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Measuring Quality in the BLS Business Register

Measuring Quality in the BLS Business Register. Richard Clayton David Talan Joint UNECE/OECD/ Eurostat Meeting of the Group of Experts on Business Registers Geneva, Switzerland September 3-4, 2013. Quarterly Census of Employment and Wages (QCEW) Program Concepts and Sources

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Measuring Quality in the BLS Business Register

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  1. Measuring Quality in the BLS Business Register Richard Clayton David Talan Joint UNECE/OECD/Eurostat Meeting of the Group of Experts on Business Registers Geneva, Switzerland September 3-4, 2013

  2. Quarterly Census of Employment and Wages (QCEW) Program Concepts and Sources Dimensions of Quality Data Quality Metrics Data Uses / Users Publications Outline

  3. Quarterly Census of Employment and Wages • Quarterly census of employers covered under UI and federal employers covered under UCFE

  4. QCEW – Quarterly Census of Employment and Wages • Quarterly data (frequent) • Released 6.5 months after reference period - timely • 9.2 million records and growing • 133 million in employment • Units, employment and wages • 6 digit NAICS and county, ownership • UI based, mandatory collections to run UI • Wages - 98% reported data • Employment - 97% reported data • Units - 95% reported data

  5. Source: BLS Quarterly Census of Employment and Wages (QCEW) Administrative data from Unemployment Insurance filings (UI) Huge investment in improving raw administrative data Two supplemental collections ARS- Annual Refiling Survey MWR- Multiple Worksite Report Investment in Quality

  6. QCEW Concepts • Employer • Establishment • Reporting unit • Multi-establishment employer QCEW

  7. Business Register Sources • UI Status Determination Form • UI Quarterly Contribution Report • BLS Multiple Worksite Report • BLS Federal Government Report • BLS Annual Refiling Survey Forms

  8. Data obtained: UI account number Business name Business address Employer identification number Ownership status Industry status Multi-establishment employer status Predecessor information Status Determination Form

  9. Quarterly UI Contribution Report Data obtained: • Monthly employment • Total wages • Taxable wages • Employer contributions

  10. Multiple Worksite Report Data obtained: • Establishment address • Worksite description • Monthly employment by establishment • Total wages by establishment

  11. Annual Refiling Forms Verify and update: • Industry codes • Geographic codes • Ownership status • Business names and addresses • Multi-establishment status

  12. QCEW File • Submitted to BLS by States Contains: • Business names and addresses • Identification and classification information • Employment and wage data

  13. The QCEW File Updates: • BLS Business Register • Employment and wage data • Annual refiling code changes

  14. BLS Business Register • Updated each quarter • 9.2 million records • Longitudinally linkedto create a time series for each establishment BLS Business Register

  15. Business Register Data Flow Initial Employers Status Forms State UI Contributions Tax Unit Reports Multiple Worksite State Reports QCEW Federal Gov't Reports Unit ARS Surveys BLS Business Register (QCEW) QCEW File Deliverable

  16. Independent Mechanism to Ensure Proper Coverage • In 2012, 19.3 million weekly UI claims were filed. • Each of these events ensures that QCEW coverage is complete and the QCEW business register is able to capture new businesses in a timely fashion. • An average of 372,000 UI claims filed weekly

  17. Quality – Measure of Reported Data Relevant Timely Accurate Dimensions of Quality

  18. BLS Sets Data Quality Standards Communicates with BLS Regions and States Prioritizes “focus” of data quality Multiple Layers of Data Quality Review Federal-State Cooperative Program BLS National Office BLS Regional Offices States Data Quality: Setting Goals and Standards

  19. Quality-Cost Tradeoff • Cost Saving Initiatives • Electronic Data Collection • ARS and MWR • ARS Collection via Contractor • Touchtone Data Entry

  20. Reports that Measure Data Quality Flash Report Business Register Metrics Report Historical Tracking Data Quality Metrics

  21. Monitors data quality received from States Number of reported units Number of imputations Number of prorations Number of missing units Number of records with invalid area/county and industry codes Reports generated twice each quarter Initial and Updated reports generated Flash Report

  22. Data Quality Metric: High Level of Reported Data

  23. Historical Tracking Percentage of Unclassified NAICS in State B in Comparison to the National Average of Unclassified NAICS

  24. Generated after the data are linked Monitors: System software Data quality Quality of analyst manual matches Evaluates: The number and type of manual matches (breakout/consolidation) Number of new QCEW businesses each quarter Number of births/deaths each quarter Number of unmatched records Number of weighted match records Business Register Metrics

  25. Quality Metric: High Linkage Rates

  26. Timeliness January 1 – March 31 = Reference Quarter March 31 – April 30 = Reporting Period May 1 – July 29 = UI Processing QCEW Extract from UI QCEW Edit & Review July 30 – Sept 30 = State File sent to BLS BLS Review State Updates Received October 7 = Publication Lag= 6 months and 1 week

  27. Thorough editing and review at the state, regional, and national levels each quarter 196 Interactive Edits State’s contact businesses to correct questionable data and/or provide missing data Development of new state system with even more powerful editing and review capabilities Accuracy

  28. Continuous Progress and Improvements 1991 –1992 : Multiple Worksite Reports - county Level 2001 : Longitudinal Database completed 1998 – 2001 : NAICS Implemented 2002 : Quarterly Publication Initiated 2003 : Business Employment Dynamics (BED) : Geocoding started 2004 : NAICS History Released (Sept 2004) 4 Week Acceleration Completed 2005 : BED Firm Size Data 2007 : NAICS 2007 Conversion (2007/Q1) 2010 : QCEW Mapping Tool 2012 : BED State Industry Data

  29. Uses Of Quarterly Census of Employment and Wages Data (QCEW) Quarterly Press Releases, Annual Employment and Wages • Job Creation/Destruction • Size Class Dynamics • Business Survival Rates Geocoded Establishments Industrial Price Program National Compensation Survey Current Employment Statistics Occupational Employment Statistics Occupational Safety and Health Statistics Job Openings & Labor Turnover Survey • Local Economic Development Indicators • Clusters Analysis • Shift Share • Industry Diversity Indexes • Location Quotients Current Employment Statistics Gross Domestic Product (BEA) Occupational Employment Statistics Personal Income (BEA) Minimum Wage Studies State Revenue Projections Occupational Safety and Health Statistics Economic Forecasting Jobs Openings & Labor Turnover Survey General Economic Uses Benchmarking (Employment Base) Quarterly Census of Employment & Wages Data (QCEW/ Analytical Uses Sampling • Interagency Data Uses • Improve CPS After 2000 Census • LEHD • Industry Code Sharing Programmatic Uses Local Government Services Planning UI Tax Rate & Actuarial Analysis Local Economic Impact Response Planning UI-Covered Employment Local Area Unemployment Local Transportation Planning Mass Layoff Statistics Federal Funds Allocation $175 Billion (HUD, USDA, HCFA/CHIP)

  30. Accessing the QCEW and BED Macrodata • BED: http://www.bls.gov/bdm/home.htm • QCEW: http://www.bls.gov/cew/home.htm

  31. Richard ClaytonDavid TalanEmail: clayton.richard@bls.gov Email: talan.david@bls.gov www.bls.gov/bdm

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