Semi-Daily Journal Archive

The Blogspot archive of the weblog of J. Bradford DeLong, Professor of Economics and Chair of the PEIS major at U.C. Berkeley, a Research Associate of the National Bureau of Economic Research, and former Deputy Assistant Secretary of the U.S. Treasury.

Sunday, January 08, 2006

Unemployment: The importance of "seasonal adjustment":


The U.S. economy goes through a little business cycle every year. Business activity and employment fall, and unemployment rises, sharply in the immediate aftermath of Christmas. The economy goes through a smaller lull in the summertime.

The seasonal adjustment process attempts to create data purged of these "normal," annual fluctuations. Almost all the data quoted is seasonally adjusted data.


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