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9th Sep 2015 05:20U.S., Economic Monitor

We read after the employment report that the drop in the unemployment rate was somehow not significant, because it was due in p art to a reported 41K drop in the size of the labor force, completing a 404K cumulative contraction over the three months to August. In our view, though, analysts need to take a broader approach to the picture painted by the household survey, which is much more volatile and less reliable than the payroll survey over short periods.

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Keywords for: 9 Sept. 2015 Ignore Swings in Random Labor Force Data: Focus on Job Gains

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