–Census -114k;Pvt AHE +3c;Hours Rise, Implying Rising Productn & Income
By Joseph Plocek
WASHINGTON (MNI) – The U.S. August employment report is not a
game-changer.
The employment data were better than on their face, but not so
strong as to cause a reassessment of the outlook for weak growth and
continued government stimulus.
Payrolls printed -54,000 in August, but June-July were revised up
+123,000 in total. They still show declines.
August private jobs printed +67,000, with census -114,000, and
state and local government -10,000.
Payrolls also included: manufacturing -27,000 (mainly in autos and
the first drop since December, but all due to seasonal adjustment, where
General Motors 2010 alteration of the retooling schedule has changed
patterns), construction +19,000 (where 10,000 stemmed from a strike
ending), retail -4,900, finance -4,000, leisure +13,000, temporary jobs
+16,800, and health care +28,200.
The civilian unemployment rate advanced +0.1 point to 9.6% but the
labor force participation rate was up 0.1 point to 64.7%, as expected,
in a part rebound that might reflect more workers saying they are
looking as continuing unemployment benefits were extended. The Bureau of
Labor Statistics confirmed that there was “less workforce exodus.”
Private Average Hourly Earnings advanced 3 cents for +2.1% over the
year, and hours rose. These suggest rising incomes and production.
Only 82,000 census workers remain on government payrolls, according
to the BLS.
The bottom line is this report represents very slow private growth
that probably will not alter expectations.
Details: Payrolls/Prior AHE,yoy Agg Hrs Civ Unempl Rt/Unrnd
Aug -54k —- +1.7% 99.5 9.6% (9.6425%)
Jul -54k -131k —– 99.2r 9.5% (9.5070%)
Jun -175k -221k —– 99.1r 9.5% (9.5115%)
** Market News International Washington Bureau: (202) 371-2121 **
[TOPICS: M$U$$$,MAUDS$,MT$$$$,MAUDR$]
