One of the advantages of year-over-year comparisons is that it automatically negates the effect of seasonality. For example, employment statistics take a dive each June because school lets out, and teachers are no longer employed. A month-to-month comparison would
One of the advantages of year-over-year comparisons is that it automatically negates the effect of seasonality. For example, employment statistics take a dive each June because school lets out, and teachers are no longer employed. A month-to-month comparison would show an alarming drop-off if you didn't know to take the seasonality into account.
For example, in June 2011 a mere 18,000 jobs were added during the month. This was less than the 54,000 jobs added in May and 244,000 jobs added in April. The uemployment rate also increased to 9.2%. Investors grew worried that the economic recovery was weakening, forcing the stock market to drop, and driving up the prices of safe haven investments like Treasuries and gold. (See Current Employmen