The Us Employment Situation: June 2007

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THE EMPLOYMENT SITUATION: JUNE 2007

Nonfarm payroll employment increased by 132,000 in June, and the unemploy-
ment rate was unchanged at 4.5 percent, the Bureau of Labor Statistics of the
U.S. Department of Labor reported today. Employment rose in several service-
providing industries, while manufacturing employment continued to decline.
Average hourly earnings rose by 6 cents, or 0.3 percent, over the month.

Unemployment (Household Survey Data)

The number of unemployed persons (6.9 million) was essentially unchanged in
June, and the unemployment rate held at 4.5 percent. The jobless rate has ranged
from 4.4 to 4.6 percent since September 2006. Over the month, the unemployment
rates for adult men (4.1 percent), adult women (3.9 percent), teenagers (15.8 per-
cent), whites (4.0 percent), blacks (8.5 percent), and Hispanics (5.7 percent)
showed little or no change. The unemployment rate for Asians was 3.1 percent, not
seasonally adjusted. (See tables A-1, A-2, and A-3.)

Total Employment and the Labor Force (Household Survey Data)

Both total employment (146.1 million) and the civilian labor force (153.1
million) were little changed in June. The employment-population ratio (63.1
percent) and the labor force participation rate (66.1 percent) also were about
the same as in May. (See table A-1.)

Persons Not in the Labor Force (Household Survey Data)

In June, 1.5 million persons (not seasonally adjusted) were marginally at-
tached to the labor force compared with 1.6 million a year earlier. These
individuals wanted and were available to work and had looked for a job sometime
during 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 mar-
ginally attached, there were 401,000 discouraged workers in June, down from
481,000 a year earlier. Discouraged workers were not currently looking for work
specifically because they believed no jobs were available for them. The remain-
ing 1.1 million persons marginally attached to the labor force in June had not
searched for work in the 4 weeks preceding the survey for reasons such as school
attendance and family responsibilities. (See table A-13.)


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Industry Payroll Employment (Establishment Survey Data)

In June, total payroll employment rose by 132,000 to 138.0 million, seasonally
adjusted. This increase followed gains of 122,000 in April and 190,000 in May
(as revised). In June, employment rose in health care and social assistance, food
services, and wholesale trade. Manufacturing continued to lose jobs. (See table B-1.)

Health care employment grew by 30,000 in June, with gains in hospitals (+14,000)
and in nursing and residential care facilities (+8,000). Over the year, health care
employment has expanded by 371,000. Employment in social assistance was up by 13,000
over the month. This industry has added 84,000 jobs in the last 12 months.

Food services and drinking places added 35,000 jobs in June. Employment in this
industry has risen by 387,000 over the year. In June, wholesale trade employment in-
creased by 20,000, with gains in both its durable and nondurable components.

Employment in government continued to trend up in June (+40,000). Over the year,
state and local governments together added 347,000 jobs, while federal employment
was about unchanged.

Professional and business services employment was little changed in June. During
the first 6 months of 2007, job growth in the industry averaged 13,000 per month com-
pared with an average of 42,000 per month in the last half of 2006.

In financial activities, employment in credit intermediation and related activi-
ties fell by 9,000. This loss was partially offset by a job gain in securities, com-
modity contracts, and investments (+6,000). Retail trade employment edged down in June.
General merchandise stores lost 10,000 jobs over the month, and smaller declines oc-
curred among other retail industries.

Manufacturing employment continued to trend down in June (-18,000). Job losses
occurred in several component industries including primary metals (-5,000), computer
and electronic products (-4,000), wood products (-4,000), and textile mills (-2,000).
Partially offsetting the declines, machinery (+6,000) and beverages and tobacco pro-
ducts manufacturing (+3,000) added jobs over the month.

Elsewhere in the goods-producing sector, employment in construction was little
changed over the month. Since its most recent peak in September, construction em-
ployment has declined by 44,000.

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Weekly Hours (Establishment Survey Data)

In June, the average workweek for production and nonsupervisory workers on
private nonfarm payrolls increased by 0.1 hour to 33.9 hours, seasonally ad-
justed. Weekly hours for factory workers rose by 0.2 hour to 41.3 hours, while
factory overtime hours increased by 0.1 hour to 4.3 hours. (See table B-2.)

The index of aggregate weekly hours of production and nonsupervisory workers
on private nonfarm payrolls rose by 0.5 percent in June to 107.8 (2002=100). The
manufacturing index increased by 0.3 percent to 95.6. (See table B-5.)

Hourly and Weekly Earnings (Establishment Survey Data)

Average hourly earnings of production and nonsupervisory workers on private
nonfarm payrolls increased by 6 cents, or 0.3 percent, in June to $17.38, sea-
sonally adjusted. This increase followed gains of 4 cents in April and 7 cents
in May. Average weekly earnings grew by 0.6 percent over the month to $589.18.
Over the year, both average hourly and weekly earnings rose by 3.9 percent.
(See table B-3.)

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