Unexpectedly Intriguing!
01 October 2007

Unemployment Line, January 1938 (flipped) Figuring out how many jobs have been added or loss from the U.S. economy can be a real pain.

When you consider that there are at least three different sources who provide different pictures of how jobs are trending in the U.S., you've got a real problem - which one can you trust to give you the best picture of what's going on?

Jim Hamilton of Econbrowser has considered the problem, and his answer is: all of them! Hamilton argues that taking a weighted average of the employment data from the BLS' household and establishment surveys and payroll processor ADP can provide a much better picture of the state of jobs in the U.S. than any single report by itself.

So, that's what we've done with our latest tool - all you need to do is enter the indicated data in the table below! And, as a bonus feature, we also make it possible for you to change the weighting factors!

Monthly Jobs Data
Job Data Source Monthly Change in Jobs Weighting Factor (%)
BLS Nonfarm Payroll Employment Monthly Change
BLS Table A, Household Data, Civilian Labor Force, Employment, Monthly Change
(Remember to add 3 zeroes - number in table is in thousands)
BLS Table A, Establishment Data, Nonfarm Employment, Government, Monthly Change
(Remember to add 3 zeroes - number in table is in thousands)
See Below
ADP Employment Report

Estimated Change in Number of Jobs
Calculated Results Values
Weighted Average of Monthly Change in Jobs

The default data in the table above is taken for August 2007. In the calculations, Hamilton combines the government's count of its own monthly change in employment levels with ADP's count of the private sector's payroll, with the 10% weighting factor applied to the result.

Since first posting his weighted average jobs numbers earlier this year, Hamilton's method has done very well in anticipating the revisions to the initial reports, indicating that so far, the weighted average technique has got game!

Labels: , ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.