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Saturday, January 29, 2022 5:31:14 AM EST

Nonfarm Payrolls Updated 07-Jan-22 09:41AM ET

December payrolls growth was quite weak, but that shouldn't remain the case as we get past the Omicron hurdle.

The unemployment rate fell to an astounding 3.9%, although the labor force participation rate did not improve. It held steady at 61.9%.

Average hourly earnings were up a stronger than expected 0.6%.

December nonfarm payrolls increased by 199,000 ( consensus 440,000). The 3-month average for total nonfarm payrolls decreased to 365,000 from 425,000 in November. November nonfarm payrolls revised to 249,000 from 210,000. October nonfarm payrolls revised to 648,000 from 546,000.

December private sector payrolls increased by 211,000 ( consensus 420,000). November private sector payrolls revised to 270,000 from 235,000. October private sector payrolls revised to 714,000 from 628,000.

December unemployment rate was 3.9% ( consensus 4.1%), versus 4.2% in November. Persons unemployed for 27 weeks or more accounted for 31.7% of the unemployed versus 32.5% in November. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.3%, versus 7.7% in November.

December average hourly earnings increased 0.6% ( consensus 0.4%) versus a 0.4% increase in November. Over the last 12 months, average hourly earnings have risen 4.7%, versus 5.1% for the 12 months ending in November.

The average workweek in December was 34.7 hours ( consensus 34.8), versus a downwardly revised 34.7 hours (from 34.8 hours) in November. Manufacturing workweek decreased 0.1 hours to 40.3 hours. Factory overtime decreased 0.1 hours to 3.2 hours.

The labor force participation rate held steady at 61.9%.

The employment-population ratio increased to 59.5% from 59.3% in November.

The key takeaway from the report is that it shows the Fed is close to meeting its objective of maximum employment and that wage growth in a tight labor market risks feeding into more persistent inflation pressures that will need to be addressed with a tighter policy position.
Establishment Survey
Nonfarm Payrolls199K249K648K379K483K
Retail Trade-2K-13K51K39K22K
Temporary help-2K1K50K15K27K
Average Workweek34.734.734.734.834.6
Production Workweek34.
Factory Overtime4.
Aggregate Hours Index0.2%0.3%0.3%0.9%0.1%
Avg Hourly Earnings0.6%0.4%0.6%0.6%0.4%
Household Survey
Household Survey
Civilian Unemp. Rate3.9%4.2%4.6%4.7%5.2%
Civilian Labor Force168K516K139K-34K130K
Civilian Employed651K1090K428K639K463K
Civilian Unemployed-483K-573K-291K-673K-332K