Journal Article

Two measures of employment: how different are they?

Abstract: Since the end of the 2001 recession, the U.S. economy has performed pretty well in terms of output growth, averaging about 3-1/4 percent a year. But how well has the economy performed in terms of creating jobs? To answer that question, most analysts look at two independent monthly estimates of employment published by the Bureau of Labor Statistics (BLS). And the problem is that each sends a different signal about recent labor market conditions. The so-called payroll survey has been reporting a substantial loss in employment and a slow recovery of labor market conditions, while the so-called household survey indicates much less of a loss and a much faster recovery. ; How do these two employment measures differ? Which is a more accurate measure of aggregate employment? This Economic Letter examines the historical and recent behavior of these two employment measures to answer these questions.

Keywords: Employment (Economic theory);

Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: FRBSF Economic Letter

Publication Date: 2004

Order Number: 23