Replies

I read an interesting editorial the other day that, unfortunately, I did not see posted here. It described the manner in which the jobs rate is calculated, using what is called (if I remember correctly) the Payroll Survey. It involves contacting businesses to determine if they have added to their payroll. The other means of measurement was called the Household Survey (I think), which involves calling households to verify employment. The latter was not being widely used to determine the employment rate. The point of the article was that the customary means of measuring employment (payroll) generally will omit self-employed individuals and new businesses. According to the author, the Household index results in very different employment figures. If in fact the job statistics being tossed around do not reflect self-employment and start up businesses, then they likely are not an accurate measurement of current employment. I am sure someone can explain this better (and with more detail and accurate recollection) than I have, but that was the gist of the article.