Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

I have two quite different questions. In the Greenbook there was a discussion of the different picture of the labor market provided by the payroll employment data and by the unemployment rate. The Greenbook explanation of this focused on the participation rate. But it looks to me as though the divergence in the payroll and household employment series is larger than we usually see. Since the end of the recession, assuming that occurred at the end of 2001 roughly, payroll employment is down in total about 1 million, and household employment is up about 1.3 million or something like that. I know these series differ, but it seems to me that the gap is larger and more persistent than usual. What can you tell us about that?

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