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Jobless rate drops to 5.5%, Total employment rose by 629,000 (Reality check time)
U.S. Bureau of Labor Statistics ^ | Friday, August 6, 2004

Posted on 08/06/2004 8:10:50 AM PDT by JohnHuang2

Total Employment and the Labor Force (Household Survey Data)

Total employment rose by 629,000 to 139.7 million in July, and the employ- ment population ratio--the proportion of the population age 16 and over with jobs--increased to 62.5 percent. The civilian labor force also increased over the month, rising by 577,000 to 147.9 million, and the labor force participa- tion rate rose to 66.2 percent. (See table A-1.)

Industry Payroll Employment (Establishment Survey Data)

Total nonfarm employment was little changed (+32,000) in July at 131.3 million. Since its recent trough in August 2003, payroll employment has risen by 1.5 million. Over the month, employment gains in health care and social assistance and in professional and business services were partly offset by job losses in financial activities.

Full Report here.


TOPICS: Front Page News; News/Current Events
KEYWORDS: bushrecovery; jobs
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"A separate Labor Department survey of households, which the government uses to compile the unemployment rate, showed a jump in hiring. Employment grew by 629,000 jobs in that report, outstripping the 577,000 increase in the number of people in the labor force, thereby causing the unemployment rate to fall," Bloomberg reports.

Yep, we're in a deep depression, all right. ;-)

1 posted on 08/06/2004 8:10:54 AM PDT by JohnHuang2
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To: JohnHuang2

Why does everyone refuse to acknowledge the household numbers? I'd rather work for myself than a coporation. Isn't that the American Dream?


2 posted on 08/06/2004 8:14:36 AM PDT by Naspino (HTTP://NASPINO.COM)
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To: JohnHuang2

Yep... Bread lines any day now.....


3 posted on 08/06/2004 8:17:56 AM PDT by Mikey_1962
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To: JohnHuang2

good headline


4 posted on 08/06/2004 8:18:32 AM PDT by fooman (Get real with Kim Jung Mentally Ill about proliferation)
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To: JohnHuang2
O.K., I teach Latin and history, and nobody in their right mind would ever ask me to teach economics. But I turn on the TV this morning and all I hear is that the sky is falling. The only number I hear is the "disappointing" 32,000 jobs in July (which is acually normal). So please explain your numbers here. I don't understand.

Everyone should note, however, that the unemployment dropped to a 5.5% rate (its 4.4% in the battleground state of Iowa), that manufacturing jobs increased, and that wages increased (giving the lie to the low-paying crummy jobs theory).

Still, I don't get it. Your numbers sound great. Other than a biased media (which I do understand), what's the deal? Please put them in context for me.

5 posted on 08/06/2004 8:18:40 AM PDT by MrChips (ARD)
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To: MrChips
now...how come i just read on Drudge that we only gained 32,000 jobs?? whats going on?
6 posted on 08/06/2004 8:22:42 AM PDT by KB4W (I voted for the...before I voted...against, No...wait...You mean I'm supposed to vote? JF'nK)
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To: KB4W

32,000 is the number of people added to payrolls. 625,000 is the number of people that have gained jobs. The two do not have to match.


7 posted on 08/06/2004 8:26:47 AM PDT by Naspino (HTTP://NASPINO.COM)
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To: JohnHuang2

Many of my neighbors were downsized out of their corporate jobs. They are still, however, gainfully employed as work-at-home contractors. The internet revolution has made this possible.

These people are still employed according to the household survey, but their jons have vanished from the establishment survey.

This phenomenon could explain the increase in employment, as measured by the household survey of nearly 2 million jobs since President busg took office.


8 posted on 08/06/2004 8:30:27 AM PDT by Gaetano
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To: KB4W
32,000 new jobs in the USA.

625,000 new jobs in India and China (out sourcing).

9 posted on 08/06/2004 8:31:35 AM PDT by jpsb (Nominated 1994 "Worst writer on the net")
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To: KB4W

Didn't you read the title in the FR post above? Huang called for a REALITY CHECK. Drudge is a SENSATIONALIST. Big difference.


10 posted on 08/06/2004 8:32:55 AM PDT by xrp
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To: jpsb

India and China's population and workforce figures are now incorporated into the USA's? When did this start?


11 posted on 08/06/2004 8:33:58 AM PDT by xrp
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To: JohnHuang2

It seems the job market is changing, but the MSM doesn't quite understand how to report it correctly. Of course, being an election year, with a Republican President, it may be more than ignorance...


12 posted on 08/06/2004 8:34:37 AM PDT by TheDon (The Democratic Party is the party of TREASON)
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To: xrp
India and China's population and workforce figures are now incorporated into the USA's? When did this start?

I think he's kidding...

13 posted on 08/06/2004 8:36:37 AM PDT by Lurking2Long
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To: Lurking2Long

So am I.


14 posted on 08/06/2004 8:37:05 AM PDT by xrp
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To: Naspino

"I'd rather work for myself than a coporation."

And from a tax standpoint so would everyone. Think about it. Work for corporate America and all your income is exposed and little is deductible. Work for yourself and your transportation, food, communications and housing are deductible from your gross income.

Guess which one provides you the highest after tax income? The survey of household jobs ....


15 posted on 08/06/2004 8:41:15 AM PDT by mpreston
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To: Naspino

According to the Household Survey, employment increased by 629,000 to 139.7 million in July. However, in the Establishment Survey, employment increased by only 32,000 to 131.3 million in the same month.

Why such a big difference?

The main difference between these two series is that the universe is inferred from the Establishment Survey by expanding the results obtained from each sector by assumptions of the relative sizes of these sectors. Over time, as we get an increasingly better idea of the relative sizes of these sectors, we will make adjustments to the findings of the Establishment Survey, and the two surveys will align pretty well with each other. But, when the relative sizes of the sectors of the economy are fast-changing, as they currently are, expanding sectors will be under-represented, and contracting sectors will be over-represented, and the Establishment Survey will under-estimate total employment.

Notice that, according to the Establishment Survey, there are 131.3 million people employed, but according to the Household Survey, there are 139.7 million people employed; i.e., the under-estimation is 8.4 million (this is not a small number).

If the Establishment Survey is biased, why is it used? I am tempted to say it is used by certain politicians because it is biased. But, the actual answer is that it has tremendouse detail relative to the Household Survey and, over time, when it is adjusted, its bias is removed.

Other tidbits from the household survey ... Labor force participation surged by 577,000 to 147.9 million, usually indicating that people have renewed confidence of finding a job; and, the unemplyment rate dropped from 5.6 to 5.5 percent, indicative of people actually being able to find jobs. These two results, along with the job creation number from this survey, indicate that the recovery is proceeding with vigor, and further contradict the findings of the Establishment Survey.


16 posted on 08/06/2004 8:41:23 AM PDT by Redmen4ever
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To: JohnHuang2; All

Now I am totally confuesd???LOL
The number 32K came out this am and the Market took a dump...and now this???
I hope someone calls the NYSE & CBOT before the close of the Market today! LOL


17 posted on 08/06/2004 8:43:48 AM PDT by kellynla (U.S.M.C. 1/5 1st Mar Div. Nam 69&70 Semper Fi http://www.vietnamveteransagainstjohnkerry.com)
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To: Redmen4ever

Could you cut that down to ten words or less? LOL(in layman's terms pls)


18 posted on 08/06/2004 8:45:03 AM PDT by kellynla (U.S.M.C. 1/5 1st Mar Div. Nam 69&70 Semper Fi http://www.vietnamveteransagainstjohnkerry.com)
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To: Redmen4ever
The Establishment numbers show increases in average wages.

                                                       Average hourly earnings                  Average weekly earnings

                  Industry                         July      May      June      July       July      May      June      July
                                                   2003      2004     2004p     2004p      2003      2004     2004p     2004p

        Total private........................... $15.29    $15.63    $15.57    $15.59    $515.27   $531.42   $524.71   $526.94
         Seasonally adjusted....................  15.40     15.63     15.65     15.70     517.44    528.29    525.84    529.09

    Goods-producing.............................  16.85     17.10     17.14     17.19     665.58    690.84    690.74    687.60

Natural resources and mining....................  17.53     18.06     18.18     18.15     757.30    798.25    814.46    809.49

Construction....................................  19.00     19.15     19.13     19.24     741.00    741.11    738.42    754.21

Manufacturing...................................  15.68     16.05     16.09     16.05     620.93    659.66    659.69    646.82

 Durable goods..................................  16.32     16.71     16.76     16.63     651.17    695.14    695.54    676.84
  Wood products.................................  12.81     13.03     12.99     13.02     521.37    544.65    533.89    532.52
  Nonmetallic mineral products..................  15.83     16.18     16.24     16.34     666.44    684.41    690.20    692.82
  Primary metals................................  18.26     18.48     18.51     18.61     750.49    803.88    808.89    785.34
  Fabricated metal products.....................  15.00     15.20     15.24     15.29     598.50    627.76    627.89    623.83
  Machinery.....................................  16.36     16.53     16.56     16.64     651.13    700.87    698.83    690.56
  Computer and electronic products..............  16.79     17.11     17.22     17.41     669.92    694.67    699.13    706.85
  Electrical equipment and appliances...........  14.31     14.83     14.89     14.91     568.11    613.96    611.98    600.87
  Transportation equipment......................  20.76     21.29     21.38     20.80     824.17    915.47    912.93    844.48
  Furniture and related products................  12.97     13.04     13.11     13.16     504.53    517.69    521.78    515.87
  Miscellaneous manufacturing...................  13.26     13.76     13.83     14.01     501.23    535.26    531.07    533.78

 Nondurable goods...............................  14.71     14.98     15.03     15.13     575.16    602.20    604.21    600.66
  Food manufacturing............................  12.84     12.94     13.00     13.11     499.48    511.13    512.20    511.29
  Beverages and tobacco products................  17.86     19.55     19.35     19.48     692.97    774.18    758.52    757.77
  Textile mills.................................  11.97     12.08     12.13     12.00     440.50    486.82    490.05    481.20
  Textile product mills.........................  11.28     11.30     11.30     11.33     446.69    436.18    445.22    435.07
  Apparel.......................................   9.68      9.55      9.60      9.66     332.02    346.67    348.48    343.90
  Leather and allied products...................  11.52     11.49     11.59     11.66     449.28    441.22    443.90    431.42
  Paper and paper products......................  17.45     17.88     17.86     17.90     713.71    756.32    748.33    746.43
  Printing and related support activities.......  15.39     15.51     15.56     15.72     578.66    594.03    594.39    602.08
  Petroleum and coal products...................  23.14     24.41     24.24     24.31    1022.79   1091.13   1098.07   1123.12
  Chemicals.....................................  18.51     19.05     19.17     19.23     771.87    815.34    818.56    813.43
  Plastics and rubber products..................  14.38     14.55     14.58     14.70     566.57    595.10    599.24    583.59

     Private service-providing..................  14.87     15.24     15.14     15.15     481.79    496.82    489.02    492.38

Trade, transportation, and utilities............  14.32     14.64     14.61     14.62     484.02    493.37    489.44    494.16

 Wholesale trade................................  17.33     17.67     17.58     17.66     653.34    674.99    661.01    667.55

 Retail trade...................................  11.89     12.08     12.08     12.06     373.35    372.06    373.27    377.48

 Transportation and warehousing.................  16.35     16.72     16.79     16.88     603.32    627.00    621.23    627.94

 Utilities......................................  24.64     25.53     25.30     25.40    1007.78   1054.39   1044.89   1026.16

Information.....................................  21.01     21.41     21.17     21.25     762.66    777.18    774.82    771.38

Financial activities............................  17.29     17.62     17.37     17.43     610.34    637.84    611.42    615.28

Professional and business services..............  17.07     17.45     17.29     17.31     580.38    603.77    589.59    590.27

Education and health services...................  15.62     16.00     16.06     16.14     504.53    521.60    518.74    524.55

Leisure and hospitality.........................   8.68      8.85      8.78      8.80     226.55    229.22    227.40    231.44

Other services..................................  13.72     13.90     13.81     13.77     430.81    435.07    428.11    429.62



19 posted on 08/06/2004 8:46:48 AM PDT by AndrewC (I am a Bertrand Russell agnostic, even an atheist.</sarcasm>)
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To: kellynla

If the numbers had been really good, the markets would have taken a dump anyway.


20 posted on 08/06/2004 8:47:47 AM PDT by COEXERJ145
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