Summary:  We’ve reached a critical point in this business cycle. We enjoyed the years of fiscal and monetary stimulus; now comes the dismount. Only after the stimulus ends will we learn the true strength of our economy. Today we look at the monthly jobs report, perhaps the single most important indicator. Three graphs tell the story, cutting through the fog of confusion spread by the news media.

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Contents

1. Why we’re ignorant and confused
2. The weak good news: more employed
3. The bad news: percent employed
4. More bad news: wages
5. For More Information

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(1) Why we’re ignorant and confused

Reports about the monthly jobs report illustrate why we’re confused and so often ignorant about important aspects of our lives.

1. We get numbers without context. Raw numbers by themselves tell us little; the percent change has meaning. Also useful are descriptions of the trend and adjustments for inflation (vital when looking at…