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Employment and Earnings November 1972

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Employment and Earnings November 1972 EMPLOYMENT AMD EARNINGS VOL. 13 NO. 5 NOVEMBER 1972 Joseph M. Finerty, Editor Gloria P. Green, Associate Editor James A. McCall, Associate Editor Editors' Note Beginning with this issue, table C-10, Indexes of output per man-hour, hourly compensation, unit costs, and prices, private economy, seasonally adjusted (page 98) has been expanded to in- clude data on manufacturing and on nonfinancial corporations, A new table has also been added: C-11, Percent changes from preceding quarter and years in output per man-hour, hourly compen- sation, unit costs, and prices, private economy, seasonally adjusted at annual rate (page 99). CONTENTS Page Employment and unemployment developments, October I972 2 Charts 4 Monthly statistical tables 17 Technical note 126 CALENDAR OF FEATURES In addition to the monthly data appearing regularly in Employment and Earnings, special features appear in most of the issues, as shown below: Jan. Feb. Mar. Apr. May July Aug. Sept. Oct. Nov. Household data Annual averages x Revised seasonally adjusted series and current seasonal factors X Quarterly averages: Seasonally adjusted data Persons not in labor force X X X X Vietnam Era war veterans Establishment data National annual averages: Industry divisions (preliminary) x Industry detail (final) X Women employment (National) X X X X National data adjusted to new benchmarks (1) Revised seasonally adjusted series and current seasonal factors (1) State and area annual averages X Area definitions X The issue that introduces the establishment data adjusted to new benchmarks varies. The October 1972 issue marks the introduction of March 1971 benchmarks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Employment and Unemployment Developments, October 1972 Employment continued to rise in October, while 6.8 percent, largely because of a decline in unemploy- unemployment remained unchanged. The October job- ment in durable goods manufacturing. less rate, at 5.5 percent, was at about the same level as The average (mean) duration of unemployment was in the previous 4 months, following a decline from a 11.6 weeks in October (seasonally adjusted), down level of around 6 percent last year and early this year. from 12.2 weeks in September. Total employment increased by 260,000 in October Although the overall level of joblessness remained (seasonally adjusted), continuing the steady rise that stable in October, there was a 180,000 reduction (sea- began in 1971. Nonfarm payroll employment also rose sonally adjusted) in the number of unemployed workers substantially between September and October. who had lost their last job. This brought the jbb-loser total down to a level of 1.9 million, the lowest in over 2 years. Compared with a year ago, unemployment of Unemployment job losers has declined by 260,000, this being partially After seasonal adjustment, both the level and rate of offset by an increase among persons who quit their unemployment remained unchanged between September last job and began looking for another one. Job losers and October, at 4.8 million and 5.5 percent, respec- now comprise 41 percent of the total unemployed, tively. The actual number of jobless persons moved down from 45 percent last October. down 200,000 (to 4.5 million), but this decline was in line with the usual movement between these 2 months. Civilian labor force and total employment Unemployment rates for most of the major demo- graphic groups showed little or no change over the Total employment rose more than seasonally ex- month. Specifically, the jobless rates for adult men (3.9 pected between September and October and, after percent), adult women (5.5 percent), whites (5.0 per- seasonal adjustment, was up by 260,000 to 82.5 million. cent), Negroes (10.1 percent), household heads (3.4 This increase occurred among fujl-time jobholders, percent), and married men (2.8 percent) were essentially whose employment level advanced by 600,000 over the same as in September. The rate for teenagers, how- the month, while part-time employment declined. This ever, declined from 16.5 to 15.3 percent. Compared with situation was in marked contrast to developments over a year ago, unemployment rates were down moderately the previous several months when employment gains for adult men, married men, teenagers, and white work- had been concentrated among part-time workers. ers, while rates remained at about the same levels for Since last October, total employment has increased household heads, adult women, and Negroes. by over 2.3 million (after eliminating the effects of the Jobless rates were also basically unchanged between 1970 Census population control adjustment introduced September and October for most other major labor in January 1972). Adult men accounted for almost 1.1 force categories, including full-time workers, part-time million of this increase, adult women for 700,000, and workers, State insured workers, white- and blue-collar teenagers for more than 500,000. workers, and workers in nearly every major industry The civilian labor force grew to 87.3 million in Octo- group. There were two exceptions to this pattern: The ber (seasonally adjusted), reflecting the over-the-month rate for workers in service occupations dropped back to rise in the number of persons holding jobs. The labor the August level, and the rate for workers in the con- force has increased by 800,000 persons during the past struction industry rose from 9.2 to 10.6 percent. The 3 months, compared to only about 200,000 during the rate for factory workers was about unchanged, at 5.0 preceding 3-month period (April to July). Since last percent, but has fallen well below its 1971 average of October, the increase was 2.2 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Vietnam Era veterans Hours of work The unemployment rate for veterans 20 to 29 years The average workweek of production or nonsuper- of age was 6.4 percent (seasonally adjusted) in October, visory workers on private nonagricultural payrolls was about the same as the nonveteran rate (6.6 percent). unchanged in October at 37.3 hours, seasonally adjusted. (See table A-38.) The veterans' jobless rate has dropped Since last October, the average workweek has increased in stages throughout 1972—from over 8 percent in the three-tenths of an hour. first 5 months to about 7% percent from June through In manufacturing, the workweek remained at 40.7 August and then to about 61/2 percent in September and hours. After rising steadily from the 9-year low reached October. in September 1970, the factory workweek has been While most of the reduction in the veterans' unem- stable since June. Average overtime in manufacturing, ployment rate reflects an improved job situation, some 3.5 hours in October, also has shown little change in is due to a shift in their age composition. Since early this recent months but was up six-tenths of an hour from year, the number of young men leaving military service a year ago. has slowed considerably, and a large proportion of veterans are now in the older ages (25-29) where the Hourly and weekly earnings unemployment rate is lower, reflecting a longer period Average hourly earnings of rank-and-file workers since their discharge from the service and the consequent on private nonagricultural payrolls were about un- increase in their labor market experience. In fact, the changed in October at $3.73. On a seasonally ad- number of veterans aged 30 to 34 is also increasing. In justed basis, earnings were up 3 cents to $3.72. Since October 1972, their population numbered 775,000 or last October, hourly earnings have increased 23 cents 13 percent of all Vietnam Era veterans. Their unemploy- or 6.6 percent. ment rate in October was only 2.7 percent (not sea- Average weekly earnings were unchanged over the sonally adjusted), virtually the same as that for 30-34 month at $139.13. After seasonal adjustment, however, year-old nonveterans. weekly earnings rose $1.12 to $138.76. Since October a year ago, average weekly earnings have risen $9.63 Industry payroll employment or 7.4 percent. During the latest 12-month period for Nonagricultural payroll employment posted another which the Consumer Price I ndex is available—September substantial gain in October, rising 300,000 (seasonally 1971 to September 1972—consumer prices rose 3.3 adjusted) to 73.5 million. Since October a year ago, percent. nonfarm employment has risen 2.7 million. An increase of 125,000 in the number of goods- Hourly earnings index producing jobs occurred entirely in the manufacturing The Bureau's Hourly Earnings Index, seasonally ad- industries, the bulk of it in the durable goods industries. justed, was 140.2 (1967=100) in October, 0.8 percent Since October 1971, manufacturing employment has higher than in September, according to preliminary increased by 650,000. Over the previous 2 years (Octo- figures. The index was 6.4 percent above October a ber 1969-October 1971), in contrast, the number of year ago. All industries posted over-the-year increases, factory jobs had declined nearly 1.8 million. ranging from 5.1 percent in contract construction to In the service-producing industries, payroll employ- 10.2 percent in transportation and public utilities. Dur- ment advanced 175,000 in October, reflecting size- ing the 12-month period ending in September, the able increases in trade, services, and State and local Hourly Earnings Index in dollars of constant purchas- government. ing power rose 2.5 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis CHARTS Page 1. Labor force and employment .
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