Tags: Employment | Revisions | Economic | Growth

Employment-Data Revisions Show Economic Growth

By    |   Wednesday, 09 Nov 2011 08:59 AM

Every month, the government quietly changes the unemployment report.

For the past few years, the revisions have indicated that the economy has been significantly worse than the initial estimates. After further review, the Bureau of Labor Statistics admitted they undercounted the number of unemployed by average of 382,000 per month in 2010.

October unemployment data delivered a positive surprise and the number of unemployed in August and September were revised higher.

Government economists admitted to an error of 100 percent in the August report and a 50 percent undercount of new jobs for September.

Historically, the revisions have been small, on average less than 1 percent. They become larger when the economic trend is changing.

Initial estimates of the number of new jobs created each month account for much of the error. Economists assume that a growing economy will continue growing at about the same pace. In recent months, they assumed a very slow growth rate and that leads to a small number of new jobs in the first report. As more data becomes available, the actual number of jobs created has turned out to be higher than the estimate.

The size of the revisions in the past few months shows that economy has been stronger than expected.

The number of new jobs is still small, and it is actually barely enough to keep up with population growth. But, the increases point to future gains and better news on employment in the months ahead.

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MichaelCarr
Every month, the government quietly changes the unemployment report. For the past few years, the revisions have indicated that the economy has been significantly worse than the initial estimates. After further review, the Bureau of Labor Statistics admitted they...
Employment,Revisions,Economic,Growth
244
2011-59-09
Wednesday, 09 Nov 2011 08:59 AM
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