REPEAT:MNI DATA ANALYSIS:US April Payrolls Up 164k, 3.9% Rate>

Repeats Story Initially Transmitted at 12:30 GMT May 4/08:30 EST May 4

--Hourly Earnings +0.1% After +0.2% in March, Y/Y Rate Still +2.6%

--Softer Than Expected Payrolls Follow +30k Revision To Feb-March 

--Participation Rate Dips To 62.8% From 62.9% In March

By Kevin Kastner, Sara Haire and Holly Stokes

     WASHINGTON (MNI) - The April employment report released Friday 

showed the nonfarm payrolls gain was softer than the 185,000 level 

expected by analysts and the 183,000 gain expected by the whisper 

number, rising 164,000, but it followed a net upward revision of 

30,000 in the previous two months. 

     However, a drop in the unemployment rate to 3.9% may garner more 

attention at first, data released by the Bureau of Labor Statistic 

Friday showed. 

--HOURLY EARNINGS SOFTER THAN EXPECTED

     Average hourly earnings rose only 0.1% in April, less than the 

0.2% gain expected by analysts and the whisper number. As stated in an 

MNI preview, there was a slight risk of an overestimate for hourly 

earnings, so today's result confirms this trend. 

     Hourly earnings were close to being rounded up to 0.2%, with the 

unrounded rate at 0.149% for April. 

     The 0.1% hourly earnings gain in April followed a 0.2% rise in 

March, which itself was a downward adjustment from the 0.3% gain 

reported previously. With downward revision to March, April marks the 

third consecutive month of 2.6% year/year average hourly earnings. 

     The overall average workweek was unchanged at 34.5 hours, so the 

combination of earnings and hours worked should be a small positive for 

personal income growth in April. 

--UNEMPLOYMENT RATE LOWEST SINCE 2000

     The unemployment rate fell to 3.9% after holding steady at 4.1% for 

several months, falling even lower than the 4.0% expected. When seen 

unrounded, the rate fell to 3.9288% from 4.0708%. The labor force 

participation rate fell to 62.8% in April from 62.9% in March. 

     The labor force fell by 236,000 after dipping by 158,000 last 

month. Household employment rose on 3,000 in April, while the number of 

unemployed fell by 239,000. 

--MIXED PAYROLLS

     There were solid payrolls gains for professional services (+54k), 

construction (+17k), manufacturing (+24k), and health care (+29k). 

     These were offset by soft readings for retail (+2k) and wholesale 

(-10k) payrolls. 

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