Possibly the largest watched report in the economic industry, the Employment Situation Report is the best way to review the state of the labor force in the U.S. Also known as the Labor Report, it is issued by the Bureau of Labor Statistics (BLS) and is comprised of two separate analysis, the Establishment Survey and the Household Survey. These surveys are not meant to be supportive of each other because they are derived from different sources. It is additionally important to remember that though the Labor Report is a great indicator of the economy through the job market, is does not however, define the economy. Industries can still be profitable during rough labor markets. To better understand this concept, analysts break down the components of each survey; looking at both the strengths, weaknesses and challenges the surveys face.
The Establishment survey is considered the most comprehensive labor report available, because it covers and estimated one-third of all non-farm workers in the U.S. Its statistics include, non-farm payrolls, total hours worked and hourly rates and earnings. The sample size in this survey contains nearly 400,000 businesses across the country, over 500 industries and hundreds of metropolitan areas. Total non-farm payroll employment rose by 243,000 in January. Private-sector employment grew by 257,000, with the largest employment gains in professional and business services, leisure and hospitality, and manufacturing. Government employment was little changed over the month. Though it is seen to be larger in scope, it is crucial to remember that the establishment survey excludes, private households, the self-employed and the agricultural sector; all of which are included in the Household Survey.
The second survey, known as the Household survey includes all sectors but contains a smaller sample size. The sample is selected to reflect the entire civilian non-institutional population. It encompasses more than 60,000 households and...
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