Friday, February 5, 2016

Jobs raw and confusing

Jan 143526 146552
3026 608 566
Feb 144134 147118
2984 956 517
Mar 145090 147635
2545 677 952
Apr 145767 148587
2820 631 762
May 146398 149349
2951 706 296
June 147104 149645
2541 161 77
July 147265 149722
2457 -618 -494 Teachers laid off
Aug 146647 149228
2581 294 -248
Sept 146941 148980
2039 995 736 Teachers rehired
Oct 147936 149716
1780 -270 50 Construction slowdown
Nov 147666 149766
2100 -476 -63
Dec 147190 149703
2513 -638 -666 Christmas hires laid off


I went through jobs not seasonally adjusted, Table A13 in monthly BLS employment survey.  So the numbers above are simple estimations based on the current survey. 

The two left columns are actual jobs for year 2014 and 2015, so I am comparing two years. Not much, bur two out of the five that make the expansion.  The two right columns are the non-seasonally adjusted job gains, for the following month.  I added a column of probable causes of the seasonality.

First, we lose about 600,000 jobs each January, so the adjuster has turned a negative 666 thousand into a positive 150 thousand. Also note that the warm winter in 2015 mean fewer construction lay offs.  And the number of teachers laid off for the summer seems normal.

So, how did we get 150k new jobs instead of 190k, when starting with a negative 666k?  Well, we make this bold assumption the adjuster is a zero mean filter, and maintains the same response, until otherwise notified.  But just looking, this jobs report is ambiguous, it really tells us nothing until around April.

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