April 6, 1999 (The Editor’s Desk is updated each business day.)
1998 job growth in several major
industries outpaces 5-year average
In 1998, total nonfarm payroll employment
increased 2.3 percent, down slightly from the 2.6 percent average gain reported from 1993
to 1997. However, some major industries experienced job growth that was substantially
higher than their 1993-97 average, notably finance, insurance, and real estate;
government; and construction.
[Chart data—TXT]
In construction, employment rose by 314,000 in 1998, following average increases of
251,000 the previous five years. Low interest rates, especially for home building, pushed
construction activity higher; spending on single-family home construction increased by 15
percent in constant dollars during 1998.
In finance, insurance, and real estate, the 269,000 employment increase in 1998 was
161,000 greater than the average from 1993 to 1997. Finance added 86,000 more jobs than
its previous five-year average; insurance added 51,000 more jobs; and real estate added
24,000 more jobs. Again, low interest rates, by affecting demand both for home financing
and for interest-sensitive securities, fueled the increased job growth.
Federal, State, and local governments all contributed to the increased net hiring in
government. After 5 years of reductions that averaged 51,000 per year, Federal employment
showed a small gain in 1998. The 1998 increase in State government employment of 72,000
jobs was about double the previous 5-year average.
These employment data by industry are produced by the BLS Current Employment Statistics program. More information may be obtained
from "Job growth slows during crises
overseas", Monthly Labor Review, February 1999. The employment changes in
this article are based on the change in seasonally adjusted employment data from the
fourth quarter of 1997 to the fourth quarter of 1998.
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
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