June 1998 — 1998-06-05

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. Nonfarm payroll employment continued to increase in May, and the unemployment rate was unchanged following a sharp decline in April. At 4.3 percent for the second consecutive month, the unemployment rate is at its lowest level since early 1970. The number of employees on nonfarm payrolls rose by 296,000 in May, after seasonal adjustment, somewhat above the average monthly gain of 260,000 for the 12 months ending in April. All of the net job growth in May occurred in the service-producing sector. The services industry itself added 151,000 jobs, a large increase following 3 months of below-average gains.