Discussion starts with the predictable short-term noise in employment data.
Transition to current economic topics: inflation, prices, and spending.
Consumer Price Index (CPI)
Measures average change in prices paid by urban consumers for a market basket of goods and services over time.
Producer Price Index (PPI)
Measures average change over time in selling prices received by domestic producers.
Contrasts with CPI, as it assesses price changes on the producer side.
Consumer Expenditure Survey
Gathers data about spending habits and expenditures of consumers.
CPI
Covers a broader range of purchased products and services, tracking monthly price changes.
Includes national, regional, and metro area indexes.
PPI
National data only; covers over 10,000 industries and products.
Focuses on the changing costs for producers including intermediate and final goods.
Respondent participation in both CPI and PPI is voluntary and confidential.
Data is anonymized to avoid unfair advantages or disadvantages to companies.
Example of confidentiality: if only one company participates, their data won't be published to protect their business interests.
Demonstrated on BLS.gov: calculates inflation rates over chosen years.
Example: $20 in 2019 has the same buying power as $25.25 in 2025, indicating a 20% price increase.
Historical Data Analysis:
PPI as a leading indicator of CPI: when PPI rises, CPI usually follows.
Comparative example with Breakfast Cereals:
Producer price increases often lead to higher consumer prices, though fluctuations differ.
PPI is crucial for businesses to set prices and negotiate contracts based on industry trends.
Example: Farmers can tie their product prices, like potatoes, to the PPI of related products.
Annual survey collects consumers’ major and minor purchases over three months.
Helps assess product importance in the CPI.
Provides demographic data about income and spending habits of consumers.
Visual representation of annual expenditures: housing (32.9%), transportation (17%), food (12.9%).
Explanation of how housing data is gathered through direct interviews and surveys.
National Compensation Programs:
Employment Cost Index (ECI)
Tracks labor cost changes and compensation per hour worked.
Employer Costs for Employee Compensation (ECEC)
Includes details about wages, benefits, and employer-paid costs.
Employee Benefits Survey (EBS)
Measures the access and participation of workers in employer-provided benefit plans.
Difference between current dollars (does not consider inflation) and constant dollars (adjusts for inflation).
Illustrates how wage growth may not reflect true economic growth due to inflation's impact.
Survey of Occupational Injuries and Illnesses:
Surveys over 250,000 establishments annually to track injuries.
Participation is mandatory for employers.
Census of Fatal Occupational Injuries:
Comprehensive tracking of workplace fatalities using official records to ensure accuracy.
Data reflects real-world incidents and highlights significant increases in certain occupations during crises, e.g., heightened risks for nursing assistants during COVID-19.
Provides projections for employment over a decade, focusing on major growing occupations, particularly in healthcare due to an aging population.
Highlights fifty percent of the ten fastest-growing occupations are health-related.
Useful for job seekers and graduates looking to understand career opportunities in the future.