Question

What criteria do the BLS use to count someone as employed? As unemployed?

Short answer

The Bureau of Labor Statistics (BLS) considers individuals employed if they meet the following criteria during the survey reference week: (1) worked at least one hour as a paid employee or worked as an unpaid worker in a family-run business for 15 or more hours, or (2) were temporarily absent from their jobs due to various reasons but had a job to return to. Individuals are considered unemployed if they are without a job, actively looking for work within the past four weeks, and currently available for work. Those not working and not actively seeking employment are classified as not in the labor force.

Step-by-step solution

Understanding the Labor Force

The labor force includes individuals aged 16 years and older who are either employed or unemployed. The BLS classifies people into these categories based on a series of criteria, which are used to measure the health of the US labor market.

Criteria for Employed Individuals

According to the BLS, individuals are considered employed if they meet the following criteria during the survey reference week: 1. Worked at least one hour as a paid employee. This includes individuals working part-time. 2. Worked as an unpaid worker in a family-run business for 15 or more hours. 3. Were temporarily absent from their jobs due to illness, vacation, bad weather, or labor disputes, but still had a job or business to return to.

Criteria for Unemployed Individuals

Individuals are considered unemployed if they meet the following criteria during the survey reference week: 1. They are without a job and actively looking for work within the past four weeks. Active job searching includes sending out job applications, attending job interviews, or other activities aimed at finding employment. 2. They are currently available for work. This means that they could start a job if one was offered to them. 3. They are not temporarily absent from their job, as in that case, they would still be considered employed.

Not in the Labor Force

Apart from the employed and unemployed, there is another group of individuals classified as not in the labor force. These individuals are not working and are not actively seeking employment. They could be full-time students, retirees, stay-at-home parents, or disabled persons who cannot work, among others. By understanding these criteria, it is clear how the BLS classifies someone as employed or unemployed, which is crucial to keeping track of the labor market's performance.

Key concepts

Employment Definition

Employment is a central concept in understanding labor force statistics. In the eyes of the Bureau of Labor Statistics (BLS), a person is considered employed under certain specific conditions.
During a survey reference week, individuals are counted as employed if they work at least one hour as a paid employee, regardless if it’s full-time or part-time.
Furthermore, those who help out in a family business without pay for at least 15 hours per week also qualify as employed.
It's not just about the presence at work but also about having a connection to a workplace: if someone is temporarily absent from their job due to illness, vacation, or any other temporary condition, they are still counted as employed as long as they have a job to return to.
Understanding these criteria helps us appreciate how employment statistics reflect the state of the economy.

Unemployment Criteria

Unemployment is another significant measure impacting economic insights. The BLS defines individuals as unemployed based on a few key conditions.
The primary requirement is that these individuals must be without a job, but it's not enough to merely be jobless. They must also have been actively seeking employment in the four weeks preceding the survey.
Active job hunting includes activities such as sending applications, making contacts with potential employers, or attending interviews. Additionally, to be classified as unemployed, these individuals need to be available for work, meaning they could start a new job promptly if offered one.
Notably, if someone is temporarily absent from a job, they aren't counted as unemployed since they still have ties to employment.
These criteria offer clarity on how the labor force is classified, differentiating between those genuinely seeking work and those not part of the active job market.

Bureau of Labor Statistics (BLS)

The Bureau of Labor Statistics (BLS) plays an essential role in compiling labor force statistics which provide insight into the economic health of the nation.
As a principal federal data agency, the BLS collects, analyzes, and disseminates essential economic information to support both policymakers and the public in their decision-making processes.
Through comprehensive surveys and statistical analysis, the BLS offers estimates on various labor statistics including employment, unemployment, wage trends, and much more.
Understanding the methodology of the BLS can help individuals better interpret the statistics that often make headlines and shape economic policy.
They provide the details necessary for evaluating labor market conditions which are pivotal in comprehending broader economic progress. \(\) Their work ensures that the information is accurate, timely, and impartial, which is invaluable for economic evaluations.