202 Homework #2: Unemployment Data

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Employment Situation (Emp. Sit.)

The most often cited unemployment statistics are from the "Employment Situation" report released by the U.S. Bureau of Labor Statistics Links to an external site.. The Employment Situation is released on the first Friday of each month giving data for the previous month.  

By convention, the “name” of the report refers to the latest monthly data contained in the report – not the release date. For example, the “January Employment Situation” contains data for January and is released in February.  The “February Employment Situation” contains data for February and is released in March. See BLS News Release Schedule Links to an external site..

The Employment Situation is based on two surveys: a survey of households (the “A” tables) and a survey of businesses (the “B” tables). The “official unemployment rate” is based on a survey of households and is found in Summary Table A. Because the “official” unemployment rate is narrowly defined, the BLS also presents alternative measures of unemployment in Table A-15. The number of new jobs added per month is also frequently cited in the media. This number is based on a survey of businesses and is found on Summary Table B.

The household survey and business survey have a few differences. Some analysts prefer the establishment survey because the sample size is larger. Other analysts prefer the household survey because it is broader, i.e. it includes self-employed workers and the agricultural sector. It also includes data for multiple job holders. For a more complete explanation of the differences between the household survey and the establishment survey, see Employment Situation Frequently Asked Questions Links to an external site..

Job Openings and Labor Turnover Survey (JOLTS)

The Job Openings and Labor Turnover Survey reports the number of jobs openings in the economy. This survey allows comparisons between the number of unemployed and the number of available jobs.  For example, assume the JOLTS reports that there are 3 million job openings, but the Emp. Sit. reports that there are 6 million unemployed persons. Then, this means that there are 2 unemployed persons for every job opening. So even if every job opening in the economy were filled, there would still be 3 million individuals who wanted a job but could not find one. On the other hand, if there are 5 million unemployed persons and 6 million job openings, then businesses would have a hard time finding the right workers for available jobs.

The JOLTS is released on the second Monday of each month. Please note that the JOLTS is on a 2 month lag from the month of release and, thus, 1 month behind the Employment Situation.  The January JOLTS is released is March (not February). In making comparisons, be sure to compare the number of openings with the number of unemployed for the same month, i.e. compare January openings with January unemployed. (See question #10).

DIRECTIONS:  Fill in the blank and submit.  You may submit your answers numbered #1 through #10 directly, or you may attach a file.  Note:  Use the latest reports available found here Links to an external site.. Please Indicate the reports you are using.  For example: January 2021 Employment Situation and December 2020 JOLTS (both released in February).

Reports used for this homework: ___________________________________________________________

1. The current unemployment rate.
   ________________.

2. The number of unemployed persons.
   ________________.

3. The unemployment rate for those with less than a high school diploma. ________________.

4. The unemployment rate for those with a Bachelor’s degree or higher. ________________.

5. What percent of the unemployed are “long-term unemployed? (those unemployed longer than 27 weeks)? (Note: You have to calculate this percentage) ________________.

6. What does “marginally attached to the labor force” mean (See Table A15)? ________________.

7. What is the unemployment rate for total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force? (Note: This is “U6” on Table A15)
   ________________.

8. What was the number of jobs added to payrolls? (See Emp. Sit. Summary Table B) ________________.

9. What was the number of job openings? (See JOLTS Table A)
   ________________.

10. What was the number of unemployed persons per job opening?
    ________________.