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Unemployment rate dips
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January 8, 1999: 10:41 a.m. ET
Warm weather cited for drop in jobless rate to 4.3%; 378,000 jobs added
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WASHINGTON (CNNfn) - U.S. employment growth remained as warm as the surprising weather in December, with the unemployment rate declining to 4.3 percent from 4.4 percent in November, the Labor Department says.
The rate matches the recent 30-year low posted in April and May last year.
U.S. non-farm payrolls grew by 378,000 in December, the Labor Department says, nearly double economists' forecasts. The November figure was revised downward to show a gain of 251,000 from the originally reported 267,000 gain.
"It's a surprise -- we thought the unemployment rate would be edging up," Nikko Securities chief economist Robert Brusca told CNNfn. He cited other recent reports, such as Thursday's Challenger data, that have shown increased layoffs.
"When you get abnormally warm weather, the seasonal factor will blow this up into a big gain," Brusca says. "Once we lose this weather effect, we'll see how much of an employment gain we get."
Most of the growth was in the service-producing and construction sectors, with the Labor Department saying that mild weather throughout much of the nation contributed to that increase. Service-producing jobs rose by 290,000, and construction jobs grew by 104,000.
"I think this report brings in good news for the American economy and the American worker," Labor Secretary Alexis Herman told CNNfn. "We continue to add jobs, in part due to the healthy showing in the construction industry."
She attributed the construction sector's show of strength, at least in part, to warm winter weather.
"If we had had the typical declines in the construction industry [seen in November and December], that number would have been somewhat lower this month," she said.
However, the growth in other sectors was slightly offset by a 13,000 decline in manufacturing jobs, largely due to lingering trouble in Asian markets.
Herman called the retreat "comparatively modest," noting that she hoped that signs of stability in Asia would help revitalize the U.S. manufacturing sector.
Hourly earnings grew by 5 cents an hour to $12.98 from $12.93 an hour posted in November. The average workweek in the private sector grew by 0.1 hour to 34.6 hours.
Treasury markets turned lower after digesting the employment report. The U.S. 30-year bond was down 24/32 at 99-19/32, yielding 5.27 percent an hour after the release. The bond was up 1/32 previously. 
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U.S. Labor Department
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