GENERAL QUESTIONS AND ANSWERS ABOUT LABOR FORCE ESTIMATES: EMPLOYMENT, UNEMPLOYMENT, AND UNEMPLOYMENT RATE
Source: State of Hawaii, Department of Labor & Industrial Relations, Research & Statistics Office (November 2006)
Who produces the labor force estimates for Hawaii?
The State of Hawaii, Department of Labor and Industrial Relations, Research and Statistics Office, in partnership with the U.S. Department of Labor, Bureau of Labor Statistics (BLS), operate the Local Area Unemployment Statistics (LAUS) program. The LAUS program produces monthly employment and unemployment estimates.
Why does the Government collect statistics on the labor force?
The Government seeks to know about the extent and nature of employment and unemployment. After these statistics are obtained, they have to be interpreted properly so they can be used--together with other economic data--by policymakers in making decisions as to whether measures should be taken to influence the future course of the economy or to aid those affected by joblessness.
How are the statewide labor force estimates calculated?
Statewide labor force estimates are produced from a statistical regression model that combines current and historical data from the Current Population Survey, a wage and salary nonfarm business establishment survey known as the Current Employment Statistics survey, and the number of claimants in the Unemployment Insurance system.
How are the labor force estimates for the counties calculated?
Estimates for the counties are produced independently by a “building block” approach that uses Unemployment Insurance system data and Current Employment Statistics survey data. Also, for some components of the labor force not covered by these data sources, decennial census relationships are utilized. Still, because of difficulty in estimating certain groups of the unemployed for counties, namely new and reentrants to the labor market, county estimates need to be “forced” to sum to the statewide estimates through the use of additivity, which amounts to adding to the county labor force estimates in a proportional manner.
What is the Current Population Survey?
The Current Population Survey (CPS) is a monthly survey of households conducted by the Bureau of the Census for the Bureau of Labor Statistics. The primary purpose of the CPS is to classify the sample population into three basic economic groups: The employed, the unemployed and those not in the labor force. The sample seeks to identify the employment status of persons in the civilian noninstitutional population, which is defined as persons 16 years of age and older residing in the 50 states and the District of Columbia, who are not inmates of institutions (e.g., penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces. The CPS is based on a current probability sample of about 60,000 households nationwide- about 1,000 of them in Hawaii. The calendar week that includes the 12th day of the month is defined as the survey reference week.
Who is defined as employed?
According to the official concepts of the Current Population Survey, employed persons are all persons who, during the reference week (week including the twelfth day of the month), (a) did any work as paid employees, worked in their own business or profession or on their own farm, or worked 15 hours or more as unpaid workers in an enterprise operated by a member of their family, or (b) were not working but who had jobs from which they were temporarily absent. Each employed person is counted only once, even if he or she holds more than one job.
Who is defined as unemployed?
According to the official concepts of the Current Population Survey, unemployed persons are all persons who had no employment during the reference week (week including the twelfth day of the month), were available for work, except for temporary illness, and had made specific efforts to find employment some time during the four week-period ending with the reference week. Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed.
What is the civilian labor force?
The civilian labor force consists of all persons 16 years of age and older in the civilian noninstitutional population classified as either employed or unemployed.
Who is considered not in the civilian labor force?
Persons not in the civilian labor force consist of all persons 16 years of age and older in the civilian noninstitutional population who are not classified as employed or unemployed. This classification is based on information about their desire and availability for work collected during the Current Population Survey interview, job search activity in the prior year, and reason for not looking in the 4-week period ending with the reference week. This group includes discouraged workers.
Who are discouraged workers?
Discouraged workers are defined as those persons who want a job but are not currently searching for employment because they believe that there are no jobs available or there are none for which they would qualify. These people are not counted as jobless or part of the labor force because they are not actively seeking a job.
How is the unemployment rate calculated?
The unemployment rate represents the number of unemployed as a percent of the civilian labor force. It is calculated by dividing the number of unemployed into the civilian labor force.
What is the difference between “seasonally adjusted” and “not seasonally adjusted” unemployment rates?
“Seasonally adjusted” unemployment rates take into account recurring seasonal changes in unemployment that take place every year, such as support staff leaving due to the closing of schools; and new hirings during the holiday seasons. By taking these types of factors into account the line of unemployment rates will become smoother and it is easier to compare data from month to month. This permits easier observation and analysis of cyclical, trend, and other non-seasonal movements in the data. “Not seasonally adjusted” unemployment rates do not take these adjustments into account and instead are the raw, hard numbers of who is employed, unemployed and the total number of the civilian work force for each given month.
What is the Current Employment Statistics Survey?
The Current Employment Statistics (CES) Survey is a Federal-State program that administers a monthly payroll survey to a sample of about 300,000 nonfarm business establishments nationwide. The primary statistics derived from the survey are monthly estimates of employment (jobcount), hours, and earnings for the Nation, States, and major metropolitan areas. The current CES sample size for Hawaii is about 1,300 establishments. Persons on the payrolls of more than one establishment during the same survey reference week are counted in each establishment that reports them, whether the duplication is due to turnover or multiple job holding.
How can you get more information on labor force estimates?
More information can be obtained by calling the Local Area Unemployment Statistics program staff at (808) 586-9034/9035 or e-mail them at dlir.rs.lfr@hawaii.gov. Current and historical labor force estimates for Hawaii can be accessed at the following websites: www.hiwi.org. Visit the Bureau of Labor Statistics website at www.bls.gov to get national, regional and state data.
