WASHINGTON - Nonfarm payrolls rose by 103,000 workers in December and private payrolls added 113,000, both below economists' estimates, as the unemployment rate dropped to 9.4%, the lowest level in 19 months, the Labor Department reported Friday.
The unemployment rate, which ticked higher to 9.8% in November, fell to 9.4%, the lowest level since May 2009. The unemployment rate was 9.9% in December 2009.
Payrolls in November and October were both revised higher, to a 71,000 gain and a 210,000 rise respectively, adding a combined 70,000 jobs from last month's reported estimates. Since December 2009, total payroll employment has increased by 1.1 million. The increase in November's private payrolls was revised higher to 79,000 from 50,000.
Economists polled by Thomson Reuters expected total payrolls to increase 125,000 and for private payrolls to increase 139,000, according to the median estimate. Economists expected the unemployment rate to dip to 9.7%.
The manufacturing sector added 10,000 jobs, the sector's first increase in payrolls since July. The leisure and hospitality sector added 47,000 jobs.
Average hourly earnings for all workers increased by 3 cents, or 0.1%, to $22.78 in December. The average workweek for all employees held at 34.3 hours.
Economists expected average hourly earnings to increase 0.2% and for the average workweek to remain at 34.3 hours.
The state and local government sector continued to shed jobs. State payrolls were flat for the month while local government payrolls fell by 20,000. The federal government added 10,000 jobs.
