Fed officials, and other economists, have been grappling with the divergence between relatively weak reported economic growth and relatively strong job growth. Those at the Fed have largely taken the view that labor market data is more accurate, which has been true over time.
The Federal Reserve created an index to better measure the health of the economy. Has its decline signaled that the economy is turning sour? The shaded bars mark recessions.
Chosen excerpts by Job Market Monitor. Read the whole story at Which Labor Market Data Should You Believe? – The New York Times