MNI DATA IMPACT: US Nov Jobs +266k; Unemp 3.5%; AHE +0.2%>

--Oct Payrolls Rev Up To +156k, Sept Jobs Rev Up to +193k; Net +41k

By Brooke Migdon 

     WASHINGTON (MNI) - Payrolls growth was well above expectations in 

November, rising by 266,000 to a 10-month high when markets had expected 

a 185,000 gain. 

     While hiring accelerated, hourly earnings growth slowed, posting a 

0.2% gain after rising 0.4% in October. It is up 3.1% from a year 

earlier. 

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

     - In addition to the 266,000 increase in payrolls in November, both 

October and September payrolls were revised higher, posting a net gain 

of 41,000. Job growth is averaging 180,000 per month so far this year 

compared to 223,000 last year. 

     - Hourly earnings rose by 0.2%, slightly below market 

expectations for a 0.3% gain, and average weekly hours stayed at 34.4.  

     - The unemployment rate fell to 3.5346% from 3.5622%, mirroring the 

3.5% five-decade low seen in September. Meanwhile, the labor force 

participation rate ticked one-tenth lower to 63.2% from 63.3% in 

October. The size of the labor force continued to grow, climbing to 

164.4 million, but, unlike October's expansion, the number of employed 

increased while the number of unemployed decreased. The U-6 rate 

declined slightly to 6.9% from 7.0% in October. 

     - Private payrolls rose by 254,000 in October, well above the 

178,000 increase expected by markets and the disappointing 67,000 

increase reported by ADP earlier this week. Gains in manufacturing 

payrolls, which rose by 54,000 in November after falling by 43,000 in 

October, likely inflated headline emloyment as more than 40,000 

autoworkers returned to work following the GM-UAW strike that ended 

October 29. Gains were also seen in health care (+45,000) and 

professional and technical services (+31,000). 

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

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