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progree

(12,240 posts)
12. Sampling error per BLS technical note. And non-sampling error
Sun Aug 3, 2025, 07:24 PM
Aug 3
http://www.bls.gov/news.release/empsit.tn.htm

For example, the confidence interval for the monthly change in total nonfarm
employment from the establishment survey is on the order of plus or minus 136,000.
Suppose the estimate of nonfarm employment increases by 50,000 from one month to
the next. The 90-percent confidence interval on the monthly change would range from
-86,000 to +186,000 (50,000 +/- 136,000). These figures do not mean that the sample
results are off by these magnitudes, but rather that there is about a 90-percent
chance that the true over-the-month change lies within this interval. Since this
range includes values of less than zero, we could not say with confidence that
nonfarm employment had, in fact, increased that month. If, however, the reported
nonfarm employment rise was 250,000, then all of the values within the 90-percent
confidence interval would be greater than zero. In this case, it is likely (at
least a 90-percent chance) that nonfarm employment had, in fact, risen that month.

At an unemployment rate of around 6.0 percent, the 90-percent confidence interval
for the monthly change in unemployment as measured by the household survey is
about +/- 300,000, and for the monthly change in the unemployment rate it is about
+/- 0.2 percentage point.

. . .

The household and establishment surveys are also affected by nonsampling error,
which can occur for many reasons, including the failure to sample a segment of the
population, inability to obtain information for all respondents in the sample,
inability or unwillingness of respondents to provide correct information on a
timely basis, mistakes made by respondents, and errors made in the collection or
processing of the data.

. . .

=======================================================
ETA
https://www.bls.gov/news.release/empsit.nr0.htm
May was revised down by 125k
June was revised down by 133k

As Wiz Imp points out, both are within the 90% confidence interval for sampling error (136k). And then non-sampling error like late responses to surveys are additional

Recommendations

0 members have recommended this reply (displayed in chronological order):

I wonder which Fox News personality will take her job. SunSeeker Aug 3 #1
Or Walt Nauta in that position.... Bengus81 Aug 3 #2
I'm sure he's totaled up Agolf's score card, so that makes him qualified? Bernardo de La Paz Aug 3 #4
We're fast approaching the twenty jobs each stage of the Trump regime Prairie Gates Aug 3 #7
Borowitz thinks George Santos will get the job JustABozoOnThisBus Aug 4 #17
Trump's Efforts to Control Information Echo an Authoritarian Playbook (NYT gift article) LetMyPeopleVote Aug 3 #3
This message was self-deleted by its author Karasu Aug 3 #5
A person of knowledge, class, and distinction Prairie Gates Aug 3 #6
The payroll job growth numbers were ALL POSITIVE!, and grew 284% over the last 2 months, MAGA! progree Aug 3 #8
Every time one of these Trump idiots opens their mouth they show that nobody in this administration has any clue about Wiz Imp Aug 3 #9
Needed to add - unlike what this idiot Hassett said, monthly revision to the data are NOT corrections. Wiz Imp Aug 3 #10
Sampling error per BLS technical note. And non-sampling error progree Aug 3 #12
So those revisions for May and June were pretty much within the 90% confidence interval. Wiz Imp Aug 3 #14
Thanks, I ETA'd my #12 above nt progree Aug 3 #15
Biggest Job Revisions Since 2020 Expose Pitfall of Economic Data progree Aug 3 #11
As I mentioned on Friday, large monthly revisions are often a sign of a turning point in the economic cycle. Wiz Imp Aug 3 #13
"Reacts" feels like a stretch. maxsolomon Aug 4 #16
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