Commissioner's Statement on the Employment Situation — 2003-07-03

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 Daylight Time. The labor market remained sluggish in June. The unemployment rate rose to 6.4 percent, and total nonfarm payroll employment was essentially unchanged. Construction and some service-providing industries added jobs. These gains, however, were offset by the continuing erosion of employment in manufacturing, telecommunications, and air transportation, as well as losses in other industries. Thus far in 2003, payroll employment has decreased, on net, by 236,000. Manufacturing employment was down by 56,000 in June. This is in line with its trend for the prior 12 months. Nearly all manufacturing industries have been shedding jobs for more than 2 years, and total factory employment has declined by 2.6 million since its most recent peak in July 2000.