Labor Market Information Methodology and uses Part 1 Dennis Reid Bureau 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 Publications Press releases, monthly publications e.g. Employment and Earnings, Monthly Labor Review Internet - Regional Information Offices Recorded 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 72Accommodation & Food Services 721Accommodation 7211Traveler Accommodation 72119Other Traveler Accommodation Bed-and-Breakfast Inns For more info, visit the BLS NAICS Website:

9 Program by Program Comparison… Data Collected By: QCEWStates & BLS CESBLS & States (very limited) OESStates & BLS ROs CPSCensus Bureau LAUSInput from CPS, CES, UI (UI=Unemployment Insurance) JOLTSBLS SOIIStates & BLS CFOIStates & BLS

10 Data Collected From: QCEWEstablishments CESEstablishments OESEstablishments CPSHouseholds LAUSInput from CPS, CES, UI JOLTSEstablishments SOIIEstablishments CFOIVarious source documents

11 Are Data an Estimate or a Universe Count? QCEWUniverse CESEstimate OESEstimate CPSEstimate LAUSEstimate JOLTSEstimate SOIIEstimate CFOIUniverse

12 Frequency of Collection QCEWQuarterly for monthly emp. data CESMonthly OESSemi-annual CPSMonthly LAUSMonthly JOLTSMonthly SOIIAnnual CFOIOn a flow basis

13 Frequency of Publication QCEWQuarterly and annual CESMonthly OESAnnual (effective 2006) CPSMonthly LAUSMonthly JOLTSMonthly SOIIAnnual CFOIAnnual

14 Major Data Types Published QCEWUI covered employment and wages CESNonfarm employment, hours, hourly earnings by industry OESOccupational employment & wages by industry CPSCivilian labor force, employment, unemployment, unemployment rate - for the nation as a whole …

15 Major Data Types Published, continued LAUSCivilian labor force, employment, unemployment, unemployment rate - for States and local areas JOLTSNonfarm job openings, hires, total separations by industry and region SOIIWorkplace injuries and illnesses CFOIWorkplace fatalities

16 Geographic Detail Published QCEWCounty, MSAs, State, USA CESMSAs, State, USA OESMSAs, State, USA CPSUSA LAUSCities & Towns 25,000+, County, LMA, MSAs, State, Census Division & Region JOLTSCensus Region, USA SOIIState (most), USA CFOIMSAs, State, USA

17 Demographic Detail Published QCEWNone CESWomen Workers (resumed in September 2006) OESNone CPSExtensive demographic detail LAUSNone JOLTSNone SOIIGender, age, race/ethnicity CFOIGender, age, race/ethnicity

18 Are Employment Data Benchmarked? QCEWNO, QCEW is a benchmark CESYES, to QCEW OESYES, to QCEW CPSNO LAUSYES, to CPS JOLTSYES, to CES SOIIYES, to QCEW CFOINO, CFOI is a universe count

19 Major Uses QCEWSample Frame & Benchmark CESEconomic Indicator OESForeign Labor Certification (FLC), Training & Educational programs CPSEconomic Indicator LAUSEconomic Indicator, allocate funds JOLTSEconomic Indicator SOIIWorkplace safety programs CFOIWorkplace safety programs

20 Time from Reference Period to 1 st BLS Publication QCEW6 months or more CESUSA - 3 weeks; States - 5 weeks; MSAs - 7 weeks OES10 months after reference year CPS3 weeks LAUSStates - 5 weeks; Areas - 7 weeks JOLTS4-6 weeks after reference month SOII10 months after reference year CFOI8 months after reference year

Comparison of Labor Force and OSHS Programs QCEWCESOESCPSLAUSJOLTSSOIICFOI Data Collected by States & BLSBLSStates & BLS ROsCensus Bureau Input from CPS, CES, UI BLSStates and BLS Data Collected from Establishments Households Input from CPS, CES, UI Establishments various sources Estimate or Universe Count? UniverseEstimate Universe Frequency of Collection Quarterly for monthly data MonthlySemi-AnnualMonthly Annualon a flow basis Frequency of Publication Quarterly & Annual MonthlyAnnualMonthly 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 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 NoneWomen WorkersNone Extensive Demographic Detail None Gender, age, race/ethnicity Are Data Benchmarked? No, QCEW is a benchmark Yes, to QCEW NoYes, to CPSYes, to CESYes, to QCEW No, CFOI is a universe count Major Uses Sample frame & benchmark Economic Indicator Foreign Labor Certification, Planning training & educational programs Economic Indicator Economic Indicator, Allocation of funds Economic Indicator 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 months3 weeks States- 5 weeks; Areas- 7 weeks 4-6 weeks after reference month 10 months8 months

22 Quarterly Census of Employment and Wages (QCEW) Also known as: ES QCEW 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 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 UI Tax Unit QCEW State BLS QCEW Data Flow Initial Status Determination Forms Contributions Reports Federal Government Reports Unit Multiple Worksite Reports 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)

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

33 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 Reid Assistant Regional Commissioner San Francisco