STATE OF BUSINESS: Personal Columns

The economic indicators that have the biggest personal impact on the U.S. workingman—employment, work week and salaries—are steadily moving upward. Last week the Labor Department reported that employment in June climbed to 67,342,000. the highest level in U.S. history and a gain of 4,600,000 since February.

Most significant in the move to new ground, said the Labor Department, is the 500,000 jump in nonagricultural employment to the 60 million mark for the first time. Since agricultural employment is more subject to seasonal variances, the nonagricultural gain indicates a broad base of strength that is likely to increase. In addition to a steady employment increase, the Labor Department expects the rate of unemployment (which stayed steady in June because of the seasonal influx of students and June graduates) to drop to around 2,500,000 by October, between 3.5% and 4% of the work force.

The average factory work week in June rose to 40.6 hours, pushing average weekly factory earnings to a new record of $90.54 at mid-June. The rise reflected increased production demands as industrial output hit a new high for the fourth straight month, rising two points to the seasonally adjusted peak of 155% of the 1947-49 average. The rise was spurred by continued increase in output of autos, household durable goods and most types of business equipment.

Top Administration economists now feel that the sharp, recovery-inspired rise in industrial production (23% since June 1958) is about ready to level off and, because of the steel strike, may briefly drop a bit. After the drop they see a rise in output to an even higher level. Leading the way will be the 1960 auto model year that begins in October, and a capital-goods boom that is expected to run at the annual rate of $34 billion by the last quarter of this year.