MNI DATA ANALYSIS: September Payrolls -33k; Unemp Rate 4.2%>

--BLS: Can't Quantify Hurricane Impact, Collection Rates Near Normal

--Unemployment Rate Drops To 4.2%, Participation Rate Up

--Food Services, Drinking Places Payrolls -104,700

--Weaker Than Expected Payrolls Follow -38k Revision To July-August Jobs

By Kevin Kastner, Sara Haire, and Holly Stokes

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

which showed nonfarm payrolls fell by a 33,000, the first decline since 

September 2010 due to the hurricane impact and following a net 38,000 

downward revision to July-August payrolls. 

     Overall, a weak report but one that likely indicates temporary 

factors that markets and the Fed will likely take with a grain of salt. 

However, some analysts and the Fed will take note of a sharp gain in 

hourly earnings. 

     The Bureau of Labor Statistics said the exact impact of Hurricanes 

Harvey and Irma, which hit between the August and September survey 

weeks, could not be quantified. However, there were clear signs. Food 

services and drinking places payrolls, made up mostly of hourly workers 

who would not have been paid if they missed work, fell by 104,700. 

     The BLS said that data collection procedures were not altered and 

that data collection rates were close to normal levels. 

     Within payrolls, mining jobs rose 2,300, while utilities jobs were 

flat and manufacturing jobs fell by 1,000. 

     The report showed that the unemployment rate dipped to 4.2% from 

4.4% in August, compared with expectations for the rate to remain 4.4%. 

The labor force surged by 575,000, household employment was up 906,000 

and unemployed total fell by 331,000. BLS said that hurricanes had "no 

discernable effect on the national unemployment rate." 

     As a result, the labor participation rate rose by 0.2 to 63.1% 

after holding steady at 62.9% in the previous month. 

     Average hourly earnings jumped by 0.5% in September, stronger than 

the 0.3% gain expected, after a 0.2% August gain. The 2.9% year/year 

rate in September was up from 2.7% in August. 

     The overall average workweek held steady at 34.4, while 

manufacturing workweek stayed at 40.7 hours. 

     MNI's Reality Check survey of recruiters released Thursday 

suggested there will be a trade off going forward, with the hurricanes 

reducing jobs in some sectors, but adding in others such as construction 

that will be required for the rebuilding in the affected areas. It also 

suggested rising hourly earnings, which were confirmed by today's 

report. 

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

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