What Is A Job?

What is a Job? A quick reference to some commonly used terminology

Common terms used to describe jobs and jobs data are offered below as a generic reference. For a detailed definition of terms and technical concepts see the Bureau of Labor Statistics Handbook of Methods and/or technical documentation provided by the respective agencies at their websites.

At-Place Employment At-Place Employment represents all jobs, both full-time and part-time, in a given area. The job count typically includes all wage and salaried workers covered by the unemployment insurance program; the self-employed; farmers and farm laborers; paid household help; sole proprietors; members of partnerships; railroad workers; the armed forces; elected officials and judges; clergy; and those establishments whose workers are not covered by insurance. There are slight differences in the scope of coverage among providers of this data. Many local jurisdictions—for this type of jobs data— rely on the U.S. Bureau of Economic Analysis which has the most comprehensive count; others rely on the U.S. Bureau of Labor Statistics. In Montgomery County, the official at-place employment count is generated by the Planning Department in coordination with the Metropolitan Washington Council of Governments.

Civilian Labor Force The civilian labor force, also referred to simply as labor force, is defined as all persons 16 years and older currently employed or unemployed but actively seeking work. The civilian labor force does not include persons who are in the military or institutionalized (i.e., in prison, mental institutions or homes for the aged and infirm). Data on the labor force is used to calculate labor force participation rates and unemployment rates for the nation and other subnational geographies. Civilian Labor Force statistics are available from the U.S. Census Bureau’s Current Population Survey and the Decennial Census.

Covered Employment This is a subset of at-place employment. Covered employment typically captures between 85 percent and 90 percent of at-place employment. This data is also the most ubiquitous source for economic research. It is a monthly tabulation of jobs, wage and establishment data by industry for the nation, each state, region, and county. The U.S. Bureau of Labor Statistics makes covered employment data accessible through its Quarterly Census of Employment and Wages (QCEW) program. QCEW reports data only on those establishments and workers covered by State unemployment insurance (UI) laws and on Federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program.

Employed Persons by Place of Residence This is a subset of civilian labor force data. The statistic captures the number of persons living in a particular jurisdiction who are gainfully employed—regardless of where they might work. The U.S. Census Bureau reports this information in the Current Population Survey. A handful of county and municipal jurisdictions also have the research capacity to collect jobs data by place of residence and report aggregate summary information. The Montgomery County Planning Department, in analyzing results from its 2005 Census Update Survey of households, reported that 526,830 County residents were employed.

Establishment It is a unique physical location for a specified type of economic activity. An office, school, hospital, store, hotel, restaurant, or factory—these are all examples of an establishment. Establishments also represent the headquarters, subsidiary, or branch locations of a company. An establishment record is the basis for most jobs data— especially covered employment and at-place employment statistics. In 2008, there were nearly 9.1 million covered establishments in the United States; in Montgomery County, Maryland there were 33,220 covered establishments.

Government Employment A subset of at-place employment, the government job count (i.e. persons gainfully employed by and performing services for federal, state and local government agencies) is captured in the Census of Governments, a survey conducted by the Census Bureau every five years. This census provides detailed information about government finances and civilian government jobs. Another source of civilian government employment is the U.S. Bureau of Labor Statistics QCEW program. In Montgomery County, the Planning Department conducts an annual survey of 13 federal facilities and obtains a count of workers at each facility’s owned and leased space. The Planning Department analysis not only captures civilian government workers but contractors, military personnel and others working in space owned or leased by a federal facility.

Journey-to-Work It is a decennial census question on commuting behavior. Responses show how people get to work, how long it takes, and where they commute from and to. A similar set of questions is asked in the Montgomery County Census Update Survey. Data on journey-to-work helps answer questions such as: How many persons who live in Montgomery County also work in Montgomery County? How many persons who live in Silver Spring, for example, work in Virginia? Adding to the richness of the decennial Journey-to-Work data, the U.S. Bureau of Economic Analysis shows commuting patterns by county by industry: results from the 2000 decennial census show, at that time, 14,000 Montgomery County residents were commuting to finance jobs in the District of Columbia.

Jobs Capacity The number of jobs, distinguished by land use, which could be supported in a given area. When local governments forecast future employment, they are in effect measuring the capacity of available land to absorb new commercial development. Montgomery County in Maryland, King County in Washington, and Multnomah in Oregon among others all take into account land supply, development activity and zoning to make their job capacity estimates. All utilize standard employee density factors to convert commercial space into jobs.

NAICS NAICS, the North American Industrial Classification System, is the standard coding system—since 1997— adopted by governments, research organizations, and businesses across Canada, Mexico and the United States. It is a six-digit hierarchical coding system used to organize and classify economic activity. Economic activity occurs at the establishment level. Establishments that do similar things in similar ways are grouped together. Each establishment grouping makes up an industry. There are 1,170 industries. At the highest level of the coding system are the supersectors: Natural Resources and Mining, Construction, Manufacturing, Trade-Transportation-Utilities, Financial Activities, Professional and Business Services, Education and Health Services, Leisure and Hospitality, Other Services, and Public Administration. Drilling down the hierarchy are the two digit industries or sectors of the economy. In its Economic Forces that Shape Montgomery County report, the Planning Department shows trends in employment by sector.

Occupation Employment Statistics (OES) Occupation data measures wages earned and types of work performed by employees at establishments. The U.S. Bureau of Labor Statistics in coordination with state workforce agencies conducts a three year survey of 1.2 million establishments. The results are organized into occupational categories by industry. The occupational classification system is a four digit hierarchical coding system. There are 821 detailed occupations grouped under 23 major categories. These groupings are based on occupations having similar education, skill, experience, or performance requirements.

Seasonal Adjustment Statistical techniques used to adjust or smooth out seasonal influences in economic data. Economic data that is produced on a regular cycle— monthly, quarterly, annually— is subject to sudden peaks or troughs. For example, if one is measuring sales data, the analyst is likely to see a sudden spike during a holiday because of increased shopping and travel activity; heating oil usage is likely to increase when there is colder weather. These seasonal influences make it difficult to analyze discrete changes in economic performance. Thus, for analysis purposes, researchers adjust or smooth out the data. The Census Bureau, for instance, seasonally adjusts housing data.

Survey of Business Owners The Survey of Business Owners (SBO) provides summary statistics on business owners by gender, race and ethnicity, age, education level, veteran status, and primary function in the business. The Survey tracks the following information on businesses: number of employer and non-employer firms, number of family, home-based and start-up firms, employment, sales and receipts, annual payroll, sources of financing for expansion, and capital improvements. The U.S. Census Bureau conducts this survey every five years. Businesses not captured in this survey are farm and farm workers, air and rail transportation services, government, non-profits, and household help. Prior to 2002, this survey was called the Census of Minority and Women-Owned Business.

Unemployment Insurance (UI) The UI program provides workers who are displaced or laid off from their jobs with temporary financial assistance—monies for at least twenty-six weeks to offset lost income. UI is financed through federal and state taxes on employer payrolls. The federal portion of the tax on employers is collected annually by the Internal Revenue Service. These federal tax monies are then used by the U.S. Department of Labor to fund state workforce agencies. State workforce agencies collect the state portion of UI taxes. It is these employer contributions to states that are provided as unemployment benefits to qualified workers. Not all employers, however, pay UI taxes and therefore not all workers are covered. State law governs administration, eligibility and disbursement rules for the UI programs. Generally, UI programs do not cover farms and farm workers, domestic workers (household help), railroad workers, self-employed, active military and religious organizations. One of the reporting requirements of the Unemployment Insurance program is for state workforce agencies to collect quarterly covered employment data and transmit that detail to the U.S. Department of Labor; also make summary information accessible to the public.

Unemployment Rate The unemployment rate is a good measure of the economy’s health. A consistently rising unemployment rate is an indicator of a slowing or recessionary economy. As unemployment rises, for example, consumer spending is likely to decrease. The unemployment rate is the ratio of unemployed persons to the civilian labor force. The Bureau of Labor Statistics estimates the number of unemployed persons based on responses to the Census Bureau’s Current Population Survey, and the number of workers filing unemployment insurance claims. An unemployed person is 16 years or older, currently out of work but actively seeking employment. The unemployment rate does not capture persons who have left the labor force: the retired, those going to school, those with a disability, and those with family responsibilities. Discouraged workers are also not counted in the unemployment rate.

Links to Employment Data Sources U.S. Department of Labor, Bureau of Labor Statistics Quarterly Census of Employment and Wages Current Employment Statistics Local Area Unemployment Statistics Occupation Employment Statistics U.S. Department of Commerce, Bureau of the Census American Community Survey County Business Patterns Current Population Survey Economic Census U.S. Department of Commerce, Bureau of Economic Analysis Journey-to-Work Regional Economic Statistics Maryland Department of Labor, Licensing, & Regulation Career and Workforce Information Maryland Department of Planning, State Data Center Maryland National Capital Park and Planning Commission Research & Technology Center, Montgomery County Planning Department