Local Area Unemployment

Statistics
An Overview

December 9, 2019

1 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Examples of LAUS data
 As of October 2019, which states have the highest and lowest
unemployment rates?
 Lowest: Vermont (2.2%)
 Highest: Alaska (6.2%)
 Metropolitan areas?
 L: Ames, IA, and Burlington-South Burlington, VT (1.3%)
 H: El Centro, CA (21.2%) (metro area data are not seasonally adjusted)

 Metro areas with a population of 1 million+?

 L: Salt Lake City, UT (1.9%)
 H: New Orleans-Metairie, LA (4.4%)

2 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Examples of LAUS data
 Which states had the highest and lowest labor force
participation rates in 2018? (national rate was 62.9%)
 H: DC (70.4%) and Minnesota (69.9%)
 L: West Virginia (53.8%)
 The national unemployment rate peaked at 10.0% in October
2009. Which state has decreased the most since then? (no state
has had an increase)
 Michigan: -10.0 percentage points (14.1% to 4.1%)
 25 of the 50 states have had unemployment rate decreases of 5.0
percentage points or more

3 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 A Few Key Points
 LAUS is not a survey
 Four measures
Labor force
Employment
Unemployment
Unemployment rate
 No data on demographics, industry,
occupation, duration, etc.
Annual CPS subnational data with these types of detail

4 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 LAUS Concepts

 Identical to those of Current Population

Survey (CPS)
Universe: civilian noninstitutional population 16
years of age and over
Persons, not jobs
Place of residence, not place of work
Reference period is week that includes the 12th of
the month (not pay period)

5 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Definitions
 Employment
 Worked one hour or more for pay or profit in reference week
 Worked 15+ hours without pay in family business
 Temporarily absent from job, whether paid or not

 Unemployment
 Not employed
 Currently available to work
 Actively sought work in prior four weeks
– Job search not required of those on temporary layoff
 Note: No reference to unemployment insurance benefits

6 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Definitions
 Labor force = employed + unemployed
 Not in the labor force
Neither employed nor unemployed
Could be:
– Retired
– Student
– Volunteer
– Stay-at-home parent
– “Discouraged worker”

7 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Geography

 Most extensive geographic program in BLS,

with over 7,000 areas
States, DC, and Puerto Rico
MSAs, micro areas, NECTAs
Counties
Cities of 25,000+ population
Census regions and divisions

8 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Frequency and Revisions

 Monthly and annual average estimates

 State series back to 1976 (plus regions,
divisions, LA, NYC)
 Substate series back to 1990
 Monthly revisions (one month back)
 Annual revisions (five years back)

9 — U.S. B UREAU OF L ABOR STATISTICS • bls.gov

 Program Comparison

10 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Statewide Methodologies
 Challenge
Limited CPS sample size at state level creates
volatile estimates
 Solution
Separate, independent time-series models of
the CPS
 for each State
 for employment and unemployment
 Use CES employment and UI claims as covariates
 Results are controlled to Census division models and the national
CPS

11 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Substate Methodologies
 Building-block approach
 Uses inputs from a variety of sources
 Substate estimates are controlled to the statewide
estimates for additivity

12 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Publications

 Two monthly press releases (with CES-SA)

 State Employment and Unemployment
 Metropolitan Area Employment and Unemployment

 Two annual data releases:

 Regional and State Unemployment – Annual Averages – late February
 Database update of revised substate data for latest 5 years, including
supplements (no associated news release) – April

13 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Publications
 Data can be retrieved using any of the database tools
at www.bls.gov/lau

14 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Supplemental Tables & Maps

State historical highs and lows

Full state series from 1976-current, including labor force

participation rates and employment-population ratios

15 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Subnational CPS Data Products
 Geographic Profile of Employment and Unemployment
 Annual average data by various demographic and economic
characteristics
 Alternative measures of labor underutilization
 Union membership
 Characteristics of minimum wage workers
Available on CPS
 Earnings by state and sex website
(www.bls.gov/cps)
 Labor force characteristics of foreign-born workers
 Employment status of veterans
 Multiple jobholding in states

16 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Geographic Profile of Employment
and Unemployment
 Available at https://www.bls.gov/opub/geographic-profile/home.htm
 State and Census region/division annual average labor force
data by:
 Sex, age, race, Hispanic or Latino ethnicity, and marital status (also available in
Excel at www.bls.gov/lau/#ex14)
 Broad industry and occupation categories
 Educational attainment
 Class of worker (including self-employed)
 Full- and part-time status and hours of work
 Reason for unemployment
 Duration of unemployment
 Caveats – see www.bls.gov/gps/notescps.htm
17 — U.S. B UREAU OF LABOR STATISTICS • bls.gov
 Alternative Measures of Labor
Underutilization
 U-1 through U-6
 Provide either broader and narrower definitions
of unemployment or underemployment
 State data and analysis on the latest 4-quarter
moving averages available at
www.bls.gov/lau/stalt.htm
 National data in Table A-15 of the Employment
Situation

18 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 References
 LAUS homepage: www.bls.gov/lau
 LAUS methodology: www.bls.gov/lau/laumthd.htm
 Geographic Profile of Employment &
Unemployment:
https://www.bls.gov/opub/geographic-
profile/home.htm
 State Alternative Measures:
www.bls.gov/lau/stalt.htm
 Inquiries: LAUSInfo@bls.gov or 202-691-6392

19 — U.S. B UREAU OF LABOR STATISTICS • bls.gov

 Contact Information
Susan Campolongo
Economist, Operations & Analysis Branch
Local Area Unemployment Statistics
www.bls.gov/lau
202-691-6418
Campolongo.Susan@bls.gov

20 — U.S. B UREAU OF LABOR STATISTICS • bls.gov