US BLS: Payrolls Mediocre But Wages Highest in 7 Yrs

–Nov Trade Deficit Widens to $45.2 Bln

By Denny Gulino and Kevin Kastner

WASHINGTON (MNI) – Nonfarm payrolls came in Friday on the mediocre side in December, adding 153,000 and failing to meet expectations, but the over-the-year wage gains strength surprised, up the most since 2009.

The Bureau of Labor Statistics reported the unemployment rate ticked up a tenth as expected, to 4.7%. Annual revisions took a tenth away from the rates for October and September.

The December labor participation rate lost a tenth to become the lowest in five months, at 62.7.

In a second economic statistic released along with the jobs report, the November trade deficit widened to $45.2 billion, $2.9 billion more than the revised October figure of $42.4, a monthly deficit $200 million less than first reported. The oil gap widened to the most since August 2015.

Exports were $400 million less than in October at $185.8 billion, with capital goods exports the lowest since September 2011. Imports were up $2.4 billion to $231.1 billion. For the year through November, the deficit was 1.1% smaller than 2015 with both exports and imports down. The November deficit with China was slightly less than October at $31.290 billion. Year-to-date red ink with China was $339.3 billion.

Back to the labor market, job gains for all of last year averaged 180,000 a month, slower than 2015’s 229,000 monthly average. For last year’s final quarter, the monthly average was just 165,000.

Employment in health care was up 43,000, notable because that category has held on to its trend now of healthy advances for two years now.

Manufacturing got a bump up of 17,000, but the category is still down 63,000 for the year.

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

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