Washington, DC, January 6, 2006--The economy created 108,000 new jobs in December even as the unemployment rate fell to 4.9%, according to the Labor Department.
Payroll growth was off from the 205,000 expected by economists, but upward revisions to November numbers totaling 99,000 put total payrolls near the expected level of 134.5 million.
November's net job growth was revised to 305,000 from 215,000 previously. It was the largest gain in more than a year.
Payrolls increased by 2 million in 2005. The unemployment rate fell by a half percentage point.
In December, average hourly wages increased $0.05, or 0.3%, to $16.34. Average wages rose 3.1% in 2005.
Total hours worked in the economy fell 0.2% in December as the average workweek dropped to 33.7 hours.
In December, payrolls increased by 12,000 in goods-producing sectors, 82,000 in private-sector services and 14,000 in government, according to a survey of some 400,000 business establishments.
Construction employment fell by 9,000, likely a payback to November's balmy weather.
Manufacturing employment rose by 18,000, the third straight gain.
In services, employment in the retail sector fell by nearly 16,000. The figures are seasonally adjusted.
Employment in professional and business services increased 33,000, payrolls in education and health-care rose by 25,000 and jobs in leisure and hospitality increased by 23,000.
Among 278 industries, 54.9% were hiring in December, down from 66% in November. Among 84 manufacturing industries, 55.4% were hiring, up from 53.6% in November.
