FOR DELIVERY: 9:30 A.M., E.D.T. FRIDAY, MAY 5, 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 Daylight Time. Statement of Katharine G. Abraham Commissioner Bureau of Labor Statistics Friday, May 5, 2000 Good morning. I am pleased to have this opportunity to comment on the employment and unemployment estimates that we released this morning. The unemployment rate, as measured by our household survey, edged down to 3.9 percent in April, the first time it has been below 4.0 percent since January 1970. Nonfarm payroll employment, as measured by our establishment survey, rose by 340,000 in April, boosted again by the hiring of temporary workers for Census 2000. Excluding these short- term jobs, employment increased by 267,000 in April. Private payroll employment growth has averaged 222,000 per month thus far this year, compared with 198,000 per month for all of 1999. The services industry added 121,000 jobs in April, in line with its monthly average for the prior 12 months. Employment in business services rose by 55,000 over the month, buoyed by a very large increase in help supply services (46,000). Following 2 months of particularly sluggish growth, amusement and recreation services posted a gain of 15,000 jobs. Employment in motion pictures also rebounded in April, offsetting losses incurred over the previous 2 months. Employment in hotels and other lodging places grew substantially for the second consecutive month, and job growth continued in educational and social services. Health services employment also rose in April, but the gain was somewhat below its recent monthly average. Employment growth in engineering and management services was weak over the month, and legal services posted a small decline. Retail trade employment rose by 119,000 in April. Most of the net gain was in eating and drinking places, where employment rose by 80,000, following 3 months with little change. Employment also increased substantially over the month in food stores; even so, there has been practically no net employment gain in this industry during the last year. A job decline in building materials and garden supply stores, after seasonal adjustment, followed an unusually large increase in March. Employment in general merchandise stores was flat in April, following job losses that have totaled 33,000 since the employment peak in April 1999. Transportation employment increased by 27,000 over the month. Growth was particularly strong in trucking and warehousing (10,000) and in local and interurban passenger transit (6,000). Communications posted a small job loss over the month. Within the finance, insurance, and real estate industry, finance employment rose by 6,000 in April, but the monthly average gain thus far in 2000 has been well below that for all of 1999. The number of jobs in security brokerages increased by 8,000 in April. Government employment rose by 107,000 over the month, largely reflecting 73,000 additional temporary workers hired for the decennial census. Local education employment increased by 33,000 in April (seasonally adjusted), following weak growth over the first quarter of the year. In April, manufacturing employment rose slightly, after showing no net growth over the first quarter. Within durable goods, electrical equipment employment grew by 8,000; since reaching a low point last June, the industry has added 28,000 jobs. Fabricated metals also posted a job gain in April. Within nondurable manufacturing, an April employment increase in food products was offset by losses in rubber products and apparel. Over the month, factory overtime rose by 0.3 hour to 4.9 hours. The factory workweek, at 42.1 hours, also rose in April. In mining, employment rose by 4,000, all of which was in oil and gas extraction. Since reaching a low point last summer, oil and gas has added 20,000 jobs. Elsewhere in the goods-producing sector, construction employment declined by 55,000 in April, after seasonal adjustment. This followed an unusually large March increase, which, because of a late survey week, likely captured some of April's growth. Since last September, construction has added an average of about 32,000 jobs per month. Average hourly earnings of private production or nonsupervisory workers rose by 6 cents in April to $13.64, following an average monthly rise of nearly 5 cents in the first quarter. Over the year, average hourly earnings have risen by 3.8 percent. Turning again to the data from our survey of households, the jobless rate edged down to 3.9 percent in April, the lowest since January 1970 when it also was 3.9 percent. There was little change in the unemployment rates for most of the major demographic groups over the month. The jobless rate for Hispanics, however, declined to 5.4 percent in April, a historical low. The unemployment rate for blacks, at 7.2 percent, also is a record low. (The unemployment series for Hispanics begins in 1973 and that for blacks in 1972.) Total civilian employment rose in April, by 547,000, and the employment-population ratio climbed to a record 64.9 percent. About 5.7 percent of employed persons held more than one job in April (not seasonally adjusted), little different from a year earlier. In summary, the labor market continued to show strength in April. Payroll employment expanded by 340,000 over the month and the jobless rate drifted down to 3.9 percent. My colleagues and I now would be glad to answer your questions.