Full Report - Kossuth County Economic Development

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Appendix CC M EE UThe federal government and the state of Iowa esmate an area’s labor force by drawing from the poron ofthe civilian populaon that is non‐instuonalized, 16 years of age or older and currently employed orunemployed (BLS Handbook, Chapter 1, p. 5). The BLS defines employed persons in the following two ways:1. Did any work as paid employees, for their own business, profession, on their own farm or worked 15hours or more as unpaid workers in a family‐operated enterprise (BLS Handbook, Chapter 1, p. 5).2. Did not work but had jobs or businesses from which they were temporarily absent due to illness, badweather, vacaon, child‐care problems, labor dispute, maternity or paternity leave or other family orpersonal obligaons ‐‐ whether or not they were paid by their employers for the me off and whetheror not they are seeking other jobs. Individuals volunteering or engaged in housework, painng andhome repair around their own residence are not considered employed (BLS Handbook, Chapter 1, p. 5).Unemployed persons are defined as those individuals that were not employed on a given reference week priorto quesoning and who made an effort to find work by contacng prospecve employers. These individualsidenfied that they are ready to work with the excepon of inability due to a temporary illness. Individuals arealso classified as unemployed if they have been laid off and are awaing recall back to their posions (BLSHandbook, Chapter 1, p. 5). The unemployed are grouped into job losers (both temporarily and permanentlylaid off), quit/terminated and looking for work, re‐entrants to the job market aer an extended absence andnew entrants that have never worked (BLS Handbook, Chapter 1, p. 5).Those individuals that are not classified as employed or unemployed are not considered to be part of the laborforce by BLS. The non‐working designaon may be due to a variety of reasons; however, the underlying factoris that the individuals have not sought employment within the past four weeks (BLS Handbook, Chapter 1, p. 6).Because the BLS ulizes a mulple step process to esmate employment and underemployment stascs on amonthly basis, this process cannot be described in only a few paragraphs. A complete summary of the processused to generate naonal esmates and an outline of the process used to generate state and sub‐stateprojecons is available through IWD.METHODS FOR ESTIMATING EMPLOYMENTThe BLS uses the employed and unemployed persons to calculate the civilian labor force, the unemploymentrate and labor force parcipaon rate.The labor force is:employed + unemployed = labor forceThe labor force parcipaon rate is:labor force / non‐instuonalized cizens 16+ years of age = LFPRThe unemployment rate is the percentage of the civilian labor force that is unemployed:unemployed / total labor force = unemployment rate (BLS Handbook, Chapter 1, p. 5)A proper interpretaon of the unemployment rate requires an understanding of the processes used togenerate the data on which the calculaons are based. The BLS uses the monthly Current Populaon Survey(CPS) to collect data from a sample of 59,000 households, taken from 754 sample areas located throughout thecountry. The purpose of the survey is to collect informaon on earnings, employment, hours of work,occupaon, demographics, industry and socio‐economic class. The data is obtained through personal andtelephone interviews. Of the 59,000 households, only about 50,000 are generally available for tesng due toabsence and illness. The 50,000 households generate informaon on 94,000 individuals (BLS Handbook,Chapter 1, p. 8). Each household is interviewed for two, four‐month periods, with an eight‐month breakbetween the periods. The pool of respondents is divided into 8 panels, with a new panel being rotated eachmonth (BLS Handbook, Chapter 1, p. 10).Kossuth County Laborshed Analysis 38 Released March 2013
Appendix CThe 754 sample areas from which the households are selected represent 3,141 counes and cies broken into2,007 populaon sample units (PSU’s). A PSU can consist of a combinaon of counes, urban and rural areasor enre metropolitan areas that are contained within a single state. The PSU’s for each state are categorizedinto the 754 sample groups of similar populaon, households, average wages and industry. The 754 sampleareas consist of 428 PSU’s that are large and diverse enough to be considered an independent PSU and 326groupings of PSU’s (BLS Handbook, Chapter 1, p. 9).The sample calculates an unemployment esmate with a 1.9 percent coefficient of co‐variaon. This is thestandard error of the esmate divided by the esmate, expressed as a percentage. This translates into a 0.2percent change in unemployment being significant at the 90 percent confidence level. The respondent’sinformaon is weighted to represent the group’s populaon, age, race, sex and the state from which itoriginates. Using a composite esmaon procedure minimizes the standard of error for the esmate. Thisesmate is based on the two‐stage rotaon esmate on data obtained from the enre sample for the currentmonth and the composite esmate for the previous month, adjusted by an esmate of the month‐to‐monthchange based on the six rotaon groups common to both months (BLS Handbook, Chapter 1, p. 8). Theesmates are also seasonally adjusted to minimize the influence of trends in seasonal employment.IOWA & SUB‐STATE UNEMPLOYMENT RATESThe CPS produces reliable naonal unemployment esmates; however due to the small sample size of the CPSsurvey, BLS applies a Time Series Model to increase reliability. The regression techniques used in the modelare based on historical and current relaonships found within each state’s economy. The primary componentsof the state esmaon models are the results from state residents’ responses to the household survey (CPS),the current esmate of nonfarm jobs in the state (CES) and the number of individuals filing claims forUnemployment Insurance (UI). Iowa’s Labor Market Area consists of nine metropolitan areas, 15 micropolitanareas and 62 small labor market areas. For further definion of counes included in micropolitan stascalareas, visit: www.iowaworkforce.org/lmi/pressrelease/iowamicro.pdf and for counes included inmetropolitan stascal areas, visit www.iowaworkforce.org/lmi/pressrelease/iowamsa.pdf.A me series model is used to esmate state labor force stascs and a Handbook method is used for substateprojecons. The state unemployment esmates are based on a me series to reduce the high variabilityfound in the CPU esmates caused by small sample size. The me series combines historical relaonships inthe monthly CPS esmates along with Unemployment Insurance and Current Employment Stascs (CES) data.Each State has two models designed for it that measure the employment to work rao and the unemploymentrate (BLS Handbook, Chapter 4, p. 37).The CES is a monthly survey of employers conducted by the BLS and state employment agencies. Employment,hours/overme and earning informaon for 400,000 workers are obtained from employer payroll records.Annually, the monthly unemployment esmates are benchmarked to the CPS esmate so that the annualaverage of the final benchmarked series equals the annual average and to preserve the paern of the modelseries (BLS Handbook, Chapter 4, p. 38).The sub‐state unemployment esmates are calculated by using the BLS Handbook Method. The HandbookMethod accounts for the previous status of the unemployed worker and divides the workers into twocategories: those who were last employed in industries covered by State Unemployment Insurance (UI) lawsand workers who either entered the labor force for the first me or reentered aer a period of separaon (BLSHandbook, Chapter 4, p. 38).Individuals considered covered by UI are those currently collecng UI benefits and those that have exhaustedtheir benefits. The data for those that are insured is collected from State UI, Federal and Railroad programs.The esmate for those who have exhausted their funds is based on the number who stopped receiving benefitsat that me and an esmate of the individuals who remain unemployed (BLS Handbook, Chapter 4, p. 39).Kossuth County Laborshed Analysis 39 Released March 2013
Page 1 and 2: Kossuth County, IowaLaborshed Analy
Page 3 and 4: T CLaborshed Analysis 1Esmang the
Page 5 and 6: L AThe purpose of this Laborshed an
Page 7 and 8: Figure 1Esmated Total Potenal Labor
Page 9 and 10: P I LI I T K C L A ‐ EIn order
Page 11 and 12: Figure 4Educaonal Fields of StudyFi
Page 13 and 14: Figure 9Median Wages & Salaries by
Page 15 and 16: Figure 12Esmated Totals by Zone & G
Page 17 and 18: Employers may be aided in their rec
Page 19 and 20: E BThe survey provides the responde
Page 21 and 22: O CThe out commute of a community r
Page 23 and 24: The respondents’ results are then
Page 25 and 26: W T N CE A EThe BLS defines unemp
Page 27 and 28: W BWage levels, hours available an
Page 29 and 30: Commuter Concentrationby Place of R
Page 31 and 32: Survey Zones by ZIP CodeKossuth Cou
Page 39 and 40: AKossuth County Laborshed Analysis
Page 41: S M DUnderstanding what Iowa emplo
Page 45 and 46: Appendix DManagerial/Administrave O
Page 47 and 48: RBreslow, Marc & Howard, Mahew. “
Page 50: Publication of:Iowa Workforce Devel

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