Economic News Release

Displaced Workers Technical Note

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Technical Note


   The data presented in this release were collected through a supplement 
to the January 2006 Current Population Survey (CPS), the monthly survey of 
about 60,000 households that provides the basic data on employment and un-
employment for the nation.  The CPS is conducted by the U.S. Census Bureau 
for the Bureau of Labor Statistics (BLS).  The purpose of this supplement 
was to obtain information on the number and characteristics of persons who 
had been displaced (as defined below) from their jobs over the prior 3 cal-
endar years.
   
   Data presented in this release are based on Census 2000 population
controls.  This was the same basis as the January 2004 survey.  Pre-
viously published estimates of displaced workers from the February 2000 
and January 2002 surveys were based on population controls from the 1990 
census.  The estimates from these earlier surveys have been recalculated 
using the new Census 2000-based population controls.  The revised popula-
tion controls raised the overall number of displaced workers in each sur-
vey, but had little or no impact on rates.
   
   Revised versions of the news release tables for the February 2000 and
January 2002 displaced worker surveys were made available on the BLS
Web site.

   For a discussion of the revised population controls and the impact that
their introduction had on the basic CPS data, see "Revisions to the Current
Population Survey Effective in January 2003" in the February 2003 issue of
Employment and Earnings and available at http://www.bls.gov/cps/rvcps03.pdf
on the BLS Web site.  Also see Adjustments to Household Survey Population
Estimates articles in the February 2004 and 2005 issues of Employment and 
Earnings.  Both articles are available  on the BLS Web site at http://www.
bls.gov/cps/cps04adj.pdf and http://www.bls.gov/cps/cps05adj.pdf.
   
   Information in this release will be made available to sensory impaired
individuals upon request.  Voice phone:  202-691-5200; TDD message referral 
phone number:  1-800-877-8339.

Reliability of the estimates
   
   Statistics based on the CPS are subject to both sampling and nonsampling
error.  When a sample, rather than the entire population, is surveyed, there 
is a chance that the sample estimates may differ from the "true" population 
values they represent.  The exact difference, or sampling error, varies de-
pending on the particular sample selected, and this variability is measured 
by the standard error of the estimate.  There is about a 90-percent chance, 
or level of confidence, that an estimate based on a sample will differ by 
no more than 1.6 standard errors from the "true" population value because 
of sampling error.  BLS analyses are generally conducted at the 90-percent 
level of confidence.
   
   The CPS data also are affected by nonsampling error.  Nonsampling error
can occur for many reasons, including the failure to sample a segment of
the population, inability to obtain information for all respondents in the
sample, inability or unwillingness of respondents to provide correct infor-
mation, and errors made in the collection or processing of the data.
   
   For a full discussion of the reliability of data from the CPS and infor-
mation on estimating standard errors, see the "Explanatory Notes and Esti-
mates of Error" section of Employment and Earnings.

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Concepts
   
   The first question asked of survey respondents to the CPS Supplement was, 
"During the last 3 calendar years, that is, January 2003 through December 2005, 
did (you/name) lose a job or leave one because:  (your/his/her) plant or company 
closed or moved, (your/his/her) position or shift was abolished, there was in-
sufficient work, or another similar reason?"  If the answer to that question was 
"yes," then the respondent was asked to identify which reason, among the follow-
ing, best described the reason for the job loss:
   
   Plant or company closed down or moved
   Plant or company operating but lost or left job because of:
      Insufficient work
      Position or shift abolished
      Seasonal job completed
   Self-operated business failed
   Some other reason

   Respondents who provided one of the first three reasons--plant or company 
closed or moved, insufficient work, or position or shift abolished--were then 
asked questions about the lost job, including how many years it had been held; 
the year the job was lost; its earnings, industry, and occupation; and whether 
health insurance had been provided.  Other questions were asked to determine 
what transpired before and after the job loss, such as:  Was the respondent 
notified of the upcoming dismissal?  How long did he/she go without work?  Did 
he/she receive unemployment benefits?  And, if so, were the benefits used up?  
Did the person move to another location after the job loss to take or look for 
another job?  Information also was collected about current health insurance 
coverage (other than Medicare and Medicaid) and current earnings for those em-
ployed in January 2006.

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