Statistics

This week on February 2nd, the US Labor Department released its monthly jobs report for January. One of the Department's two surveys showed +353,000 jobs created in January. But a second report shows a drop in total employment in January of -1,070,000 full time and part-time jobs (and an additional -400,000 jobs if one includes unincorporated independent contractors jobs. So, like the Bible, one can find whatever one wants in the government job stats. So why the discrepancies between the two surveys in the monthly jobs report? One reason is that the two surveys have big differences in their methodologies (and underlying assumptions).