively.

   In the service-providing sector, employment in health care
continued to increase in January (27,000).  Over the year ending
in January, this industry added 367,000 jobs, accounting for more
than one-third of the growth in total nonfarm employment.  In
January, employment rose in ambulatory health care, which
includes doctors’ offices, and in hospitals.

   Food services employment also continued its upward trend
over the month, though employment growth in this industry has
slowed recently.  From November 2007 through January, food
services added an average of 16,000 jobs per month; the average
growth during the 12-month period ending in October 2007 was
28,000 jobs per month.

   Following a large increase in December (49,000), employment
in professional and technical services was little changed in
January.  In 2007, this industry added 335,000 jobs.  Within
administrative and support services, business support services
lost jobs in January.

   Elsewhere in the service-providing sector, retail trade
employment was little changed, both over the month and over the
year.  Wholesale trade employment has been flat since October
2007; the industry had been adding jobs for several years.
Within financial activities, employment in credit intermediation,
which includes mortgage lending, continued to trend down in
January and has fallen by 111,000 since its most recent high
point in October 2006.

   The establishment survey data released today reflect the
incorporation of annual benchmark revisions, updated seasonal
adjustment factors, and a minor revision to the industry
classification system.  Each year, we re-anchor our sample-based
survey estimates to full universe counts of employment, primarily
derived from administrative records of the unemployment insurance
tax system.  The benchmark revision caused a decrease in the
level of nonfarm payroll employment in March 2007 of 293,000 (not
seasonally adjusted) or 0.2 percent.  Over the past 10 years,
benchmark revisions have averaged plus or minus 0.2 percent.

   All seasonally adjusted establishment survey data from
January 2003 forward have been revised to incorporate updated
seasonal adjustment factors.  Another change effective with this
release is an update to the 2007 North American Industry
Classification System (NAICS) from the 2002 NAICS.  The update to
NAICS 2007 resulted in minor definitional changes.  All affected
historical time series data for the establishment survey
beginning in January 1990 have been reconstructed based on NAICS

   Turning now to some of our measures from the household
survey, both the number of unemployed persons (7.6 million) and
the unemployment rate (4.9 percent) were essentially unchanged
over the month.  However, both measures are up over the past 12
months.  In January, 18.3 percent of unemployed persons had been
unemployed 27 weeks and over, up from 16.2 percent a year
earlier.  Civilian employment rose in January (after accounting
for an adjustment to the population controls used in the survey),
and the employment-population ratio edged up to 62.9 percent.

   Household survey data beginning in January 2008 reflect
updated population controls.  As part of its annual review of
intercensal population estimates, the U.S. Census Bureau
determined that a downward adjustment should be made to the
population controls.  This adjustment stems from revised
estimates of net international migration and the institutional
population, along with updated vital statistics information.  The
updated controls would have resulted in a decline of 745,000 in
the estimated size of the civilian noninstitutional population
age 16 years and over for December 2007.  In accordance with our
usual practice, official estimates for December 2007 and earlier
months will not be revised.

   A comparison of December 2007 not seasonally adjusted data
based on the old and new controls shows that the population
adjustment caused decreases in the levels for the labor force
(-637,000), employment (-598,000), and unemployment (-40,000).
The unemployment rate was unaffected by the new population
controls; there was a negligible impact on other percentage

   To summarize January’s labor market developments, payroll
employment was essentially unchanged (-17,000), as was the
unemployment rate at 4.9 percent.

   My colleagues and I now would be glad to answer your

Last Modified Date: February 01, 2008