MNI DATA ANALYSIS: November Payrolls Up 228k; Unemp Rate 4.1%>

--Stronger Than Expected Payrolls Follow +3k Revision To Sept-Oct Jobs

--Unemployment Rate Stays 4.1% After Rounding; Participation Rate 62.7%

--Hourly Earnings +0.2% After -0.1% in October, Y/Y Rate Now +2.5%

By Kevin Kastner, Sara Haire, and Holly Stokes

     WASHINGTON (MNI) - The November employment report released Friday 

showed nonfarm payrolls rose by a stronger-than-expected 228,000 and 

followed offsetting revisions in the previous two months, suggesting 

strength after two months of hurricane-impacted data. 

     An MNI analysis had shown a tendency of analysts to underestimate 

payrolls in November, so the stronger-than-expected reading is not a 

major surprise. 

     The unemployment rate held steady at 4.1%, but ticked up to 4.118% 

unrounded from 4.065% in October. The low rate will likely raise some 

discussion at the FOMC meeting next week and will support the expected 

rate hike. 

     The labor force rose by 148,000 after plunging by 765,000 last 

month. Household employment rose by 57,000, while the number of 

unemployed rose by 90,000. The labor participation rate held steady at 

62.7%, still well below the 63.1% level in September. 

     There were notable payrolls gains posted for health care (+41k), 

manufacturing (+31k), and construction (+24k). Retail (+19k) and food 

services and drinking places (+19k) were also higher. 

     Average hourly earnings were up 0.2% in November, softer than the 

0.3% gain expected, after a 0.1% October decline. The year/year rate 

rose to 2.5% in November from 2.3% in October, but was still below the 

2.8% year/year rate in September. 

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

the previous four months. 

     MNI's Reality Check survey of recruiters by Vicki Schmelzer 

released Thursday showed that hiring slowed a bit, but remained solid in 

November, while wage have started to tick up for mid-level workers as 

firms attempt to hire and retail talent. 

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

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