The problem with the employment report is not just about how it is calculated but more so that it is taken as the definitive measure of economic performance. The notion itself, conceptually at least, isn’t assaultive as the modern economy is entirely about the division of labor and specialization, so anything that deals in that subject matter is already in the right place. This particular brand of economic account, however, isn’t so definitive as to have earned such blind faith, especially during this “cycle.”
As it is, the Establishment Survey and unemployment rate are lagging indications, not forward-looking. The unemployment rate, at its best, may be able to say something about what just happened but is far less intuitive about what will happen. That point really gets lost in the shuffle, especially from the “establishment” that is clinging to anything that might suggest there will never be any economic refutation to monetary “magic.”
at http://www.zerohedge.com/news/2015-05-10/something-doesnt-add-strong-jobs-weak-spending-sagging-sales
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