The Employment Numbers Game — July, 2006 (Updated, Carried Forward)
Note: This post will be carried forward to Friday, when the Bureau of Labor Statistics (BLS) numbers are released.
August 3, 4:40 PM: At Biz Weak, Action Economics is predicting 140,000.
August 3, 2:25 PM: MarketWatch (may require registration) is predicting 143,000.
August 3, 12:15 PM: After last month’s huge difference between ADP’s reported job growth of 368,000 vs. the BLS’s 121,000, Reuters reported on Tuesday that the markets were not planning to give much street cred to the impending ADP report. But on Wednesday, when ADP came in at a pretty mediocre 99,000, Reuters treated it with suddenly newfound respect; it also noted that the median forecast from economists it polled is for an increase of 155,000.
August 3, 12:30 AM: Something that makes you go “Hmmm” — The detailed State and Metro Area Unemployment report for JUNE came out Wednesday. Every state except three (Utah and Oklahoma unchanged, and Wyoming a 0.5% decrease) had a higher unemployment rate in June than it did in May. Even recognizing first, that the State/Metro report is NOT seasonally adjusted while the monthly nationwide unemployment report IS, and second, that June is a time when a lot of people enter the work force and obviously don’t all get immediate employment, June’s pervasive rise would seem to foretell that the Friday’s reported national unemployment rate is going to come in higher than June’s 4.6%.
August 3, 12:15 AM: Here’s some food for thought from human-resource and employee-benefits firm Ceridian (bold is mine) –
Businesses With No Paid Employees Increase to 19.5 Million
The image of a typical “mom and pop†business is getting a makeover, according to new data on these burgeoning enterprises released today by the U.S. Census Bureau. Yesterday’s notion of a family-run corner store is giving way to Internet-based auctions, nail salons and even motorcycle dealerships, according to Nonemployer Statistics: 2004 [PDF].
The nation added nearly a million businesses with no paid employees between 2003 and 2004 to reach 19.5 million, a growth rate of 4.7 percent over a one-year period. Businesses without a payroll make up more than 70 percent of the nation’s 27 million-plus firms, with annual receipts over $887 billion.
The report has data on 17 million individual proprietorships and on more than 1.3 million corporations and 1.2 million partnerships. Nonemployer firms may be run by one or more individuals, can range from home-based businesses to corner stores or construction contractors and are often part-time ventures with owners operating more than one business.
Among the fastest-growing: building finishing contractors (22.5 percent), Internet service providers (18.7 percent), nail salons (14.7 percent), electronic shopping and mail-order houses — including Internet-based consumer trade (12.7 percent), lessors of real estate (9.7 percent), formal wear and costume rental stores (8 percent) and motorcycle dealers (7.4 percent.
This has to be horribly difficult to track in rendering an accurate picture of the employment situation. The Census Bureau is picking them up, apparently 18 months or so after the fact, but especially considering the significant increase in the number of no-employee situations, how well is the BLS doing at tracking it (both in getting them in the first place, and avoiding duplicates)?
August 2, 5 PM — ADP Weighs In: Their July report issued earlier in the day says that “Total nonfarm private employment grew 99,000 from June to July on a seasonally adjusted basis, according to the ADP National Employment Reportâ„¢. These findings indicate a deceleration of employment in July.










