Employment and Unemployment Developments, May 1999 - Statistical Data Included

Employment and Earnings, June, 1999

The unemployment rate, at 4.2 percent, was little changed in May. The number of nonfarm payroll jobs edged up by 11,000, following a large increase of 343,000 in April (as revised). In May, substantial job losses occurred in manufacturing and construction, while the services industry had a relatively small gain.

Unemployment

The number of unemployed persons, 5.8 million, and the unemployment rate, 4.2 percent, were little changed in May. The rate has been below 4.5 percent since November 1998. Over the month, jobless rates declined for adult women (3.6 percent) and teenagers (12.6 percent). Unemployment rates for adult men (3.6 percent), whites (3.7 percent), blacks (7.5 percent), and Hispanics (6.7 percent) were virtually unchanged in May. (See tables A-3 and A-4.)

Total employment and the labor force

The civilian labor force, at 139.0 million, and the labor force participation rate, at 67.0 percent, were essentially unchanged from April. Total employment, at 133.2 million, also was little changed. The employment-population ratio--the proportion of the population age 16 and over with jobs--remained at 64.2 percent in May. (See table A-3.)

About 7.9 million persons (not seasonally adjusted) held more than one job in May. These multiple jobholders represented 5.9 percent of the total employed, compared with 6.2 percent a year earlier. (See table A-37.)

Persons not in the labor force

About 1.1 million persons (not seasonally adjusted) were marginally attached to the labor force in May. These were people who wanted and were available for work and had looked for a job sometime in the prior 12 months but were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. The number of discouraged workers--a subset of the marginally attached who were not currently looking for work specifically because they believed no jobs were available for them--was 256,000 in May. (See table A-36.)

Industry payroll employment

Nonfarm payroll employment was little changed in May at 128.2 million, seasonally adjusted, after a large increase of 343,000 (as revised) in April. In May, job losses in the goodsproducing industries were offset by modest growth in the service-producing sector. (See table B-3.)

In the goods-producing sector, construction employment fell by 40,000 in May, after seasonal adjustment. It had risen by about the same amount in April (as revised). Construction employment has fluctuated in recent months in part because of the unusual weather patterns this past winter. Since October 1998, however, the industry has added 194,000 jobs, about in line with the gain over the October 1997-May 1998 period.

Manufacturing employment continued to decline in May, with a loss of 45,000 jobs. Factory employment has decreased by 453,000 since its recent peak in March 1998. Over the month, large declines continued in industrial machinery (-8,000), apparel (-8,000), and aircraft (-6,000). Smaller losses occurred in electrical equipment, textiles, paper, and printing and publishing.

Job losses also continued in mining. Employment in the industry fell by 7,000 in May and has declined by 39,000 thus far in 1999. Most of the recent decline has been concentrated in oil and gas extraction.

In the service-producing sector, the services industry added 71,000 jobs in May, well below its average monthly gain of 125,000 over the prior 12 months. Business services added 42,000 jobs in May, with increases in personnel supply (13,000) and computer services (16,000) equal to their monthly averages over the prior 12 months. Growth in engineering and management services (13,000) fell short of its recent pace. Employment in health services was about unchanged in May, following a large increase in April. Both hotels and agricultural services had less seasonal hiring than normal, resulting in seasonally adjusted losses for May.

Retail trade employment was little changed in May, following a sharp rise in April. Over the month, declines occurred in food stores (13,000) and in building materials and garden supplies (5,000). Eating and drinking places added 23,000 jobs in May, after a larger gain in April. Although movements in retail employment have varied widely from month to month this year, average monthly growth thus far in 1999 (46,000) exceeds the 1998 monthly average (32,000).

Employment in transportation and public utilities increased by 13,000 in May, slightly below the industry's average growth over the prior 12 months. Transportation industries added 12,000 jobs, with trucking and air transportation each gaining 5,000. Communications continued its moderate growth trend.

In May, finance, insurance, and real estate added 12,000 jobs, well below its monthly average of 22,000 in the prior 12 months. Job growth in both finance and insurance has slowed this year compared with 1998. Wholesale trade employment edged down by 3,000 in May, compared with an average gain of 14,000 in the prior 12 months.

Government employment was little changed over the month. A decline in Federal employment (16,000) reflected the completion of some preliminary work on the decennial census. Local government education added 19,000 jobs.