This month’s figure is 7.8%.
James Pethokoukis offers his usual analysis, and summarizes thusly: “Only in an era of depressingly diminished expectations could the September jobs report be called a good one. It really isn’t. Not at all.”
Obama says exactly what you’d expect him to be saying: “We are moving forward again.”
And meanwhile, there’s a secondary brouhaha about remarks by former GE CEO Jack Welch that the Bureau of Labor Statistics is cooking the books to favor Obama.
But I don’t think they even need to cook the books. Statistics such as the unemployment rate are often misleading even when done properly. Personally (although I don’t doubt Obama would do it if he could, and if he felt it necessary), I’m with Keith Hall, former commissioner of the Bureau of Labor Statistics, who had this to say:
There ’s nothing wrong with the numbers. The only issue is the interpretation of the numbers. The numbers are what they are.
The article goes on:
The unemployment rate estimate is derived from a survey of households, which came up with an estimate that 863,000 jobs were added for the month.
But the separate establishment survey from which the official payrolls number is derived reported a more modest seasonally adjusted gain of 114,000 jobs in September. That was below the consensus forecast of 118,000, though the previous two months were revised higher.
Mr. Hall said the inconsistent reports reflect the different samples used in the two surveys, one focused on households the other on businesses. The establishment survey has a huge sample size of 141,000 business and agencies covering 486,000 worksites, whereas the household survey covers just 60,000 homes.
“The household survey is much smaller. When you look at something like labor force and employment levels, the uncertainty of those numbers is much larger,” said Mr. Hall. “Within two months, the household survey could show the unemployment rate eking back up.”
I know that politics is about spin these days. But I really don’t know why anyone would pay a whole lot of attention to an unemployment rate that goes slightly up or slightly down one month before an election and think it means very much. What’s far more important is that the president has had four years in office, and the economy has been bad the whole time. All you have to do is imagine how the media would spin these figures if Bush (or for that matter, Romney, or any other Republican) were in office and you know there’s no need to cook the books.
[ADDENDUM: Paul Mirengoff of Powerline points out a good illustration of what Keith Hall was talking about, concerning the household survey numbers vs. the business survey [emphasis mine]:
So how did the Department of Labor come up with an unemployment rate that indicates significant improvement in the jobs picture? It found the alleged improvement through its survey of households. As Hassett explains, the Labor Department’s jobs report is always based on two surveys, one of households and one of establishments.
Professional economists and the press usually emphasize the establishment survey because it is considered less volatile. This month, that survey continues to show the usual weakness in the job market. But the household survey purports to show massive improvement.
Hassett says that during the Bush presidency, the MSM discounted the household survey whenever it revealed good news, claiming that the numbers are suspect. I find the latest household survey numbers ”” coming just before the climax of this election and contradicting more reliable data ”” to be suspect, indeed.
Again, it’s the spin that differs. By offering several numbers from which to pick and choose, the BLS gives the MSM the opportunity to tell the public which one is the more important, based on whether they want to help or hurt the administration.
And boy, am I ever getting tired of putting so many posts in that “press” category. But the topic comes up again and again and again.]