Understanding Economic Equilibrium

CHAPTER 23

First Fridays: Monthly Job Reports

Each month, typically the first Friday, the U.S. Bureau of Labor Statistics (BLS) releases its Employment Situation Report. More commonly known as the “monthly jobs report,” the BLS release is probably the single most telling indicator on the state of the U.S. economy. It is our most meaningful economic diagnostic tool, fundamental to determining whether current expectations and economic forecasts are on track.

The monthly Employment Situation Report contains a great deal of data, but the two figures that command the most attention and move markets are the number of jobs added to the economy and the current top-line unemployment rate.

The “Noisy” Metric

The U.S. economy is characterized in one very ...