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A Job Picture Painted With Different Brushes (who let this objective reporter in the NYT!)
The New York Times ^ | 8/7/2004 | Floyd Norris

Posted on 08/07/2004 9:50:23 AM PDT by unspun

July was a poor month for job creation in the United States.

July was an excellent month for job creation in the United States.

That tale of two employment reports is true, and it continues a trend that has persisted for two and a half years. The discrepancies have made it possible for Republicans to herald a job recovery and for Democrats to deny one exists.

Both sets of statistics were issued by the government's Bureau of Labor Statistics, but they come from very different surveys. One, the establishment survey, which questions 160,000 employers, paints the bleak picture. The other, the household survey, which questions 60,000 people about whether they or other family members are working, paints the better picture.

Which is right? Because of its smaller sample size, the household survey is always more volatile, and month-to-month changes can be deceptive for that reason. So economists normally pay more attention to the establishment survey. But the fact that they differ so drastically may mean that reality lies somewhere in between.

Over all, the household survey now shows that employment has risen by 1.9 million jobs, or 1.4 percent, since President Bush took office, while the establishment survey shows employment is down by 1.1 million jobs, or 0.8 percent.

The establishment survey concluded that July was a poor month, with a seasonally adjusted job growth of just 32,000 jobs, far below what economists were expecting.

On a nonseasonally adjusted basis, the performance was even worse. It showed that there were 1.2 million fewer people working in the United States in July than in June. The adjustment in part reflects seasonal workers who are not paid for the summer, like some school employees.

The household survey, on a seasonally adjusted basis, showed a gain of 629,000 jobs in July. Before seasonal adjustment, the gain was an even larger 839,000 jobs. That may partly reflect the fact there are more agricultural jobs in the summer - which are included in the household survey but not in the establishment one - or that some workers who have the summer off would normally say they had jobs although they had not worked in July.

The household survey is used to calculate the unemployment rate, which fell to 5.5 percent in July, the lowest figure since October 2001.

The two surveys are not intended to produce the same results. The household survey includes the self-employed as well as agricultural workers, who would not be counted in the establishment survey, and the establishment survey counts each job so that a worker with two jobs could be counted twice.

But over time the two surveys have been roughly similar, although with an interesting political difference. Republican administrations tend to produce better household numbers than establishment ones - perhaps reflecting a better environment for the self-employed. Democratic administrations tend to show better establishment figures.

Early in the Bush administration, which took office just as the economy was sliding into a recession after a period of prolonged growth that saw unemployment sink to historically low levels, both surveys showed a shrinking work force. But they began to diverge in early 2002, with the household survey finding steady job gains, while the establishment survey continued to show a shrinking number of people with jobs.

By the time the establishment survey hit bottom, in August 2003, it indicated that 705,000 jobs had vanished since January 2002, bringing the total job loss in the Bush administration to 2.6 million. But the household survey found that nearly 2 million jobs had been added since January 2002, almost reversing the job losses earlier in the Bush administration.

Since then, the two surveys have fluctuated, but the establishment survey has continued to paint a bleaker picture than the household one.

Going back to Harry Truman, Mr. Bush - by either measure - has presided over an economy that has produced the poorest job creation record of any occupant of the White House to this point in a presidential term. The second worst was turned in by President Bush's father, who failed to win a second term in 1992.

But good job records also do not guarantee electoral success. The two best terms by that measure ended in 1968, when Lyndon Johnson was president, and in 1980, when Jimmy Carter was in the White House. In each year the Democrats were thrown out of the White House by dissatisfied voters.

A Democratic partisan would note that six of the seven best presidential terms, as measured by the establishment survey through the first three and a half years, have been under Democratic presidents, with the only Republican to make that list being Ronald Reagan in his second term, when jobs grew by 9.5 percent. The seven worst by that measure were all Republican administrations.

On average, the establishment survey has shown a 10.1 percent rise under Democrats and a 4 percent gain under Republicans. The household survey has shown a less marked preference for Democrats, whose edge is 6.7 percent to 4.8 percent.


TOPICS: Business/Economy; Extended News; News/Current Events; Politics/Elections
KEYWORDS: boom; bureauoflabor; establishmentsurvey; hiring; householdsurvey; jobs
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To: fooman
......rapid expansion of entitilement programs...

I truly dislike that term........Call me selfish, but I don't see how someone else is entitled to what I have worked for, which is how I see most of these so-called programs.

21 posted on 08/07/2004 11:03:45 AM PDT by Gabz (Ted Kennedy's driving has killed more people than second hand smoke)
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To: Kaslin
"The media, I think, wants Kerry to win.".....From the linked article.

If I could have my way, every TV network headquarters, newspaper and newsmagazine - like "Newsweek" - as well, would have to occupy the top floors on the the tallest buildings in New York City.

22 posted on 08/07/2004 11:04:28 AM PDT by elbucko (A Feral Republican)
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To: elbucko

And have totally redefined just what "general welfare" means.


23 posted on 08/07/2004 11:05:30 AM PDT by Gabz (Ted Kennedy's driving has killed more people than second hand smoke)
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To: Mercat

And the establishment survey misses anything that is not "normal" employee-employer jobs.


24 posted on 08/07/2004 11:32:24 AM PDT by rwfromkansas (BYPASS FORCED WEB REGISTRATION! **** http://www.bugmenot.com ****)
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To: unspun

I am bracing for the August numbers.

We could see negative job numbers.

August of last year saw negative numbers in the establishment survey before going up in Sept. and higher in October.


25 posted on 08/07/2004 11:34:52 AM PDT by rwfromkansas (BYPASS FORCED WEB REGISTRATION! **** http://www.bugmenot.com ****)
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To: rwfromkansas

My prediction: even the establ. no's will be up again in August, due to oil leveling off, necessary growth in tech., and back-to-school.


26 posted on 08/07/2004 12:09:08 PM PDT by unspun (RU working your precinct, churchmembers, etc. 4 good votes? | Not "Unspun w/ AnnaZ" but I appreciate)
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To: unspun

I sure hope so. The numbers come the day after Dubya's speech.

Unfortunately (or fortunately if they are bad), the October numbers come out the day after the election.


27 posted on 08/07/2004 12:17:45 PM PDT by rwfromkansas (BYPASS FORCED WEB REGISTRATION! **** http://www.bugmenot.com ****)
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To: Darth Reagan

ping


28 posted on 08/07/2004 12:29:44 PM PDT by marblehead17 (I love it when a plan comes together.)
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To: elbucko
However, the Democrats have extrapolated the phrase: "provide for the common defense" and "promote" the general welfare" to mean; "promote" the common defense and "provide for the common welfare".

Good one!

The downhill slide began in earnest with the imposition of the 16th amendment, the federal income tax. Our founding fathers would be appalled.

A $2.2 trillion dollar federal budget and it's NEVER enough for our elected representatives.

Of course the Demoncrats will always want to spend more that anyone.

Their feeble minds are always the highest bidders for any govt program, except defense naturally.

29 posted on 08/07/2004 1:23:50 PM PDT by Mister Baredog ((Part of the Reagan legacy is to re-elect G.W. Bush))
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To: fooman; Gabz

Great points!!

The Dems will inflate the employed numbers by hiring more unionized Gov't workers that we'll all have to pay higher taxes to pay them with...then the Dems will get more union money to get more of their ilk hired and then we get the privelage of even higher taxes to pay for more....(insert your version of the "Dean Scream" here)...
If GW can't get his tax cuts to be made permanent and IF JF'nK does manage to get into office the "rich" won't be the only ones to see their taxes go up...with the sunsets coming up on GW's tax cuts don't expect to see JF'nK push to make them permanent...and BINGO!!! A tax-hike for the rest of us and Kerry won't have to lift his tea-totalling little pinky finger to get it done either.....He can say that he's not going to raise taxes on the "middle-class" but you can be sure he won't stop the cuts either when they expire.


30 posted on 08/07/2004 2:00:39 PM PDT by FlashBack (Faith will not make our path easy, but it will give us strength for the Journey.)
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To: FlashBack

you know the drill


31 posted on 08/07/2004 2:07:47 PM PDT by fooman (Get real with Kim Jung Mentally Ill about proliferation)
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To: Mister Baredog
The downhill slide began in earnest with the imposition of the 16th amendment, the federal income tax. Our founding fathers would be appalled.

Yes they would. The 16th. Amendment is an example of mission creep on the run.

32 posted on 08/07/2004 2:56:32 PM PDT by elbucko (A Feral Republican)
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