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In reply to the discussion: U.S. payrolls rose by 130,000 in January, more than expected; unemployment rate at 4.3% [View all]Wiz Imp
(9,392 posts)Last edited Wed Feb 11, 2026, 12:50 PM - Edit history (1)
Such as non-response error. The sample is constructed to maximize the accuracy at 100% response. Response rates to this survey are far below that. The lower the response, the less accurate the estimates are likely to be.
There is also response error. Some employers report innacurate data.
There is also sampling error, which is directly related to sample size, with smaller industries having higher relative standard errors.
And there is a birth-death model which is used in addition to the sample to attempt to capture movements of new businesses which are too new to have been selected into the sample. The birth-death model is generally based on historical trends, and thus has a tendency to be off target during turning points in the economy.
All of these combined (plus other types of statistical error) can cause data to be less accurate than ideal. These errors do tend to be greatest during economic turning points which we are clearly at now.
