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FOOD-STORE EMPLOYMENT HOLDS STEADY IN JULY

WASHINGTON (FNS) -- - Employment at food stores was unchanged in July, after an 11,000 dip in June, according to Labor Department statistics.Food stores employed a seasonally adjusted 3.476 million in July and June. Against July 1998, food stores, however, have lost 8,000 employees.Employment at eating and drinking places increased by 61,000 in July -- almost double June's increase of 32,000. Eating

WASHINGTON (FNS) -- - Employment at food stores was unchanged in July, after an 11,000 dip in June, according to Labor Department statistics.

Food stores employed a seasonally adjusted 3.476 million in July and June. Against July 1998, food stores, however, have lost 8,000 employees.

Employment at eating and drinking places increased by 61,000 in July -- almost double June's increase of 32,000. Eating and drinking places employed 7.974 million in July, compared with 7.913 million in June.

The national unemployment rate was unchanged from last month at 4.3%. Unemployment has been at or below 4.5% for 16 months. According to the Labor Department, more than 19 million jobs have been added since 1993. Average hourly earnings rose during July by 0.5% to $13.29 from $13.23 in June.

"Our nation's economy is hitting more home runs than Mark McGwire," Secretary of Labor Alexis Herman said in a statement. "President Clinton's policy of fiscal discipline, opening markets and targeted investments is making a real and significant impact in the lives of working Americans."

However, some economists predict that as job demand increases, the Federal Reserve will react with another hike in interest rates in order to curtail inflation.

"Labor markets remain extremely tight, and that is being reflected in the paychecks," said Stephan Thurman, deputy chief economist at the U.S. Chamber of Commerce. "That makes you a little nervous as to what Greenspan will do this month." Economists are forecasting a quarter-point increase in interest rates when the Fed meets later in August.

In early August testimony to Congress, Alan Greenspan, Federal Reserve System chairman, said inflation could start to accelerate if demand for labor grew and wages picked up. "There can be little doubt that, if the pool of job seekers shrinks sufficiently, upward pressures on wage costs are inevitable," he said. "Such cost increases have invariably presaged rising inflation in the past, and presumably would in the future, which would threaten the economic expansion."

The average retail trade work week in July was unchanged from June at 29.1 hours. The July 1998 work week was also 29.1 hours.