Household Employment
Household employment comes from the Bureau of Labor Statistics’ monthly survey of households. It counts the self employed and part time workers as well as employees. Tracking this metric provides a more comprehensive understanding of employment conditions. Typically, decreases in this indicator appear subsequent to other recession signals and serve to validate that economic contraction is occurring.
When household employment falls, fewer people are in work. That cuts spending power.
Recession Signal
No specific threshold definitively indicates a recession using this measure alone.
The NBER examines this indicator by evaluating:
- Depth: The severity degree of the economic decline
- Diffusion: The extent to which the decline spreads across different economic sectors
- Duration: The length of time the downturn persists
A sustained and widespread deterioration may suggest recession has commenced or approaches.
Self-Monitoring Instructions
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