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Under a Creative Commons license Open access Highlights• We document internal inconsistencies in CPS data and propose corrections. •Problems include rotation bias, missing observations, and misclassification. •Our adjustments raise average unemployment and labor-force participation by 2%. •Our adjustments lower average duration of unemployment by 11 weeks.
AbstractThe underlying data from which the U.S. unemployment rate, labor-force participation rate, and duration of unemployment are calculated contain numerous internal contradictions. This paper catalogs these inconsistencies and proposes a unified reconciliation. We find that the usual statistics understate the unemployment rate and the labor-force participation rate by about two percentage points on average and that the bias in the latter has increased over time. The BLS estimate of the average duration of unemployment substantially overstates the true duration of uninterrupted spells of unemployment and misrepresents what happened to average durations during the Great Recession and its recovery. KeywordsUnemployment rate Labor-force participation rate Unemployment duration Measurement error Cited by (0)© 2021 The Author(s). Published by Elsevier Inc. A person is outside the labour force, according to the International Labour Organisation definition, if he or she is not part of the labour force, meaning he or she is neither employed nor unemployed. The set of people outside the labour is also called the "inactive population" and can include pre-school children, school children, students, pensioners and housewives or -men, for example, provided that they are not working at all and not available or looking for work either; some of these may be of working-age. The inactivity rate is the proportion of people outside the labout force (i.e. economically inactive persons) in the total population of the same age group. Related concepts
Statistical data
Print Version Who is in the Labor Force? People are considered employed if they work at least one hour for pay or at their own business at any time during the week including the twelfth day of the month. People who work as unpaid workers for fifteen hours or more in a family-owned business are also considered employed. People who are temporarily absent from their jobs because of vacation, illness, bad weather, or personal reasons are also counted as employed. Included in the employed group are those who are employed full-time (thirty-five hours or more during the survey week) and those who are employed part-time. People are classified as unemployed if they meet all of the following criteria:
People laid off from their former jobs and awaiting recall, and those expecting to report to a job within thirty days need not be looking for work to be counted as unemployed. Unemployed people can be divided into four groups:
The primary factor in determining whom to count as unemployed is that the person be actively seeking employment. “Wanting a job” is not enough to be counted as unemployed. Who is Not in the Labor Force? Who is included in the labor force participation rate?The labor force participation rate is the percentage of the civilian noninstitutional population 16 years and older that is working or actively looking for work. It is an important labor market measure because it represents the relative amount of labor resources available for the production of goods and services.
Which of the following individuals would not be included in the labor force quizlet?Which of the following individuals would not be included in the labor force? Kit, who has retired and is not looking for work.
Which of the following individuals is included in the labor force?Who is in the Labor Force? Persons "in the labor force" are those in the civilian noninstitutional population, age sixteen years or older, who are employed or who are unemployed and seeking employment.
Who is not included in the labor force by the Bureau of labor Statistics?People who are neither employed nor unemployed are not in the labor force. Labor force measures are based on the civilian, non-institutional population 16 years old and over.
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