U.S. December payroll employment rose 155,000 in the month which was line with market expectations of a 153,000-unit increase in the month, according to figures released this morning by the U.S. Bureau of Labor Statistics.
The increase did represent some modest slowing from November where the overall increase was revised up to 161,000 from a previously-estimated 146,000. The separate household survey indicated an unemployment rate of 7.8% which was unchanged from an upwardly revised November rate of 7.8%.
With the release of the December household survey employment numbers seasonal factors are re-estimated which contributed to the upward revision to the November rate.
Government employment continued to decline in December dropping 13,000 after a 10,000 drop in November. As a result, private employment in the month rose 168,000 following a 171,000 increase the previous month.
Within private sector employment, the strength was relatively broadly based though benefiting from a particularly strong 59,000 jump in goods-producing industries following a 1,000-unit drop in November. This strength was led by a rise of 30,000 in construction jobs and a 25,000-unit increase in manufacturing employment.
The gain in construction employment more than offset the 10,000 drop in November and more consistent with indications of a strengthening housing market. Service-producing employment rose 109,000 led by a 65,000-unit surge in the education and health services component. This helped offset an 11,300-unit drop in retail employment which had seen strong gains over the previous four months.
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