Statistical revisions at the Bureau of Labor Statistics have added more than 800,000 jobs to those lost from April 2008 to March 2009. Bloomberg explains the biggest such adjustment in almost two decades.
That leaves economists and the rest of us to wonder what the error rate is from April 2009 onward — numbers that won't be revised until February of 2011. What we do know is that the birth/death model has generated hundreds of thousands of jobs since April of last year — jobs that may get revised away in the final analysis.
Tom Lindmark chips in with related commentary on Monday's ISM report and Thursday's Labor Department numbers.
The employment component increased a percentage point to 44.6%. Remember, anything under 50 represents contraction. In other words, companies are still cutting. By the way, the service sector represents 70% or so of the economy.
I don’t know why the markets didn’t pick up on this on Wednesday, maybe they just needed the DOL report to confirm that all still isn’t well. At any rate, the message appears to be sinking in.
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