March 1996 — 1996-03-08

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 time. Mr. Chairman and Members of the Committee: I appreciate the opportunity to comment on the labor market data released this morning. Nonfarm payroll employment jumped by 705,000 in February, and the unemployment rate fell to 5.5 percent, down from 5.8 percent in January. The jobless rate has fluctuated between 5.4 percent and 5.8 percent since the last quarter of 1994. The 705,000 rise in payroll employment followed a decline of 188,000 in January. The January decline reflected the severe weather in that month. Viewing Februarys large increase together with Januarys decline yields an average monthly gain of 259,000. The largest increase in employment over the month was in the services industry (287,000). January's weather- related declines in private education and amusement and recreation services were reversed.