BoFA flags divergence between NFP and Household Survey employment

Created at 2 Jun · 15:52 UTC1 source

IN SHORT

Bank of America noted a divergence between the Non-Farm Payrolls report and the Household Survey for US employment. This discrepancy is not uncommon and has occurred in past economic cycles.

Who's Involved

Bank of America

flagged divergence in US employment data

Key facts

Bank of America identified a divergence between NFP employment and the Household Survey.
This divergence has occurred in the past.
The divergence is not considered uncommon.

Bank of America has highlighted a discrepancy between two key US labor market indicators: the Non-Farm Payrolls (NFP) report and the Household Survey. This divergence, where the two surveys present different pictures of employment trends, is not an unusual occurrence and has been observed in previous economic cycles. The bank's observation points to the complexity of interpreting labor market data, which often requires looking at multiple sources to form a comprehensive view.

↳ Why This Matters

The divergence between the NFP and Household Survey employment data can complicate the interpretation of the labor market's health, potentially influencing Federal Reserve policy decisions.

FREQUENTLY ASKED

The NFP report is a key US labor market indicator released monthly by the Bureau of Labor Statistics, measuring the number of jobs added or lost in the economy, excluding farm workers, private household employees, and non-profit organization employees.

The Household Survey, also part of the monthly jobs report, surveys households to determine employment and unemployment status, providing a different perspective on labor market conditions than the establishment-based NFP survey.

Divergences can occur due to differences in methodology, sample size, and the types of workers and businesses surveyed, leading to temporary or persistent discrepancies in reported employment figures.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

CME Headlines

Amendments to the Daily Settlement Procedure Document for all 30-Year Uniform Mortgage-Backed Securities (UMBS) To-Be-Announced (TBA) Futures Contracts

Key facts

Bank of America identified a divergence between NFP employment and the Household Survey.

This divergence has occurred in the past.

The divergence is not considered uncommon.

BoFA flags divergence between NFP and Household Survey employment

PiQ Daily

Key facts

Get the newsletter.

BoFA flags divergence between NFP and Household Survey employment

PiQ Daily

Key facts

Get the newsletter.