MNI DATA ANALYSIS: August Payrolls Rise 156k; Unemp Rate 4.4%>

--Weaker Than Expected Payrolls Follow -41k Revision To June-July Jobs

--BLS Confirms No Impact From Hurricane Harvey, Too Late In Month

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The August employment report released Friday, 

which showed nonfarm payrolls rose by a smaller-than-expected 156,000 

following a net 41,000 downward revision to June-July payrolls, suggests 

that the pace of jobs growth slowed a bit. 

     The MNI Data Watch and an MNI employment preview both noted the 

tendency of analysts to overestimate August payrolls, as has occurred in 

the previous six years. 

     The Bureau of Labor Statistics report showed that the unemployment 

rate rose to 4.4% from 4.3% in July, compared with expectations for the 

rate to remain 4.3%. The labor force rose by 77,000, household 

employment was down 74,000, and unemployed total jumped by 151,000. 

     The labor participation rate held steady at 62.9% after rising in 

June and July. 

     Within payrolls, there were notably soft readings posted for retail 

(+1k), wholesale (+6k), and utilities (-1k). In contrast, there were 

strong readings for construction (+28k) and manufacturing (+36k). 

     The small retail payrolls gain, with nonstore retail jobs also up 

only 1,000, suggests that Amazon's plans to hire 50,000 new workers did 

not make it into the data. 

     Average hourly earnings rose only 0.1% in August, softer than the 

0.2% gain expected, after an unrevised 0.3% July gain. The 2.5% 

year/year rate in August was unchanged from July, continuing the recent 

string of readings at that pace. 

     The overall average workweek fell to 34.4 hours from 34.5 hours in 

July, while the manufacturing workweek fell to 40.7 hours from 40.9 

hours in the preivous month. 

     MNI's Reality Check survey of recruiters released Thursday showed 

that firms are making efforts to recruit top talent, including offering 

higher salaries. MNI's Vicki Schmelzer wrote that employers are 

desperate to find workers, expecially in highly skilled industries where 

workers are scarce. 

     Schmelzer's Reality Check stories also noted that when companies do 

find suitable talent, they are not dragging out the hiring process as 

they had in the past with multiple interviews. Instead, it is workers 

who are delaying the process as they consider multiple offers. 

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

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