~xs~ I 0. S. DEPARTMENT OF LABOR OFFICE OF INFORMATION, WASHINGTON, D. C. 20210 USDL - 8532 FOR RELEASE: 10:00 a. m. Wednesday, January 10, 1968 U. S. Department of Labor BLS, 961-2634 THE EMPLOYMENT SITUATION: DECEMBER 1967 Employment continued to rise in December, while unemployment declined for the second consecutive month, the U. S. Department of Labor*s Bureau of Labor Statistics reported today* The following developments highlighted the over-the-month picture: 1* Nonfarm payroll employment rose 200,000 above seasonal expecta- tions to 67*1 million in December* Significant employment increases were registered in contract construction, manufacturing, and State and local government. 2. Unemployment declined to 2*7 million in December, about the same as a year earlier. After seasonal adjustment, the jobless total was 100,000 below the November level and 450,000 below October. The Nation*s unemployment rate stood at 3.7 percent of the civilian labor force, a decline of two-tenths over the month and six-tenths from the 1967 high in October. 3. Unemployment rates for all age, sex, and color groups returned to the levels of early 1967 after deteriorating during the middle of the year. Industry Employment Nonfarm payroll employment grew by 200,000 (seasonally adjusted) between November and December, the third consecutive month of substantial gains. Over-the-raonth increases of 50,000 each were registered in contract construction, manufacturing, and government. The increase in the number of workers on construction payrolls was the second significant advance in as many months. The payroll employment pickup in manufacturing would have been even greater if strike activity in that sector had not increased by 30,000 over the month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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~xs~I
0 . S. DEPARTM ENT OF LABORO F F I C E OF I N F O R M A T I O N , W A S H I N G T O N , D. C. 2 0 2 1 0
USDL - 8532
FOR RELEASE: 10:00 a. m.Wednesday, January 10, 1968
U. S. D ep ar tm en t of Labor BLS, 9 6 1 - 2 6 3 4
THE EMPLOYMENT SITUATION: DECEMBER 1967
Employment continued to rise in December, while unemployment
declined for the second consecutive month, the U. S. Department of Labor*s
Bureau of Labor Statistics reported today* The following developments
highlighted the over-the-month picture:
1* Nonfarm payroll employment rose 200,000 above seasonal expectations to 67*1 million in December* Significant employment increases were registered in contract construction, manufacturing, and State and local government.
2. Unemployment declined to 2*7 million in December, about the same as a year earlier. After seasonal adjustment, the jobless total was 100,000 below the November level and 450,000 below October. The Nation*s unemployment rate stood at 3.7 percent of the civilian labor force, a decline of two-tenths over the month and six-tenths from the 1967 high in October.
3. Unemployment rates for all age, sex, and color groups returned to the levels of early 1967 after deteriorating during the middle of the year.
Industry Employment
Nonfarm payroll employment grew by 200,000 (seasonally adjusted) between November and December, the third consecutive month of substantial gains. Over-the-raonth increases of 50,000 each were registered in contract construction, manufacturing, and government. The increase in the number of workers on construction payrolls was the second significant advance in as many months. The payroll employment pickup in manufacturing would have been even greater if strike activity in that sector had not increased by 30,000 over the month.
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The Employment SituationPago 2January 10, 1968
Hours and Earnings
Average hourly earnings for rank and file workers in every sector except retail trade increased over the month0 At $2,71 in December, hourly earnings for these workers were up 12c (4.6 percent) from a year earlier.
The workweek for manufacturing production workers averaged 41.1 hours in December, down 0.2 hour from a year ago. After seasonal adjustment, the factory workweek has remained between 40.7 and 40.8 hours since August, up from the 40.4 hours average of the February-July period, but below the 1965 and 1966 levels.
Total Employment
Total employment, at 75.3 million, was 100,000 above November levels, although a decline is normal between November and December. Agricultural employment, which usually drops more than 500,000 in December, declined by only 200,000 last month. Wet weather delayed the harvesting season, resulting in many agricultural workers being employed later into the year.
Unemployment
Unemployment was down for the second month, returning to the levels of early 1967. The December level was 200,000 below the June-Octobcr 1967 average- of 3.1 million (seasonally adjusted).
The drop in unemployment was widespread. Jobless rates for adult men and teenagers (2.2 and 12.8 percent, respectively, in December) have declined for 2 consecutive months. The December rate for adult women,4.1 percent, was about the same as in November, but was well below the nearly 5 percent rates of September and October.
The unemployment rates for both white and nonwhite workers have declined in each of the last 2 months. However, the nonwhite rate in December, 6.9 percent, remained more than double the. white rate, 3.3 percent.
State insured unemployment rose less than seasonally in mid-December and was below year earlier levels for the first time since February. The insured unemployment rate, at 2.2 percent, was down one-tenth from last month and down two-tenths from October.
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The Employment SituationPage4 3January 10, 1968
The Year in Review
Total employment averaged 74.4 million in 1967, 1.5 million more than in 1966. Although this advance is well above the average growth in the 1960's (1.2 million), it was 300,000 less than the 1966 increase and the smallest gain since 1963. Total employment showed little sustained growth during the first half of the year but. picked up strongly after June.
Industry Deve 1 opmonts„ Total noni'arm payroll employment, at 66.1 million in 1967, was up 2.1 million from 1966. The 1967 increase was less than in 1966 (3.2 million) and 1965 (2.5 million), but otherwise was the largest annual increase since 1951. Almost all of the 1967 rise took place in the service-producing sector, with government (750,000), trade (500,000) and miscellaneous services (500,000) showing the largest pickups.
Manufacturing employment, which had risen by 1.1 million in 1966, increased by only 150,000 last year. Inventory readjustments, the automobile strike, a leveling off in capital investment, and sluggish retail sales all contributed to the weakened employment picture in manufacturing last year. The durable goods sector was hit hardest by these factors; in 1967 durable goods employment rose by only 75,000 compared to 850,000 in 1966.
In 1967, hourly earnings for nonsupervisory employees on private nonagricultural payrolls averaged $2.67--up 12 cents (or 4.7 percent) over 1966.,. Bec-ause of increased consumer prices, real hourly earnings rose only 4c or 1.8 percent between 1966 and 1967 (based on preliminary 11-month averages).
The workweek for manufacturing production workers, 40.6 hours in 1967, was below the highs of 1966 (41.3 hours) and 1965 (41.2 hours).Except for those 2 years, however, the 1967 workweek was about equal to the highest levels since World War II. The reduction in manufacturing overtime (from 3.9 hours in 1966 to 3.4 hours in 1967) accounted for most of the drop in weekly hours.
Labor Force. The total labor force averaged 80.8 million in 1967, up 1.9 million from 1966. More than 300,000 of the expansion was accounted for by growth of the Armed Forces.
The civilian labor force reached 77.3 million during 1967--up 1.6 million over last year. All of the over-the-year increase in the labor force took place among adults--about 600,000 men and 1.0 million women-- while the teenage labor force was virtually unchanged. The big population
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The Employment SituationPage 4January 10, 1968
group born soon after World War II has now moved out of the teens into the early twenties. Approximately 500,000, or about one-third of the 1967 labor force growth, took place in the 20-24 age group.
Unemployment. The unemployment picture for 1967 as a whole was virtually unchanged from that of the previous year. The number of unemployed persons, averaging 2.9 million in 1967, was up slightly (100,000) from a year earlier. However, because of the large labor force growth, the total unemployment rate--3.8 percent--was unchanged.
The unemployment rate moved up gradually during most of 1967-- from 3.7 percent in the first 4 months of the year to slightly above 4 percent in September and October. Declines in unemployment in November and December, however, brought the jobless rate back to the low levels of late 1965 and early 1966.
* * * * * * *
This r e l e a s e p r e se n t s and a n a ly z e s s t a t i s t i cs f rom tu.o m a j o r s u r v e y s . Data on labor f o r c e , total e m p lo y m e n t , and unemployment a r e de r iv ed f ro m the sample su rvey of households conducted and tabulated by the B u re a u of the C en su s for the B u r e a u of L a b o r S t a t i s t i c s . S t a t i s t i c s on industry e m p lo y m e n t , h ours , and e a r n in g s a r e co l l e c t e d by State a g e n c i e s f ro m payrol l r e c o r d s of e m p l o y e r s and a r e tabulated by the B u r e a u of L a b o r S t a t i s t i c s . A d e s c r i p t i o n of the two s u r v e y s a p p e a r s in the B L S publication E m p lo y m e n t and E a r n i n g s and Monthly R e p o rt on the L a b o r F o r c e .
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Table A. Employment Status of Noninstltutlonal Population lb Years and Over, 1965-1967
Em ployed........................................................................Agriculture.................................................................Nonagricultural in d u stries ................................
C ivilian labor f o r c e ........................................................ 4 5 , 5 2 8 4 5 , 5 7 9 4 4 , 7 1 6 4 5 , 8 1 1 4 5 , 5 6 3 4 5 , 5 1 3 4 5 , 4 7 6 4 5 , 5 5 9
F.mployed........................................................................Agriculture.................................................................Nonagricultural in d u stries..................................
Em ployed........................................................................Agriculture ...............................................................Nonagricultural in d u stries..................................
C ivilian labor f o r c e ........................................................ 6 , 0 3 3 6 , 0 4 9 6 , 2 8 8 6 , 3 5 1 6 , 4 0 9 6 , 3 9 2 6 , 2 7 6 6 , 5 8 5
Em ployed........................................................................A griculture.................................................................Nonagricultural in d u stries..................................
Durable g o o d s ....................................................... 407 320 3 .4 3 .2 3 .6 3 .7 3 .4 2 .7Nondurable g o o d s ................................................ 315 309 3 .5 3 .8 4 . 8 4 . 5 4 . 5 3 .5
Transportation and public u tilities ................. 96 80 2 .1 2 .5 2 .6 2 .4 2 .6 1 .8W holesale and reta il t r a d e .................................... 44 5 4 1 0 4 . 2 4 . 5 5 .0 5 .1 4 . 2 4 . 1Finance and aervice in d u str ie s .......................... 4 8 6 4 8 0 3 .6 3 .8 4 .2 4 .0 " 3 .5 3 . 8
Government wage and salary w orkers.................... 193 172 2 .1 1 .9 2 .2 2 .1 1 .5 1 .9Agricultural wage and salary w orkers.................... 85 91 4 . 9 7 .8 8 .6 1 1 .1 7 .1 6 .2
^Insured unemployment under State programs as a percent of average covered employment. ^Man-hours lost by the unemployed and persons on part time for economic reasons as a 3
percent of potentially available labor force man-hours. Includes mining, not shown separately.
Tablo A-4: Full-and part-time status of the civilian labor force
Unemployment r a te ............................................................................................................................................ 6 .5 5 .5 3 .5 1 2 .2
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Table A-5: Employed persons by age and sex
(In thousands)
Age and sex
'local. 16 years and over
16 to 19 years .........16 and 1 ' years . . . 18 and 19 years . . .
?0 to 24 y e a r s ...........2 ̂ years and over . . .
}*> to *>4 years . . . . 55 years and over .
Males. 16 years and over.
16 to 19 years . .16 and 17 years .18 and 19 years . . .
20 to 24 y e a r s ...........25 years and over. . ■ ■
25 to 54 years 55 years and over .
Females, 16 years and over .
16 to 19 y e a r s ...........16 and 17 years . .. 18 and 19 years . . .
MANUFACTURING........................ 1 9 , 4 7 6 1 9 , 5 « 5 19,38 8 1 9 ,5 3 ^ - 7 2 - 5 8 1 9 , 4 6 9 1 9 , 4 1 8 1 9 , 1 6 9 5 1P r o d u c t io n w o r k e r s ....................... I S 3 2 7 1 4 , 4 0 4 1 4 , 2 4 9 l k , 5 1 3 - 7 7 -18 6 1 4 , 3 0 8 1 4 , 2 7 9 1 4 , 0 3 4 2 9
D U R A B L E G O O D S .................................. 1 1 , 4 0 0 1 1 , 4 2 2 1 1 , 2 2 3 1 1 ,5 1 6 -22 - 1 1 6 11 ,3 8 0 1 1 , 3 5 8 1 1 , 1 4 3 22P r o d u c t io n w o r k e r s ....................... 8 , 3 3 2 8 ,3 5 7 8 ,16 3 8 ,528 - 2 5 -19 6 8 , 3 0 5 8 , 2 9 3 8,083 12
Ordnance and a c c e s s o r ie s ................. 308.0 3 0 5 -* * 3 0 1 . 3 2 7 2 . 7 2 .6 3 5 . 3 3 0 7 3 0 3 300 4
N O N D U R A B L E G O O D S ........................ 8 ,076 8 ,12 6 8 , 1 6 5 8 ,018 - 5 0 5 8 8,089 8,060 8,026 29P r o d u c t io n w o r k e r s ....................... 5 , 9 9 5 6 , 0 4 7 6,086 5 , 9 8 5 - 5 2 10 6 , 0 0 3 5 , 9 8 6 5 , 9 5 1 1 7
W H O L E S A L E T R A D E ........................ 3 , 6 3 6 3,628 3 , 5 9 9 3 , 5 3 k 8 102 3 , 5 9 6 3 , 5 9 9 3 , 5 6 7 - 3R E T A I L T R A D E ...................................... 1 1 , 1 3 9 1 0 , 4 8 5 10,209 1 0 , 7 1 4 6 5 4 4 2 5 10 ,3 14 10 ,3 10 1 0 , 2 0 9 4
F E D E R A L .................................................... 2 , 8 1 9 2 , 7 0 9 2 , 7 0 7 2 , 7 6 9 110 5 0 2 ,692 2,698 2 , 7 1 2 -6S T A T E A N D L O C A L ............................ 9 , 3 2 2 9 , 2 9 3 9 ,16 9 8 ,728 2 9 5 9 k 9 , 1 8 4 9 , 1 2 9 9 , 0 3 3 5 5
N O TE: Data for the 2 most recent months are preliminary.
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Table B-2: A verage weekly hours of production or nonsupervisory workers1on private nonagricultural payrolls, by industry
Industry D o c .1 9 6 7
0 On
5£ H O ct.1 9 6 7
D e c .1 9 6 6
Change fromSeasonally adjusted
D e c .1 9 6 7
N ov.
I $ t f 7O ct.1 9 6 7
Changeborn
N o v .
1 9 6 7 ____
N ov.1 9 6 7
D e c . 1 9 6 6
T O T A L P R IV A T E .......................... 3 8 . 1 3 8 . 1 3 8 . 1 3 8 . 6 0 . 0 - 0 . 5 3 7 . 9 3 8 . 3 3 8 . 0 -0 .1+
O w r rta i Soars.................................. 3 . 6 3.1* 3 - 5 3 . 7 . 2 3 . 5 3 . 3 3 - 1* . 2
D U R A B L E G O O D S ................................. L 1 . 7 1 * 1 .2 1+1.1* 1 * 2 .1 . 5 1 * 1 .3 1 * 1 .2 1 * 1 .3 . 1O vertim * Boars.................................. 3 . 7 3 . 5 3 . 7 l * . l . 2 - .1 * 3 . 5 3.1* 3 - 5 . 1
N O N D U R A B L E G O O D S ....................... 1 * 0 .2 1 * 0 .1 3 9 . 9 1+0.1 . 1 . 1 1+0.0 1+ 0.1 3 9 . 7 - . 1O vertim e Boars..................................... 3.1* 3 . 3 3-1* 3 . 3 . 1 . 1 3-1* 3 . 2 3 . 2 . 2
WHOLESALE AND RETAIL TRADE. 36 .1 * 3 6 . 1 3 6 . 2 3 7 - 0 • 3 - . 6 3 6 . 1 3 6 . 5 3 6 . 3 - .1 *W H O L E S A L E T R A D E ........................ 1*0.1* 1 * 0 .3 1 * 0 .3 1+ 0 .9 .1 - . 5 1 * 0 .1 1 * 0 .3 1 * 0 .3 -.2R E T A I L T R A D E ...................................... 3 5 . 3 31*. 8 3 1 *.9 3 5 . 9 • 5 - . 6 3 5 . o 3 5 . 2 3 5 . 1 -.2
If)ala relate to production worker* in mining and manufacturing: to construction workers in contract construction: and to nonsuperviaory workers in wholesale and retail trade; finance, insurance, and real estate; transportation and public utilities; and service*. These groups account for approximately four-fifths of the total employment on private nonagricultural payrolls. Transi»rtatlon and public utilities, and services are included in Total Private but are not shown separately in this tab le.
NOTE: Data for the 2 most recent months are preliminary.
Table B-3: Average hourly and weekly earnings of production or nonsupervisory w orkers1*on private nonagricultural payrolls, by industry
I n d u s t r y
A v e r a g e h o u rly e a r n in g s A v e r a g e w e e k ly e a r n in g s
Dec.1967
Nov.1 9 6 7
O ct.1 9 6 7
Dec.1966
C h a n g e fro m Dec.1967
t f o v .
1967O ct.1 9 6 7
Dec.1966
C h a n g e fro m
Nov.1 0 6 7
Dec.1066
Nov. 1 9 6 7 _
Dec.1 9 6 6
T O T A L P R IV A T E .......................... $ 2 . 7 1 $ 2 .7 2 $ 2 . 7 1 $ 2 . 5 9 $ - 0 .0 1 $ 0 .1 2 $ 1 0 3 . 2 5 $ 10 3.63 $ 1 0 3 . 2 5 $ 9 9 . 9 7 $ - 0 . 3 8 $ 3.28