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Statement of
Kathleen P. Utgoff
Commissioner
Bureau of Labor Statistics
Friday, September 6, 2002

Both the unemployment rate, at 5.7 percent, and
nonfarm payroll employment, at 130.8 million, were little
changed in August.

Payroll employment has risen slightly

since April, and the unemployment rate has shown no clear
trend.
The number of unemployed was 8.1 million in August,
little different from the level in the prior month.

Among

the jobless in August, 2.8 million persons had been
unemployed for 15 weeks or more.

After steadily rising

since May 2001, this measure has declined by 320,000 over
the past 2 months.
Turning to data from our establishment survey, payroll
employment changed little in August (+39,000).

Employment

rose in services, government, and construction, but these
gains were largely offset by losses in manufacturing and

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retail trade.

Employment in other major private-sector

industries showed no substantial change in August.
Employment in the services industry rose by 100,000 in
August, compared to an average monthly gain of 62,000 in
the prior 5 months.

Over the month, employment in help

supply services increased by 51,000; this follows a loss of
30,000 in July.

Despite July’s decline, employment in the

industry has been on an upward trend since February, rising
by 165,000.

In health services, employment rose by 26,000

in August, about in line with the average for the prior 12
months.
Government employment was up by 41,000.

Job gains in

Federal and local governments more than offset losses in
State education.

Employment in the Federal government rose

by 20,000 in August, with the Transportation Security
Administration accounting for most of the increase.
In August, construction employment rose by 34,000,
reversing a loss of 30,000 jobs in the prior month.

The

level of employment in the industry is essentially the same
as in April.
After 4 months of losses that averaged 18,000, the
number of factory jobs fell more sharply in August,
declining by 68,000.
month.

Job losses were widespread over the

Within durable goods manufacturing, the largest

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employment declines were in electrical equipment,
industrial machinery, and fabricated metals.

In nondurable

goods manufacturing, the number of jobs in rubber and
plastics decreased by 7,000, offsetting an identical gain
in the prior month.
Retail employment fell by 55,000 in August, following
an increase of 33,000 in the prior month.
concentrated in department stores.

Declines were

Since reaching a peak

in June 2001, the number of jobs in retail trade has
decreased by 295,000.
Average weekly hours of production or nonsupervisory
workers edged up by 0.1 hour over the month, following a
decline of 0.3 hour in the prior month.

In August, the

manufacturing workweek and factory overtime were up by 0.1
hour and 0.2 hour, respectively.

Average hourly earnings

of private production or nonsupervisory workers increased
by 4 cents over the month.

Over the year, average hourly

earnings increased by 3.1 percent.
To summarize, both the unemployment rate and the
number of workers on nonfarm payrolls were little changed
in August.

Job growth accelerated in services, but

manufacturing employment had its largest decline since the
beginning of the year.