August 1998 — 1998-08-07

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. The unemployment rate was unchanged at 4.5 percent in July. Total nonfarm job growth was just 66,000, following a gain of 196,000 in the prior month. Strikes at two plants led to shutdowns and layoffs affecting workers in several auto-related industries. Manufacturing employment, which declined by 176,000 over the month, was heavily affected by the strikes and resulting plant shutdowns. Auto manufacturing, with a drop of 111,000 jobs, was hardest hit. There also were noteworthy losses in fabricated metals due to the idling of automobile stamping plants.