Welcome

1. Welcome Please sit wherever you would like

2. Word on the street is you been askin’ a lotta questions about LMI…

3. LMI.. What you should know Presented by…. Bill McNeece MS Dept of Employment Security

4. LMI What is it? Where does it come from? How can you use it?

5. One Popular Opinion L argely M ade Up I nformation

6. But, seriously, folks … L abor What is it— Really? M arket I nformation

7. The Textbook Definition A dynamicandsystematic approach to workforce data — designed to meet the changing needs of our customers.

8. In Layman’s Terms Or, to put it more simply … Basically, it’s any data or analysis that relates to the workforce.

9. LMI ???????????? WHO NEEDS 'IT ? ! ? Unfortunately, you do LMI data is the gas that fuels the ALMIS Data Base engine

10. What’s our goal today? To help YOU…. • Navigate thru the LMI Lingo • Understand the Data Sources • Avoid Heartburn and Keep Your Sanity

11. Your Training Modules Today: • Learning the Lingo • Who Makes this Stuff Up? • Avoiding Heartburn

12. Ready to get started? Let’s take a look at the first module e L a r i n g n the i L g o n

13. Feel Bombarded with Acronyms? Americans DO love their acronyms! But sometimes it makes things hard to understand BLS EIEIO ALMIS LMI CPI

14. Did you know? Acronym is actually an ACRONYM itself! Abbreviations Created Routinely Once every New York Minute

15. Before we get very far We need to wade through some AlphabetSoup so you won’t think I’m speaking a foreign language These are some common acronyms tossed around in LMI circles

16. Alphabet Soup BEA = Bureau of Economic Analysis BLS = Bureau of Labor Statistics CPI = Consumer Price Index CES = Current Employment Statistics

17. Alphabet Soup CPS = Current Population Survey ECI = Employer Cost Index ETA = Employment & Training Administration

18. Alphabet Soup LAUS = Local Area Unemployment Statistics LMA = Labor Market Area MLS= Mass Layoff Statistics MSA = Metropolitan Statistical Area NAICS = North American Industry Classification System

19. Alphabet Soup OES= Occupational Employment Statistics PPI = Producers Price Index SIC = Standard Industry Classification SOC = Standard Occupational Classification QCEW= Quarterly Census of Employment & Wages (a.k.a ES 202)

20. Alphabet Soup Any Questions?

21. LMI Lingo Must crawl before we walk We’ll start with some basic terms and concepts In other words, all you wanted to know but were afraid to ask

22. Labor Force Terms & Concepts • Employed • Worked at least one hour for pay • During the week that includes the 12th • Unemployed • No job attachment • Available for work & actively seeking it • Can be experienced or a new or re-entrant

23. Covered Employment This employment tallies workers whose wages have been “covered” for UI purposes (i.e., the employer paid unemployment insurance on the wages paid to the individual) Used only in QCEW data

24. EmploymentPlace of work An estimate or count of employment based on the location of the job regardless of the worker’s residence Also called Nonag Wage and Salary or Nonfarm Employment This counts jobs, not people Used in QCEW, OES and CES data

25. EmploymentPlace of Residence An estimate of employment based on where the employee lives, rather than where they work This is a count of people not jobs Used in calculating the labor force Used only in LAUS data

26. Civilian Labor Force 16+ years old Employed + Unemployed Does NOT include military personnel Unemployment rate Unemployed ÷ Labor Force Expressed as % Labor Force Terms & Concepts • Labor Force Participation rate • Labor Force ÷ Working Age Population

27. Labor Market Area Groups of counties that encompass the county of residence and the county of work. Defined by: Commuting patterns The behavior of individuals included in American Community Survey, Census and UI claims data when compared to other data. Labor Force Terms & Concepts

28. Covered Wages This pertains to the actual wages earned by persons working for a “covered” employer In other words, someone for whom unemployment tax has been paid Used only in QCEW data

29. Benchmark Establishing a new reference point, from which estimates are calculated and/or revised, based on last known data. Very similar to the census process Only LAUS & CES do this

30. Coding Systems • Why code data? • Why revise coding structures? • Types of coding: • Geography • Industry • Occupation

31. Objectives of Coding Systems • Often designed to meet specific labor program needs • Ideally, a single system would meet all programmatic needs • Updating should be timely and cost-effective

32. Only one major system in common usage: FIPS – Federal Information Processing System Developed by U.S. Office of Management and Budget (OMB) Commonly used by almost all federal and local agencies Consists of codes for states, MSA’s, countiesand cities, townships, etc. Some GIS software applications use FIPS Geographic Coding Systems

33. Types: Standard Industrial Classification (SIC) North American Industrial Classification System (NAICS) Shifting from SIC to NAICS Conversion now complete Benefits Program impacts Industry Coding Systems

34. Six-digit system, instead of four Instead of 10 major industry groups, there are 20 industrial sectors. More consistent with other international systems and other classification systems used by BEA. WHY NAICS?

35. Occupational Coding Systems • DOT — Dictionary of Occupational Titles • Phased out in 2002 – 2003 • OES — Occupational Employment Statistics • SOC — Standard Occupational Code • O*NET — Occupational Information Network

36. LMI Lingo Any Questions?

37. Next on our agenda is… Who makes this stuff up?

38. Just where do the numbers come from? Mostly from BLS programs

39. Just who or what IS BLS? • Contrary to popular opinion, they are NOT the Bureau of Lying Sapsuckers! • In reality, they are the BUREAU OF LABOR STATISTICS, an arm of the US Department of Labor

40. As states, why are we involved with a Federal agency? • They operate what is known as the Federal/State Cooperative Programs • Under these, they provide the funding for our base statistical programs

41. Historical Background • BLS has been around in one form or another for over a hundred years. • However, they only took control over the LMI programs in the mid-1970’s • They provide both funding and technical support

42. LMI Produces lots of different stuff • Does BLS control ALL our LMI programs? • Not in most states. They are only responsible for FIVE basic statistical programs. Anything else is funded and controlled by some other entity

43. Which five does BLS control? • QCEW • CES • LAUS • OES • MLS

44. There you go with the acronyms again! In plain English, tell me what those stand for And while you’re at it, tell me a little bit about each of them

45. Okay, let’s begin with QCEW • It’s official name is the Quarterly Census of Employment & Wages • It’s commonly called ES 202 because the original report it was required to produce was Employment Security Report Number 202

46. What exactly does the QCEW program produce? • Detailed quarterly employment and payroll information for all employers covered under UI law. • Annual information on changes in industry codes that occur during the year

47. UI quarterly contribution reports UCFE federal agency employment reports Comes to ALMIS DB via EQUI report Supplementary employer surveys by state LMI offices Multiple establishment detail (MWR) Industrial coding (annual refile survey) Follow-ups triggered by edits Data Sources for QCEW

48. How does QCEW differ from other programs? • Unlike LAUS, QCEW counts JOBS not PEOPLE • Jobs are counted at the work site • It’s the only program that lists total wages paid

49. Employment benchmark for all BLS federal/state employer survey programs — CES, OES & OSHA Critical for Bureauof Economic Analysis Personal income State and national domestic product Local planning Only consistent source of county employment andwages by industry Any employment analysis requiring detailed data Uses of QCEW Data

50. QCEW Limitations & Changes • Some employment for large firms may be reported in the wrong areas (MWR’s) • Some firms report total number of employees in a quarter as employment for each month • QCEW is not a time series • No wedging of changes by industry or area from: • Annual refile survey • Changes in multi-establishment reporting • Shift to NAICS — Break in series