The February jobs report is out. The economy added just 20,000 jobs, but the unemployment rate went down to 3.8% from 4.0%. That combination of an unexpectedly low number of jobs created and an unexpectedly high drop in the unemployment rate illustrates the problem with these statistics. They are based upon two different telephone surveys, like polling reports. That means that in one survey there was a big jump in jobs and in the other there wasn't. What is the correct number is just not known.
This difference in the results has confused even some of the financial press. Here's a priceless bit of stupidity from MarketWatch discussing the 3.8% unemployment rate:
Separately, the jobless rate fell to 3.8% in February from 4%, mostly because fewer people said they were unemployed.
What insight!
This difference in the results has confused even some of the financial press. Here's a priceless bit of stupidity from MarketWatch discussing the 3.8% unemployment rate:
Separately, the jobless rate fell to 3.8% in February from 4%, mostly because fewer people said they were unemployed.
What insight!
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