Quarterly Workforce Indicators: Concepts and Construction

115
Quarterly Workforce Indicators: Concepts and Construction C2ER Training Workshop June 4, 2012 Stephen Tibbets LEHD Program US Census Bureau

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Page 1: Quarterly Workforce Indicators: Concepts and Construction

Quarterly Workforce Indicators:

Concepts and Construction

C2ER Training WorkshopJune 4, 2012

Stephen TibbetsLEHD Program

US Census Bureau

Page 2: Quarterly Workforce Indicators: Concepts and Construction

Underlying Concepts:Construction of the LEHD Infrastructure

• Goals:• Understand concepts, basics of construction

of LEHD infrastructure and processing• Understand QWI measures, how data is used

in LED products

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Reference Materials

• QWI 101– Overview of terms and measures

• http://lehd.did.census.gov/led/doc/QWI_101.pdf

• QWI Cheatsheet– Reference for the structure of the public release QWI files

• http://vrdc.cornell.edu/qwipu/QWI-cheatsheet.txt

• QWI Comprehensive Index– Provides crosswalk between various naming conventions – Indicates how measures are used in online products

• Comparison of employment definitions– CPS vs. QCEW vs. LED

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Additional References

• The LEHD Infrastructure Files and the Creation of the Quarterly Workforce Indicators– Primary reference for LEHD methodology

• Technical papers also available in the LEHD and CES working paper series on various topics

• Resources on the VirtualRDC for the Quarterly Workforce Indicators, OnTheMap, and the LEHD Infrastructure File System

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Background: LEHD/LED

• LEHD: Longitudinal Employer-Household Dynamics– Program at Census– Data infrastructure (restricted use)

• LED: Local Employment Dynamics– Partnership between Census and States

• States voluntarily submit quarterly data

– Public use data products• QWI (QWI Online, Industry Focus)• LODES (OnTheMap)

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Unemployment Insurance (UI)Earnings Records

• Core data input file of LEHD infrastructure• Collected for operation of state UI program

– UI benefits are based on historical earnings

• Report earnings for all covered jobs– Total quarterly earnings for each job– Firm identified by State UI Account number

(referred to as SEIN)– Worker identified by Protected Identification

Key (PIK - Census identifier based on SSN)

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Unemployment Insurance Coverage

• Most private sector jobs covered– for-profit and not-for-profit classified together (as per

QCEW standard)

• State and local government also in system, though some reporting inconsistencies

• Federal data not available– Data based on Office of Personnel Management under

development

• Self-employed not available– Data derived from tax records under development

• Massachusetts data not available yet

Page 8: Quarterly Workforce Indicators: Concepts and Construction

Federal EIN

UI Account Number (SEIN)

PIK (encoded SSN)

LEHD Processing:Merging Data

8

Quarterly Census of Employment and Wages

(QCEW)

Firm and Establishment

(Single/Multi-unit)

GeographyIndustry

Ownership

Unemployment Insurance Wage Records

Firm-Worker (most states)

OREstablishment-Worker

(Minnesota only)

EarningsJob history

Business Dynamics Statistics (BDS)

Firm age and size

Census, Surveys, Other Administrative Records

DemographicsPlace of Residence

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Basic Concepts and Definitions

• Employer (SEIN - firm) – single Unemployment Insurance (UI) account in a given state’s UI wage

reporting system

• Workplace location (SEINUNIT - establishment)– Not available on UI earnings records, except for MN

• Employee (PIK) – at least one employer reports earnings of at least one dollar of UI-

covered earnings for an individual

• Dates– Year and quarter

• UI earnings records reported on a quarterly basis• Boundary between quarters is the employment reference date

– Beginning (and sometimes end) of QWI time series vary between states• Earliest start in 1990

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Job: Definition

• Job (PIK-SEIN-SEINUNIT) – coupling of specific individual with specific employer

and location in a given year/quarter– An individual may have multiple jobs within a quarter

• The “primary job” (job with greatest earnings) is not defined separately in QWI, though it does appear in OnTheMap

• The job is the basic unit of analysis within the LEHD Infrastructure– National longitudinal job frame– Jobs are linked across years and quarters to develop

measures

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QWI Measure Aggregation

• Measures are calculated at the job level, referencing the full employment history of the individual

• Measures are all built from linearly aggregable components– For averages, means are used, rather than

medians

• Jobs are aggregated to generate estimates of QWI measures at desired levels

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QWI Aggregation Levels: Establishment

• Establishment level characteristics– Geography

• State totals• County, Metro, Workforce Investment Board areas

– Industry• All industries• NAICS Sectors, Sub-sectors (3-digit), Industry groups (4-digit)

– Ownership• All (1-5)

– Public + private, as available

• Private-only (5)

• All crossings of these characteristics reported

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QWI Aggregation Levels: Firm

• Characteristics of the national level firm– Firm Age (years)

• 0-1, 2-3, 4-5, 6-10, 11+

– Firm Size (employees)• 0-19, 20-49, 50-249, 250-499, 500+

• Private ownership (5) only• Reduced detail on geography/industry

tabulations

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QWI Aggregation Levels: Employee1. Age/Sex

• Employee level characteristics– Age (years)

• 14-18, 19-21, 22-24, 25-34,35-44, 45-54, 55-64, 65-99

– Sex• Male, Female

• Age categories from Workforce Investment Act (WIA)

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QWI Aggregation Levels: Employee2. Race/Ethnicity

• Employee level characteristics– Race

• White alone• African-American or Black alone• Asian or Pacific alone• Native Hawaiian or Other Pacific Islander alone• American Indian or Alaska Native alone• Two or More Races

– Ethnicity• Hispanic or Latino• Not Hispanic or Latino

• OMB categories

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QWI Aggregation Levels: Employee3. Education

• Employee level characteristics– Education

• Less than a High School Diploma• High School Diploma, No College• Some college or Associate’s Degree• Bachelor’s Degree or Above

• Valid only for individuals age 25 and up– Reflects person’s maximum education level

• Crossed by Sex in QWI tabulations

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QWI Production Process:Key Stages

Process Name Description

EHF Employment History File Longitudinal employment history for individuals

GAL Geocoded Address List Assigns coordinates to establishments

ECF Employer Characteristics FileLongitudinal establishment-level data: employment, NAICS, geography, ownership, age/size (from BDS).Imputes when necessary.Maintains “fuzz factors.” Calculates weights.

SPF Successor-Predecessor File Identifies successor-predecessor relationships based on employment flows

ICF Individual Characteristics File Individual level demographic dataImputes when necessary

U2W Unit-to-Worker Multiply-imputes establishment to jobs at multi-establishment firms

QWI Quarterly Workforce IndicatorsGenerate final estimates, apply weighting, confidentiality protections(QWIPU = QWI Public Use file)

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QWI Measures

• The QWI public use files contain a series of 30 measures– Employment

• Stock and flow measures (individual)• Job creation/destruction (firm/establishment)

– Earnings• Average earnings• Change in earnings

– Periods of non-employment

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QWI Measures

• Measures are reported for all of the aggregations listed in the earlier slides

• A broader range of theoretical measures are defined in the technical papers, though many are not estimated in regular production

• The entire time series is re-estimated in every data release– Data updates, modifications to algorithms,

stochastic imputations may change historical data

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Employment History• Jobs are linked across years and quarters to

develop an individual’s employment history with a firm– PIK-SEIN-SEINUNIT level– Some measures reference all jobs for individual

• The reference quarter is noted at t– Earlier quarters are negative, later positive

• For calculation of measures,– RED indicates positive earnings in quarter– BLACK indicates zero earnings in quarter– GREY indicates time period not referenced

20

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

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QWI Measures:Employment Stock

Measure Description

M (EmpTotal) Count of jobs

B (Emp) Beginning of period employment

E (EmpEnd) End of period employment

F (EmpS) Full quarter employment

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Details: Jobs• See m and M on comprehensive index• This variable is turned on (m=1) for every wage record in a

state’s UI system that reports earnings of at least $1 in t• This is a job for m (PIK-SEIN-SEINUNIT)• This is a count of all persons ever paid by an employer at a

location– By itself, it is not comparable to any other job-based statistic in

the US system• Captures many short-term jobs not picked up elsewhere

• Released in QWI public use files as “EmpTotal” and labeled as “Employment reference quarter: Counts”

• Not reported in QWI Online, Industry Focus

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

M (EmpTotal)

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Details: Employment – Beginning of Period

• See b and B on comprehensive index• This variable is turned on whenever an individual has positive

earnings in both the previous and current quarters– m=1 for last quarter (t-1) and this quarter (t)

• b=1 means an individual was employed at a particular employer and location (PIK-SEIN-SEINUNIT) on the first calendar day of the quarter

• B is the count of beginning of quarter employment for an employer location (SEIN-SEINUNIT)

• This is the main employment measure used in QWI and OnTheMap

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

B (Emp)

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Beginning of Period Employment

• Will reference as “b” or “B”• lowercase b – job level• uppercase B – jobs aggregated to establishment or higher level

• Primary measure of employment for QWI and OnTheMap• Defined when job is present in previous and current

quarter– If earnings are received in consecutive quarters, individual is

considered to be employed at firm on first day of the quarter

• Conceptually and empirically similar to QCEW Month 1 employment (Mon1)– Precise definitions, data sources, and methodology result in

differences

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Comparison ofEmployment Definitions

• See Employment Definitions handout– Originally prepared by George Putnam at the Illinois

Department of Employment Security

• Compares household definitions (CPS) with employer-based definitions (QCEW) and UI wage-record-based definitions (QWI, OnTheMap, LED, generally)

• Caveat:– The description of the “allocation” process under LED in

this handout is a simplification of the multiple imputation process actually used. It should not be taken as definitive.

Page 26: Quarterly Workforce Indicators: Concepts and Construction

Beginning of Period Employment:Use in LEHD Data Products

• In QWI Online reported as “Total Employment”

• In Industry Focus reported as “Employment” and used to calculate “Growth in Employment”

• In QWI public use files reported as “Emp” and labeled as “Employment: Counts”

• In OnTheMap reported as “All Jobs” or “All Private Jobs” in all reports

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Beginning of Period Employment: QWI-OnTheMap Comparison

• In QWI, each job is counted separately, even if a worker has multiple jobs

• In OnTheMap, the beginning-of-quarter employment variable for the second quarter (April 1 reference date) is further refined– Primary job: b=1 and (SEIN-SEINUNIT) were the

largest source of wage earnings for the second quarter among all employers for a given individual

– All jobs: b=1

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Page 28: Quarterly Workforce Indicators: Concepts and Construction

Details: Employment –End of Period

• See e and E on comprehensive index• This variable is turned on whenever an individual has

positive earnings in both the current and next quarters– m=1 for this quarter (t) and next quarter (t+1)

• e=1 means an individual was employed at a particular employer and location (PIK-SEIN-SEINUNIT) on the last calendar day of the quarter

• E is the count of end of quarter employment for an employer location (SEIN-SEINUNIT)

• This variable is reported in only the QWI public use files, as EmpEnd.

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Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

E (EmpEnd)

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Details: Employment – Full Period

• See f and F on comprehensive index• This variable is turned on whenever an individual has positive

earnings in the last, current and next quarters– m=1 for last quarter (t-1), this quarter (t) and next quarter (t+1)

• f=1 means an individual was employed at a particular employer and location (PIK-SEIN-SEINUNIT) throughout the current quarter

• F is the count of full quarter employment for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as EmpS and on OnTheMap as “Employment, Stable Jobs”

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

F (EmpS)

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QWI Measures:Employment Stock

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

M (EmpTotal)

B (Emp)

E (EmpEnd)

F (EmpS)

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Graphs of QWI Measures

• Totals have been aggregated across all states– Weighted averages recalculated based on public data, where

necessary

• Source: QWI R2012Q1 (production quarter release)– 47 states represented (including DC)– LA, RI, VA skipped production– Massachusetts data not yet available

• Data for 2006Q1-2011Q2, as available– Not all measures available in all quarters

• For percentage change, symmetric calculation used– (Mt-Mt-4)/((Mt+Mt-4)/2)

• References current quarter and same quarter in previous year

• Private sector only

Page 32: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Employment Measures

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

80

90

100

110

120

130

140

Flow employment Beginning-of-period employmentFull-quarter employment

Empl

oym

ent (

Mill

ions

)

32

Page 33: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Employment Measures

Year-to-Year Percent Change20

06q1

2006

q220

06q3

2006

q420

07q1

2007

q220

07q3

2007

q420

08q1

2008

q220

08q3

2008

q420

09q1

2009

q220

09q3

2009

q420

10q1

2010

q220

10q3

2010

q420

11q1

2011

q2

-12%

-8%

-4%

0%

4%

Delta Flow employment Delta Beginning-of-period employmentDelta Full-quarter employment

Year

-to-

Year

% C

hang

e

33

Page 34: Quarterly Workforce Indicators: Concepts and Construction

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QWI Measures:Earnings (Stock measures)

Measure Description

Z_W2 (EarnEnd) Average earnings for end-of-quarter jobs

Z_W3 (EarnS) Average earnings for full-quarter jobs

W1 (Payroll) Total reported earnings

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QWI Measures:Earnings (Stock measures)

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_W2 (EarnEnd) $

Z_W3 (EarnS) $

W1 (Payroll) $

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Basic Concepts: Earnings

• Point in time earnings – Defined for a reference group meeting a particular

employment definition at a point in time (End-of-quarter employment)

• Full-quarter earnings– Defined for a reference group of full-quarter

employment (Full-quarter employment, Full-quarter hires, Full-quarter new hires, Full-quarter separations)

– Average earnings based on wage record earnings for the indicated quarter divided by 3 (monthly estimate)

• In graphics, dollar sign ($) indicates reference quarter for earnings

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Details: Earnings – End-of-Quarter

• See Z_W2 on comprehensive index• Earnings in quarter t are accumulated into W2

whenever an individual has positive earnings in the current and next quarter– m=1 for this quarter (t) and next quarter (t+1)

• Z_W2 is the average monthly earnings of end-of-quarter employees for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “EarnEnd”

37

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_W2 (EarnEnd) $

Page 38: Quarterly Workforce Indicators: Concepts and Construction

Details: Earnings – Full Quarter

• See Z_W3 on comprehensive index• Earnings in quarter t are accumulated into W3 whenever an

individual has positive earnings in the last, current and next quarters

m=1 for last quarter (t-1), this quarter (t) and next quarter (t+1)• Z_W3 is the average monthly earnings of full quarter employees

for an employer location (SEIN-SEINUNIT)• This variable is reported in the QWI public use files as “EarnS”,

on QWI Online as “Avg Monthly Earnings”, in Industry Focus as “Average monthly earnings for all workers” (and for growth), and on OnTheMap as “Average Monthly Earnings, Stable Jobs”

38

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_W3 (EarnS) $

Page 39: Quarterly Workforce Indicators: Concepts and Construction

Details: EarningsTotal Payroll

• See w1 and W1 on comprehensive index• Earnings in quarter t are accumulated into W1

whenever an individual has positive earnings current quarter m=1 for this quarter (t)

• W1 is the total quarterly earnings of employees for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “Payroll”

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Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

W1 (Payroll) $

Page 40: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Average Monthly Earnings

2006q1

2006q2

2006q3

2006q4

2007q1

2007q2

2007q3

2007q4

2008q1

2008q2

2008q3

2008q4

2009q1

2009q2

2009q3

2009q4

2010q1

2010q2

2010q3

2010q4

2011q1

2011q2$3,000

$3,200

$3,400

$3,600

$3,800

$4,000

$4,200

$4,400

Average earnings of end-of-period employeesAverage earnings of full-quarter employees

Mon

thly

Ear

ning

s

40

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41

QWI Measures:Employment Flow

Measure Description

A (HirA) Accessions

H (HirN) New Hires

R (HirR) Recalls

S (Sep) Separations

FA (HirAS) Full-quarter Accessions

H3 (HirNS) Full-quarter New Hires

FS (SepS) Full-quarter Separations

T (Turnover) Turnover (composite measure)

Page 42: Quarterly Workforce Indicators: Concepts and Construction

42

QWI Measures:Employment Flows

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

A (HirA)

H (HirN)

R (HirR)

S (Sep)

FA (HirAS)

H3 (HirNS)

FS (SepS)

Page 43: Quarterly Workforce Indicators: Concepts and Construction

43

Job-Based Measures: Employment Flow and Earnings

• Measures use longitudinal job history to identify changes in employment status

• Average earnings are calculated for some full-quarter measures

• Turnover is as a composite measure based on aggregates of flow measures

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44

Details: Employment Flows-Accessions

• See a1 and A on comprehensive index• An accession (a1) is turned on whenever an individual has

positive earnings in the current and not in the previous quarter m=0 for last quarter (t-1) and m=1 this quarter (t)

• a1=1 means an individual was newly employed at a particular employer and location (PIK-SEIN-SEINUNIT) during the current quarter

• A is the count of all accessions for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as HirA

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

A (HirA)

Page 45: Quarterly Workforce Indicators: Concepts and Construction

Details: Employment Flows-New Hires

• See h1 and H on comprehensive index• A new hire (h1) is turned on whenever an individual has an

accession, with no earnings from the employer during the previous four quarters m=0 for last four quarters (t-4 to t-1) and m=1 this quarter (t)

• h1=1 means an individual was newly hired at a particular employer and location (PIK-SEIN-SEINUNIT) during the current quarter

• H is the count of all new hires for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “HirN” and on QWI Online as “New Hires”

45

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

H (HirH)

Page 46: Quarterly Workforce Indicators: Concepts and Construction

Details: Employment Flows-Recalls

• See r1 and R on comprehensive index• A recall (r1) is turned on whenever an individual has an

accession, and also received earnings from the employer during the earlier three quarters m=1 for at least one of quarters (t-4, t-3, t-2), m=0 for last quarter (t-1)

and m=1 this quarter (t)

• r1=1 means an individual was recalled at a particular employer and location (PIK-SEIN-SEINUNIT) during the current quarter

• R is the count of all recalls for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “HirR”

46

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

R (HirR)

Page 47: Quarterly Workforce Indicators: Concepts and Construction

Details: Employment Flows-Separations

• See s1 and S on comprehensive index• A separation (s1) is turned on whenever an individual has

no wage record in the next quarter but is present this quarter m=1 for current quarter (t) and m=0 next quarter (t+1)

• s1=1 means an individual was separated at a particular employer and location (PIK-SEIN-SEINUNIT) during the current quarter

• S is the count of all separations for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “Sep,” and on QWI Online as “Separations”

47

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

S (Sep)

Page 48: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Accessions and Separations

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

0

5

10

15

20

25

30

Accessions Separations

(in

Mill

ions

)

48

Page 49: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Accessions and Separations

Year-to-Year Percent Change 20

06q1

2006

q220

06q3

2006

q420

07q1

2007

q220

07q3

2007

q420

08q1

2008

q220

08q3

2008

q420

09q1

2009

q220

09q3

2009

q420

10q1

2010

q220

10q3

2010

q420

11q1

2011

q2

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Delta Accessions Delta Separations

Year

-to-

Year

% C

hang

e

49

Page 50: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Accessions, Separations, and New Hires

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

0

5

10

15

20

25

30

Accessions Separations New hires

(in

Mill

ions

)

50

Page 51: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Accessions and New Hires

Year-to-Year Percent Change 20

06q1

2006

q220

06q3

2006

q420

07q1

2007

q220

07q3

2007

q420

08q1

2008

q220

08q3

2008

q420

09q1

2009

q220

09q3

2009

q420

10q1

2010

q220

10q3

2010

q420

11q1

2011

q2

-40%

-30%

-20%

-10%

0%

10%

20%

Delta Accessions Delta New hires

Year

-to-

Year

% C

hang

e

51

Page 52: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Recalls

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Recalls

(in

Mill

ions

)

52

Page 53: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:New Hires and RecallsYear-to-Year Percent Change

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

-40%

-30%

-20%

-10%

0%

10%

20%

Delta New hires Delta Recalls

Year

-to-

Year

% C

hang

e

53

Page 54: Quarterly Workforce Indicators: Concepts and Construction

54

Details: Employment Flows-Full Quarter Accessions

• See a3 and FA on comprehensive index• A full-quarter accession (a3) is turned on whenever an

individual is full-quarter employed this quarter, but not last quarter– m=0 for quarter (t-2) and m=1 last quarter (t-1), this quarter (t) and

next quarter (t+1)

• a3=1 means an individual was full-quarter employed at a particular employer and location (PIK-SEIN-SEINUNIT) during the current quarter for the first time

• FA is the count of all full-quarter accessions for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “HirAS”

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

FA (HirAS)

Page 55: Quarterly Workforce Indicators: Concepts and Construction

Details: Employment Flows-Full-Quarter New Hires

• See h3 and H3 on comprehensive index• A full-quarter new hire (h3) is turned on whenever an individual has a

full-quarter accession, with no association with the employer during the four quarters preceding hire m=0 for four quarters (t-5 to t-2) and m=1 last quarter (t-1), this quarter (t)

and next quarter (t+1)

• h3=1 means an individual was newly hired at a particular employer and location (PIK-SEIN-SEINUNIT) last quarter and became a full-quarter employee during the current quarter

• H3 is the count of all new full-quarter hires at an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “HirNS”, on Industry Focus as “Number of New Hires” and on OnTheMap as “New Hires, Stable Jobs” 55

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

H3 (HirNS)

Page 56: Quarterly Workforce Indicators: Concepts and Construction

Details: Employment Flows-Full Quarter Separations

• See s3 and FS on comprehensive index• A full-quarter separation (s3) is turned on whenever an individual

has no wage record in the next quarter but was full-quarter employed in the previous quarter– m=1 for quarter (t-2), last quarter (t-1), current quarter (t) and m=0 next

quarter (t+1)

• s3=1 means an individual was separated at a particular employer and location from a job that was full-quarter during the previous quarter (can’t be full-quarter this quarter)

• FS is the count of all full-quarter separations for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “SepS” and on OnTheMap as “Separations, Stable Jobs”56

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

FS (SepS)

Page 57: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates – Full Quarter:Accessions and Separations

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

4

5

6

7

8

9

10

11

Flow into full-quarter employment Flow out of full-quarter employment

(in

Mill

ions

)

57

Page 58: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates – Full Quarter:Accessions and Separations

Year-to-Year Percent Change 20

06q1

2006

q220

06q3

2006

q420

07q1

2007

q220

07q3

2007

q420

08q1

2008

q220

08q3

2008

q420

09q1

2009

q220

09q3

2009

q420

10q1

2010

q220

10q3

2010

q420

11q1

2011

q2

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

Delta Flow into full-quarter employment Delta Flow out of full-quarter employment

Year

-to-

Year

% C

hang

e

58

Page 59: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates – Full Quarter:Accessions and New Hires

Year-to-Year Percent Change20

06q1

2006

q220

06q3

2006

q420

07q1

2007

q220

07q3

2007

q420

08q1

2008

q220

08q3

2008

q420

09q1

2009

q220

09q3

2009

q420

10q1

2010

q220

10q3

2010

q420

11q1

2011

q2

4

5

6

7

8

9

10

11

Flow into full-quarter employment Full-quarter new hires

(in

Mill

ions

)

59

Page 60: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates – Full Quarter:Accessions and New Hires

Year-to-Year Percent Change 20

06q1

2006

q220

06q3

2006

q420

07q1

2007

q220

07q3

2007

q420

08q1

2008

q220

08q3

2008

q420

09q1

2009

q220

09q3

2009

q420

10q1

2010

q220

10q3

2010

q420

11q1

2011

q2

-40%

-30%

-20%

-10%

0%

10%

20%

Delta Flow into full-quarter employment Delta Full-quarter new hires

Year

-to-

Year

% C

hang

e

60

Page 61: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates – Full Quarter:Separations and Full-Quarter Separations

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

0

5

10

15

20

25

30

Flow out of full-quarter employment Separations

(in

Mill

ions

)

61

Page 62: Quarterly Workforce Indicators: Concepts and Construction

Details: Turnover• Otherwise known as “Full quarter churning”• Calculated after final aggregations are produced

– Combines three job flow measures in formula:

• Simple intuition:

– If a firm of 100 individuals has 10 separations, and replaces them with 10 hires => 10% turnover

– Calculation using the full-quarter measures has somewhat more complex timing issues

• This variable is reported on the QWI public use files as “TurnOvrS,” and on QWI Online as “Turnover”

62

T (TurnOvrS) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

FS (SepS)

FA (HirAS)

F (EmpS)

Page 63: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Turnover

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

8%

9%

10%

11%

12%

63

Page 64: Quarterly Workforce Indicators: Concepts and Construction

64

QWI Measures:Earnings (Flow measures)

Measure Description

Z_WFA (EarnHirA ) Average earnings for full-quarter accessions

Z_W3 (EarnHirN) Average earnings for full-quarter new hires

Z_WFS (EarnSepS) Average earnings for full-quarter separations

Z_dWA (EarnHirAC) Change in earnings – Accessions

Z_dWS (EarnSepC) Change in earnings - Separations

Page 65: Quarterly Workforce Indicators: Concepts and Construction

65

QWI Measures:Earnings (Flow measures)

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

FA (HirAS) $

H3 (HirNS) $

FS (SepS) $

Z_dWA (EarnHirAC)$(All) before

$(All)a

fter

Z_dWS (EarnSepC)$(All) before

$(All)a

fter

Page 66: Quarterly Workforce Indicators: Concepts and Construction

Details: Earnings – Full Quarter Accession

• See Z_WFA on comprehensive index• Earnings in quarter t are accumulated into WFA

whenever an individual is full-quarter employed this quarter, but not last quarter– m=0 for quarter (t-2) and m=1 last quarter (t-1), this

quarter (t) and next quarter (t+1)

• Z_WFA is the average monthly earnings of full quarter new hires for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “EarnHirAS”.

66

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_WFA (EarnHirAS) $

Page 67: Quarterly Workforce Indicators: Concepts and Construction

67

Details: Earnings – Full Quarter New Hires

• See Z_WH3 on comprehensive index• Earnings in quarter t are accumulated into WH3 whenever an

individual whenever an individual has a full-quarter accession, with no association with the employer during the four quarters preceding hire– m=0 for four quarters (t-5 to t-2) and m=1 last quarter (t-1), this quarter (t)

and next quarter (t+1)

• Z_WH3 is the average monthly earnings of full quarter new hires for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “EarnHirNS”, on QWI Online as “Avg New Hire Earnings”, in Industry Focus as “Average monthly earnings for new hires” (and for growth), and on OnTheMap as “Average Monthly Earnings, New Hires, Stable Jobs”

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_WH3 (EarnHirNS) $

Page 68: Quarterly Workforce Indicators: Concepts and Construction

Details: Earnings – Full Quarter Separations

• See Z_WFS on comprehensive index• Earnings in quarter t are accumulated into WFS whenever an

individual has positive earnings in the previous, current, and next quarter, and is a full-quarter separation in t+1 m=1 for last quarter (t-1), this quarter (t), next quarter (t+1), and m=0 for

following quarter (t+2)

• Z_WFS is the average monthly earnings in the current quarter of full quarter separations in the next quarter for an employer location (SEIN-SEINUNIT). Z_WFS is the earnings measure in t for full-quarter separations dated

t+1.

• This variable is reported in the QWI public use files as “EarnSepS”, and on OnTheMap as “Average Monthly Earnings, Separations from Stable Jobs”

68

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_WFS (EarnSepS) $

Page 69: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Average Monthly Earnings

2006q1

2006q2

2006q3

2006q4

2007q1

2007q2

2007q3

2007q4

2008q1

2008q2

2008q3

2008q4

2009q1

2009q2

2009q3

2009q4

2010q1

2010q2

2010q3

2010q4

2011q1

2011q2$2,000

$2,200

$2,400

$2,600

$2,800

$3,000

$3,200

Average earnings of transits to full-quarter statusAverage earnings of full-quarter new hiresAverage earnings of separations from full-quarter status

Mon

thly

Ear

ning

s

69

Page 70: Quarterly Workforce Indicators: Concepts and Construction

Details: Change in Earnings – Accessions

• See Z_dWA on comprehensive index• An accession (a1) is turned on whenever an individual has

positive earnings in the current and not in the previous quarter– m=0 for last quarter (t-1) and m=1 this quarter (t)

• Z_dWA is the change in average monthly earnings from the previous quarter to the current quarter for an accession in the current quarter to an employer location (SEIN-SEINUNIT). – This measure totals earnings from all jobs for an individual in the

before quarter (t-1) and the after quarter (t)

• This variable is reported in the QWI public use files as “EarnHirAC” 70

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_dWA (EarnHirAC) $ (Alll) before

$ (All) after

Page 71: Quarterly Workforce Indicators: Concepts and Construction

Details: Change in Earnings – Separations

• See Z_dWS on comprehensive index• A separation (s1) is turned on whenever an individual has no

wage record in the next quarter but is present this quarter m=1 for current quarter (t) and m=0 next quarter (t+1)

• Z_dWS is the change in average monthly earnings from the current quarter to the next quarter for a separation in the current quarter from an employer location (SEIN-SEINUNIT). – This measure totals earnings from all jobs for an individual in the

before quarter (t) and the after quarter (t+1)

• This variable is reported in the QWI public use files as “EarnSepC” 71

Measure -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_dWS (EarnSepC) $ (All) before

$ (All ) after

Page 72: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Change in Total Earnings

2006q1

2006q2

2006q3

2006q4

2007q1

2007q2

2007q3

2007q4

2008q1

2008q2

2008q3

2008q4

2009q1

2009q2

2009q3

2009q4

2010q1

2010q2

2010q3

2010q4

2011q1

2011q2-$1,500

-$1,000

-$500

$0

$500

$1,000

$1,500

Average change in total earnings for accessionsAverage change in total earnings for separations

Chan

ge in

Tot

al E

arni

ngs

(Mon

thly

)

72

Page 73: Quarterly Workforce Indicators: Concepts and Construction

73

QWI Measures:Non-employment

Measure Description

Z_NA (NEmpHirA) Average quarters of non-employment preceding an accession

Z_NH (NEmpHirN) Average quarters of non-employment preceding a new hire

Z_NR (NEmpHirR) Average quarters of non-employment preceding a recall

Z_NS (NEmpSep) Average quarters of non-employment following a separation

Page 74: Quarterly Workforce Indicators: Concepts and Construction

Quarters of Non-Employment

• These measures reference the four quarters prior to a hire or following a separation

• Count in how many of these quarters an individual had zero reported earnings from all employers– Does not necessarily mean quarters of non-

employment were consecutive

• The average number of quarters with zero earnings are calculated for each transition– Hire, New hire, Recall, Separation

74

Page 75: Quarterly Workforce Indicators: Concepts and Construction

Details: Quarters of Non-Employment

Measure Description -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Z_NA(NEmpHirA)

Hires All: Average quarters of non-employment

? ? ? ?

Z_NH(NEmpHirN)

Hires New: Average quarters of non-employment

? ? ? ?

Z_NR (NEmpHirR)

Hires Recalls: Average quarters of non-employment

? ? ? ?

Z_NS (NEmpSep)

Separations: Average quarters of non-employment

? ? ? ?

75

• Employment pattern for job transition noted with red and black boxes

• Question marks indicate quarters referenced for employment from any job

Page 76: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Average Quarters of Non-Employment

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

0.8

1.2

1.6

2.0

2.4

Average quarters of non-employment before accessionsAverage quarters of non-employment before new hiresAverage quarters of non-employment before recallsAverage quarters of non-employment after separations

Qua

rter

s (O

ut o

f 4)

76

Page 77: Quarterly Workforce Indicators: Concepts and Construction

Firm-Based Measures:Flows, Creations, Destructions

• Calculated at the establishment (SEIN-SEINUNIT) level– Also calculated at establishment level for each

demographic segment

• Use Emp (B), EmpEnd (E), and EmpS (F) employment measures as inputs

• Measures are aggregated across establishments– Separately aggregated by demographic segment

(caution to follow)77

Page 78: Quarterly Workforce Indicators: Concepts and Construction

78

QWI Measures:Firm-based Job Flows

Measure Description

JC (FrmJbGn) Job Creation

JD (FrmJbLs) Job Destruction

JF (FrmJbC) Net Job Flows

FJC (FrmJbGnS) Full-quarter Job Creation

FJD (FrmJbLsS) Full-quarter Job Destruction

FJF (FrmJbCS) Net Full-quarter Job Flows

Page 79: Quarterly Workforce Indicators: Concepts and Construction

Measuring Dynamicsat the Firm Level

• These measures display dynamics at the firm (or establishment) level– Job creation

• Establishment that grow over the quarter• Establishment births

– Job destruction • Establishments that shrink over the quarter• Establishment deaths

79

Page 80: Quarterly Workforce Indicators: Concepts and Construction

Job Creation vs. Hiring

• Declining employment does not imply no job creation– Even if an industry is declining in total

employment, individual firms may be growing • Job creation is balanced by job destruction

• Job destruction does not imply no hiring– Even if a firm is shrinking, it still may be

hiring individuals• Accessions are balanced by separations

80

Page 81: Quarterly Workforce Indicators: Concepts and Construction

Details: Firm Job Flows – Job Creations

• See JC on comprehensive index• A job creation is only defined at the employer-location

level. A job is created when an employer has greater end of period employment than beginning of period employment JC = max(E - B, 0)

• JC is the count of all job creations for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “FrmJbGn,” on QWI Online as “Job Creation,” and on OnTheMap in the QWI report as “Firm Job Gain”81

JC (FrmJbGn) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

B (Emp) –

E (EmpEnd) ++

Page 82: Quarterly Workforce Indicators: Concepts and Construction

Details: Firm Job Flows – Job Destructions

• See JD on comprehensive index• A job destruction is only defined at the employer-location

level. A job is destroyed when an employer has greater beginning of period employment than end of period employment JD = max(B - E, 0)

• JD is the count of all job destructions for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “FrmJbLs” and on OnTheMap in the QWI report as “Firm Job Loss” 82

JD (FrmJbLs) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

B (Emp) ++

E (EmpEnd) –

Page 83: Quarterly Workforce Indicators: Concepts and Construction

Details: Firm Job Flows – Net Job Flows

• See JF on comprehensive index• Net flows are the difference between creations

and destructions JF = JC - JD = E - B

• JF is the count of all net job flows for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “FrmJbC” and on QWI Online as “Net Job Flows”

83

JF (FrmJbC) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

B (Emp) +/-

E (EmpEnd) +/-

Page 84: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Firm Job Flows

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

-4

-2

0

2

4

6

8

10

Job creation Job destruction Net job flows

Empl

oym

ent (

Mill

ions

)

84

Page 85: Quarterly Workforce Indicators: Concepts and Construction

Details: Firm Job Flows – Full Quarter Creations

• See FJC on comprehensive index• A full-quarter job creation is only defined at the

employer-location level. A full-quarter job is created when an employer has greater full-quarter employment this quarter than last quarter– FJC = max(Ft - Ft-1 , 0)

• FJC is the count of all full-quarter job creations for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “FrmJbGnS”

85

FJC (FrmJbGnS) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Ft-1 (EmpS t-1) –

Ft (EmpS t) ++

Page 86: Quarterly Workforce Indicators: Concepts and Construction

Details: Firm Job Flows – Full Quarter Destructions

• See FJD on comprehensive index• A full-quarter job destruction is only defined at the

employer-location level. A full-quarter job is destroyed when an employer has greater full-quarter employment last quarter than this quarter– FJD = max(Ft-1 - Ft , 0)

• FJD is the count of all full-quarter job destructions for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “FrmJbLsS”

86

FJD (FrmJbLsS) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Ft-1 (EmpS t-1) ++

Ft (EmpS t) –

Page 87: Quarterly Workforce Indicators: Concepts and Construction

Details: Firm Job Flows – Net Full Quarter Job Flows

• See FJF on comprehensive index• Net full-quarter job flows are the difference

between full-quarter creations and destructionsFJF = FJC – FJD = Ft – Ft-1

• FJF is the count of all net full-quarter job flows for an employer location (SEIN-SEINUNIT)

• This variable is reported in the QWI public use files as “FrmJbCS” and on Industry Focus as “Firm Job Change”

87

FJF (FrmJbCS) -5 -4 -3 -2 -1 t +1 +2 +3 +4 +5

Ft-1 (EmpS t-1) +/-

Ft (EmpS t) +/-

Page 88: Quarterly Workforce Indicators: Concepts and Construction

QWI Estimates:Firm Job Flows, Full-Quarter

2006

q120

06q2

2006

q320

06q4

2007

q120

07q2

2007

q320

07q4

2008

q120

08q2

2008

q320

08q4

2009

q120

09q2

2009

q320

09q4

2010

q120

10q2

2010

q320

10q4

2011

q120

11q2

-2

-1

0

1

2

3

4

5

6

Full-quarter job creation Full-quarter job destructionNet change in full-quarter employment

Empl

oym

ent (

Mill

ions

)

88

Page 89: Quarterly Workforce Indicators: Concepts and Construction

QWI Public Use Files:Basics

• Contents of LED Public-use Files (PUFs)– 30 measures reported on full file

• See QWI comprehensive index for uses of measures in other LED products

– Aggregations are identical to data on QWI Online

• Entire historical time series is recalculated in each production quarter– New/revised data inputs, updated algorithms, or stochastic

imputations may change results

• Available from Cornell Virtual Research Data Center• State partners only:

– DVD’s are distributed each quarter– Posted to “State Only” section of LEHD website

89

Page 90: Quarterly Workforce Indicators: Concepts and Construction

QWI Public Use Files:VRDC

• http://vrdc.cornell.edu/qwipu

• Organized by production quarter– Most recent release: R2012Q1

• Each release contains complete time series– Drop-in replacement for earlier release

• States may periodically be skipped in a production quarter because of data submission or quality issues– Check earlier production releases for most recent data

• Data availability may lag QWI Online• Help files:

– QWI-cheatsheet.txt– how-to-use.html

90

Page 91: Quarterly Workforce Indicators: Concepts and Construction

QWI Public Use Files:File Naming

qwi_ak_wia_county_naicssec_all.csv.gz

• Components:– State– Demographic levels

• wia (age/sex)• rh (race/ethnicity)• se (sex/education)

– Region– Industry aggregation level– Ownership: all or private-only– Naming conventions undergoing review, subject to modification

• fa/fs files may also be available

91

Page 92: Quarterly Workforce Indicators: Concepts and Construction

QWI Public Use Files:Status Flags

• Data quality flags – start with s, followed by name of variable

• -2 no data available in this category for this quarter• -1 data not available to compute this estimate• 0 zero employment estimated or zero estimated

denominator in a ratio, zero released• 1 OK• 5 Value suppressed because it does not meet US

Census Bureau publication standards.• 9 data significantly distorted, distorted value released

– Suppression does not mean zero

92

Page 93: Quarterly Workforce Indicators: Concepts and Construction

QWI Public Use Files:Other Notes

• Text files, comma-separated values, with labels for classifications– Compressed using gzip or bzip2

• PC-based software can be used to decompress• If using on UNIX, file may be processed without decompressing

(see SAS filename statements)

• Data can be processed using statistical software (e.g., SAS, STATA, SPSS) or database software (e.g., Access)– Excel 2007 may also be able to manipulate complete QWI

files

• Most aggregations contain both totals and components– Be sure to set all appropriate filters to extract only the records

you want

93

Page 94: Quarterly Workforce Indicators: Concepts and Construction

94

Advanced Topics:

Page 95: Quarterly Workforce Indicators: Concepts and Construction

Firm Job Flows:Be Careful about Aggregation

• Note that for categories like age and sex, the published net job flows for the subcategories will sum to the margin

• But for gross Job Creation and gross Job Destruction this is not true

• (Job Creation for men) + (Job Creation for women) does not equal (total Job Creation)– For example, a job could be created at a firm and filled by a woman,

while another job at the same firm is destroyed, previously filled by a man

Men Women Total

Job Creation 0 1 0

Job Destruction 1 0 0

Net Job Flows -1 +1 0

95

Page 96: Quarterly Workforce Indicators: Concepts and Construction

96

Noise Infusion (“Fuzzing”)

• Why infuse noise into data?– Reduce the amount of cell suppression while preserving

confidentiality and analytic validity

• Properties of noise– Every data item is distorted by a minimum amount– For a given workplace, data are always distorted in the same

direction, by the same percentage in every period and release of QWI’s

– When aggregated, the effects of the distortion cancel out for the vast majority of the estimates

• QWI statistics are flagged when the value is significantly distorted (Status flag 9)

• See infrastructure document, section 6, for more details

Page 97: Quarterly Workforce Indicators: Concepts and Construction

97

Identities:Overview

• There are a number of identities that have been defined to relate QWI’s both within and across quarters– A complete list can be found in infrastructure document,

section A.2.4

• Identities hold at the establishment level (in restricted use data)

• Identities may not hold exactly in publicly released data due to a number of factors, including:– weighting– fuzzing– changes in geography or industry for individual

establishments over time

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Intertemporal Identity

• Employment at end of period t equals employment at beginning of period t+1

EmpEndt = Empt+1

– When this may not hold:• Industry or geography changes on establishment

record between quarters• Weighting adjustments change every quarter• Fuzz factor changes (successor-predecessor only)

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Evolution of End-of-period employment

• Beginning and end-of-period employment are tied by accessions and separations

EmpEndt = Empt + Hirt - Sept

– When this may not hold:• This holds almost exactly in the public release files

– Some minor differences may arise due to rounding or precision in the calculation

– Selected measures may be suppressed on individual records

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Job Flow Identity

• Job flows represents the net of job creation and job destruction

FrmJbCt = FrmJbGnt - FrmJbLst

– When this may not hold:• This holds almost exactly in the public release files

– Some minor differences may arise due to rounding or precision in the calculation

– Selected measures may be suppressed on individual records

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Creation-Destruction Identity

• The difference between beginning and end-of-period employment equals the net of creation and destruction

EmpEndt = Empt + FrmJbGnt - FrmJbLst

– When this may not hold:• Alternate fuzzing is applied to firm measures, based on

average fuzz factors for Emp and EmpEnd.• http://lehd.did.census.gov/led/library/techpapers/tp-2006-02.pdf

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New Hires/Recalls Identity

• Accessions is the sum of new hires and recalls

HirAt = HirNt + HirRt

– When this may not hold:• This holds almost exactly in the public release files

– Some minor differences may arise due to rounding or precision in the calculation

– Selected measures may be suppressed on individual records

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LEHD Processing

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LEHD Processing:Successor-Predecessor

• Adjustments to account for administrative changes to firms – mergers, divestitures, etc.

• Transitions may be identified through:– report on the QCEW

• firm level and establishment level

– finding large employment flow from the individual wage records

• firm level only

• Individual job history at predecessor is concatenated with job history for same PIK at successor for purposes of calculating QWI measures

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LEHD Processing:Unit-to-Worker Impute

• Necessary to impute establishment to a job when not available– Currently only Minnesota reports establishments on

wage data

• Individual job histories are assembled• Establishment (multiply) imputed to longitudinal job,

with the following predictors:– Proximity of residence to establishment– Size of establishment

• Establishment history (allowing for predecessors) must be consistent with individual job history

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LEHD Processing:Weighting

• QWI B is benchmarked against QCEW Mon1 employment

• Firm-level weights (within bounds) are applied to adjust employment towards Mon1 employment

• Secondary weights are applied to match statewide private-only employment

• Weights are calculated at ECF stage, applied at QWI

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LEHD Processing:QCEW-QWI Differences

• Sub-state adjustments are not currently applied to QWI data

• While state employment totals should be quite close, sub-state estimates will display deviations from benchmark– County, industry employment totals, or smaller cells

• These differences can come from any of a number of QWI-specific processing steps

• Specific differences observed in the data may also result from an interaction of several sources of deviation

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Causes of Differences:Measure Definition

• B and Mon1 do not capture exactly the same universe – An individual may count towards either one of

the measures, but not towards the other

• Differences generally minor, but may be noticeable in some industries with particular seasonal patterns– e.g., education, agriculture

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Causes of Differences:BLS Data Editing

• LEHD data receipts– Before 2004 LEHD received BLS edited data– Since 2004 LEHD does not receive BLS edited data (CIPSEA)

• BLS QCEW file may be edited/different from that which LEHD receives– Completeness– Imputed employment– Industry/geography changes

• Statewide totals are close (<1% off)• LEHD QA will periodically note BLS QCEW data

inconsistent with internal LEHD QCEW micro-data

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Causes of Differences:UI Wage Data Reporting

• Firm may fail to report wage records– QCEW still reported or imputed

• Firm may report wage records and QCEW records on different account numbers– Successor/predecessor mistiming– Public sector issues

• PIK (SSN) miscoding prevents linking wage records to same longitudinal job

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Causes of Differences:Industry Assignment

• Most establishments are assigned based on the reported NAICS_AUX

• For earlier years in the data series, the reported SIC code is probabilistically mapped to the current NAICS codes– Imputes may also be used for transitions between 1997, 2002,

and 2007 NAICS

• LDB data are used for NAICS back-coding purposes when the file has been provided by state

• Variations in algorithms between LEHD and BLS may result in differences– NAICS sector 55 (management of companies) displays

particular issues during SIC-NAICS transition

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Causes of Differences:Geographic Coding

• LEHD performs own geo-coding of addresses– Generates lat-long for distance measures, allows

custom geography

• Address data are processed along with address data from other sources

• Results may differ from BLS assignments– Marginal shift over county line– Significant relocation

• Effort currently underway to reengineer LEHD geographic assignment to improve results

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Causes of Differences: Multiple Worksites (U2W)

• QCEW can report Mon1 by building directly from establishment (with geo/industry info)

• LEHD “No transfer” assumption a single job spell to be reported to the same establishment– Job spell – PIK-SEIN relationship that does not

contain four consecutive quarters with zero earnings.

• A change in firm structure can make it impossible to replicate counts given constraint– Long-term differences may result from new, large

establishments appearing without predecessor

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Causes of Differences:Successor-Predecessor

• QCEW can, again, build up estimates directly from establishment– Does not matter for month1 purpose if

predecessor existed

• LEHD must have information from previous and following quarters for range of measures– If a new firm appears, and that firm does not

have a predecessor (with same employees), jobs at the new firm will not count towards primary LEHD B employment in that quarter

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Overview:Summary

– The QWI are developed by incorporating data from a broad variety of sources

– Differences in data sources, construction, and imputation procedures may cause employment estimates that do not match other sources