Key facts
- The U.S. Jobs Report is a key economic indicator released monthly.
- It provides data on employment growth and the national unemployment rate.
- The Bureau of Labor Statistics (BLS) compiles the report using household and establishment surveys.
- Monthly and annual revisions to the data are routine but can sometimes be large.
- Users include the Federal Reserve, businesses, and financial institutions.
- Concerns exist regarding occasional large revisions and declining survey response rates.
The monthly U.S. Jobs Report, typically released on the first Friday of each month, offers critical insights into employment growth and unemployment rates, making it a vital economic indicator. The Bureau of Labor Statistics (BLS) compiles this report using data from two primary surveys: the household survey, which determines the national unemployment rate, and the establishment survey, which gathers information from businesses on employment numbers, worker hours, and earnings.
Revisions to the data are a standard practice, with the BLS making both monthly and annual adjustments to the establishment survey figures. These revisions often incorporate data from employers who did not respond in time for the initial release or from more comprehensive employment data received from state unemployment insurance programs. While intended to improve accuracy over time, these revisions, particularly when large, can sometimes reduce the report's utility for immediate decision-making.
Users of the Jobs Report, including the Federal Reserve, businesses, and financial institutions like Vanguard, JPMorgan Chase, and Goldman Sachs, generally find the data useful. However, concerns have been raised about the impact of occasional substantial revisions and potentially declining survey response rates on the report's overall accuracy and timeliness. The Federal Reserve, for instance, closely monitors employment and unemployment figures to guide its decisions on interest rates and inflation management.