MNI DATA IMPACT: US Dec Jobs +145k; Unemp 3.5%; AHE +0.1%>

--Nov Payrolls Rev Down To +256k, Oct Jobs Rev Down to +152k; Net -14k

By Ryan Hauser 

     WASHINGTON (MNI) - Payrolls growth came in slightly below 

expectations in December, rising by 145,000 when markets had expected a 

165,000 gain. The unemployment rate stayed steady at 3.5%. 

     Hourly earnings growth also slowed, posting a 0.1% gain after 

rising 0.3% in November. It is up 2.9% from a year earlier. 

     Here are some of the key takeaways from the data released Friday: 

     - Average fourth quarter payrolls growth was 184,000, considering 

net revisions of -14,000 to November and October. That's a bit slower 

than the third quarter average pace of 193,000, but well above the rate 

needed to absorb new entrants to the labor market. 

     - Hourly earnings rose by 0.1%, below market expectations for a 

0.3% gain, and average weekly hours was unchanged at 34.3. 

     - The unemployment rate held at 3.5%, mirroring the same 

five-decade low seen last month. Meanwhile, the labor force 

participation rate remained unchanged at 63.2%. The size of the labor 

force continued to grow, climbing to 164.6 million while the number of 

unemployed fell to 5.75 million from 5.81 million. Before rounding, the 

unemployment rate declined to 3.4961% compared to 3.5358% in November. 

A broader measure of unemployment, the U-6 rate, also declined to 6.7% 

from 6.9% in November, the lowest since BLS started publishing the 

measure. 

     - Private payrolls rose by 139,000 in December, below the 154,000 

increase expected by markets and the 202,000 increase reported by ADP 

earlier this week. Gains were led by retail (+41,000) and health care 

(+28,000). Manufacturing payrolls fell by 12,000 after a 58,000 rise in 

November. 

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

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