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Question: In August 2002, preliminary data showed that payroll employment rose 39,000, household employment rose 429,000, and the unemployment rate fell from 5.9% to 5.7%.
(A) Based on these data, what conclusion would you reach about the current employment situation?
(B) How would your answer change if you also noted that (a) the unemployment rate for men 20 years and over was unchanged, and (b) the number of initial unemployment claims rose from 386,000 to 398,000?
(C) How would your answer change if you also noted that the biggest declines in the unemployment rate occurred in (a) teenagers, and (b) experienced wage and salary workers?
(D) Based on this welter of confusing information - which is not unusual - what conclusions can be drawn about basing business plans on the latest monthly employment and unemployment data?
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