August 1997 — 1997-08-01

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. Mr. Chairman and Members of the Committee: I would like to thank you for this opportunity to comment on the employment and unemployment data that were released this morning. Nonfarm payroll employment grew by 316,000 in July, driven by strong growth in the service-producing sector. The unemployment rate, which had risen to 5.0 percent in June, returned to its May level of 4.8 percent. Employment in the services industry grouping, which accounts for about a third of the broader service-producing sector, grew by 113,000, about in line with its average monthly growth in the first half of 1997. Health services employment increased by 31,000, rebounding from an uncharacteristically weak June. Employment growth in engineering and management services also was quite strong.