Employment naturally fluctuates throughout the year due to factors that happen at the same time every year:
Assign a numeric weight to each month based on historical deviation. seasonally adjusted unemployment rate meaning
The formula is simple:
Conversely, the raw rate in June might be . Because summer hiring typically lowers the rate by 1.0%, the seasonally adjusted rate would be 5.5% again. Employment naturally fluctuates throughout the year due to
Raw unemployment always spikes in January as holiday positions end. seasonally adjusted unemployment rate meaning
Without adjustment, these predictable spikes could be mistaken for a genuine economic downturn or recovery. How It Is Calculated