Basic Monthly Survey

Concepts


Collection and Coverage

Statistics on the employment status of the population and related data are compiled by BLS using data from the Current Population Survey (CPS). This monthly survey of households is conducted for BLS by the Bureau of the Census through a scientifically selected sample designed to represent the civilian noninstitutional population. Respondents are interviewed to obtain information about the employment status of each member of the household 16 years of age and over. The inquiry relates to activity or status during the calendar week, Sunday through Saturday, which includes the 12th day of the month. This is known as the "reference week." Actual field interviewing is conducted in the following week, referred to as the "survey week."

Each month about 50,000 occupied units are eligible for interview. Some 3,200 of these households are contacted but interviews are not obtained because the occupants are not at home after repeated calls or are unavailable for other reasons. This represents a noninterview rate for the survey that ranges between 6 and 7 percent. In addition to the 50,000 occupied units, there are 9,000 sample units in an average month which are visited but found to be vacant or otherwise not eligible for enumeration. Part of the sample is changed each month. The rotation plan, as explained later, provides for three-fourths of the sample to be common from one month to the next, and one-half to be common with the same month a year earlier.

Concepts and Definitions

The concepts and definitions underlying labor force data have been modified, but not substantially altered, since the inception of the survey in 1940; those in use as of January 1994 are as follows:

Civilian noninstitutional population. Included are 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.

Employed persons. All persons who, during the reference week, (a) did any work at all (at least 1 hour) as paid employees, worked in their own business, profession, or on their own farm, or who worked 15 hours or more as unpaid workers in an enterprise operated by a member of the family, and (b) all those who were not working but who had jobs or businesses from which they were temporarily absent because of vacation, illness, bad weather, childcare problems, maternity or paternity leave, labor-management dispute, job training, or other family or personal reasons, whether or not they were paid for the time off or were seeking other jobs.

Each employed person is counted only once, even if he or she holds more than one job. For purposes of occupation and industry classification, multiple jobholders are counted in the job at which they worked the greatest number of hours during the reference week.

Included in the total are employed citizens of foreign countries who are temporarily in the United States but not living on the premises of an embassy. Excluded are persons whose only activity consisted of work around their own house (painting, repairing, or own home housework) or volunteer work for religious, charitable, and other organizations.

Unemployed persons. All persons who had no employment during the reference week, were available for work, except for temporary illness, and had made specific efforts to find employment some time during the 4-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.

Duration of unemployment. This represents the length of time (through the current reference week) that persons classified as unemployed had been looking for work. For persons on layoff, duration of unemployment represents the number of full weeks they had been on layoff. Mean duration is the arithmetic average computed from single weeks of unemployment; median duration is the midpoint of a distribution of weeks of unemployment.

Reason for unemployment. Unemployment is also categorized according to the status of individuals at the time they began to look for work. The reasons for unemployment are divided into five major groups: (1) Job losers, comprised of (a) persons on temporary layoff, who have been given a date to return to work or who expect to return within 6 months (persons on layoff need not be looking for work to qualify as unemployed), and (b)permanent job losers, whose employment ended involuntarily and who began looking for work; (2) Job leavers are persons who quit or otherwise terminated their employment voluntarily and immediately began looking for work; (3) Persons who completed temporary jobs, who began looking for work after the jobs ended; (4) Reentrants are persons who previously worked but were out of the labor force prior to beginning their job search; (5) New entrants are persons who never worked. Each of these five categories of the unemployed can be expressed as a proportion of the entire civilian labor force; the sum of the four rates thus equals the unemployment rate for all civilian workers. (For statistical presentation purposes, "job losers" and "persons who completed temporary jobs" are combined into a single category until seasonal adjustments can be developed for the separate categories.)

Jobseekers. All unemployed persons who made specific efforts to find a job sometime during the 4-week period preceding the survey week are classified as jobseekers. Jobseekers do not include persons classified as on temporary layoff, who although often looking for work, are not required to do so to be classified as unemployed. Jobseekers are grouped by the methods used to seek work. Only active methods--which have the potential to result in a job offer without further action on the part of the jobseeker--qualify as job search. Examples include going to an employer directly or to a public or private employment agency, seeking assistance from friends or relatives, placing or answering ads, or using some other active method. Examples of the "other" category include being on a union or professional register, obtaining assistance from a community organization, or waiting at a designated labor pickup point. Passive methods, which do not qualify as job search, include reading (as opposed to answering or placing) "help wanted" ads and taking a job training course.

Labor force. This group comprises all persons classified as employed or unemployed in accordance with the criteria described above.

Unemployment rate. The unemployment rate represents the number unemployed as a percent of the labor force.

Participation rate. This represents the proportion of the population that is in the labor force.

Employment-population ratio. This represents the proportion of the population that is employed.

Not in the labor force. Included in this group are all persons in the civilian noninstitutional population who are neither employed nor unemployed. Information is collected on their desire for and availability to take a job at the time of the CPS interview, job search activity in the prior year, and reason for not looking in the 4 week period prior to the survey week. This group includes discouraged workers, defined as persons not in the labor force who want and are available for a job and who have looked for work sometime in the past 12 months (or since the end of their last job if they held one within the past 12 months), but are not currently looking, because they believe there are no jobs available or there are none for which they would qualify.

Persons classified as not in the labor force who are in the sample for either their fourth or eighth month are asked additional questions relating to job history and workseeking intentions. These latter data are available on a quarterly basis.

Occupation, industry, and class of worker. This information for the employed applies to the job held in the reference week. Persons with two or more jobs are classified in the job at which they worked the greatest number of hours. The unemployed are classified according to their last job. The occupational and industrial classification of CPS data is based on the coding systems used in the 1990 census.

The class-of-worker breakdown assigns workers to the following categories: private and government wage and salary workers, self-employed workers, and unpaid family workers. Wage and salary workers receive wages, salary, commissions, tips, or pay in kind from a private employer or from a government unit. Self-employed persons are those who work for profit or fees in their own business, profession, trade, or farm. Only the unincorporated self-employed are included in the self-employed category in the class of worker typology. Self-employed persons who respond that their business's are incorporated are included among wage and salary workers, because technically, they are paid employees of a corporation. Unpaid family workers are persons working without pay for 15 hours a week or more on a farm or in a business operated by a member of the household to whom they are related by birth or marriage.

Multiple jobholders. These are employed persons who, during the reference week, had either two or more jobs as a wage and salary worker, were self-employed and also held a wage and salary job, or worked as an unpaid family worker and also held a wage and salary job. A person employed only in private households (cleaner, gardener, babysitter, etc.) who worked for two or more employers during the reference week is not counted as a multiple jobholder, since working for several employers is considered an inherent characteristic of private household work. Also excluded are self-employed persons with multiple businesses and persons with multiple jobs as unpaid family workers.

Hours of work. These statistics relate to the actual number of hours worked during the reference week. For example, persons who normally work 40 hours a week but were off on the Columbus Day holiday would be reported as working 32 hours, even though they were paid for the holiday. For persons working in more than one job, the published figures relate to the number of hours worked in all jobs during the week; all the hours are credited to the major job. Unpublished data are available for the hours worked in each job and for usual hours.

At work part time for economic reasons. Sometimes referred to as involuntary part time, this category refers to individuals who gave an economic reason for working 1 to 34 hours during the reference week. Economic reasons include slack work or unfavorable business conditions, inability to find full-time work, and seasonal declines in demand. Those who usually work part time must also indicate that they want and are available to work full time to be classified as on part time for economic reasons.

At work part time for noneconomic reasons. This group includes those persons who usually work part time and were at work 1 to 34 hours during the reference week for a noneconomic reason. Noneconomic reasons include, for example: illness or other medical limitations, childcare problems or other family or personal obligations, school or training, retirement or Social Security limits on earnings, and being in a job where full-time work is less than 35 hours. The group also includes those who gave an economic reason for usually working 1 to 34 hours but said they do not want to work full time or were unavailable for such work.

Usual full- or part-time status. Data on persons "at work" exclude persons who were temporarily absent from a job and therefore classified in the zero-hours-worked category, "with a job but not at work." These are persons who were absent from their jobs for the entire week for such reasons as bad weather, vacation, illness, or involvement in a labor dispute. In order to differentiate a person's normal schedule from their activity during the reference week, persons are also classified according to their usual full- or part-time status. In this context, full-time workers are those who usually worked 35 hours or more (at all jobs combined). This group will include some individuals who worked less than 35 hours in the reference week for either economic or noneconomic reasons and those who are temporarily absent from work. Similarly, part-time workers are those who usually work less than 35 hours per week (at all jobs), regardless of the number of hours worked in the reference week. This may include some individuals who actually worked more than 34 hours in the reference week, as well as those who are temporarily absent from work. The full-time labor force includes all employed persons who usually work full time and unemployed persons who are either looking for full-time work or are on layoff from full-time jobs. The part-time labor force consists of employed persons who usually work part time and unemployed persons who are seeking or are on layoff from part-time jobs. Unemployment rates for full- and part-time workers are calculated using the concepts of the full- and part-time labor force.

White, black, and other. These are terms used to describe the race of persons. Included in the "other" group are American Indians, Alaskan Natives, and Asians and Pacific Islanders. Because of the relatively small sample size, data for "other" races are not published. In the enumeration process, race is determined by the household respondent.

Hispanic origin. This refers to persons who identified themselves in the enumeration process as Mexican, Puerto Rican, Cuban, Central or South American, or of other Hispanic origin or descent. Persons of Hispanic origin may be of any race; thus they are included in both the white and black population groups.

Vietnam-era veterans. These are persons who served in the Armed Forces of the United States between August 5, 1964, and May 7, 1975. Published data are limited to men in the civilian noninstitutional population; i.e., veterans in institutions and women are excluded. Nonveterans are persons who never served in the Armed Forces.

Usual weekly earnings. Data represent earnings before taxes and other deductions, and include any overtime pay, commissions, or tips usually received (at the main job in the case of multiple jobholders.) Earnings reported on a basis other than weekly (e.g., annual, monthly, hourly) are converted to weekly. The term "usual" is as perceived by the respondent. If the respondent asks for a definition of usual, interviewers are instructed to define the term as more than half the weeks worked during the past 4 or 5 months. Data refer to wage and salary workers (excluding self-employed persons who respond that their business's were incorporated) who usually work full time on their sole or primary job.

Median earnings. These figures indicate the value which divides the earnings distribution into two equal parts, one part having values above the median and the other having values below the median. The medians as shown in this publication are calculated by linear interpolation of the $50 centered interval within which each median falls. Data expressed in constant dollars are deflated by the Consumer Price Index for All Urban Consumers (CPI-U).

Single, never married; married, spouse present; and other marital status. These are the terms used to define the marital status of individuals at the time of interview. Married, spouse present, applies to husband and wife if both were living in the same household, even though one may be temporarily absent on business, vacation, on a visit, in a hospital, etc. Other marital status applies to persons who are married, spouse absent; widowed; or divorced. Married, spouse absent relates to persons who are separated due to marital problems, as well as husbands and wives who are living apart because one or the other was employed elsewhere, on duty with the Armed Forces, or any other reasons.

Household. A household consists of all persons--related family members and all unrelated persons--who occupy a housing unit and have no other usual address. A house, an apartment, a group of rooms, or a single room is regarded as a housing unit when occupied or intended for occupancy as separate living quarters. A householder is the person (or one of the persons) in whose name the housing unit is owned or rented. The term is never applied to either husbands or wives in married-couple families but relates only to persons in families maintained by either men or women without a spouse.

Family. A family is defined as a group of two or more persons residing together who are related by birth, marriage, or adoption; all such persons are considered as members of one family. Families are classified either as married-couple families or as families maintained by women or men without spouses. A family maintained by a woman or a man is one in which the householder is either single, widowed, divorced, or married, spouse absent. Data on the earnings of families exclude all those in which there is no wage or salary earner or in which the husband, wife, or other person maintaining the family is either self-employed or in the Armed Forces.


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Author: Greg Weyland-Census/DSD/CPSB
Contact: (ask.census.gov) CPS Help-Census/DSD/CPSB
Last modified: August 05, 1996
URL: http://www.bls.census.gov/cps/bconcept.htm