The U.S. Bureau of Labor Statistics (BLS) reported on Feb. 3 that the U.S. economy added 517,000 new jobs in January, surpassing the upwardly revised figure of 260,000 in December and exceeding economist predictions of 185,000. Without seasonal adjustment, however, the January 2023 number is 2.5 million lower than that of December 2022.
According to the BLS, seasonal adjustment is a method used to remove the effects of recurring seasonal patterns in data. Throughout the year, the labor force, employment levels, unemployment, and other labor market indicators are affected by seasonal factors such as weather changes, holidays, and school schedules. The BLS claims these seasonal patterns can be accounted for by seasonally adjusting the data each month, making it easier to identify underlying trends and non-seasonal movements.
