**MNI 5 THINGS: US August Paryolls +201k; Hrly Earnings +0.4%>

--5 Things We Learned From The August Employment Data

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - The following are the key points from the August 

employment report released by the Bureau of Labor Statistics Friday: 

     - The employment data were very upbeat on the surface, but a large 

net downward revision of 50,000 to June and July may spoil some of the 

party. Payrolls growth was stronger than expected with a 201,000 gain, 

while the unemployment rate stayed at 3.9%, compared with expectations 

for a dip to 3.8%. Hourly earnings posted a 0.4% gain after July's 

unrevised 0.3% rise, pushing the year/year rate up to 2.9%. 

     - Nonfarm payrolls rose 201,000, above the 195,000 gain expected. 

The whisper number was for a 179,000 gain, so an even stronger surprise 

to the upside. Likewise, private payrolls rose 204,000, compared with a 

190,000 gain expected. An MNI analysis showed analysts have a very 

strong tendency to overestimate payrolls in August, so today's data cuts 

against that trend and will surprise many at first. 

     - The unemployment rate held steady despite a 0.2 percentage point 

decline in the participation rate to 62.7%. The unrounded unemployment 

rate was 3.856%, on the low end of 3.9%. The rate for men over 20 rose, 

while the rate for women declined. Household employment was down 

423,000, while the unemployed level fell by 46,000, so the labor force 

declined by 469,000. The alternate U-6 Rate fell to 7.4% from 7.5% in 

July.     

     - Hourly earnings were up 0.4% in the month (+0.370% unrounded), 

higher than the 0.2% gain expected after an unrevised 0.3% gain in July, 

so the year/year rate rose to 2.9% after rounding. Average weekly hours 

were unchanged at 34.5 hours, so along with the payrolls gain, aggregate 

weekly hours rose by 0.2%. 

     - Payrolls in June and July were revised down by a net 50,000, 

reflecting downward revisions to both June and July. Private jobs were 

up 204,000, stronger than the 190,000 gain expected. Within payrolls, 

there were solid gains for healthcare (+41k), construction (+23k) and 

wholesales (+22k), but retail jobs fell 6,000 and construction jobs were 

down 3,000. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$]