October 1998 — 1998-10-02

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 the opportunity to comment on the labor market data released this morning. The unemployment rate was essentially unchanged in September at 4.6 percent, and nonfarm payroll employment rose slightly. Over the past three months, payroll employment gains have slowed markedly. After adjusting for the direct effects of the auto strike and related plant shutdowns, payroll employment rose by about 270,000 in July and about 160,000 in August. The September increase was just 69,000. The relatively weak September growth reflects an unusually small increase in services and job losses in manufacturing and construction. Manufacturing employment fell by 16,000 in September. Since its peak in March, employment in this industry has declined by 152,000.