The following terms and acronyms are commonly used in the
development and analysis of labor market statistics. Most of the
definitions have been developed by the U.S. Bureau of Labor
Statistics for its data collection programs. Items designated with
an asterisk are taken from: Economics Dictionary, 2nd ed.,
Donald W. Moffat, copyright 1984
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Agricultural Employment
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Persons who work as owners and operators of farms, as unpaid
family workers on farms, and as hired workers who are engaged in
farm activities.
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All Other Non-agricultural Employment
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includes self-employed, unpaid family and private household
workers.
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Balance of State (BOS)
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Balance of State. For the Occupational Employment Statistics
program any County that is not part of a Metropolitan
Statistical Area (MSA) is placed in a Balance of State area.
These areas should consist of counties that are contiguous -
connected - as much as possible. In Wisconsin there are five of
these areas and they are redefined about every ten years.
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Benchmarking
-
Points of reference (either an estimate or a count) from which
measurement can be made or upon which adjustments are based. In
general, updated data from other programs becomes available and
makes it possible to compare the original estimates with more
complete data sources. The benchmarking process involves
collecting and analyzing the data, implementing changes, and
monitoring and reviewing improvements.
Local Area Unemployment Statistics Benchmarking -
Every year updated data from other programs becomes available
and is incorporated into revised estimates. Benchmarking
makes it possible to compare the original civilian labor
force, employment, unemployment, and unemployment rate
estimates with the more complete data sources. LAUS estimates
made during the year are adjusted to the CPS annual average
for that year, while maintaining as much of the original
series seasonal pattern as possible.
Current Employment Statistics Benchmarking - Employment
estimates are adjusted annually to a complete count of jobs,
called benchmarks, derived principally from tax reports which
are submitted by employers who are covered under state
unemployment insurance (UI) laws. The benchmark information
is used to adjust the monthly estimates between the new
benchmark and the preceding one and also to establish the
level of employment for the new benchmark month. Thus, the
benchmarking process establishes the level of employment, and
the sample is used to measure the month-to-month changes in
the level for the subsequent months.
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Benchmark Employment
-
Related to the process of benchmarking, it is the period of time
that identifies the benchmark period; in many data collection
programs, it is the month of March.
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BEA
-
Bureau of Economic Analysis; part of the U.S. Department of Commerce. A Federal statistical agency responsible for
estimation of Gross Domestic Product. Data from the Current
Employment Statistical and the Covered Employment and Wages
(ES-202) programs are used in the Gross Domestic Product
estimates.
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BLS
-
Bureau of Labor Statistics; part of the U.S. Department of
Labor, this Federal agency functions as the principal
data-gathering agency of the Federal government in the field of
labor economics. The BLS collects, processes, analyzes, and
disseminates data relating to employment, unemployment, the
labor force, productivity, prices, family expenditures, wages,
industrial relations, and occupational safety and health. Well
known data released by BLS include: the Consumer Price Index,
the Producer Price Index, the unemployment rate, and
nonagricultural employment levels collected through the Current
Employment Statistical (CES) program.
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Business Cycle
-
A periodically repeated sequence of fluctuations in the
aggregate economy of an area, or the nation as a whole, varying
in duration, but consisting of: a) upturn, including
recovery and prosperity; b) cyclical peak; c) downturn,
including recession; and d) cyclical trough.
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Census Bureau
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Part of the U.S. Department of Commerce. It conducts censuses of
population and housing every 10 years and of agriculture,
business, governments, manufacturers, mineral industries, and
transportation at 5-year intervals. The Census Bureau also
conducts the monthly Current Population Survey, in cooperation
with BLS. Data from this survey are the source of unemployment
statistics.
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Census Tracts
-
Census tracts are small, relatively permanent statistical
subdivisions of a county. Census tracts are delineated for
all metropolitan areas (MA) and other densely
populated counties by local census statistical area
committees following Census Bureau guidelines. Census
tracts usually have between 2,500 and 8,000 persons and,
when first delineated, are designed to be homogenous with
respect to population characteristics, economic status,
and living conditions. Census tracts do not cross county
boundaries. The spatial size of census tracts varies
widely depending on the density of settlement.
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CES
-
Current Employment Statistics program data are published
each month and are considered one of the earliest
indicators of the state's economic health in terms of
employment. This program, which is administered in
cooperation with the Bureau of Labor Statistics
(BLS),collects
data each month on employment, hours, and earnings from a
sample of nonfarm establishments (including government).
The sample includes over 7,000 reporting units in
Wisconsin. From these data, employment, hours, and
earnings estimates are produced for industries as
identified in the
NAICS,
for state and major metropolitan statistical area level.
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CEW - now called
QCEW
-
Quarterly Census of Employment and Wages. Using quarterly
data submitted by state agencies, BLS summarizes
employment and wage data for workers covered by State
unemployment insurance (UI) laws and summarizes employment
and wage data for civilian workers covered by the program
of Unemployment Compensation for Federal Employees
(UCFE).
Commonly called the ES-202 program. Employment
counts are available by industry group for the State and
all Counties. Some employment data may be deemed
confidential to avoid disclosure of operations of
individual reporting units.
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Civilian Labor Force
-
Generally, civilian labor force includes all persons who
are either working or looking for work. Specifically, it
is composed of all civilians over 16 years of age who are
either employed or unemployed, except:
persons engaged in housework in their home,
persons in school,
persons with a new job not scheduled to begin for
more than 30 days,
persons unable to work because of long-term physical
or mental illness,
persons temporarily unable to work,
retired persons,
persons too old to work,
persons doing less than 15 hours weekly of unpaid
family work,
seasonal workers surveyed in the off-season and not
looking for work,
inmates of institutions,
persons not looking for work because they believe no
jobs are available, and
>
voluntarily idle persons.
-
Since the labor force includes both employed and
unemployed, the unemployment rate is the ratio of
unemployed in this category to the total number of
individuals in this category. For example, if 4 million
persons in a civilian labor force of 100 million are
unemployed, the unemployment rate is 4 percent.
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Civilian
Non-institutional Population
-
Included are persons 16 years of age and older residing in
the 50 states and the District of Columbia, who are not
inmates of institutions (e.g., institutions for
individuals judged mentally incompetent, jail or prison,
nursing home facility), and includes those who are not on
active duty in the Armed Forces.
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Commuting Patterns
-
A labor market concept that refers to worker flows between
municipalities, counties and states. Data representing
commuting patterns is collected through the decennial
census. Data on commuting patterns can reveal the most
economically developed areas, such as those that draws
large amounts of labor, or they may reveal the need for
economic development, such as those counties which export
large amounts of labor.
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Coincident Indicator
-
An economic indicator which varies directly with, and at
the same time as, the related economic trend, thereby
providing information about the current state of the
economy.
(source: http://www.investorwords.com/)
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CPI
-
Consumer Price Index. The Consumer Price Index measures
the average change over time in the prices paid by urban
consumers for a representative market basket of consumer
goods and services. User fees (such as for water) and
sales and excise taxes paid by the consumer are included;
however, income taxes and investments (like stocks and
life insurance) are not included.
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Covered Employment
-
Employment in any industry insured under the provisions of
the Wisconsin Unemployment Insurance Law.
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CPS
-
Current Population Survey; A national household survey
conducted each month by the U.S. Bureau of the Census for
the U.S. Bureau of Labor Statistics. Information is
gathered from a sample of 60,000 households (about 900 in
Wisconsin) designed to represent the civilian noninstitutional population of persons 16 years old and
older. The time period covered in the monthly survey is a
calendar week. Since July 1955, the calendar week, Sunday
through Saturday, which includes the 12th day of the month
has been defined as the reference week. The actual survey
is conducted during the following week, which is the week
containing the 19th day of the month.
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DOT
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Dictionary of Occupational Titles. A classification
structure for jobs observed in the American economy, using
a standard method of grouping jobs based on the function
performed, the tools used, the persons served, the
techniques used, and the product or service.
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Discouraged Workers
-
Persons, not included in the count of unemployed, who make
no active attempt to find a job because they think none is
available, or they believe they lack the skills necessary
to compete in the labor market. Discouraged workers are
considered to be not in the labor force.
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Disguised Unemployment
-
Potential workers who are not employed and who do not
qualify as part of the civilian labor force are therefore
are not counted officially as unemployed. For example, a
self-employed person in a seasonal industry is not counted
as part of the labor force during the off-season if he or
she is not looking for work.
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DOL
-
United States Department of Labor; Cabinet-level Federal
agency which enforces laws protecting workers, promotes
labor-management cooperation, sponsors employment training
and placement services, oversees the unemployment
insurance system, and produces statistics on the labor
force and living conditions.
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Duration of Unemployment
-
This is a measure of the number of full weeks that a
person has been unemployed. The Bureau of Labor Statistics
publishes several series on duration, showing the number
unemployed for various lengths of time. There are also two
published measures of average duration of unemployment:
(1) mean duration and (2)median duration. Mean duration is
the arithmetic average duration of unemployment in weeks;
median duration is the midpoint of a distribution of weeks
of unemployment.
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DWD
-
Wisconsin Department of Workforce Development
(formerly DILHR,
Department of Industry, Labor and Human Relations)
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DWS
-
Division of Workforce Solutions, within the Department of
Workforce Development
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Economic Indicator
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A set of data that serves as a tool for analyzing current
economic conditions and future prospects. Usually
classified according to their timing in relationship to
the ups and downs of the business cycle, that is, whether
they anticipate (lead), coincide with, or lag behind
general business conditions.
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Economic Fluctuations
-
Variations above and below the trend line of an economy.
These variations have long been referred to as business
cycles, but because they are not limited to the business
sector of an economy and because cycle suggests a
regularity which most investigators cannot find, many
writers today use the expression economic fluctuations.
Many theories are given to explain these fluctuations.
Wars, of course, have a major influence on an economy, as
do natural disasters such as storms or droughts. More
subtle forces include changes of governments, the
irregularity of major innovations, the phasing-out of
products, and population growth.
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Economic Time Series
-
A set of quantitative data collected over regular time
intervals (such as weekly, monthly, quarterly, or
annually) which measures an aspect of economic activity.
The series may measure a broad aggregate such as gross
national product, or a narrow segment such as the sales of
tractors or the price of copper.
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Employed
-
Definition differs by Bureau of Labor Statistics programs:
Current Population Survey and Local Area
Unemployment Statistics define employed as: Individuals
16 years of age and older who worked at least one hour
for pay or who worked unpaid for at least 15 hours in a
family business during the week which includes the 12th
of the month. Individuals are also counted if
they had a job but were temporarily absent from their
jobs due to illness, bad weather, vacation, a labor
dispute or for personal reasons.
Current Employment Statistics defines employed as:
Including all paid employees, regardless of age, who
worked during or received pay for any part of the pay
period that includes the 12 day of the month.
Quarterly Census for Employment and Wages defines employed
as: The number of workers on the payroll who earned wages
during the pay period including the 12th day of the
month. Persons on paid leave are included, but those
on leave without pay for this entire payroll period are
excluded.
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Employment and Training Administration (ETA)
-
An agency within the U.S. Department of Labor. This agency
oversees the State UI programs and job training and
placement services provided by State Employment Security
Agencies.
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ES-202
-
Quarterly Census of Employment and Wages
(QCEW) program, any data
from this program may be generically referred to as
"ES-202" data. Using quarterly data
submitted by state agencies, Bureau of Labor Statistics
summarizes employment and wage data for workers covered by
State unemployment insurance (UI) laws and
summarizes employment and wage data for civilian workers
covered by the program of Unemployment Compensation for
Federal Employees (UCFE).
Employment counts are available by industry group for the
State and all Counties. Some employment data may be deemed
confidential to avoid disclosure of operations of
individual reporting units.
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Establishment
-
An economic unit that produces goods or services, usually
at a single physical location, and engaged in one or
predominantly one activity.
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Establishment Survey
-
Establishment, also known as Place of Work.
Employers complete a survey using data from their employer
payroll records. Establishment survey is also
referred to as payroll data survey. Establishments
are classified as to size and industry. Included in the
survey are large establishments, which in most industries
are those with 250 or more employees, as well as
full-time and part-time employees. And both permanent and
temporary employees, are counted if they receive any pay
during the reference period (the week that includes the
12th of the month). Workers on paid sick leave or on paid
holiday or vacation are also counted. Persons on the
payroll of more than one establishment are included in the
tally of each. Proprietors, self-employed persons, unpaid
family workers, and domestic household workers are
excluded. This survey is conducted under the auspices of
the Current Employment Statisticsprogram.
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EDS
-
Estimates Deliver System. This system produces
occupational wage and employment estimates at geographic
levels not provided for in the Occupational Employment
Statistics (OES) program.
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Frictional Unemployment
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Frictional unemployment is unemployment that comes from people moving between jobs, careers, and locations. There is likely to be some frictional unemployment even when there is technically full employment, because most people change jobs from time to time.
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Full-Time Employment
-
Defined by the U.S. Bureau of Labor Statistics as
employment of 35 hours or more in a week.
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Gross Domestic Product
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The market value of all final goods and services produced
in a particular period in the United States, regardless of
who owns the resources.
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Gross National Product
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The market value of all final goods and services produced
in a particular period with labor and property supplied by
US residents.
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Goods Producing Industries
-
Under the current classification taxonomy North American
Industry Classification System, goods producing industries
are grouped within three Supersectors: Natural Resources
and Mining; Construction, and Manufacturing.
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HIDDEN INFLATION*
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If in two different years a family (or a nation) purchases
identical goods and services, inflation for them can be
measured by simply noting the difference in prices paid.
However, when prices increase, many consumers lower their
standard of living by purchasing goods of lower quality.
For example, a family may buy a deluxe washing machine
during a period of stable prices; yet if the appliance
needs replacement during or after an inflationary period,
the family may buy an economy model. To the extent that
this practice is followed, hidden inflation adds to
the inflation cost shown by price indexes.
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HOUSEHOLD
-
As defined by the Census Bureau, all persons who occupy a
housing unit. A housing unit is a room or group of rooms
intended for occupancy as separate living quarters and
having either a separate entrance or complete cooking
facilities for the exclusive use of the occupants.
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INDICATOR*
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A statistic which can be used, usually with others, to
reach a conclusion regarding the economy. A LEADING INDICATOR (the most useful for
making predictions) is one whose changes are usually
followed by certain changes in the overall economy, a COINCIDENT INDICATOR changes at the
same time as the overall economy, and a LAGGING INDICATOR is useless for prediction
because it changes after the economy in general has
changed.
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INDUSTRY
-
A generic term for a distinct group of productive or
profit-making enterprises. Industries are described and
classified by their primary activity or product by the
Standard Industrial Classification (SIC) Code.
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INFLATION*
-
There are many definitions of inflation, usually worded
for completeness and technical accuracy. For most
practical applications it is sufficient to consider that
inflation is a decrease in the purchasing power of
a nation's monetary unit. Prices go up, and "the
dollar buys less." The CONSUMER PRICE
INDEX is one indicator that attempts to measure the
rate of inflation
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INPUT-OUTPUT TABLE*
-
A matrix which shows the way in which industries or SECTORs interact. It generally shows,
for each industry, the amount of that industry's
output that goes to each other industry as input (as raw
materials or as semifinished products), as well as the
amount that goes to the final markets of the economy. The
table may also indicate each industry's consumption of
the products of other industries, as well as its
contribution to the production process, in the form of
value added. The tables permit the tracing of the
industrial changes in consumer demand and investment-goods
demand, of imports and exports, and of government
purchases. Some input-output tables include an employment multiplier for each industry so
that officials can determine where government assistance
would be most effect for employment growth.
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JTPA
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Job Training Partnership Act; Federal
legislation enacted in 1982 with the stated purpose of
[establishing] programs to prepare youth and adults
facing serious barriers to employment for participation
in the labor force by providing job training and other
services that will result in increased employment and
earnings, increased educational and occupational
skills, and decreased welfare dependency, thereby
improving the quality of the work force and enhancing
the productivity and competitiveness of the Nation.
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LABOR FORCE
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Defined as all persons 16 years of age or over within a
specific geographic area who are either employed or
unemployed. Total Labor Force includes the civilian labor
force and members of the Armed Forces stationed either in
the United States or abroad, counted by their place of
residence. Civilian Labor Force comprises the total of all
civilians in the labor force. For statistical purposes,
the labor force is the sum of persons employed and persons
unemployed and looking for work.
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LABOR MARKET
-
The economic transactions involving the hiring of people
on the one side and the selling of one's labor on the
other side. Labor market does not refer to a
physical marketplace.
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LABOR FORCE PARTICIPATION RATE
-
The proportion of the total civilian noninstitutional
population or of a demographic subgroup of that population
classified as "in the labor force".
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LABOR MARKET
AREA (LMA)
-
Labor Market Areas are the basic substate geographic areas
used for LAUS (Local Area Unemployment
Statistics) estimation. Consisting of a central city
or cities and the surrounding territory within commuting
distance, it is an economically integrated geographical
unit within which workers may readily change jobs
without changing their place of residence. Labor market
areas generally contain one or more counties.
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LMI
-
Labor Market Information; The body of information that
deals with the functioning of labor markets and the
determination of the demand for and supply of labor. It
includes, but is not limited to, such key factors as
changes in the level and/or composition of economic
activity, the population, employment and unemployment,
income and earnings, and wage rates and fringe benefits
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LABOR SURPLUS AREA
-
A civil jurisdiction classified as a labor surplus area
when its average unemployment rate is at least 20 percent
above the average unemployment for all states (plus the
District of Columbia and Puerto Rico) during the previous
2 calendar years. During periods of high national
unemployment, the 20 percent ratio is disregarded and an
area is classified as a labor surplus area if its
unemployment during the previous 2 calendar years was 10
percent or more. This designation allows establishments in
the area preference in bidding for certain federal
contracts.
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LABOR TURNOVER*
-
The percentage of an employer's workers who are
replaced because of voluntary or involuntary leaving,
usually on an annual basis.
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LAGGING INDICATOR
-
A statistic which does not change until after the economy
in general has changed. For example, the value of
construction completed is a lagging indicator because the
main effect on the economy occurred when plans were
announced and contracts let and during the peak of
construction activity. See also COINCIDENT INDICATOR; LEADING INDICATOR
(below).
-
LAUS
-
Local Area Unemployment Statistics. BLS Program carried out
by each state to determine unemployment rates by state
and local areas.
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LEADING INDICATOR*
-
A statistic valued for predicting purposes because its
movement is generally followed by a certain movement of
the economy in general. Building permits obtained is often
used as a leading indicator. Economists sometimes refer to
a short list, which is a composite of 12 leading
indicators that have correlated particularly well with
economic changes that have followed. Average weekly hours,
unemployment claims, and corporate profits are included in
the short list. See also COINCIDENT
INDICATOR; LAGGING INDICATOR.
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METROPOLITAN AREAS (MAs)
- Standard definitions of metropolitan areas for
Federal statistical purposes are established under the auspices of the Office of Management and Budget (OMB).
Revisions to these definitions occur each decade
following the decennial census. The general concept of a
metropolitan or micropolitan statistical area is that of
a core area containing a substantial population nucleus,
together with adjacent communities having a high degree
of economic and social integration with that core.
Currently defined metropolitan and micropolitan
statistical areas are based on application of 2000
standards. Each metropolitan statistical area (MSA)
must have
at least one urbanized area of 50,000 or more
inhabitants. Each micropolitan statistical area
must
have at least one urban cluster of at least 10,000 but
less than 50,000 population.
Please note: Beginning in January 2005
Wisconsin's MSAs were redefined. CES and LAUS data back to 1990 will be republished using
the new MSA definitions.
Complete replacement of historical data for new and redefined
MSAs is strongly encouraged.
Wisconsin has 11 Metropolitan Statistical Areas within its
borders, and another four that cross the state line into
Minnesota and Illinois. There are also 13 Micropolitan Areas
in Wisconsin.
Map of Metropolitan Statistical
Areas
Map of Micropolitan Statistical Areas (coming soon)
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MLS
- The Mass Layoff Statistics (MLS) program is a
Federal-State cooperative statistical effort that uses a
standardized, automated approach to identify, describe,
and track the effects of major job cutbacks, using data
from individual state unemployment insurance (UI)
databases. The MLS program reports on mass layoff actions
that result in workers being separated from their
jobs.
Monthly mass layoff numbers are from establishments which
have at least 50 initial claims for unemployment insurance
filed against them in a 5-week period. Extended mass
layoff numbers (released quarterly) are from a subset of
such establishments---those where the employer indicates
that 50 or more people were separated from their jobs for
at least 31 days.
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NAICS
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North American Industrial Classification System.
A new economic classification system that replaces the
1987 Standard Industrial Classification
(SIC) for statistical purposes. NAICS is a system for
classifying establishments by type of economic activity.
NAICS will be used by Federal
statistical agencies that collect or publish data by
industry. It is also expected to be widely used by State
agencies, trade associations, private businesses, and
other organizations. To read more about NAICS, please see
the Bureau
of Labor Statistics.
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NONAGRICULTURAL WAGE AND SALARY
EMPLOYMENT
-
Includes all full-time and part-time employees of all
classes (including employees on paid vacation or paid sick
leave) who work in or receive compensation from
nonagricultural establishments for any part of the pay
period that includes the 12th of the month. It does not
include pensioners, members of the armed forces,
self-employed or unpaid family workers, or persons on
leave of absence without pay. These statistics are
collected in coordination with the CES program (Other
term: NFWS, Nonfarm Wage and Salary)
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NORMAL
UNEMPLOYMENT*
-
The unemployment rate which exists because of
imperfections in job markets. Imperfections are such
factors as absence of costless job information, lack of
perfect mobility, membership limitation by unions, and
licensing for purposes of restricting quantities of
workers. Also called natural rate of unemployment.
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NOT IN THE LABOR
FORCE
-
Includes all persons 16 years old and over who are not
employed or unemployed. This group consists mainly of
students, persons whose only activity is keeping house,
retired workers, seasonal workers during an
"off" season who are not looking for work,
inmates in institutions, disabled persons, and unpaid
persons working less than 15 hours a week in a family
business or farm.
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OCCUPATION
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The name or title of a job that identifies the principal
business or activity of a person's life. Currently, we
classify occupations using the
Standard Occupational
Classification Codes.
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OES
-
Occupational Employment Statistics; The OES program
collects data on occupational employment from employers.
These data are used in the program which creates the
Wisconsin occupational employment projections. The OES
code structure is used in reporting occupational
statistics in many state and federal reports.
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PART TIME
EMPLOYMENT
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Defined by the U.S. Bureau of Labor Statistics as
employment between 1 and 34 hours per week.
-
PER CAPITA PERSONAL
INCOME (PCPI)
-
Total income received by individuals from all
sources--wage and salary disbursements, other labor
income, proprietors' income, rental income, dividends,
personal interest income, and transfer payments--minus
personal contributions for social insurance, divided by
the population.
-
PIC
-
Private Industry Council
-
PRIVATE HOUSEHOLD WORKERS
-
Persons who work for profit or fees, in private
households, as child care workers, cooks, housekeepers or
servants.
-
PRIVATE SECTOR*
-
That portion of the total economy which does not directly
involve any level of government, as opposed to the
public sector, which includes all operations of all
levels of government.
-
PPI
-
Producer Price Index; A Bureau of Labor
Statistics program which measures the average change
in producers' selling prices of a fixed set of goods
and services. The Producer Price Index is sometimes
thought of as the "Wholesale" or
"Industrial" Price Index.
-
PRODUCTIVITY*
-
The ratio of real GNP to total hours worked in the nation,
where real GNP is GROSS NATIONAL
PRODUCT expressed in constant dollars (adjusted for
inflation). Productivity is loosely defined as the output
of an average worker over a period of one year. As
automated equipment allows workers to produce more,
productivity increases; as work rules become more
restrictive, a counterforce tends to reduce productivity.
Productivity is watched by economists as one key to
fighting inflation; increases in productivity reduce
costs, and the only way to improve the income of
everyone (not just those who receive wage
increases) is through increases in productivity.
-
PURCHASING POWER
-
A ratio of the amount of goods and services which a given
amount of money will currently buy to the amount it would
have bought in a specified base year. When consumer items
are being considered, purchasing power is the reciprocal
of the CONSUMER PRICE INDEX. Sometimes
purchasing power is used simply as a qualitative
reference to the amount of goods and services a certain
amount of money will buy.
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- QCEW
- Quarterly Census of Employment and Wages. Formerly the CEW,
a Bureau of Labor Statistics program which publishes a quarterly
count of employment and wages reported by employers, available
at the county, MSA, state and national levels by industry.
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SEASONAL
ADJUSTMENT
-
The statistical modifications to a data series to reveal
the economic change instead of the seasonal change. A data
series such as unemployment counts are affected by
seasonal influences like weather, the opening and closing
of schools, holidays and other seasonal events. Seasonal
events will hide underlying trends that could be
significant for interpreting an economic time series.
Removal of seasonal influences from the statistical counts
allows for assessing only the economic changes over time,
thus allowing for a better analysis of the more important
underlying reasons for month-to-month changes in
joblessness.
-
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SEASONAL
UNEMPLOYMENT
-
Seasonal unemployment is very regular and predictable,
occurring at the same basic time each year. Industries
affected by seasonal unemployment include agricultural
related industries, construction, and any industry
affected by seasonal fluctuations in the demand for their
products.
-
SECTOR*
-
Economists divide the economy into three main
sectors--consumer, business (also called the industrial
sector), and government (also called the public
sector). While it is recognized that economic units in
all three sectors have much in common (all buy and sell;
have inputs, outputs, and budgets; and consume goods and
services), grouping according to goals and motivations is
highly significant because of its effect on economic
decisions. Sometime a subgroup is referred to as a
sector--we might read about "the transportation
sector of our economy" in a newspaper.
-
Consumer Sector. This sector comprises
individuals and households, and supplying it is the
overall purpose of the economy. Characteristics of
this sector are that it sells factors of production, it buys goods
and services, and it is motivated by the desire to
increase utility. The consumer sector is not noted
for efficiency or objectivity in decisions.
-
Business Sector. This sector includes
nonprofit organizations as well as regular firms. It
buys factors of production and uses them to produce
goods and services, which it sells to all three
sectors. Motivations are complex and include
long-run growth, survival, and filling a need in
society, as well as profits. Although ther are
exceptions, the business sector is characterized by
efficiency and objectivity in its decisions.
-
Government Sector. This sector includes all
levels of government--federal, state, city, etc.
Although some of its income comes from sales of
goods and services, most of it is from direct and
indirect taxes. In the field of economics,
government is needed to establish and enforce the
rules of competition and to ensure that parties
adhere to the rules of fairness.
-
SELF-EMPLOYED WORKERS
-
Persons who work for profits or fees in their own
unincorporated business, trade or professional practice.
Persons working in their own incorporated business are
counted as wage and salary workers.
-
SERVICE DELIVERY AREA
(SDA)
-
A geographical area designated by the governor, within
which employment and training services are provided under
the Job Training Partnership Act. The 17 SDAs in
Wisconsin were replaced by Workforce Development
Areas (WDAs), July 1, 1998. See map
of the WDAs.
-
SERVICE PRODUCING INDUSTRIES
-
Industries are lumped into two main groups: Service
Producing and Goods Producing. Service Producing
Industries include Trade, Transportation, Business
Services, and more.
-
SIC
-
Standard Industrial Classification.
Former method of categorizing industries for statistical
purposes. Currently, NAICS (North American Industrial
Classification System), is used.
-
SOC
-
Standard Occupational Classification; A standard
classification used in social and economic statistical
reporting programs, such as the Census Bureau or Bureau of
Labor Statistics programs. There are far fewer occupations
defined by the SOC than in the Dictionary of Occupational
Titles.
-
STRIKE
-
A work stoppage by employees acting together in an attempt
to bring pressure on management to give in to their
demands concerning wages, working conditions, union
recognition, or some other issue.
-
STRUCTURAL
UNEMPLOYMENT
-
This type of unemployment occurs when the basic nature of
the economy changes over time such that skills which
unemployed workers possess are no longer demanded by
employers. Structural unemployment is involuntary
unemployment and typically requires retraining or
education of displaced workers to bring their skills into
line with demand.
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UI
-
Unemployment
Insurance (formerly UC: Unemployment
Compensation)
-
UNDEREMPLOYED
-
Persons working full- or part-time in jobs that are below
their earning capacity or level of competence. The terms
underemployed and underutilized are used interchangeably.
Underemployed has also been defined as "involuntary
part-time employment" or employment of a person on a
part-time basis when full-time work is desired.
-
UNEMPLOYED
-
The number of people who, during the reference week
(includes the 12th of the month),
-
had no employment but were available for work and;
-
had engaged in any specific jobseeking activity
within the past four weeks, such as registering at a
public or private employment office, meeting with
prospective employers, checking with friends or
relatives, placing or answering advertisements,
writing letters of application or being on a union
or professional register;
-
were waiting to be called back to a job from which
they had been laid off within the past 6 months; or
-
were waiting to report to a new wage or salary job
within 30 days.
-
All persons who had no employment during the reference
week, were available for work, except for temporary
illness, and had made specific efforts to find employment
some time during the 4 week-period ending with the
reference week are classified as unemployed. Persons who
were waiting to be recalled to a job from which they had
been laid off need not have been looking for work to be
classified as unemployed.
-
UNEMPLOYMENT
-
Occurs when any of the factors of production (labor, land,
capital and entrepreneurship) are not employed in
production of goods and services. Unemployment occurs when
labor, a factor of production, is not being fully utilized
to due to the unavailability of suitable jobs. It is
strictly defined as a situation where people who are
willing and able to work cannot find employment. There are
three types of unemployment: Frictional, Seasonal, and Structural. Also see NORMAL UNEMPLOYMENT.
-
UNEMPLOYMENT
RATE
-
The unemployment rate represents the number of unemployed
as a percent of the labor force. The seasonally adjusted
unemployment rate eliminates the influence of regularly
recurring seasonal fluctuations which can be ascribed to
weather, crop-growing cycles, holidays, vacations, regular
industry model changeover periods, and the like, and
therefore more clearly shows the underlying basic trend of
unemployment.
The ratio of unemployed to the civilian labor force is
expressed as a percent.
-
UNPAID FAMILY WORKERS
-
Persons who worked without pay for 15 hours a week or more
in a business operated by a family member.
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- Workforce Development Area (WDA)
- link to the WDA map
site
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If you have questions about these terms please contact the
economist: Eric Grosso for more
information.