March 8, 2002 — 2002-03-08

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. I appreciate this opportunity to comment on the labor market data that we released this morning. We are reporting today that nonfarm payroll employment was up by 66,000 in February, following losses that averaged 146,000 a month between the beginning of the recession in March 2001 and January 2002. The largest increase occurred in retail trade, but we suggest caution in interpreting that figure as a sign of strength for that industry, as I will explain in more detail later in this statement. Aside from retail trade, nonfarm payroll employment on net was little changed in February. Employment did rise in health services, and mild weather helped boost the number of jobs in construction. There were employment declines in manufacturing, mining, wholesale trade, and finance.