With the NFP payroll report out tomorrow morning, Bloomberg.com put together a timely infographic on one of our favorite pet peeves: the Birth Death Adjustment.
Overall, the piece is good (see charts below). One small quibble: They should have mentioned that int he beginning of the cycle, the B/D catches job creation that the usual methods miss; problem is that at the end of the business cycle, it misses job losses the usual methods catches.
Click for interactive charting:
As in so much of life, improvements in one part of the model cause problems in another . . .