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Labor Market Information Methodology and uses Part 1

Labor Market Information Methodology and uses Part 1. Dennis Reid Bureau of Labor Statistics San Francisco Regional Office October 2014. Labor Force Programs Overview. BLS and the Federal/State Cooperative Programs Comparison of programs

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Labor Market Information Methodology and uses Part 1

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  1. Labor Market Information Methodology and usesPart 1 Dennis ReidBureau of Labor Statistics San Francisco Regional Office October 2014

  2. Labor Force Programs Overview • BLS and the Federal/State Cooperative Programs • Comparison of programs • QCEW(Quarterly Census of Employment & Wages “ES-202”) • CES (Current Employment Statistics) • OES (Occupational Employment Statistics) • CPS (Current Population Survey) • LAUS (Local Area Unemployment Statistics) • JOLTS (Job Openings and Labor Turnover Survey) • OSHS (Occupational Safety & Health Statistics)

  3. Bureau of Labor Statistics • The BLS is the principal fact-finding agency for the Federal Government in the broad field of labor economics and statistics • The BLS mission is to collect, process, analyze and disseminate data • BLS is an independent statistical agency. It serves its diverse user communities by providing products and services that are objective, timely, accurate, and relevant. • Users include the American public, Congress, Federal agencies, state and local governments, businesses, labor organizations

  4. Fed/State Cooperative Programs Partnership with eight States & Guam Contract: LMI & OSHS Cooperative Agreements BLS → States • $, procedures, sample selection, systems, manuals, training (OSHS: 50% funding by law) • Ensure consistency across all states States → BLS • Collect, process and edit the data • Analyze/publish State and area data BLS ↔ States • Policy collaboration via Workforce Information Council and Program Policy Councils

  5. BLS Confidentiality • Confidentiality of individual firm microdata is of paramount importance to BLS • With very few exceptions, BLS surveys depend on voluntary cooperation • Divulging data from individual firms is prohibited • And publication of aggregate level macrodata is suppressed if it would directly/indirectly reveal confidential microdata Note: QCEW data are considered to belong to the state, so state laws apply for this program

  6. BLS Data Availability • PublicationsPress releases, monthly publications e.g. Employment and Earnings, Monthly Labor Review • Internet - www.bls.gov • Regional Information OfficesRecorded messages Actual human contact • State Offices

  7. The North American Industry Classification System (NAICS) • NAICS is an industry classification system with a consistent conceptual framework • Developed by an inter-agency committee that included BLS, BEA, and Census • NAICS was developed as a joint effort with Canada and Mexico • NAICS is a production-oriented classification system • Emphasizes new and emerging industries, high-technology industries, and service industries

  8. NAICS Structure More digits = more detail CodeTitle 72 Accommodation & Food Services 721 Accommodation 7211 Traveler Accommodation 72119 Other Traveler Accommodation 721191 Bed-and-Breakfast Inns For more info, visit the BLS NAICS Website: www.bls.gov/bls/naics.htm

  9. Program by Program Comparison…Data Collected By: QCEW States & BLS CES BLS & States (very limited) OES States & BLS ROs CPS Census Bureau LAUS Input from CPS, CES, UI (UI=Unemployment Insurance) JOLTS BLS SOII States & BLS CFOI States & BLS

  10. Data Collected From: QCEW Establishments CES Establishments OES Establishments CPS Households LAUS Input from CPS, CES, UI JOLTS Establishments SOII Establishments CFOI Various source documents

  11. Are Data an Estimate or a Universe Count? QCEW Universe CES Estimate OES Estimate CPS Estimate LAUS Estimate JOLTS Estimate SOII Estimate CFOI Universe

  12. Frequency of Collection QCEW Quarterly for monthly emp. data CES Monthly OES Semi-annual CPS Monthly LAUS Monthly JOLTS Monthly SOII Annual CFOI On a flow basis

  13. Frequency of Publication QCEW Quarterly and annual CES Monthly OES Annual (effective 2006) CPS Monthly LAUS Monthly JOLTS Monthly SOII Annual CFOI Annual

  14. Major Data Types Published QCEW UI covered employment and wages CES Nonfarm employment, hours, hourly earnings by industry OES Occupational employment & wages by industry CPS Civilian labor force, employment, unemployment, unemployment rate - for the nation as a whole …

  15. Major Data Types Published, continued LAUS Civilian labor force, employment, unemployment, unemployment rate - for States and local areas JOLTS Nonfarm job openings, hires, total separations by industry and region SOII Workplace injuries and illnesses CFOI Workplace fatalities

  16. Geographic Detail Published QCEW County, MSAs, State, USA CES MSAs, State, USA OES MSAs, State, USA CPS USA LAUS Cities & Towns 25,000+, County, LMA, MSAs, State, Census Division & Region JOLTS Census Region, USA SOII State (most), USA CFOI MSAs, State, USA

  17. Demographic Detail Published QCEW None CES Women Workers(resumed in September 2006) OES None CPS Extensive demographic detail LAUS None JOLTS None SOII Gender, age, race/ethnicity CFOI Gender, age, race/ethnicity

  18. Are Employment Data Benchmarked? QCEW NO, QCEW is a benchmark CES YES, to QCEW OES YES, to QCEW CPS NO LAUS YES, to CPS JOLTS YES, to CES SOII YES, to QCEW CFOI NO, CFOI is a universe count

  19. Major Uses QCEW Sample Frame & Benchmark CES Economic Indicator OES Foreign Labor Certification (FLC), Training & Educational programs CPS Economic Indicator LAUS Economic Indicator, allocate funds JOLTS Economic Indicator SOII Workplace safety programs CFOI Workplace safety programs

  20. Time from Reference Period to 1st BLS Publication QCEW 6 months or more CES USA - 3 weeks; States - 5 weeks; MSAs - 7 weeks OES 10 months after reference year CPS 3 weeks LAUS States - 5 weeks; Areas - 7 weeks JOLTS 4-6 weeks after reference month SOII 10 months after reference year CFOI 8 months after reference year

  21. Comparison of Labor Force and OSHS Programs

  22. Quarterly Census of Employment and Wages(QCEW)Also known as: ES-202 www.bls.gov/cew for QCEW www.bls.gov/bdm for Business Employment Dynamics

  23. Quarterly Census of Employment and Wages (QCEW) • QCEW data are not based on a sample • Covers all employers subject to state Unemployment Insurance (UI) laws, as well as Federal employees • Covers 97% of all non-farm wage and salary workers and 55% of agricultural workers • Industry coverage varies by State depending on State law • Over 9.1 million reporting units, 135 million employees, $6 trillion in annual wages • Cornerstone of most BLS programs

  24. QCEW: The Big Picture • QCEW utilizes UI tax system data and other inputs to create a universe file of all covered business establishments. • QCEW produces detailed geographic data on employment and wages. • This giant database is used as a sample frame for other surveys. • CES data are more timely, but CES has less industry and geographic detail.

  25. Five Inputs to QCEW Two reports are sent to UI “Tax” Unit: • Status Determination Forms Initial report on intended business activity • Quarterly Contributions Reports Employment, wages, “contributions” (taxes) The QCEW unit has to interface with UI to get data from these two types of reports

  26. Five Inputs to QCEW, continued Three reports sent to the QCEW unit: • Multiple Worksite ReportsFor businesses with multiple locations in State • Federal Government Reports • Annual Refiling Survey Forms • Three-year* cycle to verify/update: - Industry/geographic/ownership codes - Business names and addresses

  27. QCEW Data Flow Initial Status Employers Determination Forms State UI Contributions Reports Tax Unit * * Multiple Worksite Reports State Federal Government Reports QCEW Annual Refile Survey Unit BLS EQUI deliverable *Some MWRs and most Fed reports are collected by the BLS EDI Center, then sent to States. (EDI=Electronic Data Interchange)

  28. What the State Sends to BLS: EQUI • Enhanced Quarterly Unemployment Insurance (EQUI) Name and Address File • Contains: Business names and addresses Identification and classification information Employment and wage data (each EQUI record is 1190 characters wide) • Used for: Building the BLS Universe File Updating the Universe File with Refiling Survey results Producing aggregate employment and wage data

  29. The BLS Universe File • Collective storage place of all the state EQUI files (Longitudinal Data Base or LDB) • Microdata used for: • BLS sampling frame for establishment surveys • Micro-level economic and statistical research • Analysis of business creation and destruction (Microdata are linked historically)

  30. Business Employment Dynamics (BED) • Relatively new BLS published data series on gross job gains and gross job losses • Tracks changes in employment at the establishment level • Provides a picture of the dynamics underlying aggregate net employment growth statistics • The microdata from the QCEW program is the source of the BED data series

  31. Employment and Wages Macrodata Aggregates can be created for: • Geographic areas • Various industry classification detail levels • Establishment size classes Used for: • Benchmarking CES, OES, OSH surveys • Input for LAUS • Estimating Personal Income & GDP • Providing detailed industry employment and wages data down to the county level**subject to confidentiality restrictions

  32. Quarterly Press Releases, Annual Employment and Wages • Job Creation/Destruction • Size Class Dynamics • Business Survival Rates Geocoded Establishments Industrial Price Program National Compensation Survey Current Employment Statistics Occupational Employment Statistics Occupational Safety and Health Statistics Job Openings & Labor Turnover Survey Uses of QCEW Data • Local Economic Development Indicators • Clusters Analysis • Shift Share • Industry Diversity Indexes • Location Quotients Current Employment Statistics Gross Domestic Product (BEA) Occupational Employment Statistics Personal Income (BEA) Minimum Wage Studies State Revenue Projections Occupational Safety and Health Statistics Economic Forecasting Jobs Openings & Labor Turnover Survey General Economic Uses Benchmarking (Employment Base) QCEW Data Analytical Uses Sampling • Interagency Data Uses • Improve CPS After 2000 Census • LEHD • Industry Code Sharing Programmatic Uses Local Government Services Planning UI Tax Rate & Actuarial Analysis Local Economic Impact Response Planning UI-Covered Employment Local Area Unemployment Local Transportation Planning Federal Funds Allocation $175 Billion (HUD, USDA, HCFA/CHIP)

  33. Dennis ReidAssistant Regional CommissionerSan Francisco415-625-2260reid.dennis@bls.gov

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