Posts filed under “Employment”
Regular readers may recall that I’m not a big fan of this Bureau of Labor Statistics Employment Situation data series, as it is unusually noisy and subject to further revisions and modeling adjustments. (See Ignore Today’s — and Most — Jobs Reports). As we discussed not too long ago, the Employment Situation report is “the single most over-hyped, over-analyzed, over-emphasized, least-understood economic release known to mankind.” It is also one of the “least useful economic data points” at least as far as investors are concerned.
Today’s report for January looks to have an inordinate number of asterisks:
Human Capital and Unemployment Dynamics: Why More Educated Workers Enjoy Greater Employment Stability
A Mis-Leading Labor Market Indicator Samuel Kapon and Joseph Tracy Liberty Street Economics, February 03, 2014 The unemployment rate is a popular measure of the condition of the labor market. With the Great Recession, the unemployment rate increased from a low of 4.4 percent in March 2007 to a peak of 10.0 percent in October 2009….Read More
Employee Compensation Costs During the Recovery Joel Elvery The Federal Reserve’s two mandates—to keep inflation under control and to promote employment growth—overlap when it comes to employee compensation. Inflation typically leads to increases in nominal compensation, and firms increase prices in response, creating a feedback loop that pushes inflation higher. Compensation also rises when labor…Read More