The difference between seasonal adjustments and smoothing are subtle. If you look at the graph, you’ll notice that there is a huge seasonal component to the data. The seasonal adjustment does a great job of removing it. The result still bounces around quite a bit, and the 4-week moving average smooths it out.
I post this because tomorrow’s unemployment insurance report is destined to have a large difference between the unadjusted and adjusted data. This isn’t some form of trickery, there’s actually a huge seasonal component to the initial claims data.
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