FOR DELIVERY: 9:30 A.M., E.D.T.
                            THURSDAY, JULY 3, 1997


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

Thursday, July 3, 1997





	Good morning. I am pleased to have this opportunity to 
comment on the employment and unemployment data released 
this morning.
	Nonfarm payroll employment grew in June and the 
unemployment rate rose two-tenths of a percentage point to 
5.0 percent.  Payroll employment increased by 217,000 over 
the month; over the last twelve months employment growth 
has averaged 212,000 per month.  Job growth in the private 
sector was somewhat less than in recent months.
	The services industry added 63,000 jobs in June, well 
below its average monthly gain of 116,000 through the first 
five months of 1997.  Health services employment grew by 
less than half the average monthly gain over the prior five 
months.  Employment in help supply services was about 
unchanged over the month; over the second quarter of 1997, 
the industry lost 49,000 jobs, about equal to the gain over 
the first quarter of the year.  In contrast, computer 
services and engineering and management services both 
continued strong growth trends that go back several years.  
Amusement and recreation services, which had been weak 
through the first part of the year, has rebounded during 
the second quarter.
	In June, retail trade employment was up by 58,000 
following a weak prior month.  Eating and drinking places 
accounted for about half of the increase in retail trade, 
with a job gain of 28,000 for the month.  Employment in 
this industry was flat in May and has moved erratically 
during the first half of 1997.  Miscellaneous retail stores 
and food stores also exhibited strong growth in June.  Job 
growth in wholesale trade has slowed in recent months.
	Elsewhere in the service-producing sector, employment 
in finance rose by 11,000.  Employment growth in 
transportation and public utilities has been slower during 
the second quarter of the year than it had been during the 
first.
	Local governments added 78,000 workers to their 
payrolls in June on a seasonally adjusted basis.  Although 
estimated employment changes in that sector have been 
uneven since February, net employment growth has averaged 
roughly the same over the past four months (about 25,000 
per month) as in the first two months of this year and in 
all of 1996.  Federal government employment continued its 
decline that began in June of 1992 and has now totaled more 
than 300,000, or 10 percent of its June 1992 level.  
	In the goods-producing sector, factory employment 
edged up in June.  Employment gains in manufacturing have 
been slow but fairly steady since last September, totaling 
87,000 over that period.  Most of the June increase was in 
durable goods, especially aircraft and parts, electronic 
components, and industrial machinery—all industries in 
which employment has been on an upward trend.  In 
nondurables, printing and publishing was the only major 
industry to show any growth.  The factory workweek edged 
down by a tenth of an hour after a similar decline in the 
previous month.  Overtime hours also declined by one-tenth 
of an hour.  Despite these declines, both measures remain 
near historical peaks. 
Employment in construction was virtually unchanged 
over the month, although its biggest component--special 
trade contractors--continued its upward trend.  This gain 
was offset by a decline in heavy construction that at least 
partially reflected wet weather in many areas of the 
country.
	Average hourly earnings of production and 
nonsupervisory workers increased by four cents in June 
following an identical increase in May.  The eight-cent 
rise in hourly earnings during the second quarter was 
somewhat lower than the increases in each of the previous 
four quarters.
	Turning to data from the household survey, the 
unemployment rate rose to 5.0 percent in June, up two-
tenths of a percentage point from its May level.  Adult men 
and whites were the only major demographic groups to show  
significant increases in over-the-month unemployment, 
reversing declines in May.  The number of persons who were 
unemployed because they had lost their last job increased, 
largely offsetting declines in the previous two months.  
Total civilian employment was essentially unchanged over 
the month; over the first half of 1997, however, it 
increased by 1.2 million, and the proportion of the 
working-age population that is employed remains near 
historically high levels.
	In summary, payroll employment continued to grow in 
June.  The unemployment rate rose by two-tenths of a 
percentage point to 5.0 percent, but remained below its 
year-earlier level.

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

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