Displaced Workers Technical Note

Technical Note

   The data presented in this news release were collected through a supplement to the January 2026 Current 
Population Survey (CPS), the monthly survey of about 60,000 eligible households that provides basic
data on employment and unemployment 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 people who had been displaced (as defined below) from their
jobs over the prior 3 calendar years. The collection of these data is sponsored by the Department of
Labor's Chief Evaluation Office.
   
   Additional information, reports, and archived news releases are available at
www.bls.gov/cps/lfcharacteristics.htm#displaced. 

   Data presented in this news release are based on Census 2020 population controls that are updated
annually in January. Additional information is available at www.bls.gov/cps/documentation.htm#pop.

   If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access
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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 component of this difference that occurs
because samples differ by chance is known as sampling error, and its 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 
information, and errors made in the collection or processing of the data.

   Information about the reliability of national data from the CPS and instructions on how to generate
standard errors are available at www.bls.gov/cps/methods/reliability-of-CPS-estimates.htm. 

Concepts and questions
  
   Displaced workers are wage and salary workers 20 years of age and over who lost or left jobs because
their plant or company closed or moved, there was insufficient work for them to do, or their position 
or shift was abolished. Data are often presented for long-tenured displaced workers--those who had
worked for their employer for 3 or more years at the time of displacement.

   Wage and salary workers receive wages, salaries, commissions, tips, payment in kind, or piece rates. 
The group includes employees in both the private and public sectors but excludes all self-employed people,
both those with incorporated businesses as well as those with unincorporated businesses.

Data discussed in this news release on displaced workers were obtained from the following questions:

   (This question was asked of all people 20 years and over.) During the last 3 calendar years, that is, 
January 2023 through December 2025, 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, insufficient work,
or another similar reason?

   (If the respondent answered "yes" to the above question on job loss, the following question was
   then asked.) Which of these specific reasons describes why (name/you) (is/are) no longer working 
   at that job?
    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 classified as displaced and asked additional
questions about the lost job, including how many years they had worked for their employer; the year
the job was lost; the earnings, industry, and occupation of the lost job; and whether health
insurance had been provided. Other questions were asked to determine what occurred 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 employed at the time of the survey.