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Utility of Employment Data

Utility of Employment Data. Employment data by place of work are very valuable as descriptors of economic performance and structure. Change in the overall number of jobs is a key measure of economic performance.

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Utility of Employment Data

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  1. Utility of Employment Data • Employment data by place of work are very valuable as descriptors of economic performance and structure. Change in the overall number of jobs is a key measure of economic performance. • The classification of employment by industry allows analysts to understand the make-up of the local economy; where a local economy has employment concentrations and where “holes” exist in the economy. • In the U.S. two classification systems have been utilized. • The change from SIC to NAICS was due to several factors, but was in large part undertaken to more accurately reflect a emerging post-modern American economy that emphasizes services and technology over manufacturing employment.

  2. Standard Industrial Classification (SIC) Codes • SIC Codes: Represent an attempt to classify industries according to similarities in products, services, and production and delivery systems. • These codes organize industries in an increasing level of detail ranging from general economic sectors (i.e. manufacturing, services) to specific industry segments (i.e. commercial sports, laundry businesses) • Basic 10 categories (or Divisions) are identified by a letter • Divisions are divided into Major Groups (2 digit SIC codes) • Major Groups are divided into specific Industry Groups (3 digit SIC codes) • Industry groups are then subdivided into Industries themselves (4 digit SIC codes)

  3. The SIC Major Industrial Divisions Ltr Code Major Divisions 2-Digit Start Point A Agriculture, Forestry, Fishing 07 B Mining 10 C Construction 15 D Manufacturing 20 E Transportation/ Public Utilities 40 F Wholesale Trade 50 G Retail Trade 52 H Finance, Ins., Real Estate (FIRE) 60 I Services 70 J Public Administration 92 K Unclassified 99

  4. An Example of SIC Organization • Division A = Agriculture, forestry, fishing, • Division B = Mining • Major group 10 = Metal mining (2 digit) • Industry group 101 = Iron ores (3 digit) • Industry group 102 = Copper ores • Industry group 104 = Gold and silver ores • Industry 1041 = Gold ores (4 digit) • Industry 1044 = Silver ores • Major group 11 = Anthracite mining

  5. Limitations of SIC Codes • Problems with allocating employees to “correct” sectors For example, under SIC administrative employees at an automotive factory can get reported as manufacturing workers. Example Next Slide

  6. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  7. Limitations of SIC Codes • Problems with allocating employees to “correct” sectors • SIC codes do not recognize new industries • SIC codes originally were designed for the “traditional” manufacturing economy. The codes have not responded to the restructuring economy. See SIC Divisions Next Slide

  8. The SIC Major Industrial Divisions Ltr Code Major Divisions 2-Digit Start Point A Agriculture, Forestry, Fishing 07 B Mining 10 C Construction 15 D Manufacturing 20 E Transportation/ Public Utilities 40 F Wholesale Trade 50 G Retail Trade 52 H Finance, Ins., Real Estate (FIRE) 60 I Services 70 J Public Administration 92 K Unclassified 99

  9. The New Standard: NAICS • For the 1997 Economic Census a new standard set of industrial codes was devised. This resulted in part from NAFTA (the North American Free Trade Agreement) and established standardized codes for North American countries (US, Mexico, Canada). • So, beginning with the 1997 Economic Census, NAICS replaces SIC. • NAICS addresses many of the shortcomings of the SIC system: --Expands upon the major categories of the economy; now 20 “Sectors” instead of 10 Divisions --Includes new economic sectors; Information sector, Health Care and Social Assistance sector, and Professional, Scientific, and Technical sector (better reflecting the New Economy) --Expands several Divisions into multiple Sectors: For example, TCU was subdivided into 1) Utilities, 2) Transportation and Warehousing --Deals better with corporations with diverse activities.

  10. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  11. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  12. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  13. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  14. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  15. Source: http://www.census.gov/epcd/www/ec97cnf2.htm

  16. Sources for Employment Data • As discussed last class, the federal government and state governments provide several valuable sources of employment data by place of work: 1) County Business Patterns, Economic Census (Census) 2) Current Employment Statistics (CES) data (Fed and State) 3) Covered Employment and Wages (ES-202) data (Fed and State)

  17. Economic Census Data • Census Bureau undertakes an Economic Census in years ending in 2 and 7 (i.e. 1997 & 2002). • Mailed to over 5 million companies in Dec 2002, the EC gathers important information on number of firms, employment, payroll, and outputs (i.e. sales, receipts, shipments, etc.) • The 1997 Economic Census is available online, on CD-ROM, and in published reports. The 2002 data will be available starting late 2004. Geographic Detail: Nation, State, MSAs, County, Zip Code Industry Detail: Down to the lower NAICS code levels Method of Data Acquisition: Census Frequency: Every Five Years (long lag time on data) Ease of Use: Can access data from web Main Advantages: A Census; Detailed tables; Coverage of private employment Disadvantages: Delayed data set, Some data not reported for MSAs, Counties, Data access on web not the best

  18. County Business Patterns Data • The Census Bureau also published County Business Patterns data annually (usually with a year or two lag time), summarizing the country’s economy from the national to the local level. • County Business Patterns data for the period 1988-2001 are currently available online. • Note: The series excludes data on self-employed individuals, employees of private households, railroad employees, agricultural production employees, and most government employees. Geographic Detail: Nation, State, MSAs, County, Zip Code Industry Detail: Down to the lower NAICS code levels Method of Data Acquisition: 100% sample (not quite a census) Frequency: Annually (approx. a two year lag time on data) Ease of Use: Can download spreadsheet ready files from web Main Advantages: Detailed tables; Coverage of private employment; Historic data easily accessed Disadvantages: No public sector employment, no self-employed individuals

  19. ES-202 Data • ES-202 data represent a quarterly collection of job and wage data from all employers participating in state unemployment insurance (UI) programs. • Summary data is provided by state LMI (labor market information) agencies (in Florida the AWI). • In Florida, these data are gathered by the Agency for Workforce Innovation (AWI) and are provided online at: http://www.labormarketinfo.com/es202/es202.htm Geographic Detail: State, MSAs, County, Zip Code Industry Detail: Down to the lower NAICS code levels Method of Data Acquisition: 100% sample (Employer-generated) Frequency: Quarterly (approx. a 6-9 month lag time on data) Ease of Use: Can download spreadsheet ready files from web Main Advantages: Relatively speedy results; Detailed tables; Inclusion of public and private employment Disadvantages: Lack of easily accessible historic data

  20. CES Data • CES data are collected monthly for civilian employment for states and metropolitan areas. This data does not have great industry detail. • In Florida these data are gathered by the Agency for Workforce Innovation (AWI) and are provided online at: http://www.labormarketinfo.com/ces/ces.htm • The primary utility of the CES data is their timeliness. They reflect very recent conditions, unlike all of the other data sets. Geographic Detail: State, MSAs Industry Detail: Only the upper NAICS levels (Sector level) Method of Data Acquisition: 100% sample (Employer-generated) Frequency: Monthly Ease of Use: Can download figures from web Main Advantage: Very speedy results Disadvantages: Not much industry detail, Not much geographic detail

  21. Other Potentially Valuable Data Sets • Nonemployer Statistics: This data summarizes the number of establishments for companies with no paid employees. These nonemployers are typically self-employed individuals or partnerships operating businesses that they have not chosen to incorporate. http://www.census.gov/epcd/nonemployer/ • Housing Starts by Type: The federal government captures housing starts down to the county level on a month to month basis. http://www.census.gov/const/www/permitsindex.html • Census of Governments: A Census of Governments is taken at 5-year intervals and generates data over three major subject fields - government organization, public employment, and government finance. http://www.census.gov/govs/www/

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