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Author Topic: June Jobs Report  (Read 3880 times)
CARLHAYDEN
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Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« on: July 01, 2011, 08:56:57 PM »

Everyone should remember that due to graduations, June has far more entrants into the civilian labor force, than your typical month.

The real question appears to be how many people the 'adjustment bureau' can kick out of the civilian labor force.

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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #1 on: July 01, 2011, 09:06:02 PM »

Everyone should remember that due to graduations, June has far more entrants into the civilian labor force, than your typical month.

The real question appears to be how many people the 'adjustment bureau' can kick out of the civilian labor force.



That wasnt the case in June 2010, when the unemployment rate dipped from 9.7% to 9.6% while the economy lost almost 200,000 jobs. 

Please reread the second part of my post.

The 'adjustment bureau' has kept the U-3 (seasonally adjusted) unemployment rate down by kicking people out of the civilian labor force.

If you check the data, you will see that June does have disproportionately high entrant numbers into the civilian labor force.

Now, the question remains how many people can the adjustment bureau get away with kicking out of the civilian labor force?
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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #2 on: July 06, 2011, 03:02:52 AM »

Everyone should remember that due to graduations, June has far more entrants into the civilian labor force, than your typical month.
But the official numbers are seasonally adjusted to account for that kind of noise.

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BLS doesn't kick anyone out of the civilian labor force...the categories are self reported.  If someone reports that they are not working and haven't looked in more than 4 weeks they (and proportionately the number they represent in the sample) are counted as Not in the Labor Force.  It's all based on the survey reponse, not some arbitrary categorizing as you seem to imply.

And as a matter of fact, the Labor Force has increased every month this year.

Where to begin?

First, the Bureau of Labor Statistics used TWO different surveys with respect to employment.
One is the “Household” and the other the “Establishment” (employer).

Second, the “Household” survey is available in both “Not seasonally adjusted,” and “Seasonally adjusted “ formats.  Both are “official.”  In fact, the annual data is only available in the Not seasonally adjusted format.

Third, BLS (the adjustment bureau) does make adjustments in the data other than pure seasonal adjustments.  One of the most significant is their presumptions as to new businesses (and jobs) created.

Let me provide one recent example of adjustments by the BLS:

According the BLS, the Civilian noninstitutional population amounted to approximately 238,889,000 in December of 2010, but 238,707,000 in January of 2011.  Now, this decrease of approximately 182,000 is NOT the result of a real decrease in the population of the United States of persons 16 years and over, but rather the result in “changes in populations controls” made by the BLS.

Now, the BLS presumed a really huge drop in the Seasonally adjusted Civilian Labor Force during the same period, with December of 2010 having approximately 153,690,000 and January of 2011 having approximately 153,186,000 (that’s a drop of approximately  504,000)!

In conclusion, be wary of BLS data.
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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #3 on: July 06, 2011, 07:06:41 AM »

Assumptions and Methods Used in Preparing Employment Projections

http://www.bls.gov/oco/oco2006.htm

The above include a number of “assumptions” made by the BLS in developing their adjustments to data.
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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #4 on: July 08, 2011, 07:39:07 AM »

Even the adjustment bureau admits to a 9.2% (seasonally adjusted) U-3 unemployment rate for June, 2011.

http://www.bls.gov/news.release/empsit.nr0.htm
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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #5 on: July 08, 2011, 07:42:22 AM »

Even the adjustment bureau admits to a 9.2% (seasonally adjusted) U-3 unemployment rate for June, 2011.

http://www.bls.gov/news.release/empsit.nr0.htm


Oh, and here's some more information:

U.S. Payrolls Rose 18,000 in June; Jobless Rate Climbed to 9.2%

By Shobhana Chandra - Jul 8, 2011 5:30 AM MT Fri Jul 08 12:30:00 GMT 2011

U.S. employers added 18,000 workers in June, less than forecast and the fewest in nine months, while the unemployment rate unexpectedly climbed, indicating a struggling labor market.

http://www.bloomberg.com/news/2011-07-08/u-s-payrolls-rose-18-000-in-june-jobless-rate-climbed-to-9-2-.html


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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #6 on: July 08, 2011, 07:51:13 AM »

Oh, and about those "jobs added in May"

Unemployment rose to 9.2 percent as hiring stalls

Published: Friday, 8 Jul 2011 | 8:43 AM ET

WASHINGTON - The Labor Department said Friday that the … number of jobs added in May was revised down to 25,000.

http://www.cnbc.com/id/43683108

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CARLHAYDEN
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*****
Posts: 10,638


Political Matrix
E: 1.38, S: -0.51

« Reply #7 on: July 08, 2011, 03:13:46 PM »

A rather detailed (and hence lengthy) explanation of the machinations of the adjustment bureau.

http://www.zerohedge.com/article/birthdeath-adjustment-was-responsible-over-50-payroll-gains-past-year
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