Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
April 24, 2014

Jobs Report: No Need to Panic

Floyd Norris reconciles the seemingly contradictory data provided in recent jobs reports.

“The discrepancy can be traced to the fact that the [establishment survey and the household survey] are different in concept, and often different in result.”

“The household survey is based on calls to households, asking who in the household was working during a particular week in the month. [It considers multiple part-time jobs as one job.] It is much more volatile than the other survey, and is (almost) never revised.”

“The establishment survey is based on information from employers, and is heavily revised.”

“The figures [from the two surveys] should not be identical, because they include different things, but they should be close.”

“The household survey is used for the unemployment rate, and for such statistics as the employment-to-population ratio. Until recently, that survey was lagging the other one in job creation, and reported a steady fall in the employment ratio.”

“In any case, the employment-to-population ratio rose during January and is now at its highest level in more than a year.”

“In other words, those who are depressed by the latest job figures may be overreacting.”

Comments (0)

No comments just yet.

Sign In

Forgot password?

Or

Subscribe

Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...