February 2, 2008

Measuring payroll jobs, unem

WASHINGTON - The number of payroll jobs declines for the first time in more than four years but the unemployment rate falls. Why the discrepancy?

The difference results from the fact that the two figures come from different surveys of the labor market.

The unemployment rate is based on a survey of households. It shows the number of unemployed people looking for work as a percentage of the total number of persons in the labor force.

The number of payroll jobs created each month is based on survey of payroll data from businesses and government agencies.

The two figures over time generally show the same trends in the labor market, but the monthly report can at times diverge because two surveys are being used.

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