REPEAT:MNI DATA ANALYSIS:US June Payrolls +213k, 4.0% Rate>

Repeats Story Initially Transmitted at 12:30 GMT Jul 6/08:30 EST Jul 6

--Rise in Unemployment Rate Reflects Surge In Household Unemployed

--Hourly Earnings +0.2% After +0.3% in May, Y/Y Rate Stays At 2.7%

--Participation Rate Rises To 62.9% From 62.7% In May

By Kevin Kastner, Sara Haire, and Harrison Clarke

     WASHINGTON (MNI) - The June employment report released Friday 

showed the nonfarm payrolls gain was larger than the 195,000 level 

expected by analysts and the 190,000 gain expected by the whisper 

number, rising 213,000 after a net upward revision of 37,000 in the 

previous two months, data released by the Bureau of Labor Statistics 

Friday showed. 

     However, the unemployment rate rose to 4.0% in June from the 3.8% 

rate posted in May, adding some complexity to the picture presented by 

the data. 

--UNEMPLOYMENT RATE UP TO 4.0%

     The unemployment rate rose back up to 4.0% after dipping to 3.8% in 

May, above expectations for the rate to hold steady at 3.8% in June. 

When seen unrounded, the rate rose to 4.048%, so it was very close to 

reaching 4.1%. The labor force participation rate rose to 62.9% in June 

from 62.7% in May, explaining part of the unemployment rate rise as 

workers entered the labor force, but did not immediately find jobs. 

     The labor force rose by 601,000 after a scant 12,000 gain last 

month. Household employment rose by only 102,000 in June, overwhelmed by 

a 499,000 surge in the number of unemployed. 

--HOURLY EARNINGS SOFTER THAN EXPECTED

     Average hourly earnings rose 0.2% in June after an unrevised 0.3% 

rise in May, smaller than the 0.3% gain expected by both analysts and 

the markets. Before rounding, June hourly earnings were up 0.186%, on 

the low side of 0.2% and even further below the forecasted rate. 

     Hourly earnings now stand 2.7% above its year ago level, the same 

as in May, but wage growth is still lagging behind levels usually seen 

with this tight of a labor market. 

     The overall average workweek stayed at 34.5 hours for yet another 

month, but the combination of earnings and hours worked should remain a 

positive factor for personal income growth in June. 

--RETAIL PAYROLLS DIP

     For June, there were solid gains for manufacturing (+36k), health 

care (+35k), professional and business services (+50k), and leisure 

(+25k ahead of the summer season), but retail payrolls -22k, the glaring 

weakness. 

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