Labor Market Information Methodology and uses

Part 1

Dennis ReidBureau of Labor Statistics San Francisco Regional

OfficeOctober 2014

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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)

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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

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Fed/State Cooperative Programs

Partnership with eight States & GuamContract: 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

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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

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BLS Data Availability

PublicationsPress releases, monthly

publicationse.g. Employment and Earnings, Monthly

Labor Review

Internet - www.bls.gov

Regional Information OfficesRecorded messagesActual human contact

State Offices

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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

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NAICS Structure

More digits = more detail

Code Title72 Accommodation & Food Services721 Accommodation7211 Traveler Accommodation72119 Other Traveler Accommodation721191 Bed-and-Breakfast Inns

For more info, visit the BLS NAICS Website: www.bls.gov/bls/naics.htm

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Program by Program Comparison…Data Collected By:

QCEW States & BLS

CES BLS & States (very limited)

OES States & BLS ROs

CPS Census BureauLAUS Input from CPS, CES, UI

(UI=Unemployment Insurance)

JOLTS BLS

SOII States & BLS

CFOI States & BLS

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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

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Are Data an Estimate or a Universe Count?

QCEW Universe

CES Estimate

OES Estimate

CPS Estimate

LAUS Estimate

JOLTS Estimate

SOII Estimate

CFOI Universe

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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

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Frequency of Publication

QCEW Quarterly and annual

CES Monthly

OES Annual (effective 2006)

CPS Monthly

LAUS Monthly

JOLTS Monthly

SOII Annual

CFOI Annual

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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 …

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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

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Geographic Detail Published

QCEW County, MSAs, State, USACES MSAs, State, USAOES MSAs, State, USACPS USALAUS Cities & Towns 25,000+, County, LMA,

MSAs, State, Census Division & Region

JOLTS Census Region, USA

SOII State (most), USACFOI MSAs, State, USA

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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

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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

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Major Uses

QCEW Sample Frame & BenchmarkCES Economic IndicatorOES Foreign Labor Certification

(FLC),Training & Educational

programsCPS Economic IndicatorLAUS Economic Indicator, allocate

fundsJOLTS Economic IndicatorSOII Workplace safety programsCFOI Workplace safety programs

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Time from Reference Period to 1st BLS Publication

QCEW 6 months or moreCES USA - 3 weeks; States - 5

weeks;MSAs - 7 weeks

OES 10 months after reference year

CPS 3 weeksLAUS States - 5 weeks; Areas - 7 weeksJOLTS 4-6 weeks after reference

monthSOII 10 months after reference yearCFOI 8 months after reference year

Comparison of Labor Force and OSHS Programs

QCEW CES OES CPS LAUS JOLTS SOII CFOI

Data Collected by

States & BLS BLS States & BLS ROs Census BureauInput from CPS, CES,

UIBLS States and BLS States and BLS

Data Collected from

Establishments Establishments Establishments HouseholdsInput from CPS, CES,

UIEstablishments Establishments various sources

Estimate or Universe Count?

Universe Estimate Estimate Estimate Estimate Estimate Estimate Universe

Frequency of Collection

Quarterly for monthly data

Monthly Semi-Annual Monthly Monthly Monthly Annual on a flow basis

Frequency of Publication

Quarterly & Annual

Monthly Annual Monthly Monthly Monthly Annual Annual

Major Data Types Published

UI covered employment &

wages by industry

Nonfarm employment, hours, hourly earnings by

industry

Occupational employment &

wages by area and industry

Civilian labor force, employment,

unemployment, Unemp. rate for

the nation

Civilian labor force, employment,

unemployment, Unemp. rate for

States & local areas

Nonfarm job openings, hires, and separations by industry and

region

Workplace Injuries and Illnesses

Workplace Fatalities

Geographic Detail Published

County, MSAs, State, USA

MSAs, State, USA

MSAs, State, USA USA

Cities & towns 25,000+, County, LMA, MSA, State, Census Division &

Region

Census Region and USA

USA and most States

MSAs, State, USA

Demographic Detail Published

None Women Workers NoneExtensive

Demographic Detail

None NoneGender, age, race/ethnicity

Gender, age, race/ethnicity

Are Data Benchmarked?

No, QCEW is a benchmark

Yes, to QCEW Yes, to QCEW No Yes, to CPS Yes, to CES Yes, to QCEWNo, CFOI is a universe count

Major Uses Sample frame & benchmark

Economic Indicator

Foreign Labor Certification,

Planning training & educational programs

Economic IndicatorEconomic Indicator, Allocation of funds

Economic Indicator

Workplace safety programs

Workplace safety programs

Time from Reference Period to 1st BLS Publication

6 months or more

USA- 3 weeks; States- 5 weeks; MSAs- 7 weeks

10 months 3 weeksStates- 5 weeks; Areas- 7 weeks

4-6 weeks after reference month

10 months 8 months

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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

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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

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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.

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Five Inputs to QCEW

Two reports are sent to UI “Tax” Unit:

• Status Determination FormsInitial report on intended business activity

• Quarterly Contributions ReportsEmployment, wages, “contributions” (taxes)

The QCEW unit has to interface with UI to get data from these two types of reports

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Five Inputs to QCEW, continued

Three reports sent to the QCEW unit: Multiple Worksite Reports

For 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

Employers State UITax Unit

QCEWState

BLS

QCEW Data Flow

Initial StatusDetermination Forms

ContributionsReports

Federal Government Reports

Unit

Multiple WorksiteReports

EQUI deliverable

Annual Refile Survey

*

* Some MWRs and most Fed reports are collected by the BLS EDI Center, then sent to States.

*

(EDI=Electronic Data Interchange)

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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

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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)

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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

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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

UI Tax Rate & Actuarial Analysis

UI-Covered Employment

Local Area Unemployment

Personal Income (BEA)

Gross Domestic Product (BEA)

Economic Forecasting

Current Employment Statistics

Occupational Employment Statistics

Job Creation/Destruction• Size Class Dynamics• Business Survival Rates

Geocoded Establishments

Occupational Employment Statistics

Occupational Safety and Health Statistics

Current Employment Statistics

National Compensation Survey

Industrial Price Program

Occupational Safety and Health Statistics

Programmatic Uses

Benchmarking(Employment Base)

General Economic Uses

QCEW Data

Analytical Uses Sampling

State Revenue Projections

Jobs Openings & Labor Turnover Survey

Job Openings & Labor Turnover Survey

Quarterly Press Releases, Annual Employment and Wages

Local Economic Development Indicators

• Clusters Analysis• Shift Share• Industry Diversity Indexes• Location Quotients

Federal Funds Allocation$175 Billion

(HUD, USDA, HCFA/CHIP)

Minimum Wage Studies

Uses of QCEW Data

Local Economic Impact Response Planning

Local Government Services Planning

Interagency Data Uses• Improve CPS After 2000 Census• LEHD• Industry Code Sharing

Local Transportation Planning

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Contact Information

Dennis ReidAssistant Regional Commissioner

San Francisco415-625-2260

reid.dennis@bls.gov