The Current Population Survey is a monthly statistical survey supported by the U.S. Bureau of Labor Statistics and the U.S. Census Bureau. It serves as the main source for labor force statistics in the U.S. The survey gathers data from around 60,000 households and targets individuals aged 15 and older to draw conclusions about the entire U.S. population. Market researchers also use this data.
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The Current Population Survey (CPS) aims to find out the demographic details and job status of all working-age people in a household. It is often called the household survey, unlike the Current Employment Statistics survey, which is referred to as the establishment survey. Data from the CPS helps estimate the unemployment rate in the U.S., its regions, and among different demographic groups.
The survey is the most common and precise of its type. Before the COVID-19 pandemic, the CPS usually had a response rate of nearly 90%. However, in April 2020, this rate dropped to 69.9%.
The CPS provides information on employment categorized by age, gender, race, Hispanic background, marital status, family ties, veteran status, job type, industry, and worker classification. It also includes details on work hours, whether jobs are full-time or part-time, and reasons for part-time work. Additionally, it covers unemployment data by job type, industry, last job classification, how long individuals have been unemployed, reasons for unemployment, and job search methods. Lastly, it reports earnings based on specific demographic groups, job types, education levels, union membership, and employment status.
The BLS gathers information from the CPS and CES to create different statistics about labor force participation and use. This information is shared in the BLS’s monthly Employment Situation report, which comes out on the first Friday of every month. It includes the U-3 unemployment rate, often referred to as the headline unemployment rate.
Companies, investors, and government officials pay close attention to these numbers to assess the economy’s health and future outlook. Unemployment is an important sign of economic performance, and high, ongoing unemployment can indicate serious problems for both the economy and society.
Conclusion
Overall, the CPS is a robust and valuable tool for understanding the U.S. labor market. However, it’s essential to consider its limitations and use it in conjunction with other data sources for a comprehensive picture.