Notes on Current Labor Statistics

This section of the Review presents the values) are described as “real,” “constant,” or 1979. principal statistical series collected and “1982” dollars. Detailed data on the occupational injury calculated by the Bureau of Labor Statistics: and illness series are published in Occupa- series on labor force; employment; unem- Sources of information tional Injuries and Illnesses in the United States, ployment; labor compensation; consumer, by Industry, a BLS annual bulletin. producer, and international prices; produc- Finally, the Monthly Labor Review carries tivity; international comparisons; and injury Data that supplement the tables in this sec- analytical articles on annual and longer term and illness statistics. In the notes that follow, tion are published by the Bureau in a variety developments in labor force, employment, the data in each group of tables are briefly of sources. Definitions of each series and and unemployment; employee compensation described; key definitions are given; notes notes on the data are contained in later sec- and collective bargaining; prices; productiv- on the data are set forth; and sources of ad- tions of these Notes describing each set of ity; international comparisons; and injury ditional information are cited. data. For detailed descriptions of each data and illness data. series, see BLS Handbook of Methods, Bulletin General notes 2490. Users also may wish to consult Major Symbols Programs of the Bureau of Labor Statistics, Report 919. News releases provide the lat- n.e.c. = not elsewhere classified. The following notes apply to several tables est statistical information published by the in this section: n.e.s. = not elsewhere specified. Bureau; the major recurring releases are p = preliminary. To increase Seasonal adjustment. Certain monthly published according to the schedule appear- and quarterly data are adjusted to eliminate the timeliness of some series, ing on the back cover of this issue. preliminary figures are issued the effect on the data of such factors as cli- More information about labor force, matic conditions, industry production sched- based on representative but employment, and unemployment data and incomplete returns. ules, opening and closing of schools, holiday the household and establishment surveys buying periods, and vacation practices, which r = revised. Generally, this revision underlying the data are available in the reflects the availability of later might prevent short-term evaluation of the Bureau’s monthly publication, Employment statistical series. Tables containing data that data, but also may reflect other and Earnings. Historical unadjusted and adjustments. have been adjusted are identified as “season- seasonally adjusted data from the household ally adjusted.” (All other data are not season- survey are available on the Internet: ally adjusted.) Seasonal effects are estimated www.bls.gov/cps/ Comparative Indicators on the basis of current and past experiences. Historically comparable unadjusted and sea- When new seasonal factors are computed sonally adjusted data from the establishment (Tables 1–3) each year, revisions may affect seasonally survey also are available on the Internet: adjusted data for several preceding years. www.bls.gov/ces/ Comparative indicators tables provide an Seasonally adjusted data appear in tables Additional information on labor force data 1–14, 17–21, 48, and 52. Seasonally adjusted for areas below the national level are pro- overview and comparison of major bls sta- labor force data in tables 1 and 4–9 and sea- vided in the BLS annual report, Geographic tistical series. Consequently, although many sonally adjusted establishment survey data Profile of Employment and Unemployment. of the included series are available monthly, shown in tables 1, 12–14, and 17 usually are For a comprehensive discussion of the all measures in these comparative tables are revised in the March issue of the Review. A Employment Cost Index, see Employment presented quarterly and annually. brief explanation of the seasonal adjustment Cost Indexes and Levels, 1975–95, BLS Bul- Labor market indicators include em- methodology appears in “Notes on the data.” letin 2466. The most recent data from the ployment measures from two major surveys Revisions in the productivity data in table Employee Benefits Survey appear in the fol- and information on rates of change in 54 are usually introduced in the September lowing Bureau of Labor Statistics bulletins: compensation provided by the Employment issue. Seasonally adjusted indexes and per- Employee Benefits in Medium and Large Firms; Cost Index (ECI) program. The labor force cent changes from month-to-month and Employee Benefits in Small Private Establish- participation rate, the employment-popula- quarter-to-quarter are published for numer- ments; and Employee Benefits in State and Local tion ratio, and unemployment rates for major ous Consumer and Producer Price Index Governments. demographic groups based on the Current series. However, seasonally adjusted indexes More detailed data on consumer and Population (“household”) Survey are pre- are not published for the U.S. average All- producer prices are published in the monthly sented, while measures of employment and CPI Items . Only seasonally adjusted percent periodicals, TheCPI Detailed Report and Pro- average weekly hours by major industry sec- changes are available for this series. ducer Price Indexes. For an overview of the tor are given using nonfarm payroll data. The Adjustments for price changes. Some 1998 revision of the CPI, see the December Employment Cost Index (compensation), data—such as the “real” earnings shown in 1996 issue of the Monthly Labor Review. Ad- by major sector and by bargaining status, is table 14—are adjusted to eliminate the effect ditional data on international prices appear chosen from a variety of BLS compensation of changes in price. These adjustments are in monthly news releases. and wage measures because it provides a made by dividing current-dollar values by Listings of industries for which produc- comprehensive measure of employer costs for the Consumer Price Index or the appropriate tivity indexes are available may be found on hiring labor, not just outlays for wages, and it component of the index, then multiplying the Internet: is not affected by employment shifts among by 100. For example, given a current hourly www.bls.gov/lpc/ occupations and industries. wage rate of $3 and a current price index Data on changes in compensation, pric- number of 150, where 1982 = 100, the hourly For additional information on inter- es, and productivity are presented in table 2. rate expressed in 1982 dollars is $2 ($3/150 national comparisons data, see Interna- Measures of rates of change of compensation x 100 = $2). The $2 (or any other resulting tional Comparisons of Unemployment, Bulletin and wages from the Employment Cost Index

Monthly Labor Review • September 2011 37 Current Labor Statistics

program are provided for all civilian nonfarm because they were on layoff are also counted ally adjusted data usually are revised for only workers (excluding Federal and household among the unemployed. The unemployment the most recent 5 years. In July, new seasonal workers) and for all private nonfarm workers. rate represents the number unemployed as a adjustment factors, which incorporate the Measures of changes in consumer prices for percent of the civilian labor force. experience through June, are produced for all urban consumers; producer prices by stage The civilian labor force consists of all the July–December period, but no revisions of processing; overall prices by stage of pro- employed or unemployed persons in the civil- are made in the historical data. cessing; and overall export and import price ian noninstitutional population. Persons not FOR ADDITIONAL INFORMATION on indexes are given. Measures of productivity in the labor force are those not classified as national household survey data, contact the (output per hour of all persons) are provided employed or unemployed. Thisgroup includes Division of Labor Force Statistics: (202) for major sectors. discouraged workers, defined as persons who 691–6378. Alternative measures of wage and com- want and are available for a job and who pensation rates of change, which reflect the have looked for work sometime in the past Establishment survey data overall trend in labor costs, are summarized 12 months (or since the end of their last job in table 3. Differences in concepts and scope, if they held one within the past 12 months), Description of the series related to the specific purposes of the series, but are not currently looking, because they contribute to the variation in changes among believe there are no jobs available or there are Employment, hours, and earnings data in this the individual measures. none for which they would qualify. Thecivil- section are compiled from payroll records ian noninstitutional population comprises reported monthly on a voluntary basis to Notes on the data all persons 16 years of age and older who are the Bureau of Labor Statistics and its co- not inmates of penal or mental institutions, operating State agencies by about 160,000 Definitions of each series and notes on the sanitariums, or homes for the aged, infirm, businesses and government agencies, which data are contained in later sections of these or needy. The civilian labor force partici- represent approximately 400,000 individual notes describing each set of data. pation rate is the proportion of the civilian worksites and represent all industries except noninstitutional population that is in the agriculture. The active CES sample covers Employment and labor force. The employment-population approximately one-third of all nonfarm ratio is employment as a percent of the civil- payroll workers. Industries are classified in Unemployment Data ian noninstitutional population. accordance with the 2007 North American Industry Classification System. In most (Tables 1; 4–29) Notes on the data industries, the sampling probabilities are Household survey data based on the size of the establishment; most From time to time, and especially after a de- large establishments are therefore in the Description of the series cennial census, adjustments are made in the sample. (An establishment is not necessarily Current Population Survey figures to correct a firm; it may be a branch plant, for example, Employment data in this section are ob- for estimating errors during the intercensal or warehouse.) Self-employed persons and tained from the Current Population Survey, years. These adjustments affect the compa- others not on a regular civilian payroll are a program of personal interviews conducted rability of historical data. A description of outside the scope of the survey because they monthly by the Bureau of the Census for these adjustments and their effect on the are excluded from establishment records. the Bureau of Labor Statistics. The sample various data series appears in the Explana- This largely accounts for the difference in consists of about 60,000 households selected tory Notes of Employment and Earnings. For employment figures between the household to represent the U.S. population 16 years of a discussion of changes introduced in January and establishment surveys. age and older. Households are interviewed 2003, see “Revisions to the Current Popula- on a rotating basis, so that three-fourths of tion Survey Effective in January 2003” in Definitions the sample is the same for any 2 consecutive the February 2003 issue of Employment and months. Earnings (available on the BLS Web site at An establishment is an economic unit which www.bls.gov/cps/rvcps03.pdf). produces goods or services (such as a factory Definitions Effective in January 2003, BLS began or store) at a single location and is engaged using the X-12 ARIMA seasonal adjustment in one type of economic activity. Employed persons include (1) all those who program to seasonally adjust national labor Employed persons are all persons who worked for pay any time during the week force data. This program replaced the X-11 received pay (including holiday and sick pay) which includes the 12th day of the month or ARIMA program which had been used since for any part of the payroll period including who worked unpaid for 15 hours or more in a January 1980. See “Revision of Seasonally the 12th day of the month. Persons holding family-operated enterprise and (2) those who Adjusted Labor Force Series in 2003,” in more than one job (about 5 percent of all were temporarily absent from their regular the February 2003 issue of Employment and persons in the labor force) are counted in jobs because of illness, vacation, industrial Earnings (available on the BLS Web site at each establishment which reports them. dispute, or similar reasons. A person working www.bls.gov/cps/cpsrs.pdf) for a discussion Production workers in the goods-produc- at more than one job is counted only in the of the introduction of the use of X-12 ARIMA ing industries cover employees, up through job at which he or she worked the greatest for seasonal adjustment of the labor force the level of working supervisors, who engage number of hours. data and the effects that it had on the data. directly in the manufacture or construction Unemployed persons are those who did At the beginning of each calendar year, of the establishment’s product. In private not work during the survey week, but were historical seasonally adjusted data usually service-providing industries, data are col- available for work except for temporary illness are revised, and projected seasonal adjust- lected for nonsupervisory workers, which and had looked for jobs within the preceding ment factors are calculated for use during the include most employees except those in 4 weeks. Persons who did not look for work January–June period. The historical season- executive, managerial, and supervisory posi-

38 Monthly Labor Review • September 2011 tions. Those workers mentioned in tables probability-based sample design. The indus- lished as preliminary in January and February 11–16 include production workers in manu- try-coding update included reconstruction and as final in March. facturing and natural resources and min- of historical estimates in order to preserve FOR ADDITIONAL INFORMATION on ing; construction workers in construction; time series for data users. Normally 5 years establishment survey data, contact the Di- and nonsupervisory workers in all private of seasonally adjusted data are revised with vision of Current Employment Statistics: service-providing industries. Production each benchmark revision. However, with this (202) 691–6555. and nonsupervisory workers account for release, the entire new time series history for about four-fifths of the total employment on all CES data series were re-seasonally adjusted Unemployment data by State private nonagricultural payrolls. due to the NAICS conversion, which resulted Earnings are the payments production in the revision of all CES time series. Description of the series or nonsupervisory workers receive during Also in June 2003, the CES program in- the survey period, including premium pay troduced concurrent seasonal adjustment for Data presented in this section are obtained for overtime or late-shift work but exclud- the national establishment data. Under this from the Local Area Unemployment Statis- ing irregular bonuses and other special methodology, the first preliminary estimates tics (LAUS) program, which is conducted in payments. Real earnings are earnings for the current reference month and the cooperation with State employment security agencies. adjusted to reflect the effects of changes revised estimates for the 2 prior months will Monthly estimates of the labor force, in consumer prices. The deflator for this be updated with concurrent factors with each employment, and unemployment for States series is derived from the Consumer Price new release of data. Concurrent seasonal Index for Urban Wage Earners and Clerical and sub-State areas are a key indicator of lo- adjustment incorporates all available data, Workers (CPI-W). cal economic conditions, and form the basis including first preliminary estimates for Hours represent the average weekly for determining the eligibility of an area for hours of production or nonsupervisory the most current month, in the adjustment benefits under Federal economic assistance workers for which pay was received, and are process. For additional information on all of programs such as the Job Training Partner- different from standard or scheduled hours. the changes introduced in June 2003, see the ship Act. Seasonally adjusted unemployment Overtime hours represent the portion of June 2003 issue of Employment and Earnings rates are presented in table 10. Insofar as pos- average weekly hours which was in excess and “Recent changes in the national Current sible, the concepts and definitions underlying of regular hours and for which overtime Employment Statistics survey,” Monthly La- these data are those used in the national premiums were paid. bor Review, June 2003, pp. 3–13. estimates obtained from the CPS. The Diffusion Index represents the Revisions in State data (table 11) oc- percent of industries in which employment curred with the publication of January 2003 Notes on the data was rising over the indicated period, plus data. For information on the revisions for one-half of the industries with unchanged the State data, see the March and May 2003 Data refer to State of residence. Monthly employment; 50 percent indicates an equal issues of Employment and Earnings, and “Re- data for all States and the District of Colum- balance between industries with increasing cent changes in the State and Metropolitan bia are derived using standardized procedures and decreasing employment. In line with Area CES survey,” Monthly Labor Review, established by BLS. Once a year, estimates are Bureau practice, data for the 1-, 3-, and 6- June 2003, pp. 14–19. revised to new population controls, usually month spans are seasonally adjusted, while Beginning in June 1996, the BLS uses with publication of January estimates, and those for the 12-month span are unadjusted. the X-12-ARIMA methodology to season- benchmarked to annual average CPS levels. OR ADDITIONAL INFORMATION Table 17 provides an index on private non- ally adjust establishment survey data. This F on data farm employment based on 278 industries, procedure, developed by the Bureau of the in this series, call (202) 691–6392 (table 10) or (202) 691–6559 (table 11). and a manufacturing index based on 84 Census, controls for the effect of varying industries. These indexes are useful for mea- survey intervals (also known as the 4- versus suring the dispersion of economic gains or 5-week effect), thereby providing improved Quarterly Census of losses and are also economic indicators. measurement of over-the-month changes Employment and Wages and underlying economic trends. Revisions Notes on the data of data, usually for the most recent 5-year Description of the series period, are made once a year coincident with the benchmark revisions. With the release of data for January 2010, the Employment, wage, and establishment data In the establishment survey, estimates CES program introduced its annual revision in this section are derived from the quarterly of national estimates of employment, hours, for the most recent 2 months are based on tax reports submitted to State employment and earnings from the monthly survey of incomplete returns and are published as pre- security agencies by private and State and nonfarm establishments. Each year, the CES liminary in the tables (12–17 in the Review). local government employers subject to State survey realigns its sample-based estimates When all returns have been received, the unemployment insurance (ui) laws and from to incorporate universe counts of employ- estimates are revised and published as “final” Federal, agencies subject to the Unemploy- ment—a process known as benchmarking. (prior to any benchmark revisions) in the ment Compensation for Federal Employees Comprehensive counts of employment, or third month of their appearance. Thus, De- (ucfe) program. Each quarter, State agen- benchmarks, are derived primarily from un- cember data are published as preliminary in cies edit and process the data and send the employment insurance (UI) tax reports that January and February and as final in March. information to the Bureau of Labor Statistics. nearly all employers are required to file with For the same reasons, quarterly establish- The Quarterly Census of Employment State Workforce Agencies. With the release ment data (table 1) are preliminary for the and Wages (QCEW) data, also referred as ES- in June 2003, CES completed the transition first 2 months of publication and final in the 202 data, are the most complete enumeration from its original quota sample design to a third month. Fourth-quarter data are pub- of employment and wage information by

Monthly Labor Review • September 2011 39 Current Labor Statistics

industry at the national, State, metropolitan predominant reporting unit or statistical that wages be reported for, or based on the area, and county levels. They have broad eco- entity for reporting employment and wages period during which services are performed nomic significance in evaluating labor market data. Most employers, including State and rather than the period during which com- trends and major industry developments. local governments who operate more than pensation is paid. Under most State laws or one establishment in a State, file a Multiple regulations, wages include bonuses, stock Definitions Worksite Report each quarter, in addition options, the cash value of meals and lodging, to their quarterly ui report. The Multiple tips and other gratuities, and, in some States, In general, the Quarterly Census of Employ- Worksite Report is used to collect separate employer contributions to certain deferred ment and Wages monthly employment data employment and wage data for each of the compensation plans such as 401(k) plans. represent the number of covered workers employer’s establishments, which are not Covered employer contributions for who worked during, or received pay for, the detailed on the ui report. Some very small old-age, survivors, and disability insurance pay period that included the 12th day of multi-establishment employers do not file a (oasdi), health insurance, unemployment in- the month. Covered private industry em- Multiple Worksite Report. When the total surance, workers’ compensation, and private ployment includes most corporate officials, employment in an employer’s secondary pension and welfare funds are not reported as executives, supervisory personnel, profes- establishments (all establishments other wages. Employee contributions for the same sionals, clerical workers, wage earners, piece than the largest) is 10 or fewer, the employer purposes, however, as well as money withheld workers, and part-time workers. It excludes generally will file a consolidated report for all for income taxes, union dues, and so forth, are proprietors, the unincorporated self-em- establishments. Also, some employers either reported even though they are deducted from ployed, unpaid family members, and certain cannot or will not report at the establishment the worker’s gross pay. farm and domestic workers. Certain types level and thus aggregate establishments into Wages of covered Federal workers rep- of nonprofit employers, such as religious one consolidated unit, or possibly several resent the gross amount of all payrolls for all organizations, are given a choice of coverage units, though not at the establishment level. pay periods ending within the quarter. This or exclusion in a number of States. Workers For the Federal Government, the report- includes cash allowances, the cash equivalent in these organizations are, therefore, reported ing unit is the installation: a single location of any type of remuneration, severance pay, to a limited degree. at which a department, agency, or other gov- withholding taxes, and retirement deduc- Persons on paid sick leave, paid holiday, ernment body has civilian employees. Federal tions. Federal employee remuneration gener- paid vacation, and the like, are included. agencies follow slightly different criteria than ally covers the same types of services as for Persons on the payroll of more than one do private employers when breaking down workers in private industry. firm during the period are counted by each their reports by installation. They are permit- Average annual wage per employee for ui-subject employer if they meet the employ- ted to combine as a single statewide unit: 1) any given industry are computed by divid- ment definition noted earlier. The employ- all installations with 10 or fewer workers, ing total annual wages by annual average ment count excludes workers who earned no and 2) all installations that have a combined employment. A further division by 52 yields wages during the entire applicable pay period total in the State of fewer than 50 workers. average weekly wages per employee. Annual because of work stoppages, temporary layoffs, Also, when there are fewer than 25 workers pay data only approximate annual earnings illness, or unpaid vacations. in all secondary installations in a State, the because an individual may not be employed Federal employment data are based on secondary installations may be combined and by the same employer all year or may work for reports of monthly employment and quar- reported with the major installation. Last, if a more than one employer at a time. terly wages submitted each quarter to State Federal agency has fewer than five employees Average weekly or annual wage is af- agencies for all Federal installations with in a State, the agency headquarters office fected by the ratio of full-time to part-time employees covered by the Unemployment (regional office, district office) serving each workers as well as the number of individuals Compensation for Federal Employees (ucfe) State may consolidate the employment and in high-paying and low-paying occupations. program, except for certain national security wages data for that State with the data re- When average pay levels between States and agencies, which are omitted for security rea- ported to the State in which the headquarters industries are compared, these factors should sons. Employment for all Federal agencies is located. As a result of these reporting rules, be taken into consideration. For example, for any given month is based on the number the number of reporting units is always larger industries characterized by high proportions of persons who worked during or received than the number of employers (or govern- of part-time workers will show average wage pay for the pay period that included the 12th ment agencies) but smaller than the number levels appreciably less than the weekly pay of the month. of actual establishments (or installations). levels of regular full-time employees in these An establishment is an economic unit, Data reported for the first quarter are industries. The opposite effect characterizes such as a farm, mine, factory, or store, that tabulated into size categories ranging from industries with low proportions of part-time produces goods or provides services. It is worksites of very small size to those with workers, or industries that typically schedule typically at a single physical location and 1,000 employees or more. The size category heavy weekend and overtime work. Average engaged in one, or predominantly one, type is determined by the establishment’s March wage data also may be influenced by work of economic activity for which a single indus- employment level. It is important to note that stoppages, labor turnover rates, retroactive trial classification may be applied. Occasion- each establishment of a multi-establishment payments, seasonal factors, bonus payments, ally, a single physical location encompasses firm is tabulated separately into the appropri- and so on. two or more distinct and significant activities. ate size category. The total employment level Each activity should be reported as a separate of the reporting multi-establishment firm is establishment if separate records are kept not used in the size tabulation. Notes on the data and the various activities are classified under Covered employers in most States report different NAICS industries. total wages paid during the calendar quarter, Beginning with the release of data for 2007, Most employers have only one estab- regardless of when the services were per- publications presenting data from the Cov- lishment; thus, the establishment is the formed. A few State laws, however, specify ered Employment and Wages program have

40 Monthly Labor Review • September 2011 switched to the 2007 version of the North The Office of Management and Budget lion establishments compiled as part of the American Industry Classification System (OMB) defines metropolitan areas for use operations of the Quarterly Census of Em- (NAICS) as the basis for the assignment and in Federal statistical activities and updates ployment and Wages, or QCEW, program. This tabulation of economic data by industry. these definitions as needed. Data in this table program includes all employers subject to NAICS is the product of a cooperative effort use metropolitan area criteria established State unemployment insurance (UI) laws and on the part of the statistical agencies of the by OMB in definitions issued June 30, 1999 Federal agencies subject to Unemployment United States, Canada, and Mexico. Due to (OMB Bulletin No. 99-04). These definitions Compensation for Federal Employees (UCFE). difference in NAICS and Standard Industrial reflect information obtained from the 1990 The sampling frame is stratified by own- Classification SIC( ) structures, industry data Decennial Census and the 1998 U.S. Census ership, region, industry sector, and size class. for 2001 is not comparable to the SIC-based Bureau population estimate. A complete list Large firms fall into the sample with virtual data for earlier years. of metropolitan area definitions is available certainty. JOLTS total employment estimates Effective January 2001, the program from the National Technical Information are controlled to the employment estimates began assigning Indian Tribal Councils and Service (NTIS), Document Sales, 5205 Port of the Current Employment Statistics (CES) related establishments to local government Royal Road, Springfield, Va. 22161, tele- survey. A ratio of CES to JOLTS employment ownership. ThisBLS action was in response to phone 1-800-553-6847. is used to adjust the levels for all other JOLTS a change in Federal law dealing with the way OMB defines metropolitan areas in terms data elements. Rates then are computed from Indian Tribes are treated under the Federal of entire counties, except in the six New Eng- the adjusted levels. Unemployment Tax Act. This law requires land States where they are defined in terms of The monthlyJOLTS data series begin with federally recognized Indian Tribes to be treat- cities and towns. New England data in this December 2000. Not seasonally adjusted ed similarly to State and local governments. table, however, are based on a county concept data on job openings, hires, total separa- In the past, the Covered Employment and defined by OMB as New England County tions, quits, layoffs and discharges, and other Wage (CEW) program coded Indian Tribal Metropolitan Areas (NECMA) because coun- separations levels and rates are available for Councils and related establishments in the ty-level data are the most detailed available the total nonfarm sector, 16 private industry private sector. As a result of the new law, CEW from the Quarterly Census of Employment divisions and 2 government divisions based data reflects significant shifts in employment and Wages. The NECMA is a county-based on the North American Industry Classifica- and wages between the private sector and alternative to the city- and town-based metro- tion System (NAICS), and four geographic local government from 2000 to 2001. Data politan areas in New England. TheNECMA for regions. Seasonally adjusted data on job also reflect industry changes. Those accounts a Metropolitan Statistical Area (MSA) include: openings, hires, total separations, and quits previously assigned to civic and social organi- (1) the county containing the first-named city levels and rates are available for the total zations were assigned to tribal governments. in that MSA title (this county may include nonfarm sector, selected industry sectors, and There were no required industry changes for the first-named cities of other MSA, and (2) four geographic regions. related establishments owned by these Tribal each additional county having at least half its Councils. These tribal business establishments population in the MSA in which first-named Definitions continued to be coded according to the eco- cities are in the county identified in step 1. nomic activity of that entity. The NECMA is officially defined areas that Establishments submit job openings infor- To insure the highest possible quality are meant to be used by statistical programs mation for the last business day of the of data, State employment security agencies that cannot use the regular metropolitan area reference month. A job opening requires verify with employers and update, if neces- definitions in New England. that (1) a specific position exists and there sary, the industry, location, and ownership For additional information on the is work available for that position; and (2) classification of all establishments on a 3-year covered employment and wage data, contact work could start within 30 days regardless cycle. Changes in establishment classifica- the Division of Administrative Statistics and of whether a suitable candidate is found; and tion codes resulting from the verification Labor Turnover at (202) 691–6567. (3) the employer is actively recruiting from process are introduced with the data reported outside the establishment to fill the position. for the first quarter of the year. Changes Job Openings and Labor Included are full-time, part-time, permanent, resulting from improved employer reporting Turnover Survey short-term, and seasonal openings. Active also are introduced in the first quarter. For recruiting means that the establishment is these reasons, some data, especially at more taking steps to fill a position by advertising detailed geographic levels, may not be strictly Description of the series in newspapers or on the Internet, posting comparable with earlier years. help-wanted signs, accepting applications, County definitions are assigned according Data for the Job Openings and Labor or using other similar methods. to Federal Information Processing Standards Turnover Survey (JOLTS) are collected and Jobs to be filled only by internal transfers, Publications as issued by the National In- compiled from a sample of 16,000 business promotions, demotions, or recall from layoffs stitute of Standards and Technology. Areas establishments. Each month, data are col- are excluded. Also excluded are jobs with shown as counties include those designated lected for total employment, job openings, start dates more than 30 days in the future, as independent cities in some jurisdictions hires, quits, layoffs and discharges, and other jobs for which employees have been hired but and, in Alaska, those areas designated by the separations. The JOLTS program covers all have not yet reported for work, and jobs to be Census Bureau where counties have not been private nonfarm establishments such as fac- filled by employees of temporary help agen- created. County data also are presented for tories, offices, and stores, as well as Federal, cies, employee leasing companies, outside the New England States for comparative State, and local government entities in the contractors, or consultants. The job openings purposes, even though townships are the 50 States and the District of Columbia. The rate is computed by dividing the number of more common designation used in New JOLTS sample design is a random sample job openings by the sum of employment and England (and New Jersey). drawn from a universe of more than eight mil- job openings, and multiplying that quotient

Monthly Labor Review • September 2011 41 Current Labor Statistics

by 100. full sample. Therefore, estimates from earlier to month simply because part-time and on- Hires are the total number of additions months should be used with caution, as fewer call workers may not always work during to the payroll occurring at any time during sampled units were reporting data at that time. the pay period that includes the 12th of the the reference month, including both new and In March 2002, BLS procedures for collect- month. Additionally, research has found that rehired employees and full-time and part- ing hires and separations data were revised to some reporters systematically underreport time, permanent, short-term and seasonal address possible underreporting. As a result, separations relative to hires due to a num- employees, employees recalled to the location JOLTS hires and separations estimates for ber of factors, including the nature of their after a layoff lasting more than 7 days, on-call months prior to March 2002 may not be payroll systems and practices. The shortfall or intermittent employees who returned to comparable with estimates for March 2002 appears to be about 2 percent or less over a work after having been formally separated, and later. 12-month period. and transfers from other locations. The hires The Federal Government reorganization FOR ADDITIONAL INFORMATION on count does not include transfers or promo- that involved transferring approximately the Job Openings and Labor Turnover tions within the reporting site, employees 180,000 employees to the new Department Survey, contact the Division of Administra- returning from strike, employees of temporary of Homeland Security is not reflected in tive Statistics and Labor Turnover at (202) help agencies or employee leasing companies, the JOLTS hires and separations estimates 961–5870. outside contractors, or consultants. The hires for the Federal Government. The Office of rate is computed by dividing the number of Personnel Management’s record shows these hires by employment, and multiplying that transfers were completed in March 2003. The Compensation and quotient by 100. inclusion of transfers in the JOLTS definitions Wage Data Separations are the total number of of hires and separations is intended to cover terminations of employment occurring at ongoing movements of workers between (Tables 1–3; 30–37) any time during the reference month, and establishments. The Department of Home- are reported by type of separation—quits, land Security reorganization was a massive The National Compensation Survey NCS( ) layoffs and discharges, and other separations. one-time event, and the inclusion of these produces a variety of compensation data. These Quits are voluntary separations by employees intergovernmental transfers would distort include: The Employment Cost Index ECI( ) (except for retirements, which are reported the Federal Government time series. and NCS benefit measures of the incidence and as other separations). Layoffs and discharges Data users should note that seasonal provisions of selected employee benefit plans. are involuntary separations initiated by the adjustment of the JOLTS series is conducted Selected samples of these measures appear in employer and include layoffs with no intent with fewer data observations than is cus- the following tables. NCS also compiles data on to rehire, formal layoffs lasting or expected tomary. The historical data, therefore, may occupational wages and the Employer Costs to last more than 7 days, discharges resulting be subject to larger than normal revisions. for Employee Compensation (ECEC). from mergers, downsizing, or closings, firings Because the seasonal patterns in economic or other discharges for cause, terminations data series typically emerge over time, the Employment Cost Index of permanent or short-term employees, and standard use of moving averages as seasonal terminations of seasonal employees. Other filters to capture these effects requires longer Description of the series separations include retirements, transfers to series than are currently available. As a result, other locations, deaths, and separations due to the stable seasonal filter option is used in the The Employment Cost Index (ECI) is a disability. Separations do not include transfers seasonal adjustment of the JOLTS data. When quarterly measure of the rate of change in within the same location or employees on calculating seasonal factors, this filter takes compensation per hour worked and includes strike. an average for each calendar month after wages, salaries, and employer costs of em- The separations rate is computed by di- detrending the series. The stable seasonal ployee benefits. It is a Laspeyres Index that viding the number of separations by employ- filter assumes that the seasonal factors are uses fixed employment weights to measure ment, and multiplying that quotient by 100. fixed; a necessary assumption until sufficient change in labor costs free from the influence The quits, layoffs and discharges, and other data are available. When the stable seasonal of employment shifts among occupations separations rates are computed similarly, filter is no longer needed, other program fea- and industries. dividing the number by employment and tures also may be introduced, such as outlier The ECI provides data for the civilian multiplying by 100. adjustment and extended diagnostic testing. economy, which includes the total private Additionally, it is expected that more series, nonfarm economy excluding private house- Notes on the data such as layoffs and discharges and additional holds, and the public sector excluding the industries, may be seasonally adjusted when Federal government. Data are collected each The JOLTS data series on job openings, hires, more data are available. quarter for the pay period including the and separations are relatively new. The full JOLTS hires and separations estimates 12th day of March, June, September, and sample is divided into panels, with one panel cannot be used to exactly explain net changes December. enrolled each month. A full complement of in payroll employment. Some reasons why it Sample establishments are classified by panels for the original data series based on is problematic to compare changes in payroll industry categories based on the 2007 North the 1987 Standard Industrial Classification employment with JOLTS hires and separa- American Classification System (NAICS). (SIC) system was not completely enrolled in tions, especially on a monthly basis, are: (1) Within a sample establishment, specific job the survey until January 2002. The supple- the reference period for payroll employment categories are selected and classified into mental panels of establishments needed to is the pay period including the 12th of the about 800 occupations according to the 2000 create NAICS estimates were not completely month, while the reference period for hires Standard Occupational Classification SOC( ) enrolled until May 2003. The data collected and separations is the calendar month; and System. Individual occupations are com- up until those points are from less than a (2) payroll employment can vary from month bined to represent one of ten intermediate

42 Monthly Labor Review • September 2011 aggregations, such as professional and related lished beginning in 1975. Changes in total service requirement. Employees in noncontr- occupations, or one of five higher level aggre- compensation cost—wages and salaries and ibutory plans are counted as participating gations, such as management, professional, benefits combined—were published begin- regardless of whether they have fulfilled the and related occupations. ning in 1980. The series of changes in wages service requirements. Fixed employment weights are used and salaries and for total compensation in Defined benefit pension plans use pre- each quarter to calculate the most aggregate the State and local government sector and determined formulas to calculate a retirement series—civilian, private, and State and local in the civilian nonfarm economy (excluding benefit (if any), and obligate the employer to government. These fixed weights are also used Federal employees) were published begin- provide those benefits. Benefits are generally to derive all of the industry and occupational ning in 1981. Historical indexes (December based on salary, years of service, or both. series indexes. Beginning with the March 2005=100) are available on the Internet: Defined contribution plans generally 2006 estimates, 2002 fixed employment www.bls.gov/ect/ specify the level of employer and employee weights from the Bureau’s Occupational ADDITIONAL INFORMATION on the contributions to a plan, but not the formula Employment Statistics survey were intro- Employment Cost Index is available at www. for determining eventual benefits. Instead, duced. From March 1995 to December 2005, bls.gov/ncs/ect/home.htm or by telephone individual accounts are set up for par- 1990 employment counts were used. These at (202) 691–6199. ticipants, and benefits are based on amounts fixed weights ensure that changes in these credited to these accounts. indexes reflect only changes in compensation, Tax-deferred savings plans are a type of not employment shifts among industries or National Compensation Survey defined contribution plan that allow partici- occupations with different levels of wages Benefit Measures pants to contribute a portion of their salary and compensation. For the series based on to an employer-sponsored plan and defer bargaining status, census region and division, Description of the series income taxes until withdrawal. and metropolitan area status, fixed employ- Flexible benefit plans allow employees ment data are not available. The employment to choose among several benefits, such as life weights are reallocated within these series NCS benefit measures of employee benefits insurance, medical care, and vacation days, each quarter based on the current eci sample. are published in two separate reports. The and among several levels of coverage within The indexes for these series, consequently, are annual summary provides data on the in- a given benefit. not strictly comparable with those for aggre- cidence of (access to and participation in) gate, occupational, and industry series. selected benefits and provisions of paid Notes on the data holidays and vacations, life insurance plans, and other selected benefit programs. Data on ADDITIONAL INFORMATION ON THE NCS Definitions percentages of establishments offering major benefit measures is available at www.bls. employee benefits, and on the employer and gov/ncs/ebs/home.htm or by telephone at Total compensation costs include wages, employee shares of contributions to medical (202) 691–6199. salaries, and the employer’s costs for em- care premiums also are presented. Selected ployee benefits. benefit data appear in the following tables. A Work stoppages Wages and salaries consist of earnings second publication, published later, contains before payroll deductions, including produc- more detailed information about health and tion bonuses, incentive earnings, commis- retirement plans. Description of the series sions, and cost-of-living adjustments. Benefits include the cost to employers Definitions Data on work stoppages measure the number for paid leave, supplemental pay (includ- and duration of major strikes or lockouts ing nonproduction bonuses), insurance, Employer-provided benefits are benefits (involving 1,000 workers or more) occurring retirement and savings plans, and legally that are financed either wholly or partly by during the month (or year), the number of required benefits (such as Social Security, the employer. They may be sponsored by a workers involved, and the amount of work workers’ compensation, and unemployment union or other third party, as long as there time lost because of stoppage. These data are insurance). is some employer financing. However, some presented in table 37. Excluded from wages and salaries and benefits that are fully paid for by the employ- Data are largely from a variety of pub- employee benefits are such items as payment- ee also are included. For example, long-term lished sources and cover only establishments in-kind, free room and board, and tips. care insurance paid entirely by the employee directly involved in a stoppage. They do not are included because the guarantee of insur- measure the indirect or secondary effect of Notes on the data ability and availability at group premium stoppages on other establishments whose rates are considered a benefit. employees are idle owing to material short- The ECI data in these tables reflect the Employees are considered as having ac- ages or lack of service. con-version to the 2002 North American cess to a benefit plan if it is available for their Industry Classification System NAICS( ) and use. For example, if an employee is permitted Definitions the 2000 Standard Occupational Classifica- to participate in a medical care plan offered tion (SOC) system. The NAICS and SOC data by the employer, but the employee declines to Number of stoppages: The number of shown prior to 2006 are for informational do so, he or she is placed in the category with strikes and lockouts involving 1,000 work- purposes only. ECI series based on NAICS those having access to medical care. ers or more and lasting a full shift or longer. and SOC became the official BLS estimates Employees in contributory plans are Workers involved: The number of work- starting in March 2006. considered as participating in an insurance ers directly involved in the stoppage. TheECI for changes in wages and salaries or retirement plan if they have paid required Number of days idle: The aggregate in the private nonfarm economy was pub- contributions and fulfilled any applicable number of workdays lost by workers involved

Monthly Labor Review • September 2011 43 Current Labor Statistics

in the stoppages. The CPI is based on prices of food, clothing, try Classification System and product codes Days of idleness as a percent of esti- shelter, fuel, drugs, transportation fares, doctors’ developed by the U.S. Census Bureau. mated working time: Aggregate workdays and dentists’ fees, and other goods and services To the extent possible, prices used in lost as a percent of the aggregate number of that people buy for day-to-day living. The calculating Producer Price Indexes apply to standard workdays in the period multiplied quantity and quality of these items are kept the first significant commercial transaction by total employment in the period. essentially unchanged between major revisions in the United States from the production so that only price changes will be measured. All or central marketing point. Price data are Notes on the data taxes directly associated with the purchase and generally collected monthly, primarily by use of items are included in the index. mail questionnaire. Most prices are obtained directly from producing companies on a vol- This series is not comparable with the one Data collected from more than 23,000 retail untary and confidential basis. Prices gener- terminated in 1981 that covered strikes in- establishments and 5,800 housing units in 87 urban areas across the country are used to de- ally are reported for the Tuesday of the week volving six workers or more. velop the “U.S. city average.” Separate estimates containing the 13th day of the month. ADDITIONAL INFORMATION on work for 14 major urban centers are presented in table Since January 1992, price changes for stop-pages data is available at www. bls. 39. The areas listed are as indicated in footnote 1 the various commodities have been averaged gov/cba/home.htm or by telephone at (202) to the table. The area indexes measure only the together with implicit quantity weights rep- 691–6199. average change in prices for each area since the resenting their importance in the total net base period, and do not indicate differences in selling value of all commodities as of 1987. The the level of prices among cities. detailed data are aggregated to obtain indexes Price Data for stage-of-processing groupings, commodity Notes on the data groupings, durability-of-product groupings, (Tables 2; 38–46) and a number of special composite groups. All In January 1983, the Bureau changed the way Producer Price Index data are subject to revi- Price data are gathered by the Bureau in which homeownership costs are meaured sion 4 months after original publication. of Labor Statistics from retail and pri- for the CPI-U. A rental equivalence method FOR ADDITIONAL INFORMATION, con- mary markets in the United States. Price replaced the asset-price approach to homeown- tact the Division of Industrial Prices and indexes are given in relation to a base pe- ership costs for that series. In January 1985, Price Indexes: (202) 691–7705. riod—December 2003 = 100 for many Pro- the same change was made in the CPI-W. The ducer Price Indexes (unless otherwise noted), central purpose of the change was to separate 1982–84 = 100 for many Consumer Price shelter costs from the investment component International Price Indexes Indexes (unless otherwise noted), and 1990 of homeownership so that the index would = 100 for International Price Indexes. reflect only the cost of shelter services provided Description of the series by owner-occupied homes. An updated CPI-U Consumer Price Indexes and CPI-W were introduced with release of the The International Price Program produces January 1987 and January 1998 data. monthly and quarterly export and import Description of the series FOR ADDITIONAL INFORMATION, con- price indexes for nonmilitary goods and tact the Division of Prices and Price Indexes: services traded between the United States TheConsumer Price Index (CPI) is a measure (202) 691–7000. and the rest of the world. The export price of the average change in the prices paid by index provides a measure of price change for all products sold by U.S. residents to urban consumers for a fixed market basket Producer Price Indexes of goods and services. The CPI is calculated foreign buyers. (“Residents” is defined as in the national income accounts; it includes monthly for two population groups, one Description of the series consisting only of urban households whose corporations, businesses, and individuals, but primary source of income is derived from does not require the organizations to be U.S. the employment of wage earners and clerical Producer Price Indexes (PPI) measure ave- owned nor the individuals to have U.S. citi- workers, and the other consisting of all urban rage changes in prices received by domestic zenship.) The import price index provides a households. The wage earner index(CPI-W) is producers of commodities in all stages of measure of price change for goods purchased a continuation of the historic index that was processing. The sample used for calculating from other countries by U.S. residents. introduced well over a half-century ago for these indexes currently contains about 3,200 The product universe for both the import use in wage negotiations. As new uses were commodities and about 80,000 quotations per and export indexes includes raw materials, developed for the CPI in recent years, the need month, selected to represent the movement agricultural products, semifinished manu- for a broader and more representative index of prices of all commodities produced in the factures, and finished manufactures, includ- became apparent. The all-urban consumer manufacturing; agriculture, forestry, and fish- ing both capital and consumer goods. Price index (CPI-U), introduced in 1978, is represen- ing; mining; and gas and electricity and public data for these items are collected primarily tative of the 1993–95 buying habits of about utilities sectors. The stage-of-processing by mail questionnaire. In nearly all cases, 87 percent of the noninstitutional population structure of PPI organizes products by class the data are collected directly from the ex- of the United States at that time, compared of buyer and degree of fabrication (that is, porter or importer, although in a few cases, with 32 percent represented in the CPI-W. In finished goods, intermediate goods, and crude prices are obtained from other sources. addition to wage earners and clerical workers, materials). The traditional commodity struc- To the extent possible, the data gathered the CPI-U covers professional, managerial, and ture of PPI organizes products by similarity of refer to prices at the U.S. border for exports technical workers, the self-employed, short- end use or material composition. The industry and at either the foreign border or the U.S. term workers, the unemployed, retirees, and and product structure of PPI organizes data in border for imports. For nearly all products, the others not in the labor force. accordance with the North American Indus- prices refer to transactions completed during

44 Monthly Labor Review • September 2011 the first week of the month. Survey respon- output per unit of labor input, or output per is developed from measures of the net stock dents are asked to indicate all discounts, allow- unit of capital input, as well as measures of of physical assets—equipment, structures, ances, and rebates applicable to the reported multifactor productivity (output per unit land, and inventories—weighted by rental prices, so that the price used in the calculation of combined labor and capital inputs). The prices for each type of asset. of the indexes is the actual price for which the Bureau indexes show the change in output Combined units of labor and capital product was bought or sold. relative to changes in the various inputs. inputs are derived by combining changes in In addition to general indexes of prices The measures cover the business, nonfarm labor and capital input with weights which for U.S. exports and imports, indexes are also business, manufacturing, and nonfinancial represent each component’s share of total published for detailed product categories of ex- corporate sectors. cost. Combined units of labor, capital, energy, ports and imports. These categories are defined Corresponding indexes of hourly com- materials, and purchased business services are according to the five-digit level of detail for the pensation, unit labor costs, unit nonlabor similarly derived by combining changes in Bureau of Economic Analysis End-use Clas- payments, and prices are also provided. each input with weights that represent each sification, the three-digit level for the Standard input’s share of total costs. The indexes for International Trade Classification (SITC), and Definitions each input and for combined units are based the four-digit level of detail for the Harmo- on changing weights which are averages of nized System. Aggregate import indexes by Output per hour of all persons (labor pro- the shares in the current and preceding year country or region of origin are also available. ductivity) is the quantity of goods and services (the Tornquist index-number formula). BLS publishes indexes for selected cat- produced per hour of labor input. Output per egories of internationally traded services, unit of capital services (capital productivity) calculated on an international basis and on a is the quantity of goods and services produced Notes on the data balance-of-payments basis. per unit of capital services input. Multifactor productivity is the quantity of goods and Business sector output is an annually- Notes on the data services produced per combined inputs. For weighted index constructed by excluding private business and private nonfarm business, from real gross domestic product (GDP) The export and import price indexes are inputs include labor and capital units. For the following outputs: general government, weighted indexes of the Laspeyres type. The manufacturing, inputs include labor, capital, nonprofit institutions, paid employees of trade weights currently used to compute both energy, nonenergy materials, and purchased private households, and the rental value of indexes relate to 2000. business services. owner-occupied dwellings. Nonfarm busi- Because a price index depends on the same Compensation per hour is total com- ness also excludes farming. Private business items being priced from period to period, it pensation divided by hours at work. Total and private nonfarm business further exclude is necessary to recognize when a product’s compensation equals the wages and salaries government enterprises. The measures are specifications or terms of transaction have of employees plus employers’ contributions supplied by the U.S. Department of Com- been modified. For this reason, the Bureau’s for social insurance and private benefit plans, merce’s Bureau of Economic Analysis. questionnaire requests detailed descriptions of plus an estimate of these payments for the Annual estimates of manufacturing sectoral the physical and functional characteristics of self-employed (except for nonfinancial corpo- output are produced by the Bureau of Labor the products being priced, as well as informa- rations in which there are no self-employed). Statistics. Quarterly manufacturing output tion on the number of units bought or sold, Real compensation per hour is compensation indexes from the Federal Reserve Board are discounts, credit terms, packaging, class of per hour deflated by the change in the Con- adjusted to these annual output measures by buyer or seller, and so forth. When there are sumer Price Index for All Urban Consumers. the BLS. Compensation data are developed changes in either the specifications or terms Unit labor costs are the labor compensa- from data of the Bureau of Economic Analy- of transaction of a product, the dollar value tion costs expended in the production of a sis and the Bureau of Labor Statistics. Hours of each change is deleted from the total price unit of output and are derived by dividing data are developed from data of the Bureau change to obtain the “pure” change. Once compensation by output. Unit nonlabor of Labor Statistics. this value is determined, a linking procedure payments include profits, depreciation, The productivity and associated cost is employed which allows for the continued interest, and indirect taxes per unit of output. measures in tables 47–50 describe the rela- repricing of the item. They are computed by subtracting compensa- tionship between output in real terms and FOR ADDITIONAL INFORMATION, con- tion of all persons from current-dollar value the labor and capital inputs involved in its tact the Division of International Prices: of output and dividing by output. production. They show the changes from (202) 691–7155. Unit nonlabor costs contain all the com- period to period in the amount of goods and ponents of unit nonlabor payments except services produced per unit of input. Productivity Data unit profits. Although these measures relate output Unit profits include corporate profits to hours and capital services, they do not with inventory valuation and capital con- measure the contributions of labor, capital, (Tables 2; 47–50) sumption adjustments per unit of output. or any other specific factor of production. Business and major sectors Hours of all persons are the total hours Rather, they reflect the joint effect of many at work of payroll workers, self-employed influences, including changes in technology; Description of the series persons, and unpaid family workers. shifts in the composition of the labor force; Labor inputs are hours of all persons capital investment; level of output; changes The productivity measures relate real output adjusted for the effects of changes in the in the utilization of capacity, energy, material, to real input. As such, they encompass a fam- education and experience of the labor force. and research and development; the organi- ily of measures which include single-factor Capital services are the flow of services zation of production; managerial skill; and input measures, such as output per hour, from the capital stock used in production. It characteristics and efforts of the work force.

Monthly Labor Review • September 2011 45 Current Labor Statistics

FOR ADDITIONAL INFORMATION on this fuels, and electricity. from employment figures, although a small productivity series, contact the Division of number of career military may be included Productivity Research: (202) 691–5606. Notes on the data in some European countries. Adjustments are made to exclude unpaid family workers Industry productivity measures The industry measures are compiled from who worked fewer than 15 hours per week data produced by the Bureau of Labor Statis- from employment figures; U.S. concepts do Description of the series tics and the Census Bureau, with additional not include them in employment, whereas data supplied by other government agencies, most foreign countries include all unpaid trade associations, and other sources. The BLS industry productivity indexes mea- family workers regardless of the number FOR ADDITIONAL INFORMATION on sure the relationship between output and of hours worked. Adjustments are made to this series, contact the Division of Industry inputs for selected industries and industry include full-time students seeking work and groups, and thus reflect trends in industry ef- Productivity Studies: (202) 691–5618, or visit available for work as unemployed when they ficiency over time. Industry measures include the Web site at: www.bls.gov/lpc/home.htm are classified as not in the labor force. labor productivity, multifactor productivity, Where possible, lower age limits are compensation, and unit labor costs. International Comparisons based on the age at which compulsory The industry measures differ in method- schooling ends in each country, rather than ology and data sources from the productivity (Tables 51–53) based on the U.S. standard of 16. Lower age measures for the major sectors because the Labor force and unemployment limits have ranged between 13 and 16 over industry measures are developed indepen- the years covered; currently, the lower age limits are either 15 or 16 in all 10 countries. dently of the National Income and Product Description of the series Accounts framework used for the major Some adjustments for comparability sector measures. are not made because data are unavailable Tables 51 and 52 present comparative mea- for adjustment purposes. For example, no Definitions sures of the labor force, employment, and adjustments to unemployment are usually unemployment adjusted to U.S. concepts made for deviations from U.S. concepts in Output per hour is derived by dividing an for the United States, Canada, Australia, the treatment of persons waiting to start a index of industry output by an index of labor Japan, and six European countries. The new job or passive job seekers. These con- input. For most industries, output indexes Bureau adjusts the figures for these selected ceptual differences have little impact on the are derived from data on the value of indus- countries, for all known major definitional measures. Furthermore, BLS studies have try output adjusted for price change. For differences, to the extent that data to pre- concluded that no adjustments should be the remaining industries, output indexes are pare adjustments are available. Although made for persons on layoff who are counted derived from data on the physical quantity precise comparability may not be achieved, as employed in some countries because of of production. these adjusted figures provide a better basis their strong job attachment as evidenced by, The labor input series is based on the for international comparisons than the for example, payment of salary or the exis- hours of all workers or, in the case of some figures regularly published by each country. tence of a recall date. In the United States, transportation industries, on the number of For further information on adjustments persons on layoff have weaker job attachment employees. For most industries, the series and comparability issues, see Constance and are classified as unemployed. consists of the hours of all employees. For Sorrentino, “International unemployment The annual labor force measures are some trade and services industries, the series rates: how comparable are they?” Monthly obtained from monthly, quarterly, or con- also includes the hours of partners, propri- Labor Review, June 2000, pp. 3–20, avail- tinuous household surveys and may be cal- etors, and unpaid family workers. able on the Internet at www.bls.gov/opub/ culated as averages of monthly or quarterly Unit labor costs represent the labor com- mlr/2000/06/art1full.pdf. data. Quarterly and monthly unemployment pensation costs per unit of output produced, rates are based on household surveys. For and are derived by dividing an index of labor Definitions some countries, they are calculated by ap- compensation by an index of output. Labor plying annual adjustment factors to current compensation includes payroll as well as For the principal U.S. definitions of the labor published data and, therefore, are less pre- cise indicators of unemployment under U.S. supplemental payments, including both force, employment, and unemployment, see the Notes section on Employment and Un- concepts than the annual figures. legally required expenditures and payments employment Data: Household survey data. The labor force measures may have for voluntary programs. breaks in series over time due to changes Multifactor productivity is derived by Notes on the data in surveys, sources, or estimation methods. dividing an index of industry output by an in- Breaks are noted in data tables. dex of combined inputs consumed in produc- Foreign-country data are adjusted as closely For up-to-date information on adjust- ing that output. Combined inputs include as possible to the U.S. definitions. Primary ments and breaks in series, see the Introduc- capital, labor, and intermediate purchases. areas of adjustment address conceptual dif- tion and Appendix B. Country Notes in The measure ofcapital input represents the ferences in upper age limits and defini- International Comparisons of Annual Labor flow of services from the capital stock used tions of employment and unemployment, Force Statistics, Adjusted to U.S. Concepts, 10 in production. It is developed from measures provided that reliable data are available to Countries, 1997–2009, on the Internet at of the net stock of physical assets—equip- make these adjustments. Adjustments are www.bls.gov/ilc/flscomparelf.htm, and the ment, structures, land, and inventories. The made where applicable to include employed Notes for Table 1 in the monthly report In- measure of intermediate purchases is a and unemployed persons above upper age ternational Unemployment Rates and Employ- combination of purchased materials, services, limits and to exclude active duty military ment Indexes, Seasonally Adjusted, 2008–2010,

46 Monthly Labor Review • September 2011 on the Internet at www.bls.gov/ilc/intl_un- statistics of manufacturing employment and Survey of Occupational Injuries employment_rates_monthly.htm. average hours. For most other economies, and Illnesses recent years’ aggregate hours series are Manufacturing productivity obtained from national statistical offices, Description of the series usually from national accounts. However, and labor costs for some economies and for earlier years, The Survey of Occupational Injuries and BLS calculates the aggregate hours series Illnesses collects data from employers about Description of the series using employment figures published with their workers’ job-related nonfatal injuries the national accounts, or other comprehen- and illnesses. The information that employers Table 53 presents comparative indexes sive employment series, and data on average provide is based on records that they maintain of manufacturing output per hour hours worked. under the Occupational Safety and Health (labor productivity), output, total hours, Hourly compensation is total compensa- Act of 1970. Self-employed individuals, farms compensation per hour, and unit labor tion divided by total hours. Total compensa- with fewer than 11 employees, employers costs for 19 countries. These measures are tion includes all payments in cash or in-kind regulated by other Federal safety and health trend comparisons—that is, series that made directly to employees plus employer laws, and Federal, State, and local government measure changes over time—rather than level expenditures for legally required insurance agencies are excluded from the survey. comparisons. BLS does not recommend using programs and contractual and private ben- The survey is a Federal-State cooperative these series for level comparisons because of efit plans. For Australia, Canada, France, program with an independent sample select- technical problems. Singapore, and Sweden, compensation is ed for each participating State. A stratified BLS constructs the comparative indexes increased to account for important taxes on random sample with a Neyman allocation from three basic aggregate measures—output, payroll or employment. For the Czech Re- is selected to represent all private industries total labor hours, and total compensation. public, Finland, and the United Kingdom, in the State. The survey is stratified by Stan- The hours and compensation measures refer compensation is reduced in certain years to dard Industrial Classification and size of to employees (wage and salary earners) in account for subsidies. employment. Belgium and Taiwan. For all other economies, Labor productivity is defined as real the measures refer to all employed persons, output per hour worked. Although the la- Definitions including employees, self-employed persons, bor productivity measure presented in this and unpaid family workers. release relates output to the hours worked The data for recent years are based on the of persons employed in manufacturing, it Under the Occupational Safety and Health United Nations System of National Accounts does not measure the specific contributions Act, employers maintain records of nonfatal 1993 (SNA 93). Manufacturing is generally of labor as a single factor of production. work-related injuries and illnesses that in- defined according to the International Rather, it reflects the joint effects of many volve one or more of the following: loss of Standard Industrial Classification (ISIC). influences, including new technology, capital consciousness, restriction of work or motion, However, the measures for France include investment, capacity utilization, energy use, transfer to another job, or medical treatment parts of mining as well. For the United and managerial skills, as well as the skills other than first aid. States and Canada, manufacturing is defined and efforts of the workforce. Occupational injury is any injury such according to the North American Industry Unit labor costs are defined as the cost of as a cut, fracture, sprain, or amputation that Classification System NAICS( 97). labor input required to produce one unit of results from a work-related event or a single, in- output. They are computed as compensation stantaneous exposure in the work environment. Definitions in nominal terms divided by real output. Occupational illness is an abnormal condition or disorder, other than one result- Output. For most economies, the output Notes on the data ing from an occupational injury, caused by measures are real value added in manufac- exposure to factors associated with employ- ment. It includes acute and chronic illnesses turing from national accounts. However, The measures for recent years may be based or disease which may be caused by inhalation, output for Japan prior to 1970 and for the on current indicators of manufacturing out- absorption, ingestion, or direct contact. Netherlands prior to 1960 are indexes of put (such as industrial production indexes), Lost workday injuries and illnesses are industrial production. The manufacturing employment, average hours, and hourly com- cases that involve days away from work, or value added measures for the United King- pensation until national accounts and other days of restricted work activity, or both. dom are essentially identical to their indexes statistics used for the long-term measures Lost workdays include the number of of industrial production. become available. For more in-depth infor- workdays (consecutive or not) on which the For the United States, the output mea- mation on sources and methods, see http:// employee was either away from work or at sure is a chain-weighted index of real value www.bls.gov/news.release/prod4.toc.htm. work in some restricted capacity, or both, added produced by the Bureau of Economic FOR ADDITIONAL INFORMATION on in- Analysis. BLS uses this series here to pre- ternational comparisons, contact the Division because of an occupational injury or illness. BLS serve international comparability. However, of International Labor Comparisons: (202) measures of the number and incidence for its domestic industry measures, shown 691–5654 or [email protected]. rate of lost workdays were discontinued be- in tables 47–50 in this section, BLS uses a ginning with the 1993 survey. The number different output measures called “sectoral of days away from work or days of restricted output,” which is gross output less intra- Occupational Injury work activity does not include the day of injury sector transactions. and Illness Data or onset of illness or any days on which the Total hours refer to hours worked in all employee would not have worked, such as a economies. The measures are developed from (Tables 54–55) Federal holiday, even though able to work.

Monthly Labor Review • September 2011 47 Current Labor Statistics

Incidence rates are computed as the Illnesses: Counts, Rates, and Characteristics. counts, State motor vehicle fatality records, number of injuries and/or illnesses or lost Comparable data for more than 40 States and follow-up questionnaires to employers. work days per 100 full-time workers. and territories are available from the bls In addition to private wage and salary Office of Safety, Health and Working Con- workers, the self-employed, family mem- Notes on the data ditions. Many of these States publish data bers, and Federal, State, and local govern- on State and local government employees in ment workers are covered by the program. The definitions of occupational injuries and addition to private industry data. To be included in the fatality census, the illnesses are from Recordkeeping Guidelines Mining and railroad data are furnished decedent must have been employed (that is for Occupational Injuries and Illnesses (U.S. to BLS by the Mine Safety and Health working for pay, compensation, or profit) Department of Labor, Bureau of Labor Sta- Administration and the Federal Railroad at the time of the event, engaged in a legal tistics, September 1986). Administration. Data from these organiza- work activity, or present at the site of the Estimates are made for industries and tions are included in both the national and incident as a requirement of his or her job. employment size classes for total recordable State data published annually. cases, lost workday cases, days away from With the 1992 survey, BLS began pub- Definition work cases, and nonfatal cases without lost lishing details on serious, nonfatal incidents workdays. These data also are shown sepa- resulting in days away from work. Included A fatal work injury is any intentional or rately for injuries. Illness data are available are some major characteristics of the injured unintentional wound or damage to the body for seven categories: occupational skin dis- and ill workers, such as occupation, age, resulting in death from acute exposure to eases or disorders, dust diseases of the lungs, gender, race, and length of service, as well energy, such as heat or electricity, or kinetic respiratory conditions due to toxic agents, as the circumstances of their injuries and energy from a crash, or from the absence of poisoning (systemic effects of toxic agents), illnesses (nature of the disabling condition, such essentials as heat or oxygen caused by a disorders due to physical agents (other than part of body affected, event and exposure, specific event or incident or series of events within a single workday or shift. Fatalities toxic materials), disorders associated with and the source directly producing the con- repeated trauma, and all other occupational dition). In general, these data are available that occur during a person’s commute to or illnesses. nationwide for detailed industries and for from work are excluded from the census, The survey continues to measure the individual States at more aggregated in- as well as work-related illnesses,which can number of new work-related illness cases dustry levels. be difficult to identify due to long latency periods. which are recognized, diagnosed, and re- FOR ADDITIONAL INFORMATION on oc- cupational injuries and illnesses, contact the ported during the year. Some conditions, for Notes on the data example, long-term latent illnesses caused Office of Occupational Safety, Health and by exposure to carcinogens, often are dif- Working Conditions at (202) 691–6180, or Twenty-eight data elements are collected, ficult to relate to the workplace and are not access the Internet at: www.bls. gov/iif/. coded, and tabulated in the fatality program, adequately recognized and reported. These including information about the fatally long-term latent illnesses are believed to be Census of Fatal injured worker, the fatal incident, and the understated in the survey’s illness measure. Occupational Injuries machinery or equipment involved. Summary In contrast, the overwhelming majority of worker demographic data and event char- the reported new illnesses are those which acteristics are included in a national news are easier to directly relate to workplace The Census of Fatal Occupational Injuries release that is available about 8 months after activity (for example, contact dermatitis and compiles a complete roster of fatal job-relat- the end of the reference year. The Census of carpal tunnel syndrome). ed injuries, including detailed data about the Fatal Occupational Injuries was initiated in Most of the estimates are in the form of fatally injured workers and the fatal events. 1992 as a joint Federal-State effort. Most incidence rates, defined as the number of The program collects and cross checks fatality States issue summary information at the injuries and illnesses per 100 equivalent full- information from multiple sources, including time of the national news release. time workers. For this purpose, 200,000 death certificates, State and Federal workers’ FOR ADDITIONAL INFORMATION on employee hours represent 100 employee compensation reports, Occupational Safety the Census of Fatal Occupational Injuries years (2,000 hours per employee). Full detail and Health Administration and Mine Safety contact the BLS Office of Safety, Health, and on the available measures is presented in the and Health Administration records, medical Working Conditions at (202) 691–6175, or annual bulletin, Occupational Injuries and examiner and autopsy reports, media ac- the Internet at: www.bls.gov/iif/

48 Monthly Labor Review • September 2011