MNI DATA ANALYSIS: US December Payrolls Rise 312k, 3.9% Rate>

--Unemployment Rate Rises With Higher Employed, Higher Unemployed 

--Hourly Earnings +0.4% After +0.2% in November, Y/Y Rate Rises To 3.2% 

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The November employment report was stronger than 

expected, with nonfarm payrolls up 312,000 compared with the 180,000 

increase expected by analysts and the 185,000 gain expected by the 

whisper number, and a net 58,000 upward revision in the previous two 

months, data released by the Bureau of Labor Statistics Friday showed. 

     Additionally, the unemployment rate rose to 3.9% from 3.7% in 

November with gains in household employed and gains in household 

unemployed, while hourly earnings were up 0.4%, above than the 0.3% gain 

expected, raising the year/year rate to 3.2%.    

--UNEMPLOYMENT RATE UP

     Analysts had expected the unemployment rate to stay at 3.7% in 

December. When seen unrounded, the December rate rose to 3.856% from 

3.696% in November, so on the low side of 3.9%. The labor force 

participation rate rose to 63.1% from 62.9%. 

     The labor force grew by 419,000 after a 194,000 rise last month. 

Household employment rose by 142,000 in December following a 221,000 

jump in November, while the number of unemployed also rose by 276,000 

after falling by 94,000 in November.

--HOURLY EARNINGS RISE

     Average hourly earnings rose 0.4% in December after an unrevised 

0.2% gain in November. Before rounding, December hourly earnings were up 

0.402%, on the high side of 0.4%. 

     Hourly earnings now stand at 3.2%, above its year ago level of 3.1% 

in November. 

     Even at it's current year/year rate, wage growth is still lagging 

behind levels usually seen with this tight of a labor market. 

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

the previous month. The combination of payroll, earnings and hours 

worked should be positive factors for personal income growth in 

December. 

     Private jobs were up 301,000, much higher than the 175,000 gain 

expected. Within payrolls, there were solid gains for construction and 

health and education services, and manufacturing, but a slight decline 

in information. Retail trade payrolls up by 24,000 after rising in the 

previous month. 

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

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