Displaced Workers Technical Note

Technical Note
 
  The data presented in this release were collected through a supplement to the January
2024 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 release are based on Census 2020 population controls that are
updated annually in January. Additional information, reports, and archived news release
are 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 telecommunications relay services.

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 data from the CPS and guidance on estimating 
standard errors is available at www.bls.gov/cps/documentation.htm#reliability.

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 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 2021 through December 2023, 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.