Seasonal And Birth Death Adjustments Add 429,000 Statistical "Jobs"

Seasonal And Birth Death Adjustments Add 429,000 Statistical "Jobs"
3 August 2012, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/seasonal-and-birth-death-adjustments-add-429000-statistical-jobs

Happy by the headline establishment survey print of 133,245 which says that the US "added" 163,000 jobs in July from 133,082 last month?

Consider this: the number was based on a non seasonally adjusted July number of 132,868.

This was a 1.248 million drop from the June print. So how did the smoothing work out to make a real plunge into an "adjusted" rise?

Simple: the BLS "added" 377K jobs for seasonal purposes.

This was the largest seasonal addition in the past decade for a July NFP print in the past decade, possibly ever, as the first chart below shows.

But wait, there's more: the Birth Death adjustment, which adds to the NSA Print to get to the final number, was +52k.

How does this compare to July 2011? It is about 1000% higher: the last B/D adjustment was a tiny +5K!

In other words, of the 163,000 jobs "added", 429,000 was based on purely statistical fudging.

Doesn't matter - the flashing red headline is good enough for the algos.