View earnings hit seven month high

By Lucia Mutikani

WASHINGTON | 7 Jan 2011 7: 33 pm EST

WASHINGTON (Reuters) - U.S. economy probably created more jobs in December that no matter what month since may, confirming that an autonomous recovery is underway, but the unemployment rate is seen no margin only slightly downwards.

Non-agricultural earnings increased by an estimated 175,000 after November of slim gain of 39,000, according to a Reuters poll.

Last may employment growth was boosted by temporary hiring for a decennial census. However, the private sector should pushed for employment growth in December — up to 180 000 for its biggest gain since April, according to Reuters survey.

"Recovery becomes more sustainable and less dependent on temporary growth, particularly inventories, factors," said harm Bandholz, Chief U.S. economist for UniCredit in New York.

"There is more support from private demand including consumption." But the improvement of the labour market is still slower than what everyone hopes. »

The Ministry of labour will publish the closely monitored at 0830 employment report and it is planned to add a series of economic data more strong American.

Speculation about a strong jobs report helped push the dollar to a maximum of five weeks against the euro Thursday.

"There is a strong consensus that there is a certain numbers of good outbound (United States)... tomorrow and the expectations of a huge number of payroll feeds all sorts of dollar of purchase," says c.j. Gavsie, Director of sales of FX to BMO in Toronto capital markets.

Nevertheless, the unemployment rate is expected to have only checked at 9.7% from 9.8% in November.

December job numbers would boost to President Barack Obama. High unemployment cost control of the House of representatives of the United Democratic Party.

Officials of the Federal Reserve will weigh the jobs report when they meet on 25 and 26 January. Signs of strength could increase calls for the U.S. Central Bank scale back its widely criticized over $ 600 billion Government bond purchase program.

In December, some policymakers have indicated that they had a "relatively high" threshold to restrict incentive program.

FED TO STAY IN THE RACE

Fed Chairman Ben Bernanke speaks on Economic Outlook before the Budget Committee of the Senate at 0930.

Analysts say focus the Fed is on unemployment and expect to complete the link – purchase plan.