Re: Apparently Jack Welch was right: The job numbers are being cooked.
posted at 11/1/2012 2:12 PM EDT
In response to DamainAllen's comment:
So, obviously you didn't read or don't understand what you just posted. I will explain it to you though.
ADP is revising its internal jobs calculation methodology as the company has been plagued by the unreliability of its reports. In fact, ADP just partnered with Moody's to produce the jobs report and cited in its press release a belief that the partnership would "enhance the accuracy" of the report. (see link below)
This has nothing to do with BLS data because the two reports are not the same. One is produced by the Bureau of Labor and Statistics and the other by ADP (ADP pulls the data from clients who utilize their payroll services and software)
In fact the only entity "cooking the books" is ADP in an attempt to address a criticism that they produce inaccurate jobs reports since the company has released reports that wildly overstated the number of jobs added. And since the BLS report is released a day later and the two have not matched, ADP has suffered a black eye as Wall Street has become skeptical over the quality of their product. ADP has overstated jobs gains, with their results exceeding the numbers BLS has produced. BLS has nothing to do with what you have posted.
"The payroll data firm ADP, which recently became partners with Moody’s Analytics, revised their estimate of the September jobs created down from 162,000 to 88,200. That new number is considerably less than the Labor Department’s count of 114,000, which included 104,000 from the private sector.
When the Labor Department’s job numbers came out for September, there was an uproar; many observers thought the numbers were manipulated to benefit Barack Obama’s reelection. As Jack Welch, former head of General Electric, tweeted after the Labor Department’s release: "Unbelievable jobs numbers...these Chicago guys will do anything...can't debate so change numbers."