From Dow Jones & Company:

The U.S. labor market added 2.7 million new jobs in 2023, surprising many who had forecasted a recession. However, monthly increases were exaggerated due to distortions from the pandemic era. The unemployment rate is currently at a low 3.7%. The U.S. employment reports overestimated job growth in nine out of ten months in 2023, leading to considerable revisions. The low response rate by the businesses surveyed by the Bureau of Labor Statistics is partly to blame for the inaccurate estimates. The BLS is looking at new approaches to increase timely response rates for more reliable data. Investors and policymakers should approach initial jobs reports and economic data with caution.



Read more: Jobs report exaggerated the increase in U.S. hiring in 2023