Labor Market Completes Sixth Year of Expansion in 1988

By Howe, Wayne J.; Parks, William, II | Monthly Labor Review, February 1989 | Go to article overview

Labor Market Completes Sixth Year of Expansion in 1988


Howe, Wayne J., Parks, William, II, Monthly Labor Review


Both civilian and nonagricultural employment continued to rise; the 5.3-percent unemployment rate in the fourth quarter was the lowest since the second quarter of 1974

Wayne J. Howe and William Parks II are economists in the Office of Employment and Unemployment Statistics, Bureau of Labor Statistics. The authors are grateful to James Markey, Diane Herz, and

Thomas Nardone for their assistance in gathering data for the articl >;e.

Labor market performance by most measures remained healthy in 1988, as employment gains continued and the civilian unemployment rate fell to a 14-year low. The economy completed its sixth year of expansion, the second longest period of sustained growth since World War II and the longest peacetime expansion.

Following are highlights of employment and unemployment developments in 1988:

* Employment growth continued during the year, as measured by both the Current Employment

Statistics survey (CES >;)- a survey of more than 300,000 business establishments-and the Current

Population Survey (CPS) -a survey of nearly 56,000 households. The establishment survey showed an increase of 3.7 million persons, or 3.5 percent, while the household survey showed an increase of 2.4 million persons, or 2.1 percent. (See box on page 4.)

* The goods-producing sector showed significant job gains for the second straight year. Within that sector, both construction and manufacturing registered over-the-year increases. >; The service-producing sector continued to grow at a rapid pace, with services and wholesale trade increasing the fastest.

* After declining early in 1988, the civilian worker unemployment rate fluctuated around 5.5 percent for much of the year before edging to 5.3 percent in the fourth quarter. The rate was then six-tenths of a percentage point below that of a year earlier and at its lowest mark since the second quarter of 1974. All major age and sex groups benefited from the unemployment decline.

>;* All three major racial and ethnic groups shared in 1988's job market improvements. Each group recorded a drop in its unemployment rate, and employment growth, particularly strong for Hispanics, continued.

* The number of persons working part time for economic reasons declined in 1988, but their proportion of total employment still remained above what it was prior to the recessions early in the decade. The number of discouraged workers showed little change over the year.

Industry developments

No >;nagricultural payroll employment, as measured by the Bureau of Labor Statistics' business establishment survey, continued to show a healthy employment gain throughout 1988. At 107.3 million in the fourth quarter of 1988, nonfarm employment increased by about 3.7 million over the year. (See table 1.) (All over-the-year comparisons are made using fourth-quarter averages, unless otherwise noted.) This marks the second straight year in which nonfarm job growth exceeded 3 million.

As has typically been the >;case, employment rose at a faster rate in the service-producing sector than it did in the goods-producing sector, accounting for 4 of 5 of the net job gains during 1988. Services and wholesale trade had the fastest rates of employment growth in this sector. (See chart 1.) In addition, following declines in 1985 and 1986, the goods-producing sector showed a significant job gain for the second straight year. Both construction and manufacturing continued to expand, while the number of mining jobs declined. >;

The service-producing sector continued to add jobs at about the same rapid pace that has prevailed throughout the 6-year expansion, with employment in the sector increasing by 2.9 million, or 3.7 percent. The services division recorded the largest over-the-year employment gain, adding 1.3 million jobs, or almost 4 of every 10 additional jobs. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Labor Market Completes Sixth Year of Expansion in 1988
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.