Who is part of the labor force




















In the labor force, employment, and unemployment data published by the Bureau of Labor Statistics, most Current Population Survey CPS estimates of wage and salary workers include the incorporated self-employed.

This is because, technically, the incorporated self-employed are paid employees of their corporation. The wage and salary worker data series published with CPS earnings data treat incorporated self-employed people differently. See wage and salary workers for earnings purposes for more information.

Self-employed people are those who work for profit or fees in their own business, profession, trade, or farm. This includes those who intended to earn a profit but whose business produced no profit or a loss. Therefore, self-employed people with zero or negative income from their business, profession, or farm are still classified as employed if they worked at least one hour in that enterprise during the survey reference week.

Self-employed people may be classified as employed before their business is in operation if they spent at least one hour during the survey reference week in activities setting up a new business such as:. People with ownership in a business or farm solely for investment purposes, with no participation in its management or operation, are not considered employed in the Current Population Survey CPS based on this ownership stake, and therefore are not included in the self-employed estimates.

Unless otherwise specified, CPS estimates of the self-employed published by BLS reflect only people whose businesses are unincorporated. In most CPS estimates, the incorporated self-employed are classified as wage and salary workers. Unpaid family workers are people who worked without pay for a minimum of 15 hours during the survey reference week in a business or farm owned by a family member.

The unpaid family worker must be related by marriage, birth, or adoption to the business or farm owner and reside in the same household. Multiple jobholders are people who had two or more jobs during the survey reference week , at least one of which was a wage and salary job defined above. To be classified as a multiple jobholder in the Current Population Survey, the employed person must meet one of the following criteria:. Self-employed people with multiple businesses and people with multiple jobs as unpaid family workers are not classified as multiple jobholders.

There is no upper age limit. Since , educational attainment in the Current Population Survey refers to the highest diploma or degree obtained. Educational attainment data published by BLS typically pertain to people age 25 and older because most people have completed their schooling by age BLS publications typically provide estimates for some or all of the following educational attainment categories. In many BLS publications, categories 3 and 4 are combined and shown as "Some college or associate degree.

Prior to , educational attainment referred to the number of years of school completed. The pre educational attainment categories are not directly comparable with the current concepts. Hispanic or Latino ethnicity is a separate demographic concept from race in the CPS statistics. People of Hispanic or Latino ethnicity may be of any race. Because of this overlap, data for the race and Hispanic ethnicity groups will not sum to the total or percent.

People who identify themselves as Hispanic or Latino also are asked to identify one of the following detailed Hispanic ethnicity groups. These changes affected data comparability over time. In the survey process, the interviewer provides the five options shown above and the survey respondent indicates the race or races they consider themselves to be. Since , people who identify more than one race are tabulated separately in the category, Two or More Races. People in these groups are included in all totals.

These three groups will not sum to the total or percent because the total includes smaller race groups not shown separately: American Indian or Alaska Native, Native Hawaiian or Other Pacific Islander, and Two or More Races.

The CPS implemented changes to the race classifications in January The Current Population Survey is designed to identify biological sex. Further information is available on the Census Bureau website. In many BLS publications, categories 2—6 are combined and shown as "Other marital status. In other tabulations, Married, spouse absent and Separated are sometimes combined under the "Separated" label.

The Current Population Survey CPS identifies a person with a disability as someone who has at least one of the following conditions:. The CPS does not use Social Security disability status to identify persons with and without disabilities.

For further information, see Frequently asked questions about disability data. Armed Forces and who were civilians at the time of the survey. People on active duty at the time of the survey are outside the scope of the CPS.

Members of the Reserve and National Guard are counted as veterans only if they have ever been called to active duty by Presidential order. People who served in the Reserves and National Guard and were never called to active duty are not counted as veterans in the CPS statistics. The CPS classifies veterans into one of following service periods based on their dates of service. They could have served anywhere in the world during these periods.

Veterans who served during one of the selected wartime periods and another period are classified only in the wartime period. Specifically, they were born outside the United States or one of its outlying areas such as Puerto Rico or Guam, and neither parent was a U. The foreign-born population includes legally-admitted immigrants, refugees, temporary residents such as students and temporary workers, and undocumented immigrants.

The survey does not specifically identify people in these categories, however. The survey asks the foreign born if they have U. The native born are people born in the United States or one of its outlying areas such as Puerto Rico or Guam or, if born abroad, had at least one parent who was a U. Census Bureau. Wage and salary workers for earnings purposes are workers age 16 and older who receive wages, salaries, commissions, tips, payments in kind, or piece rates.

Wage and salary workers for earnings purposes exclude both the incorporated and the unincorporated self-employed. The definition of wage and salary workers for earnings purposes is more narrow in scope than the general wage and salary workers definition used with labor force, employment, and unemployment data from the CPS, as the latter includes the incorporated self-employed. Usual weekly earnings data from the Current Population Survey reflect earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received.

For multiple jobholders , the data reflect earnings at their main job. The usual weekly earnings data reflect only wage and salary earnings from work, not gross income from all sources. These data do not include the cash value of benefits such as employer-provided health insurance. The term "usual" reflects each survey respondent's own understanding of the term. If the respondent asks for a definition of "usual," interviewers are instructed to define the term as more than half the weeks worked during the past 4 or 5 months.

Prior to , survey respondents were asked how much they usually earned per week. Since January , respondents have been asked to identify the easiest way for them to report earnings hourly, weekly, biweekly, twice monthly, monthly, annually, or other and how much they usually earn in the reported time period.

Earnings reported on a basis other than weekly are converted to a weekly equivalent. Earnings data are collected about employed people only. The survey does not ask how much unemployed people earned on their last job.

The median earnings level represents the midpoint in an earnings distribution, with half of workers having earnings above the median and the other half having earnings below the median. Deciles Deciles of earnings divide workers into 10 equally-sized groups, from the lowest earning to the highest earning. There are 9 decile earnings values that form "partitions" for the 10 earnings groups; these are the first through the ninth deciles. When looking at earnings distributions by decile, this means that 10 percent of workers will earn less than the first decile amount; 20 percent will earn less than the second decile amount, and so forth.

The ninth decile value divides the lowest-earning 90 percent of workers from the highest earning 10 percent of workers. The fifth decile is the same as the median , or midpoint of the earnings distribution. Quartiles Quartiles of earnings divide workers into 4 equally-sized groups, from the lowest earning to the highest earning.

There are 3 quartile earnings values that form "partitions" for the 4 earnings groups; these are the first through the third quartiles. When looking at earnings distributions by quartile, this means that one-fourth 25 percent of workers will earn less than the first quartile amount, and three-fourths 75 percent of workers will earn less than the third quartile.

The second quartile is the same as the median , or midpoint of the earnings distribution. An earnings time series in constant dollars allows you to see how earnings have changed over time, minus the effect of inflation. Constant-dollar earnings are also sometimes referred to as "real" earnings, or inflation-adjusted earnings. Adjusting earnings to constant dollars requires a measure of price change over time. The adjustment bases the earnings to the purchasing power of a particular year or years.

Constant-dollar earnings time series sometimes may be based to the most recent year so that historical earnings data can be seen in contemporary dollars.

In other cases, the series may be based to the purchasing power of an earlier time, such as — Earnings shown in current dollars have not been adjusted for inflation and reflect the purchasing power of the time period reported. The Current Population Survey "reference" week is the specific week of the month used to determine the employment status of survey respondents, and the last week of the 4-week job search period used to determine unemployment status.

The reference week usually is the 7-day calendar week Sunday—Saturday that includes the 12th of the month, with occasional exceptions described below. Survey interviews and data collection begin in the week immediately following the reference week. This is referred to as the "survey" week, or the "interview" week, and is usually the week that includes the 19th of the month. Exceptions to the week of the 12th: The November and December reference weeks are sometimes moved one week earlier so that survey interviewers are not contacting households during major holiday periods.

For December, if the calendar week including the 5th is contained entirely within the month of December, the December reference week will be one week earlier than normal. For November, the reference week will be moved one week earlier if Thanksgiving falls during the week that contains the 19th, or if the Census Bureau determines that there is not enough data processing time before the survey interview week for December.

New data from the Current Population Survey are first published in the monthly Employment Situation news release. See the release schedule. Generally, the Employment Situation publication date is the third Friday after the week that includes the 12th. This usually results in the release being scheduled for the first Friday of the month following the reference month.

However, when the 12th of the month falls on a Sunday and there are 30 days or less in the month, the release date will be the second Friday of the month. In addition, if the third Friday after the December reference period falls on January 1—3, the release date will be the second Friday of the month.

If the normal release day Friday happens to be a federal holiday, such as July 4th, the release date will be the Thursday immediately preceding the holiday. The Employment Situation release dates are adjusted only for designated federal holidays.

The Employment Situation release dates are approved by the Office of Management and Budget and published in advance. All sub-national estimates reflect the survey respondent's place of residence.

The basic survey provides up-to-date information on the labor force status of people age 16 and older, with many demographic characteristics such as age, educational attainment, race, and Hispanic ethnicity. The ASEC is an important source of information on income, poverty, and health insurance coverage, among other things. The ASEC sometimes is referred to as the "March" supplement because traditionally it has been added to the basic survey in the month of March.

Most ASEC data, including income, poverty, and health insurance coverage data, are published by the U. Seasonal adjustment is a statistical procedure that removes the effects of normal seasonal variations—resulting from events such as holidays, school openings and closings, and weather—from data series.

Seasonally adjusted data make it easier to observe cyclical and other economic trends, such as those associated with general economic expansions and contractions.

Not seasonally adjusted data are estimates as measured directly by the CPS. These data have not been subject to seasonal adjustment procedures.

All annual average measures from the CPS are calculated from not seasonally adjusted data. Alternative employment arrangements include people employed as independent contractors, on-call workers, temporary help agency workers, and workers provided by contract firms. See also Electronically mediated employment. Beginning with the publication of data for March , reports highlight the impact of the coronavirus COVID pandemic and efforts to contain it.

See also Absences. Discouraged workers are a subset of persons marginally attached to the labor force. The marginally attached are those persons not in the labor force who want and are available for work, and who have looked for a job sometime in the prior 12 months, but were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey. Among the marginally attached, discouraged workers were not currently looking for work specifically because they believed no jobs were available for them or there were none for which they would qualify.

See also Not in the labor force and Alternative measures of labor underutilization. Data on displaced workers are collected from a special supplementary survey conducted every 2 years. Displaced workers are defined as persons 20 years of age and older who lost or left jobs because their plant or company closed or moved, there was insufficient work for them to do, or their position or shift was abolished.

These questions were designed to measure an emerging type of work—electronically mediated employment, generally defined as short jobs or tasks that workers find through mobile apps that both connect them with customers and arrange payment for the tasks. Employed persons consist of: persons who did any work for pay or profit during the survey reference week; persons who did at least 15 hours of unpaid work in a family-operated enterprise; and persons who were temporarily absent from their regular jobs because of illness, vacation, bad weather, industrial dispute, or various personal reasons.

The employment-population ratio represents the proportion of the civilian noninstitutional population that is employed. Data are also available for Demographics , Earnings , Hours of work , and other employment characteristics. See also Labor force and Unemployment. See also Hours of work , Work experience , and Work schedules flexible and shift schedules.

This category includes people who indicated that they would like to work full time but were working part time 1 to 34 hours because of an economic reason, such as their hours were cut back or they were unable to find full-time jobs.

Learn more about how this category is defined. Data measure average hours at work per week and distributions of employed persons by hours at work. See also Full- or part-time status. The labor force is the sum of employed and unemployed persons. The labor force participation rate is the labor force as a percent of the civilian noninstitutional population.

Browse various labor force characteristics. Data also are available by demographic characteristics. See also Not in the labor force.

Persons who are neither employed nor unemployed are not in the labor force. This category includes retired persons, students, those taking care of children or other family members, and others who are neither working nor seeking work.

Information is collected on their desire for and availability for work, job search activity in the prior year, and reasons for not currently searching. See also Labor force and Discouraged workers. Employed persons are classified by occupation what kind of work they do and industry what kind of work their employer or business does.

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