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Tag Archives: Labor market trends

Labor Day 2020 Fast Facts

I have been Commissioner of Labor Statistics for about a year and a half now, and what a time it has been! BLS has faced many challenges throughout its history, but none quite like those from the COVID-19 pandemic. All of our staff moved to full-time telework March 16, and I am so proud of how well they have worked under trying circumstances. In a very short time—days, not weeks—we had to change our data collection processes to eliminate in-person collection and move to a combination of telephone, internet, and video. We recognize how challenging it is for our survey respondents to provide data during the pandemic, and I am very grateful for their cooperation. Response rates have dipped a bit in some programs, but the quality of our samples remains strong across the board. Despite all of the challenges, BLS has been able to produce all of our economic reports without interruption.

The pandemic has taught us there’s an unlimited appetite for data. The U.S. statistical system is working to satisfy that appetite. At BLS, we strive for more and better data to understand the hardships caused by the pandemic. Starting in May we added new questions to our monthly survey of households. The questions ask whether people teleworked or worked from home because of the pandemic; whether people were unable to work because their employers closed or lost business; whether they were paid for that missed work; and whether the pandemic prevented job-seeking activities. We continue to gather new data from those questions.

We collaborated with our partners at other U.S. statistical agencies to find out how many people received payments from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. For those who received payments, we asked how they used them.

Soon we will have new data about how businesses have responded to the pandemic. These data are from a brand new survey that seeks to identify changes to business operations, employment, workforce flexibilities, and benefits as a result of the pandemic.

These are just a few examples of how our data collection has responded to the pandemic. Good data are essential for identifying problems, guiding policymakers, and gauging whether and how fast conditions improve for workers, jobseekers, families, and businesses.

Labor Day is a good time to reflect on where we are. Despite these difficult times, I hope you are able to enjoy the long holiday weekend. Take a moment to look at some fast facts we’ve compiled on the current picture of our labor market.

Working

Our monthly payroll survey shows that employment had been increasing through February 2020. With March came the pandemic and the job losses related to it. We lost more than 22 million jobs in March and April and then regained about 48 percent of them in May, June, July, and August.

The employment–population ratio was 56.5 percent in August. This ratio is the number of people employed as a percent of the population age 16 and older. The ratio was 61.1 percent in February.

There were 7.6 million people working part time for economic reasons in August 2020. These are people who would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs. This number was down from 10.9 million in April. The number was 4.3 million in February.

Not Working

The unemployment rate reached 14.7 percent in April 2020. That was the highest rate, and the largest over-the-month increase, in the history of the data back to January 1948. The rate has fallen since then, reaching 8.4 percent in August. The rate was 3.5 percent back in February, the lowest since 1969.

We have noted the challenges of measuring unemployment during this pandemic. The rates we have seen since March likely understate unemployment, but the trend is clear. The rate rose sharply in March and even more sharply in April and has trended down since April.

Among the major worker groups in August 2020, the unemployment rate was 8.4 percent for adult women and 8.0 percent for adult men. The rate for teenagers was 16.1 percent. The unemployment rate was 13.0 percent for Blacks or African Americans, 10.7 percent for Asians, 10.5 percent for Hispanics or Latinos, and 7.3 percent for Whites.

Job Openings

On the last business day of June 2020, the number of nonfarm job openings was 5.9 million. That was a decline of 18 percent from June 2019.

The ratio of unemployed people per job opening was 3.0 in June 2020. Since the most recent peak of 4.6 in April 2020, the ratio of unemployed people per job opening declined in May and June. In February 2020, there was 0.8 unemployment person per job opening.

Pay and Benefits

Civilian compensation (wage and benefit) costs increased 2.7 percent in June 2020 from a year earlier. After adjusting for inflation, real compensation costs rose 2.1 percent over the year.

Paid leave benefits are available to most private industry workers. The access rates in March 2019 were 73 percent for sick leave, 79 percent for vacation, and 79 percent for holidays.

In March 2019, civilian workers with employer-provided medical plans paid 20 percent of the cost of medical care premiums for single coverage and 33 percent for family coverage.

Productivity

Labor productivity—output per hour worked—in the U.S. nonfarm business sector grew 2.8 percent from the second quarter of 2019 to the second quarter of 2020. That increase reflects large pandemic-related declines in output (−11.2 percent) and hours worked (−13.6 percent).

Safety and Health

In 2018, there were 5,250 fatal workplace injuries. That was a 2-percent increase from 2017 and was the highest number of fatal work injuries in a decade. It was, however, below the numbers of workplace deaths in the 1990s, when over 6,000 fatalities occurred per year.

There were about 2.8 million nonfatal workplace injuries and illnesses reported in 2018 by private industry employers. This resulted in an incidence rate of 2.8 cases per 100 full-time workers in 2018. The rate is down from 9.2 cases per 100 full-time workers in 1976.

Unionization

The union membership rate—the percent of wage and salary workers who were members of unions—was 10.3 percent in 2019, down by 0.2 percentage point from 2018. In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent.

Total employer compensation costs for private-industry union workers were $48.57 and for nonunion workers $34.16 per employee hour worked in March 2020. The cost of benefits accounted for 40.5 percent of total compensation (or $19.65) for union workers and 28.4 percent (or $9.71) for nonunion workers.

Looking to the Future

We released our latest set of long-term employment projections September 1. We project employment to grow by 6.0 million jobs from 2019 to 2029. That is an annual growth rate of 0.4 percent, slower than the 2009–19 annual growth rate of 1.3 percent. The healthcare and social assistance sector is projected to add the most new jobs, and 6 of the 10 fastest growing occupations are related to healthcare. These projections do not include impacts of the COVID-19 pandemic and response efforts. We develop the projections using models based on historical data. The historical data for this set of projections cover the period through 2019, so all input data precede the pandemic. We will continue to examine the effects of the pandemic as we update our projections next year and the years that follow.

From an American worker’s first job to retirement and everything in between, BLS has a stat for that! Want to learn more? Follow us on Twitter @BLS_gov.

Let’s Celebrate the Productive U.S. Workforce

Earlier this month our nation celebrated Labor Day. We celebrate Labor Day for many good reasons, but one of the best is to appreciate, even for just one day, how amazingly productive our nation’s workforce is. As we shop online or in stores, we rarely stop to think about the skills and effort it takes to produce our goods and services. Let’s take a moment to celebrate that productivity and the progress we have seen in the last few years.

Indeed, productivity of labor is at the heart of the American economy. How much workers produce for each hour they labor and how efficiently they use resources determines the pace of economic growth and the volume of goods that supply everyone (workers included) with the products and services that shape our daily lives. Growing productivity means that our standard of living very likely is improving.

Our workers are very productive. On average, each U.S. worker produced goods and services worth $129,755 last year. That’s compared with the next largest world economies: Germany at $99,377; the United Kingdom at $93,226; Japan at $78,615; China at $32,553; and India at $19,555.

Despite our great reliance on rising productivity to attain the good things of life, academics and researchers still marvel at the mysteries that surround the subject. What drives productivity change? What are the key factors behind these international differences in output per worker?

For example, does the quality of labor alone determine the rate of productivity growth? It is certainly a component of what drives labor productivity, although some countries have high educational and training levels but low productivity per worker. Labor quality has been steadily rising in the United States, but we don’t know the impact on productivity as the baby boomers retire and are replaced.

What is the right mix of labor and technology needed for changing the productivity growth rate? How can we measure the value of the dignity of work, or the personal and social value that work yields? And, what is the role of technical knowledge and product design in determining the productivity of labor?

Then there’s the mysterious role of innovation. Economists think they know that invention and scientific breakthroughs can make massive changes to productivity. However, which innovations transform productivity, and have all the low-lying fruits of productivity enhancement already been harvested?

Despite our strong international showing, analysts who watch these data may be a tad bit concerned with the sluggishness in U.S. productivity growth over the past 10 years. Since 2011, the rate of growth in labor productivity has slowed to one-third of the pace shown between 2000 and 2008, despite acceleration in the past 2 years. Even when we broaden the concept of productivity to include the output attributable to the combination of labor and other productive factors (also known as multifactor productivity), the rate of growth is still one-third of the pace it was in the first decade of this century.

Even with a subsidence in the growth rate, it is worth noting that both labor input and output are on the rise. Since the start of the current business cycle expansion in 2009, the rate of growth in labor input has been five times what it was prior to the Great Recession during the previous expansion.

Output has also grown steadily, but at a slower rate than hours. Because labor productivity is the quotient of output divided by hours, productivity can slow even when both components are rising. The relationship between the relative growth of output and hours is one of the many features that makes productivity both challenging and fascinating to study.

The Bureau of Labor Statistics engages with an extensive network of researchers in and out of the academic community whose mission is, like ours, to better understand and measure the productivity of the U.S. labor force. Labor productivity is an amazing subject because it incorporates so many facets of the nation’s economy into one statistic. By peeling back layers and looking at the details behind the summary number, we can gain valuable insight on the hours and output of our nation’s workforce. We will continue to produce and provide context for these valuable statistics that help tell the story of America’s workers.

That said, we should never lose sight of the big picture. America’s workers lead the world in their capacity to create the goods and services that define our economy and improve our lives. And that, certainly, is something great to celebrate!

Labor Day 2019 Fast Facts

I have been Commissioner of Labor Statistics for 5 months now, and I continue to be amazed by the range and quality of data we publish about the U.S. labor market and the well-being of American workers. As we like to say at BLS, we really do have a stat for that! We won’t rest on what we have done, however. We continue to strive for more data and better data to help workers, jobseekers, students, businesses, and policymakers make informed decisions. Labor Day is a good time to reflect on where we are. This year is the 125th anniversary of celebrating Labor Day as a national holiday. Before you set out to enjoy the long holiday weekend, take a moment to look at some fast facts we’ve compiled on the current picture of our labor market.

Working

Working or Looking for Work

  • The civilian labor force participation rate—the share of the population working or looking for work—was 63.0 percent in July 2019. The rate had trended down from the 2000s through the early 2010s, but it has remained fairly steady since 2014.

Not Working

  • The unemployment rate was 3.7 percent in July. In April and May, the rate hit its lowest point, 3.6 percent, since 1969.
  • In July, there were 1.2 million long-term unemployed (those jobless for 27 weeks or more). This represented 19.2 percent of the unemployed, down from a peak of 45.5 percent in April 2010 but still above the 16-percent share in late 2006.
  • Among the major worker groups, the unemployment rate for teenagers was 12.8 percent in July 2019, while the rates were 3.4 percent for both adult women and adult men. The unemployment rate was 6.0 percent for Blacks or African Americans, 4.5 percent for Hispanics or Latinos, 2.8 percent for Asians, and 3.3 percent for Whites.

Job Openings

Pay and Benefits

  • Average weekly earnings rose by 2.6 percent from July 2018 to July 2019. After adjusting for inflation in consumer prices, real average weekly earnings were up 0.8 percent during this period.
  • Civilian compensation (wage and benefit) costs increased 2.7 percent in June 2019 from a year earlier. After adjusting for inflation, real compensation costs rose 1.1 percent over the year.
  • Paid leave benefits are available to most private industry workers. The access rates in March 2018 were 71 percent for sick leave, 77 percent for vacation, and 78 percent for holidays.
  • About 91 percent of civilian workers with access to paid holidays receive Labor Day as a paid holiday.
  • In March 2018, civilian workers with employer-provided medical plans paid 20 percent of the cost of medical care premiums for single coverage and 32 percent for family coverage.

Productivity

  • Labor productivity—output per hour worked—in the U.S. nonfarm business sector grew 1.8 percent from the second quarter of 2018 to the second quarter of 2019.
  • Some industries had much faster growth in 2018, including electronic shopping and mail-order houses (10.6 percent) and wireless telecommunications carriers (10.1 percent).
  • Multifactor productivity in the private nonfarm business sector rose 1.0 percent in 2018. That growth is 0.2 percentage point higher than the average annual rate of 0.8 percent from 1987 to 2018.

Safety and Health

Unionization

  • The union membership rate—the percent of wage and salary workers who were members of unions—was 10.5 percent in 2018, down by 0.2 percentage point from 2017. In 1983, the first year for which comparable union data are available, the union membership rate was 20.1 percent.

Work Stoppages

  • In the first 7 months of 2019, there have been 307,500 workers involved in major work stoppages that began this year. (Major work stoppages are strikes or lockouts that involve 1,000 or more workers and last one full shift or longer.) For all of 2018, there were 485,200 workers involved in major work stoppages, the largest number since 1986, when about 533,100 workers were involved.
  • There have been 15 work stoppages beginning in 2019. For all of 2018, 20 work stoppages began during the year.

Education

  • Occupations that typically require a bachelor’s degree for entry made up 22 percent of employment in 2018. This educational category includes registered nurses, teachers at the kindergarten through secondary levels, and many management, business and financial operations, computer, and engineering occupations.
  • For 18 of the 30 occupations projected to grow the fastest between 2016 and 2026, some postsecondary education is typically required for entry. Be sure to check out our updated employment projections, covering 2018 to 2028, that we will publish September 4!

From an American worker’s first job to retirement and everything in between, BLS has a stat for that! Want to learn more? Follow us on Twitter @BLS_gov.

What is “Benchmarking” of Bureau of Labor Statistics Employment Data?

BLS has released the “preliminary benchmark” information for the Current Employment Statistics (CES) survey, the source of monthly information on jobs.

You know what a bench is

Image of a park bench

and you know what a mark is,

Image of a checkmark

but what pray tell is a benchmark? And what does this preliminary benchmark tell us?

So as not to bury the lead, I’ll let you know that this year’s preliminary estimate of the benchmark revision is a bit bigger than it has been in the last few years. Our preliminary estimate indicates a downward adjustment to March 2019 total nonfarm employment of 501,000. Still, that estimated revision is only -0.3 percent of nonfarm employment. In most years our monthly employment survey has done a good job at estimating the total number of payroll jobs. More details on that below. This year our survey estimates are off more than we would like. Our goal is to provide estimates that are excellent and not just good or pretty good, and that’s why we benchmark the survey data each year.

What is benchmarking and why do we do it?

The CES is a monthly survey of approximately 142,000 businesses and government agencies composed of approximately 689,000 individual worksites. As with all sample-based surveys, CES estimates are subject to sampling error. This means that while we work hard to ensure those 689,000 worksites represent all 10 million worksites in the country, sometimes our sample may not perfectly reflect all worksites. So the monthly CES estimates aren’t exactly the same as if we had counted employment from all 10 million worksites each month. To fix this problem, we “benchmark” the CES data to an actual count of all employees, information that’s only available several months after the initial CES data are published.

In essence, we produce employment information really quickly from a sample of employers, then anchor that information to a complete count of employment once a year.

The primary source of the CES sample is the BLS Quarterly Census of Employment and Wages (QCEW) program, which collects employment and wage data from states’ unemployment insurance tax systems. This is also the main source of the complete count of employment used in the benchmark process. QCEW data are typically available about 5 months after the end of each quarter.

Each year, we re-anchor the sample-based employment estimates to these full population counts for March of the prior year. This process—which we call benchmarking—improves the accuracy of the CES data. That’s because the population counts are not subject to the sampling and modeling errors that may occur with the CES monthly estimates. Since the CES data are re-anchored to March of the last year, CES estimates are typically revised from April of the year prior up to the March benchmark. Then estimates from the benchmark forward to December are revised to reflect the new March employment level.

We will publish the final benchmark revision in February 2020 and will incorporate revisions to data from April 2018 to December 2019. (Thus, we’re not showing a 2019 number in graph and table below). On August 21, BLS released a first look at what this revision will be—what we call the “preliminary benchmark.” This preliminary benchmark gives us an idea of what the revised nonfarm employment estimates for March 2019 will be.

The size of the national benchmark revision is a measure of the accuracy of the CES estimates, and we take pride that these revisions are typically small.

Chart showing differences in nonfarm employment after benchmarking, 2009–18

For total employment nationwide, the absolute annual benchmark revision has averaged about 0.2 percent over the past decade, with a range from −0.7 percent to +0.3 percent.

The following table shows the total payroll employment estimated from the CES before and after the benchmark over the past 10 years. For example, pre-benchmark employment for 2018 was 147.4 million; post-benchmark employment was also 147.4 million.

Nonfarm employment estimates before and after benchmarking, March 2009–March 2018
Year Level before benchmark Level after benchmark Difference Percent difference
2009 132,077,000 131,175,000 -902,000 –0.7
2010 128,958,000 128,584,000 -374,000 –0.3
2011 129,899,000 130,061,000 162,000 0.1
2012 132,081,000 132,505,000 424,000 0.3
2013 134,570,000 134,917,000 347,000 0.3
2014 137,147,000 137,214,000 67,000 <0.05
2015 140,298,000 140,099,000 -199,000 –0.1
2016 142,895,000 142,814,000 -81,000 –0.1
2017 144,940,000 145,078,000 138,000 0.1
2018 147,384,000 147,368,000 -16,000 <-0.05

The 2019 preliminary benchmark revision is following the same pattern, with an estimated difference of -0.3 percent. We provide this first look at the benchmark revision to give data users a sense of what we are seeing in the data. The final benchmark may be a little different—could be higher, could be lower. But based on recent experience, we are confident the benchmark released next February will show only a moderate difference from what we’ve been publishing each month and will validate the accuracy of our monthly CES estimates.

Want to know more? See our Current Employment Statistics webpage, send us an email, or call (202) 691-6555.

New State Data on Labor Productivity and Job Openings and Labor Turnover

While international trade has become increasingly important to our economy over the past 60 years, U.S. households and businesses continue to rely primarily on local markets for most goods and services. The products we create come from all over our country. Workers, businesses, and policymakers care deeply about the economy in our own backyards. That’s why BLS recently began publishing new data on labor productivity by state and, separately, on job openings and labor turnover by state.

State labor productivity

Our measures of labor productivity for states are still experimental, meaning we’re still assessing them and considering ways to improve them. These measures cover the private nonfarm sector for all 50 states and the District of Columbia from 2007 to 2017. They show that labor productivity growth varies a lot from state to state. From 2007 to 2017, labor productivity changes ranged from a gain of 3.1 percent per year in North Dakota to a loss of 0.7 percent per year in Louisiana. In 2017, labor productivity grew fastest in Montana (2.0 percent), West Virginia (1.9 percent), California (1.8 percent), and Hawaii (1.7 percent). You can get the complete dataset from our state labor productivity page.

U.S. map showing productivity growth in the private nonfarm sector in each state from 2007 to 2017

Editor’s note: Data for this map are available in the table below.

We construct these state measures from data published by several BLS programs and by our colleagues at the Bureau of Economic Analysis. A recent Monthly Labor Review article, “BLS publishes experimental state-level labor productivity measures,” explains the data and the methods for putting them all together. The article also highlights how you might use these new state data. We’re happy to have your feedback on these new measures. Just send us an email.

State job openings and labor turnover

We also have new data on job openings, hiring, and separations by state. Data from the Job Openings and Labor Turnover Survey are widely used by economic policymakers and others who want to understand the job flows that lead to net changes in employment. We have these data back to December 2000 and update them every month for the nation and the four broad census regions. Now we have them for all states and the District of Columbia too. These state estimates are available from February 2001 through December 2018 for the total nonfarm sector.

Many of you have told us you want more geographic details about job openings and turnover. To make sense of data on job openings, for example, it helps to know where the jobs are. The survey sample size is designed to estimate job openings and turnover for major industries only at the national and regional levels. For several years we have researched ways to produce model-assisted estimates for states. As with the state productivity data, these estimates are experimental. We plan to update the state estimates each quarter while we assess your feedback on the models and the usefulness of the data. We encourage you to send us your comments.

But wait, there’s more! We’ve updated the BLS Local Data App!

In previous blog posts, we’ve told you about our mobile app for customers who want to know more about local labor markets. This app now includes employment and wage data for detailed industries and occupations. (It doesn’t yet have the new data on state productivity, job openings, and turnover.)

Interested in local data for a particular industry or occupation? The latest version allows you to quickly search or use the built-in industry and occupational lists. Want to know which industry employs the most workers in your area or which occupation pays the highest? The updated app allows you to sort the employment and wage data across groups of industries and occupations. You can still find data on unemployment rates and total employment. You also can find your state, metro area, or county by searching for a zip code or using your device’s current location.

These new data and features result from the continued partnership between BLS and the U.S. Department of Labor’s Office of the Chief Information Officer. Be on the lookout for more new features to be added in future releases.

Download the BLS Local Data app from the App Store or Google Play today!

Annual percent change in labor productivity in the private nonfarm sector, 2007–17
State Annual percent change
North Dakota 3.1
California 1.7
Oregon 1.7
Washington 1.7
Colorado 1.6
Oklahoma 1.6
Maryland 1.5
Montana 1.5
Pennsylvania 1.5
Massachusetts 1.4
New Mexico 1.4
Vermont 1.4
Idaho 1.3
Kansas 1.3
Nebraska 1.1
New Hampshire 1.1
South Carolina 1.1
Tennessee 1.1
Texas 1.1
West Virginia 1.1
Alabama 1.0
Hawaii 1.0
Kentucky 1.0
Minnesota 1.0
New York 1.0
Rhode Island 1.0
South Dakota 1.0
Virginia 1.0
Georgia 0.9
Arkansas 0.8
Missouri 0.8
Ohio 0.8
Utah 0.8
Illinois 0.7
North Carolina 0.7
Delaware 0.6
Florida 0.6
Iowa 0.6
Indiana 0.5
Mississippi 0.5
New Jersey 0.5
Wisconsin 0.5
Alaska 0.4
Arizona 0.4
District of Columbia 0.4
Michigan 0.4
Maine 0.3
Nevada 0.3
Wyoming 0.1
Connecticut -0.5
Louisiana -0.7