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Unemployment - September 2004

  • The number of unemploye is 8,003,000. This is the lowest number since October 2001.
  • The unemployment rate of 5.4% is unchanged from last month and is the lowest rate since October 2001.
  • The number employed is 139,480,000. This is down from the record high of last month but only July and August 2004 have higher employment numbers.
  • The eight million unemployed aproximates the numbers in April 1994. The unemployment rate that month was 6.4%, higher than the current rate.
  • The black unemployment rate is 10.3%. This is lower than any month’s rate prior to November 1994.
  • The number of unemployed black is 1,722,000. This is exactly the same number as in April 1994.
  • In 2004, an average of 671,000 people who were unemployed each month were new entrants to the labor market.
  • 8.7% of the unemployed in September 2004 were new entrants to the labor market. This is the highest percentage since October 1999.
  • LENGTH UNEMPLOYED - PERCENTAGE OF TOTAL

    NOV 1996 JAN 2001 SEPT 2004
    AVG WKS 15.9 12.7 19.6
    LESS THAN 5 WKS 40.1% 44.2% 34.9%
    5-14 WKS 30.3% 32.7% 28.2%
    14 WKS OR LESS 70.4% 76.9% 63.1%
    15-26 WKS 13.9% 11.8% 15.1%
    26 WEEKS OR LESS 84.3% 88.7% 78.2%

    UPDATE: I am reminded to source my numbers. They are from, as always, the Bureau of Labor Statistics. I use the figures from the Household Survey for one reason alone. The unemployment rate is calculated from those numbers. It makes no sense to use the employment numbers from one survey and the unemployment numbers from another. Apples to apples and all that. In addition, FYI, in September 2004 there were 2,339,000 agricultural workers, which were excluded from the Establishment Survey. Per the BLS:

    This news release presents statistics from two major surveys, the Current
    Population Survey (household survey) and the Current Employment Statistics
    survey (establishment survey). The household survey provides the
    information on the labor force, employment, and unemployment that appears
    in the A tables, marked HOUSEHOLD DATA. It is a sample survey of about
    60,000 households conducted by the U.S. Census Bureau for the Bureau of
    Labor Statistics (BLS).

    The establishment survey provides the information on the employment,
    hours, and earnings of workers on nonfarm payrolls that appears in the
    B tables, marked ESTABLISHMENT DATA. This information is collected from
    payroll records by BLS in cooperation with state agencies. The sample
    includes about 160,000 businesses and government agencies covering ap-
    proximately 400,000 individual worksites. The active sample includes
    about one-third of all nonfarm payroll workers. The sample is drawn
    from a sampling frame of unemployment insurance tax accounts.

    For both surveys, the data for a given month relate to a particular week
    or pay period. In the household survey, the reference week is generally
    the calendar week that contains the 12th day of the month. In the
    establishment survey, the reference period is the pay period including the
    12th, which may or may not correspond directly to the calendar week.

    Coverage, definitions, and differences between surveys

    Household survey. The sample is selected to reflect the entire
    civilian noninstitutional population. Based on responses to a series of
    questions on work and job search activities, each person 16 years and over
    in a sample household is classified as employed, unemployed, or not in the
    labor force.

    People are classified as employed if they did any work at all as paid
    employees during the reference week; worked in their own business,
    profession, or on their own farm; or worked without pay at least 15 hours
    in a family business or farm. People are also counted as employed if they
    were temporarily absent from their jobs because of illness, bad weather,
    vacation, labor-management disputes, or personal reasons.

    People are classified as unemployed if they meet all of the following
    criteria: They had no employment during the reference week; they were
    available for work at that time; and they made specific efforts to find
    employment sometime during the 4-week period ending with the reference
    week. Persons laid off from a job and expecting recall need not be
    looking for work to be counted as unemployed. The unemployment data
    derived from the household survey in no way depend upon the eligibility
    for or receipt of unemployment insurance benefits.

    The civilian labor force is the sum of employed and unemployed
    persons. Those not classified as employed or unemployed are not in the
    labor force. The unemployment rate is the number unemployed as a percent
    of the labor force. The labor force participation rate is the labor force
    as a percent of the population, and the employment-population ratio is the
    employed as a percent of the population.

    Establishment survey. The sample establishments are drawn from private
    nonfarm businesses such as factories, offices, and stores, as well as
    federal, state, and local government entities. Employees on nonfarm
    payrolls are those who received pay for any part of the reference pay
    period, including persons on paid leave. Persons are counted in each job
    they hold. Hours and earnings data are for private businesses and relate
    only to production workers in the goods-producing sector and nonsupervisory
    workers in the service-providing sector. Industries are classified on the
    basis of their principal activity in accordance with the 2002 version of the
    North American Industry Classification System.

    Differences in employment estimates. The numerous conceptual and
    methodological differences between the household and establishment surveys
    result in important distinctions in the employment estimates derived from
    the surveys. Among these are:

    –The household survey includes agricultural workers, the self-employed,
    unpaid family workers, and private household workers among the employed.
    These groups are excluded from the establishment survey.

    –The household survey includes people on unpaid leave among the
    employed. The establishment survey does not.

    –The household survey is limited to workers 16 years of age and older.
    The establishment survey is not limited by age.

    –The household survey has no duplication of individuals, because in-
    dividuals are counted only once, even if they hold more than one job. In
    the establishment survey, employees working at more than one job and thus
    appearing on more than one payroll would be counted separately for each appearance.


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