Analysis
U.S. Employment Surveys Diverge, Showing Mixed Labor Recovery
- Survey of households posts larger gain than that of employers
- Results don’t align because of different measurement methods
Source: Bloomberg
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The November U.S. jobs report presented a seemingly confusing picture: a much lower-than-expected payrolls gain, but strong labor-market progress with a sharp drop in the unemployment rate.
That’s because the Bureau of Labor Statistics’ monthly report is composed of two surveys -- one of households and the other of employers -- which each have slightly different questions and definitions of employment. For that reason, the numbers can show a marked divergence.