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24-Feb-2020 18:45

In concept, the two should be the same, because sales of products generate income for producers and workers equal to the value of the sales.However, because the measurement on the product and income sides proceeds somewhat independently, the two actual measures differ by a statistical discrepancy.For a discussion of the difference between payroll and household survey employment measures, see Mary Bowler and Teresa L.

An alternative measure of employment, measured by the BLS's household survey, reached a peak in November 2007, declined early in 2008, expanded temporarily in April to a level below its November 2007 peak, and has declined in every month since April 2008.Third, the government does not publish a price index corresponding to the coverage of the measure.The committee uses the same interpolated GDP deflator as discussed above.It is an imperfect measure of the production of goods and services for at least three reasons. Second, it does not deduct the sales of imported goods.

Because the real value of imports declined substantially over the relevant period, the measure understates the growth of output.

The committee believes that domestic production and employment are the primary conceptual measures of economic activity.



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