MNI DATA ANALYSIS: US August Payrolls Rise 201k, 3.9% Rate>

--Steady Unemployment Rate Reflects Drop To Both Employed, Unemployed 

--Hourly Earnings +0.4% After +0.3% in July, Y/Y Rate Rises To 2.9% 

--Participation Rate Falls To 62.7% From 62.9%

By Kevin Kastner, Shikha Dave, and Harrison Clarke

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

a bit stronger than expected, with nonfarm payrolls up 201,000 compared 

with the 195,000 increase expected by analysts and the 179,000 gain 

expected by the whisper number, but followed a net downward revision of 

50,000 in the previous two months, data released by the Bureau of Labor 

Statistics showed. 

     The unemployment rate was unchanged in August from the 3.9% rate 

posted in July and hourly earnings were up 0.4%, a sign of strength 

beyond the headline number. 

--UNEMPLOYMENT RATE UNCHANGED AT 3.9%

     Analysts had expected the unemployment rate to decline further to 

3.8% from 3.9% in July. When seen unrounded, the August rate fell to 

3.853%, so on the low end of 3.9%. The labor force participation rate 

fell to 62.7% from 62.9% in July. 

     The labor force declined by 469,000 after a 105,000 gain last 

month. Household employment fell by 423,000 in August, while the number 

of unemployed fell by 46,000. 

--HOURLY EARNINGS ABOVE EXPECTED

     Average hourly earnings rose 0.4% in August after no revision to 

the 0.3% gain in July. Before rounding, August hourly earnings were up 

0.370%, on the low side of 0.4%. 

     Hourly earnings now stand 2.9% above its year ago level, up from 

2.7% in July. Before rounding, the year/year rate rose to 2.917% from 

2.733%. Even with this uptick, wage growth is still lagging behind 

levels usually seen with this tight of a labor market. 

     The overall average workweek was unchanged from 34.5 hours in 

the previous month. The combination of earnings and hours worked should 

be positive factors for personal income growth in August. 

--PRIVATE PAYROLLS STRONG 

     Private jobs were up 204,000, much higher than the 190,000 gain 

expected. Within payrolls, there were solid gains for health care, 

wholesale trade, and construction. 

     However, retail jobs declined in August after a weak July gain and 

a sharp June decline, a rough three months for the sector. Likewise, 

manufacturing jobs, which has been on a trend of gains, also declined in 

August. 

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

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