Employment Situation At a Glance
- Total Employment: 145,819 thousand
- Nonfarm Payroll Employment: 137,615 thousand
- Monthly Change: Down 51,000
- Unemployed Persons: 8.784 million
- Unemployment Rate: 5.7%
- Change: Up 0.2%
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THE EMPLOYMENT SITUATION: JULY 2008
The unemployment rate rose to 5.7 percent, and nonfarm payroll employment continued to trend down
in July (-51,000), the Bureau of Labor Statistics of the U.S. Department of Labor reported today. Employ-
ment continued to fall in construction, manufacturing, and several service-providing industries, while health
care and mining continued to add jobs. Average hourly earnings rose by 6 cents, or 0.3 percent, over the
month.
Unemployment (Household Survey Data)
Both the number of unemployed persons (8.8 million) and the unemployment rate (5.7 percent) rose in
July. Over the past 12 months, the number of unemployed persons has increased by 1.6 million, and the
unemployment rate has risen by 1.0 percentage point. (See table A-1.)
Over the month, the unemployment rates for adult men (5.3 percent) and whites (5.1 percent) edged up
while the rates for adult women (4.6 percent), blacks (9.7 percent), and Hispanics (7.4 percent) were little
changed. The jobless rate for teenagers increased to 20.3 percent in July. The unemployment rate for Asians
was 4.0 percent in July, not seasonally adjusted. (See tables A-1, A-2, and A-3.)
Among the unemployed, the number of reentrants to the labor force in July rose by 207,000 to 2.7 mil-
lion. The number has increased by 623,000 over the past 12 months. The number of unemployed persons
who had lost their last job was about unchanged over the month at 4.4 million, but has risen by 778,000 over
the year. (See table A-8.)
Total Employment and the Labor Force (Household Survey Data)
The civilian labor force, at 154.6 million, was little changed in July, and the labor force participation
rate remained at 66.1 percent. Total employment, at 145.8 million, was about the same as in June. The
employment-population ratio, at 62.4 percent in July, was the same as in the prior month but was down from
its most recent high of 63.4 percent in December 2006. (See table A-1.)
In July, the number of persons who worked part time for economic reasons rose by 308,000 to 5.7 mil-
lion and has risen by 1.4 million over the past 12 months. This category includes persons who indicated that
they would like to work full time but were working part time because their hours had been cut back or they
were unable to find full-time jobs. (See table A-5.)
Persons Not in the Labor Force (Household Survey Data)
About 1.6 million persons (not seasonally adjusted) were marginally attached to the labor force in July,
an increase of 197,000 over the past 12 months. These individuals wanted and were available for work and
had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they
had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, there were
461,000 discouraged workers in July, 94,000 more than a year earlier. Discouraged workers were not cur-
rently looking for work specifically because they believed no jobs were available for them. The other 1.1
million persons marginally attached to the labor force in July had not searched for work in the 4 weeks
preceding the survey for reasons such as school attendance or family responsibilities. (See table A-13.)
Industry Payroll Employment (Establishment Survey Data)
Total nonfarm payroll employment continued to trend down (-51,000) in July. Thus far in 2008, payroll
employment has fallen by 463,000. Over the month, employment continued to decline in manufacturing,
construction, employment services, wholesale trade, and the information industry. Health care and mining
continued to add jobs over the month. (See table B-1.)
Manufacturing employment fell by 35,000 in July, bringing losses over the past 12 months to 383,000.
Over the month, job losses were widespread with notable declines in transportation equipment (-8,000),
wood products (-4,000), and textile mills (-3,000). Machinery added 6,000 jobs over the month.
Employment in construction was down by 22,000 in July. Construction has shed 557,000 jobs since its
September 2006 employment peak, with nearly three-quarters of the decline occurring since October 2007.
Nearly all of the July employment decrease came among specialty trade contractors (-20,000), with both the
residential and nonresidential components contributing to the decline.
Within professional and business services, employment services lost 34,000 jobs in July, with nearly all
of the decline in temporary help services (-29,000). Since January 2008, employment in temporary help
services has declined by 185,000. Computer systems design and related services added 7,000 jobs in July.
Wholesale trade employment decreased by 17,000 over the month, with declines in both the durable and
nondurable components. Since its peak in November 2007, wholesale trade has lost 57,000 jobs.
Employment in the information industry declined by 13,000 in July and by 44,000 over the past 12
months. Telecommunications lost 5,000 jobs in July.
Over the month, employment in retail trade continued to trend down. Since its peak in March 2007,
retail trade has lost 211,000 jobs. Employment in motor vehicle and parts dealers fell by 11,000 in July,
bringing declines in that industry to 35,000 since January 2008.
Employment in health care continued to increase with a gain of 33,000 in July. This industry has added
368,000 jobs over the past 12 months. In July, there were job gains of 21,000 in ambulatory health care
services and 10,000 in hospitals.
In July, employment continued to grow in mining (10,000). Mining employment has expanded by
222,000, or 45 percent, since reaching a low in April 2003. Most of this increase has occurred in oil and gas
extraction and in support activities for this industry.
Weekly Hours (Establishment Survey Data)
In July, the average workweek for production and nonsupervisory workers on private nonfarm payrolls
fell by 0.1 hour to 33.6 hours, seasonally adjusted. Both the manufacturing workweek and factory overtime
were unchanged over the month at 41.0 and 3.8 hours, respectively. (See table B-2.)
The index of aggregate weekly hours of production and nonsupervisory workers on nonfarm payrolls
fell by 0.4 percent in July to 106.6 (2002=100). The manufacturing index decreased by 0.1 percent to 91.6.
(See table B-5.)
Hourly and Weekly Earnings (Establishment Survey Data)
In July, average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls
rose by 6 cents, or 0.3 percent, to $18.06, seasonally adjusted. This followed gains of 6 cents in May and 5
cents in June. Average weekly earnings, at $606.82, were about unchanged in July. Over the past 12
months, average hourly earnings increased by 3.4 percent and average weekly earnings rose by 2.8 percent.
(See tables B-3 and B-4.)
Statement of Commissioner Bureau of Labor Statistics
before the
Joint Economic Committee
UNITED STATES CONGRESS
Friday, August 1, 2008
Madam Chair 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 continued to trend down in July
(-51,000), and the unemployment rate rose from 5.5 to 5.7 percent.
Thus far in 2008, payroll employment has fallen by 463,000, or an
average of 66,000 per month. In July, job losses continued in
several industries, including construction, manufacturing, and
employment services. Health care and mining continued to add
jobs.
Employment in construction declined by 22,000 in July.
Since its September 2006 peak, construction employment has
decreased by 557,000. Nearly three-fourths of the decline
(-402,000) has occurred since October 2007.
Manufacturing employment fell by 35,000 in July. Job losses
have averaged 39,000 per month thus far in 2008 compared with an
average loss of 22,000 per month during 2007.
Employment services lost 34,000 jobs over the month, with
nearly all of the decline in temporary help. Temporary help
employment has declined by 268,000 since a peak in December 2006,
with more than two-thirds of the loss (-185,000) occurring since
January.
In July, employment in health care rose by 33,000, in line
with the prior 12-month average. Mining added 10,000 jobs in
July, the third consecutive gain of this magnitude.
Average hourly earnings for production and nonsupervisory
workers in the private sector rose by 6 cents, or 0.3 percent, in
July. Over the past 12 months, average hourly earnings rose by
3.4 percent. From June 2007 to June 2008, the Consumer Price
Index for Urban Wage Earners and Clerical Workers (CPI-W) rose by
5.4 percent.
Turning now to some of our measures from the household
survey, both the number of unemployed persons, at 8.8 million,
and the unemployment rate, at 5.7 percent, increased in July.
Over the last 3 months, there has been a notable increase in
unemployment of youth (16 to 24 years). Each summer, millions of
young people move into the labor market. This year, the
summertime influx of youth into the labor market was about the
same as last year; however, fewer young people were able to find
jobs. For the 3-month period, May through July, the unemployment
rate for 16- to 19-year-olds averaged 19.0 percent, compared with
an average of 15.7 percent for those same 3 months in 2007.
Similarly, the May-through-July average jobless rate for 20- to
24-year-olds was 10.2 percent this year, compared with 8.0
percent over the same period last year. Not all of the increase
in unemployment in the last 3 months was among youth; joblessness
also rose among those 25 years and older.
The employment-population ratio for all persons 16 years and
older was unchanged in July, at 62.4 percent, but has declined
from 63.0 percent a year earlier. Among the employed, the number
of part-time workers who would prefer to work full time continued
to rise in July. The number of such workers has increased by 1.4
million over the past 12 months to 5.7 million.
To summarize July’s labor market developments, payroll
employment continued to trend down, and the unemployment rate
rose to 5.7 percent.
My colleagues and I now would be glad to answer your
questions.
Employment Situation - July 2008 [PDF]
Commissioner\’s Statement - July 2008 [PDF]
Source: Department of Labor, Bureau of Labor Statistics
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