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Jobs stats ... pass the salt
The bleak picture in the latest employment numbers may not be in focus. Then again ...
January 12, 2004: 8:33 AM EST

NEW YORK (CNN/Money) - How many grains of salt should we take with the December employment report which showed only 1000 jobs created that month?

The first one is the obvious one that all the skeptics pounced on: There are many other indicators showing strength -- from the super-fast third quarter GDP growth rate, to the healthy retail shopping during the holidays, to surveys from manufacturing that show growth.

One that gets less attention is an indicator of small business hiring from the National Federation of Independent Business which took a nice jump up in December.

Bill Dunkelberg, the NFIB's chief economist, puts a lot of weight on his survey's findings because he believes when small business hiring plans move up, hiring and growth in the rest of the economy soon follow.

One criticism of the employment report is that it may be missing new hiring by small businesses.

The payrolls gains - or losses - come from a Labor Department survey of 400,000 companies that are well established.

If countless small businesses are adding a worker here, two workers there, the survey would not pick them up until the Labor Department gets more complete data over a course of months, not weeks.

The criticism is fair enough. But let's look at apples and apples.

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If the labor market was REALLY strong we should see it in the survey of the 400,000 companies surveyed to some extent.

Bottom line - the economy and labor markets appear to be turning, but it's painfully slow progress for the nations un- and under-employed.  Top of page


Kathleen Hays anchors CNN Money Morning and The FlipSide, airing Monday to Friday on CNNfn. As part of CNN's Business News team, she is also a regular contributor to Lou Dobbs Tonight.




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.