December 1996 — 1996-12-06

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 Standard Time. Good morning. I am pleased to have this opportunity to comment on the employment and unemployment data released this morning. Nonfarm payroll employment increased modestly in November, and the unemployment rate edged up to 5.4 percent; it had been 5.2 percent in September and October. Total nonfarm employment rose by 118,000 in November; this increase is about equal to the average for September and October, but less than half of the average for the first 8 months of the year. The declines in government employment that we have reported in recent months have contributed to slower overall employment growth. As I will discuss later, however, these declines are mostly an artifact of changing seasonal patterns in local education.