Bureau of Labor Statistics All Employee Payroll Project Current Employment Statistics: New Hours and...
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Transcript of Bureau of Labor Statistics All Employee Payroll Project Current Employment Statistics: New Hours and...
Bureau of Labor Statistics
All Employee Payroll Project
Current Employment Statistics: New Hours and Earnings Series
BEA Data Users ConferenceApril 13, 2007Pat Getz, BLS
Bureau of Labor Statistics
Bureau of Labor Statistics
All Employee Payroll Project
Background– The BLS Current Employment Statistics (CES)
program historically has published average hours and earnings series for production workers in the goods-producing industries, and nonsupervisory workers in the service-providing industries
– CES also publishes state and metropolitan area hours and earnings series, but publication is limited almost exclusively to manufacturing industries
Bureau of Labor Statistics
All Employee Payroll Project
Background– Production and nonsupervisory workers represent
about 80 percent of nonfarm wage and salary employees and provide an incomplete picture of average hours and earnings
– BLS tested collection of all employee hours and earnings data with CES respondents and found the data readily available from payroll records of most employers
Bureau of Labor Statistics
All Employee Payroll Project
Reasons for new series– CES constantly strives to improve its relevance to
the needs of data users – New all employee definition will provide more
comprehensive information than the present series for analyzing economic trends
– New data will provide improved input for other major economic indicators
• productivity • personal income
Bureau of Labor Statistics
All Employee Payroll Project
Reasons for new series-continued– Current concept of ‘production workers’ (PW) has been
difficult for sample members and users to comprehend
– The PW concept is inconsistent across industries (production, nonsupervisory, construction)
– Sample for PW data has degraded over time• individual employers record keeping often does not allow
identification of production and nonsupervisory workers as defined by CES
• Many employers use payroll processing firms or pre-packaged payroll software; production and nonsupervisory identification generally not available
Bureau of Labor Statistics
All Employee Payroll Project
New series begin publication in April 2007– Experimental all employees series of average weekly hours
(AWH), average hourly earnings (AHE), average overtime hours in manufacturing (AOT), and gross monthly earnings (GME) at the National level
– Average hours and earnings series for production workers and for all employees are designed to measure the regular earnings for workers
• They EXCLUDE bonuses and other irregular payments received by employees from their employers
– Regular hours and earnings are reported for the pay period that includes the 12th of the month
• For both all-employee and production-worker series
Bureau of Labor Statistics
All Employee Payroll Project
New series– The GME series INCLUDES irregular payments, providing
an additional and more comprehensive measure of earnings for the whole month
– This series is expected to improve the accuracy of preliminary estimates of personal income in the national income accounts
– GME will be published with a one-month lag as compared with all other CES series. For example January GME estimates will be published in March.
Bureau of Labor Statistics
All Employee Payroll Project
New series– The gross monthly earnings series are not strictly comparable with
other earnings series: GME AE-AHE PW-AHEMeasurement: comprehensive: regular earnings regular earnings
regular plus irregular earnings
Published: 1-month lag same month same monthas employment as employment(3rd closing)
Calendar pay period that pay period thatrepresentation: entire month includes the 12th includes the 12th
EstimateCoverage: 100 % all nonfarm 100 % all nonfarm PW jobs~
wage and salary jobs wage and salary jobs 80 %
Bureau of Labor Statistics
All Employee Payroll Project
New series– The hours series are strictly comparable with other hours series: AE-AWH AE-OT PW-AHE PW-OTMeasurement: Total hours paid Total hours overtime Total hours paid Total hours overtime
including overtime pay was received including overtime pay was received
Published: same month same month same month same month as employment* as employment* as employment* as
employment*
Calendar pay period that pay period that pay period that pay period that representation: includes the 12th includes the 12th includes the 12th includes the 12th
EstimateCoverage: 100 % all Private 100 % Manufacturing PW jobs~ Manufacturing PW
Nonfarm wage 80 % and salary jobs
*1st, 2nd or 3rd closing depending upon industry detail
Bureau of Labor Statistics
All Employee Payroll Project
Expectations for AE earnings and GME series:– AHE for All workers would generally be higher
than for production workers (due to inclusion of supervisory earnings)
– GME would be equal to or higher than All-employee aggregate payrolls (due to possible inclusion of bonuses, irregular payments, to timing, etc.)
Bureau of Labor Statistics
All Employee Payroll Project
AEPP data collection began in September 2005
– New forms mailed out in August/September 2005 and again in January 2006
– Adding new data items made form more complicated and increased respondent burden
Bureau of Labor Statistics
All Employee Payroll Project
AEPP data collection– First month data collection was hindered by hurricanes Rita
and Katrina occurring in the same month (September 2005)
– AE payroll response is currently somewhat higher than response of PW payroll
• If firms were providing PW payroll, then almost all added AE payroll
• Some firms which did not provide PW payroll now report AE payroll
– GME response runs lower that AE payroll in general
Bureau of Labor Statistics
All Employee Payroll Project
AE Collection Rates: 1st and 3rd ClosingsJanuary 2003 to Present
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
1st Closing 3rd Closing
Bureau of Labor Statistics
All Employee Payroll Project
CES Data Item Response Rates, 3-month, final sample average
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
AE Payroll AE Hours PW Payroll PW Hours GME
Bureau of Labor Statistics
All Employee Payroll Project
AEPP data collection-continued– Rotation of new sample units into sample (~20
percent each year) improves AEPP response as new units have higher item response
– Meanwhile, BLS will continue to:• Explain new data items to respondents
• Selectively re-contact key reporters
Bureau of Labor Statistics
All Employee Payroll Project
GME estimators– CES is testing 2 estimators for calculating GME– Both National and State GME estimates are being
tested using the estimators– CES will make a final decision prior to releasing
the official series
Bureau of Labor Statistics
All Employee Payroll Project
• GME estimators– Weighted Difference Link and Taper (LT)
Estimator• Similar to the estimator currently used for all hours and
earnings series
– Ratio Estimator (R1)• Similar to the weighted link relative estimator for all
employees
Bureau of Labor Statistics
All Employee Payroll Project
Phase 1: Experimental
• Limited data available online in text format only
• Potential for methodology changes• Continued research and evaluation
of estimators• Continued effort to improve
sample response and to reduce response error
• Solicitation of user comments
Phase 2: Official
• Full release of published estimates with more industry detail
• Inclusion in Employment Situation, Commissioners Statement, State and Area releases, and available on LABSTAT
• Publication of seasonally adjusted data
• Completed documentation available to users
• Publication timeline– The publication timeline has been divided into 2
phases: Experimental and Official
Bureau of Labor Statistics
All Employee Payroll Project
• National publication timeline– Experimental series released with January 2007
estimates in April 2007. Series start date is March 2006
– Official series with January 2010 estimates in February 2010; will include seasonally adjusted data
Bureau of Labor Statistics
All Employee Payroll Project
• State and Area publication timeline– Experimental series released in March 2008 with
January benchmarked data– Official series released in 2010
• Start date dependent upon sufficient sample and non-disclosure review
• Series start date will begin no earlier than January 2007
Bureau of Labor Statistics
All Employee Payroll Project
National level publication detail– Experimental—Total private and expanded
supersector detail – Official—Similar to series published for PW hours
and earnings• Initial release—hours for all 3-digit industries in
Manufacturing and 2-digits in all other industries; earnings for all 2-digits and higher
• Second release—same as initial release plus all series that pass non-disclosure rules
Bureau of Labor Statistics
All Employee Payroll Project
State and Area level publication detail– Experimental—
– Statewide—Total private and supersector detail for hours and earnings series; gross earnings for total private
– MSA—Total private detail for hours and earnings; no gross earnings
– Official—same as experimental with possible additional industry detail, depending on sample adequacy in individual States and MSAs
Bureau of Labor Statistics
All Employee Payroll Project
Chart 1. Average hourly earnings for all employees and for production and nonsupervisory workers in private, nonfarm
industries, not seasonally adjusted
EXPERIMENTAL SERIES
$15.00
$16.00
$17.00
$18.00
$19.00
$20.00
$21.00
$22.00
Mar
200
6
Apr 2
006
May
200
6
Jun
2006
Jul 2
006
Aug 2
006
Sep 2
006
Oct
2006
Nov 2
006
Dec 2
006
Jan
2007
Feb 2
007
all workers
production andnonsupervisory workers
Bureau of Labor Statistics
All Employee Payroll Project
Chart 2. Average weekly hoursfor all employees and for production and nonsupervisory workers in private, nonfarm
industries, not seasonally adjusted
EXPERIMENTAL SERIES
33.0
33.5
34.0
34.5
35.0
Mar
200
6
Apr 2
006
May
200
6
Jun
2006
Jul 2
006
Aug 2
006
Sep 2
006
Oct
2006
Nov 2
006
Dec 2
006
Jan
2007
Feb 2
007
all workers
production andnonsupervisory workers
Bureau of Labor Statistics
All Employee Payroll Project
Chart 3. Gross Monthly Earnings private, nonfarm industries, not seasonally adjusted
EXPERIMENTAL SERIES
$320
$340
$360
$380
$400
$420
$440
Mar
200
6
Apr 2
006
May
200
6
Jun
2006
Jul 2
006
Aug 2
006
Sep 2
006
Oct
2006
Nov 2
006
Dec 2
006
Jan
2007
Feb 2
007
in billions
Bureau of Labor Statistics
All Employee Payroll Project
The CES all employee hours and earnings experimental series are now available on the BLS website at:
http://www.bls.gov/ces/cesaepp.htm
BLS welcomes users review and feedback on these series