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The Pulse of the Workforce

An authoritative guide to the Current Population Survey (CPS), detailing its critical role in understanding the U.S. labor market dynamics.

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Overview

Core Function

The Current Population Survey (CPS) is a pivotal monthly survey conducted across approximately 60,000 U.S. households. Its primary objective is to gather comprehensive data on employment and unemployment within the nation. This survey is a collaborative effort, executed by the United States Census Bureau on behalf of the Bureau of Labor Statistics (BLS).

Key Output: Employment Situation

The data meticulously collected by the CPS forms the basis for the BLS's highly anticipated monthly "Employment Situation" report. This report provides critical estimates of the national unemployment rate, alongside figures for the employed and unemployed populations, offering a vital snapshot of the U.S. economy's health.

Institutional Framework

Established in 1940, the CPS has been administered by the Census Bureau since 1942. The Bureau of Labor Statistics (BLS) is the principal agency responsible for the analysis and dissemination of the survey's findings. The survey's sample is designed to represent the civilian noninstitutional population, ensuring broad coverage.

Methodology

Sampling Design

The CPS employs a sophisticated multistage stratified statistical sampling scheme to select approximately 60,000 eligible households. This rigorous approach ensures that the sample is representative of the diverse U.S. population, allowing for statistically valid inferences.

Longitudinal Tracking

A key aspect of the CPS methodology involves interviewing households for four consecutive months. Following this initial period, households are temporarily excluded from the sample for eight months before being re-interviewed for another four consecutive months. This panel design allows for tracking changes over time.

Reference Week

Respondents are queried about their employment status concerning a specific calendar week, typically the week of the month that includes the 12th day. This standardized reference week ensures consistency across all respondents and survey cycles, facilitating accurate comparisons.

Sample Redesign

The CPS undergoes periodic redesigns, synchronized with the decennial U.S. Census, to maintain methodological relevance and accuracy. The most recent significant redesign commenced in April 2014, incorporating updated questionnaires and collection methodologies.

Employment Classification

Defining Employment

Individuals are classified as employed if they engaged in any form of paid work during the reference week. This includes working as a paid employee, operating their own business or farm, or working without pay for at least 15 hours in a family-operated business or farm. Temporary absences due to illness, weather, or labor disputes also count as employment.

Criteria for Unemployment

A person is classified as unemployed if they meet three stringent criteria: they were not employed during the reference week, they were available for work at that time, and they actively sought employment during the four-week period preceding the reference week. An exception exists for individuals laid off and expecting recall.

Not in Labor Force

Individuals who are neither employed nor unemployed are categorized as "not in the labor force." This group includes retirees, students, individuals managing household responsibilities, and "discouraged workers"—those who have ceased looking for employment due to a belief that no jobs are available.

Alternative Measures

The BLS provides several alternative measures of labor underutilization beyond the official unemployment rate (U3). These measures, ranging from U1 to U6, offer a more nuanced perspective by incorporating factors such as long-term unemployment, job losers, discouraged workers, and those employed part-time for economic reasons.

The CPS defines various measures of labor underutilization:

  • U-1: Persons unemployed 15 weeks or longer, as a percentage of the civilian labor force.
  • U-2: Job losers and persons who completed temporary jobs, as a percentage of the civilian labor force.
  • U-3: Total unemployed, as a percentage of the civilian labor force (the official unemployment rate).
  • U-4: Total unemployed plus discouraged workers, as a percentage of the civilian labor force plus discouraged workers.
  • U-5: Total unemployed, plus all marginally attached workers, as a percentage of the civilian labor force plus all marginally attached workers.
  • U-6: Total unemployed, plus all marginally attached workers, plus total employed part-time for economic reasons, as a percentage of the civilian labor force plus all marginally attached workers.

Marginally attached workers are those not currently working or looking for work but who want and are available for a job and have looked for work recently. Discouraged workers are a subset who believe no work is available.

Historical Evolution

Origins and Early Development

The Current Population Survey was initiated in 1940, with the U.S. Census Bureau assuming responsibility for its administration in 1942. Initially, it served as a foundational tool for understanding the nation's labor dynamics during a period of significant economic change.

The 1994 Revisions

A substantial overhaul of the CPS occurred in 1994, involving significant revisions to its administration and survey questions. This redesign led to the renaming and redefinition of various unemployment measures, enhancing the precision and scope of the data collected.

Sample Size Expansion

In July 2001, the Bureau of Labor Statistics augmented the CPS sample size by an additional 10,000 households. This expansion aimed to improve the reliability of estimates, particularly for smaller demographic groups and geographic areas.

Data Availability

Core Labor Force Metrics

The CPS provides detailed data on the employment status of the civilian noninstitutional population aged 16 and over. This includes classifications by age, sex, race, Hispanic origin, marital status, family relationships, and veteran status.

Employment Details

Information is collected on employed persons, detailing their occupation, industry, class of worker, hours worked, full-time/part-time status, and reasons for part-time employment. Data on multiple jobholders is also captured.

Unemployment Specifics

For unemployed individuals, the survey gathers data on the occupation, industry, and class of worker of their last job, duration of unemployment, reasons for unemployment, and methods used to find employment.

Broader Economic Indicators

Beyond core employment metrics, the CPS reports on discouraged workers and other marginally attached individuals. It also provides data on labor force participation rates and the ratio of employed persons to the total population. Furthermore, microdata since 1962 are accessible via the Integrated Public Use Microdata Series (IPUMS) for advanced research.

Annual Supplement (ASEC)

Income and Poverty Data

Since 1948, the CPS has incorporated an annual supplement, historically conducted in March. This supplement collects data on income received in the preceding calendar year, serving as the primary source for the Census Bureau's annual reports on income, poverty, and health insurance coverage.

Diverse Survey Topics

In addition to income, the ASEC and other periodic supplements gather crucial information on a wide array of topics. These have included after-tax income, non-cash benefits, displaced workers, job tenure, occupational mobility, contingent work arrangements, adult education, volunteering, tobacco use, food security, fertility patterns, and veteran status.

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References

References

  1.  Current Population Survey (CPS) Main Page at census.gov
  2.  Employment Situation at bls.gov
  3.  Employment Situation Summary at bls.gov
  4.  Chapter 1: Labor Force Data Derived from the Current Population Survey, BLS Handbook of Methods
A full list of references for this article are available at the Current Population Survey Wikipedia page

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Disclaimer

Important Notice

This content has been generated by an Artificial Intelligence model and is intended for educational and informational purposes exclusively. The information presented is derived from a snapshot of publicly available data, primarily from the Wikipedia article on the Current Population Survey, and may not encompass all nuances or the most current developments.

This is not professional statistical or economic advice. The data and interpretations provided herein should not substitute for consultation with qualified economists, statisticians, or policy analysts. Always refer to official publications from the Bureau of Labor Statistics and the U.S. Census Bureau for definitive data and analysis. Reliance on the information presented on this page is solely at the user's own risk.

The creators of this page assume no liability for any inaccuracies, omissions, or consequences arising from the use of this information.