|                     THE
                                    EMPLOYMENT SITUATION:  SEPTEMBER 2006
 Nonfarm payroll employment held steady (+51,000),
                                    and the unemployment rate
 (4.6 percent) was essentially unchanged in September, the Bureau of Labor Sta-
 tistics of
                                    the U.S. Department of Labor reported today.  Job growth continued
 in health care and financial activities, while
                                    employment declined in manufac-
 turing.  Employment was little changed in other major industry sectors.
 
 Unemployment (Household Survey Data)
 
 The number of unemployed persons (6.9 million) and
                                    the unemployment rate
 (4.6 percent) were essentially unchanged in September.  Thus far in 2006, the
 jobless rate
                                    has ranged from 4.6 to 4.8 percent.
 
 Over the month, the unemployment rates for most major
                                    worker groups--adult
 women (4.2 percent), teenagers (16.4 percent), whites (4.0 percent), blacks
 (9.2 percent), and
                                    Hispanics (5.4 percent)--showed little or no change.  The
 jobless rate for adult men (3.8 percent) declined in September. 
                                    The unemploy-
 ment rate for Asians was 2.8 percent, not seasonally adjusted.  (See tables
 A-1, A-2, and A-3.)
 
 Total Employment and the Labor Force (Household Survey Data)
 
 Total employment, at 144.9
                                    million, was essentially unchanged in September.
 Over the month, both the employment-population ratio (63.1 percent) and
                                    the
 labor force participation rate (66.2 percent) held steady.  Over the year, the
 employment-population ratio
                                    was up slightly, and the labor force participation
 rate was unchanged.  (See table A-1.)
 
 Persons Not in the
                                    Labor Force (Household Survey Data)
 
 About 1.3 million persons (not seasonally adjusted) were
                                    marginally attached
 to the labor force in September, down from 1.4 million a year earlier.  These
 individuals wanted
                                    and were available for work and had looked for a job sometime
 in the prior 12 months.  They were not counted as unemployed
                                    because they had
 not searched for work in the 4 weeks preceding the survey.  Among the marginally
 attached, there
                                    were 325,000 discouraged workers in September, about unchanged
 from a year earlier.  Discouraged workers were not
                                    currently looking for work
 specifically because they believed no jobs were available for them.  The other
 975,000
                                    marginally attached had not searched for work in the 4 weeks preceding
 the survey for reasons such as school attendance
                                    or family responsibilities.
 (See table A-13.)
 
 - 2 -
 
 Table A.  Major indicators of labor market activity, seasonally adjusted
 (Numbers in thousands)
 _________________________________________________________________________________
 |    Quarterly     |                           
                                    |
 |    averages      |       Monthly data        
                                    |
 |__________________|____________________________| August-
 Category       
                                    |       2006       |           
                                    2006            |September
 |__________________|____________________________| change
 |   II   |   III   |   July  |  Aug.  |  Sept. 
                                    |
 |________|_________|_________|________|_________|________
 HOUSEHOLD DATA    
                                    |                 Labor force status
 |
 |________________________________________________________
 Civilian labor force....| 151,041|  151,677| 151,534| 
                                    151,698|  151,799|    101
 Employment............| 144,009|  144,586| 144,329|  144,579| 
                                    144,850|    271
 Unemployment..........|   7,032|    7,091|   7,205|   
                                    7,119|    6,949|   -170
 Not in labor force......|  77,392|   77,490|  77,379|  
                                    77,469|   77,621|    152
 |        |         |       
                                    |         |         |
 |________|_________|________|_________|_________|________
 |                 Unemployment rates
 |
 |________________________________________________________
 All workers.............|     4.7|     
                                    4.7|     4.8|      4.7|      4.6|   -0.1
 Adult men.............|     4.1|      4.0|     4.2|     
                                    4.1|      3.8|    -.3
 Adult women...........|     4.2|     
                                    4.2|     4.2|      4.1|      4.2|    
                                    .1
 Teenagers.............|    14.7|     16.1|    15.5|    
                                    16.2|     16.4|     .2
 White.................|     4.1|     
                                    4.1|     4.1|      4.1|      4.0|   
                                    -.1
 Black or African      |        |        
                                    |        |         |        
                                    |
 American............|     9.1|      9.2|    
                                    9.5|      8.8|      9.2|     .4
 Hispanic or
                                    Latino    |        |         |       
                                    |         |         |
 ethnicity...........|     5.2|      5.3|     5.3|     
                                    5.3|      5.4|     .1
 |________|_________|________|_________|_________|_______
 ESTABLISHMENT DATA    |                    
                                    Employment
 |_______________________________________________________
 Nonfarm employment......| 135,128|p 135,516| 135,374|p 135,562|p
                                    135,613|   p 51
 Goods-producing (1)...|  22,420| p 22,428|  22,420| p 22,438| p 22,427| 
                                    p -11
 Construction........|   7,502|  p 7,522|   7,504|  p 7,527| 
                                    p 7,535|    p 8
 Manufacturing.......|  14,246| p 14,225|  14,236| p 14,229|
                                    p 14,210|  p -19
 Service-providing (1).| 112,708|p 113,088| 112,954|p 113,124|p 113,186|   p 62
 Retail trade (2)....|  15,236| p 15,209|  15,222| p 15,209| p 15,197|  p -12
 Professional
                                    and    |        |         |       
                                    |         |         |
 business services.|  17,269| p 17,393|  17,364| p 17,401| p 17,413|   p 12
 Education
                                    and health|        |         |       
                                    |         |         |
 services..........|  17,677| p 17,785|  17,735| p 17,802| p 17,817|   p 15
 Leisure
                                    and         |        |        
                                    |        |         |        
                                    |
 hospitality.......|  13,009| p 13,079|  13,062| p 13,082| p 13,092|  
                                    p 10
 Government..........|  21,931| p 21,985|  21,970| p 21,996| p 21,988|   p -8
 |________|______ __|________|_________|_________|_______
 |                  Hours of work (3)
 |_______________________________________________________
 Total private...........|    33.9|  
                                    p 33.8|    33.9|   p 33.8|   p 33.8|  p 0.0
 Manufacturing.........|   
                                    41.2|   p 41.3|    41.4|   p 41.3|   p 41.1|  p -.2
 Overtime............|     4.6|    p 4.4|     4.5|   
                                    p 4.4|    p 4.3|  p -.1
 |        |         |       
                                    |         |         |
 |________|_________|________|_________|_________|________
 |    Indexes of aggregate weekly hours (2002=100)(3)
 |
 |________________________________________________________
 Total private...........|   104.9|  p 105.1|  
                                    105.2|  p 105.1|  p 105.0|  p-0.1
 |________|_________|________|_________|_________|_______
 |                      
                                    Earnings (3)
 |
 |________________________________________________________
 Avg. hourly earnings,   |       
                                    |         |        |        
                                    |         |
 total private.........|  $16.64| p $16.80|  $16.76|
                                    p $16.80| p $16.84|p $0.04
 Avg. weekly earnings,   |        |        
                                    |        |         |        
                                    |
 total private.........|  563.54| p 568.40|  568.16| p 567.84| p 569.19| p 1.35
 ________________________|________|_________|________|_________|_________|________
 
 1  Includes other industries, not shown separately.
 2  Quarterly averages and the over-the-month
                                    change are calculated using
 unrounded data.
 3  Data relate to private production or nonsupervisory
                                    workers.
 p = preliminary.
 
 - 3 -
 
 Table B.  Employment status in September 2006 of persons 16 years and over
 who evacuated from their August
                                    2005 residence, even temporarily, due to
 Hurricane Katrina (1)
 
 (Numbers in thousands, not seasonally adjusted)
 -------------------------------------------------------------------------
 |       |Residence in September 2006
 |       |---------------------------
 Employment status in September 2006 | Total |   
                                    Same     |  Different
 |       |    as in    |   than in
 |       | August 2005 | August 2005
 -------------------------------------------------------------------------
 Civilian
                                    noninstitutional population.| 1,145 |     669     |     
                                    476
 Civilian labor force...............|   633 |     398     |     
                                    235
 Participation rate...........|  55.3 |    59.5    
                                    |     49.4
 Employed........................|   580 |    
                                    379     |      201
 Employment-population
                                    ratio..|  50.7 |    56.7     |     42.2
 Unemployed......................|    53 |      19     |      
                                    34
 Unemployment rate............|   8.3 |    
                                    4.7     |     14.5
 Not in labor force.................|   512
                                    |     271     |      241
 -------------------------------------------------------------------------
 1  Represents persons in the civilian noninstitutional population
 age 16 and over who resided in households that were
                                    eligible to be
 selected for the Current Population Survey (CPS).  These data are not
 representative of the total
                                    evacuee population because they do not in-
 clude children or people residing in shelters, hotels, places of worship,
 or
                                    other units outside the scope of the CPS.  The total number of evac-
 uees estimated from the CPS may change from month
                                    to month as people
 move in and out of the scope of the survey and because of sampling and
 nonsampling error.
 NOTE:  These data use population controls that have been adjusted to
 account for interstate moves by evacuees.
 
 
 Employment Status of Hurricane Katrina Evacuees (Household Survey Data)
 
 Beginning in October
                                    2005, questions were added to the household survey
 to identify persons who evacuated from their homes, even temporarily,
                                    due to
 Hurricane Katrina.  Data collected through these questions do not account for
 all evacuees; persons living
                                    outside the scope of the survey--such as those
 living in hotels or shelters--are not included.  The questions were
                                    asked of
 persons in the household survey sample throughout the country, since some
 evacuees relocated far from the storm-affected
                                    areas.  An additional question
 determined whether evacuees had returned to their homes and were residing there
 at
                                    the time of the September 2006 survey.  The total number of evacuees esti-
 mated from the household survey may change
                                    from month to month as people move
 in and out of the scope of the survey; also, because the estimates are obtained
 from
                                    a sample survey, they may vary from month to month due to sampling and
 nonsampling error.
 
 Information gathered in September represented 1.1 million persons age 16
 and over who had evacuated from where they were
                                    living in August 2005 due to
 Hurricane Katrina.  These evacuees either had moved back to their homes or were
 living
                                    in other residential units covered in the survey.  About 6 in 10 of the
 evacuees were living in their August 2005
                                    residences.  Of all evacuees identi-
 fied, 55.3 percent were in the labor force in September 2006.  The unemployment
 rate
                                    for persons identified as evacuees was 8.3 percent.  The rate was much
 higher for evacuees who were not living in
                                    their former homes (14.5 percent)
 than for those who were again living in their pre-Katrina residences (4.7 per-
 cent). 
                                    (See table B.)
 
 - 4 -
 
 Industry Payroll Employment (Establishment Survey Data)
 
 Total nonfarm payroll employment
                                    was little changed (+51,000) in September
 at 135.6 million.  This followed job gains of 123,000 in July and 188,000
                                    in
 August (as revised).  Over the month, employment rose in health care and finan-
 cial activities and declined
                                    in manufacturing.  (See table B-1.)
 
 Health care employment continued to grow, with a
                                    gain of 24,000 in September.
 Within the industry, ambulatory health care services (which includes doctors'
 offices and
                                    home health care) and hospitals added jobs.  Since December, health
 care employment has increased by 231,000.
 
 Financial activities gained 16,000 jobs in September, as employment continued
 to trend up in credit intermediation
                                    and insurance.  The over-the-month gain was
 about in line with the industry's average monthly gain during the past
                                    year.
 Real estate employment was flat over the month and has shown no net change since
 April.
 
 Within professional and business services, accounting and bookkeeping services
 added 10,000 jobs in September, and employment
                                    in the management of companies and
 enterprises grew by 6,000.  Temporary help services employment was little changed
 over
                                    the month and has been relatively flat thus far in 2006.  Professional and
 business services employment has risen
                                    by 416,000 over the past 12 months.
 
 Elsewhere in the service-providing sector, employment
                                    in food services and
 drinking places edged up in September (+15,000).  Over the month, employment
 continued to
                                    trend up in the durable goods component of wholesale trade.  Within
 the retail trade industry, sporting goods, hobby,
                                    book, and music stores lost
 8,000 jobs, as did general merchandise stores.  Since its most recent peak in
 August
                                    2005, retail trade employment has declined by 116,000.
 
 In the goods-producing sector, employment
                                    in mining was flat in September.
 Reflecting the continued slowdown in the housing market, employment in con-
 struction
                                    was little changed over the month.  Job losses in residential spe-
 cialty trade contracting nearly offset gains in
                                    nonresidential specialty trade
 contracting and in heavy construction.  Job gains in construction have averaged
 6,000
                                    per month since February of this year compared to increases of 27,000 per
 month during the 12-month period ending in February.
 
 Manufacturing lost 19,000 jobs in September.  Within durable goods, factory
 job losses occurred in
                                    several industries that are related to home building--
 wood products, nonmetallic mineral products, and furniture. 
                                    Employment con-
 tinued to trend downward in a number of nondurable goods manufacturing indus-
 tries, including textile
                                    mills, plastics, and paper products.
 
 Weekly Hours (Establishment Survey Data)
 
 The average workweek for production or nonsupervisory workers on private
 nonfarm payrolls was unchanged at 33.8 hours in
                                    September, seasonally adjusted.
 The manufacturing workweek decreased by 0.2 hour to 41.1 hours, and factory
 overtime
                                    was down by 0.1 hour to 4.3 hours.  (See table B-2.)
 
 The index of aggregate weekly hours
                                    of production or nonsupervisory
 workers on private nonfarm payrolls declined by 0.1 percent in September to
 105.0 (2002=100). 
                                    The manufacturing index fell by 0.7 percent to 96.0.  (See
 table B-5.)
 
 Hourly and Weekly Earnings
                                    (Establishment Survey Data)
 
 Average hourly earnings of production or nonsupervisory workers
                                    on pri-
 vate nonfarm payrolls rose by 4 cents, or 0.2 percent, in September to $16.84,
 seasonally adjusted.  Average
                                    weekly earnings increased by 0.2 percent in
 September to $569.19.  Over the year, both average hourly and weekly earnings
 increased
                                    by 4.0 percent.  (See table B-3.)
 
 
 ______________________________
 
 
 The Employment Situation for October is scheduled to be released on
                                    Friday,
 November 3, at 8:30 A.M. (EST).
 
 |