Friday, March 5, 2010

The BLS Birth/Death Adjustment Adds 97,000 Jobs

One more point on the unemployment numbers. It should be noted that the infamous BLS fudge factor, the Birth/Death Adjustment resulted in adding 97,000 to the ranks of the employed.

What's the Birth/Death adjustment all about?

It's a estimation of jobs lost because of business deaths and new jobs created because of new business start-ups. Since it may take some time for the BLS to work this new data into its data base, they estimate the number. Fudge factor city!

If you add the Birth/Death numbers to the reported 36,000 newly unemployed, plus the part-time census worker count of 15,000 (Remember the part-time census worker is offsetting a likely full-time laid off person in the BLS data), the newly unemployed number goes up to 148,000.

2 comments:

  1. Wenzel concludes: "If you add the Birth/Death numbers to the reported 36,000 newly unemployed, plus the part-time census worker count of 15,000 (Remember the part-time census worker is offsetting a likely full-time laid off person in the BLS data), the newly unemployed number goes up to 148,000."

    As my cousin Vinny used to say: Are you sure about that?!

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  2. Your cousin Vinny must have taught you financial math. You add all the numbers,not just the ones you choose. (ie)36,000 + 15,000 = 51,000 Now stay with me,this is where it gets tough using your cousin Vinny's math.
    51,000 + 97,000 = 148,000
    This is why things look so good out there in the world. Your cousin Vinny must have taught all Wall St. math. Idiot.

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