Labor market flows estimated from monthly data understate the true number of transitions by 15--25 percent, but this time aggregation bias does not meaningfully affect the cyclicality of gross flows or hazard rates.
The monthly Current Population Survey overstates employment-to-employment transitions because of time aggregation. Separations to a new job are strongly procyclical while separations to unemployment are strongly countercyclical, resulting in an acyclical total separation rate.
Total monthly job loss and hiring among U.S. workers, as well as job loss hazard rates, are strongly countercyclical, while job finding hazard rates are strongly procyclical.