What is a Job?

A quick reference to some commonly used terminology

Common terms used to describe jobs and jobs data are offered below as a generic reference. For a
detailed definition of terms and technical concepts see the Bureau of Labor Statistics Handbook of
Methods and/or technical documentation provided by the respective agencies at their websites.
At-Place Employment
At-Place Employment represents all jobs, both full-time and part-time, in a
given area. The job count typically includes all wage and salaried workers
covered by the unemployment insurance program; the self-employed; farmers
and farm laborers; paid household help; sole proprietors; members of
partnerships; railroad workers; the armed forces; elected officials and judges;
clergy; and those establishments whose workers are not covered by insurance.
There are slight differences in the scope of coverage among providers of this
data. Many local jurisdictions—for this type of jobs data— rely on the U.S.
Bureau of Economic Analysis which has the most comprehensive count; others
rely on the U.S. Bureau of Labor Statistics. In Montgomery County, the official
at-place employment count is generated by the Planning Department in
coordination with the Metropolitan Washington Council of Governments.

Civilian Labor Force

The civilian labor force, also referred to simply as labor force, is defined as all
persons 16 years and older currently employed or unemployed but actively
seeking work. The civilian labor force does not include persons who are in the
military or institutionalized (i.e., in prison, mental institutions or homes for the
aged and infirm). Data on the labor force is used to calculate labor force
participation rates and unemployment rates for the nation and other sub-
national geographies. Civilian Labor Force statistics are available from the U.S.
Census Bureau’s Current Population Survey and the Decennial Census.

Covered Employment
This is a subset of at-place employment. Covered employment typically captures
between 85 percent and 90 percent of at-place employment. This data is also
the most ubiquitous source for economic research. It is a monthly tabulation of
jobs, wage and establishment data by industry for the nation, each state, region,
and county. The U.S. Bureau of Labor Statistics makes covered employment data
accessible through its Quarterly Census of Employment and Wages (QCEW)
program. QCEW reports data only on those establishments and workers covered
by State unemployment insurance (UI) laws and on Federal workers covered by
the Unemployment Compensation for Federal Employees (UCFE) program.
Employed Persons by Place of Residence
This is a subset of civilian labor force data. The statistic captures the number of
persons living in a particular jurisdiction who are gainfully employed—regardless
of where they might work. The U.S. Census Bureau reports this information in
the Current Population Survey. A handful of county and municipal jurisdictions
also have the research capacity to collect jobs data by place of residence and
report aggregate summary information. The Montgomery County Planning
Department, in analyzing results from its 2005 Census Update Survey of
households, reported that 526,830 County residents were employed.

Establishment
It is a unique physical location for a specified type of economic activity. An
office, school, hospital, store, hotel, restaurant, or factory—these are all
examples of an establishment. Establishments also represent the headquarters,
subsidiary, or branch locations of a company. An establishment record is the
basis for most jobs data— especially covered employment and at-place
employment statistics. In 2008, there were nearly 9.1 million covered
establishments in the United States; in Montgomery County, Maryland there
were 33,220 covered establishments.

Government Employment
A subset of at-place employment, the government job count (i.e. persons
gainfully employed by and performing services for federal, state and local
government agencies) is captured in the Census of Governments, a survey
conducted by the Census Bureau every five years. This census provides detailed
information about government finances and civilian government jobs. Another
source of civilian government employment is the U.S. Bureau of Labor Statistics
QCEW program. In Montgomery County, the Planning Department conducts an
annual survey of 13 federal facilities and obtains a count of workers at each
facility’s owned and leased space. The Planning Department analysis not only
captures civilian government workers but contractors, military personnel and
others working in space owned or leased by a federal facility.
Journey-to-Work
It is a decennial census question on commuting behavior. Responses show how
people get to work, how long it takes, and where they commute from and to. A
similar set of questions is asked in the Montgomery County Census Update
Survey. Data on journey-to-work helps answer questions such as: How many
persons who live in Montgomery County also work in Montgomery County?
How many persons who live in Silver Spring, for example, work in Virginia?
Adding to the richness of the decennial Journey-to-Work data, the U.S. Bureau
of Economic Analysis shows commuting patterns by county by industry: results
from the 2000 decennial census show, at that time, 14,000 Montgomery
County residents were commuting to finance jobs in the District of Columbia.

Jobs Capacity
The number of jobs, distinguished by land use, which could be supported in a
given area. When local governments forecast future employment, they are in
effect measuring the capacity of available land to absorb new commercial
development. Montgomery County in Maryland, King County in Washington,
and Multnomah in Oregon among others all take into account land supply,
development activity and zoning to make their job capacity estimates. All utilize
standard employee density factors to convert commercial space into jobs.

NAICS
NAICS, the North American Industrial Classification System, is the standard
coding system—since 1997— adopted by governments, research organizations,
and businesses across Canada, Mexico and the United States. It is a six-digit
hierarchical coding system used to organize and classify economic activity.
Economic activity occurs at the establishment level. Establishments that do
similar things in similar ways are grouped together. Each establishment
grouping makes up an industry. There are 1,170 industries. At the highest level
of the coding system are the supersectors: Natural Resources and Mining,
Construction, Manufacturing, Trade-Transportation-Utilities, Financial
Activities, Professional and Business Services, Education and Health Services,
Leisure and Hospitality, Other Services, and Public Administration. Drilling down
the hierarchy are the two digit industries or sectors of the economy. In its
Economic Forces that Shape Montgomery County report, the Planning
Department shows trends in employment by sector.
Occupation Employment Statistics (OES)
Occupation data measures wages earned and types of work performed by
employees at establishments. The U.S. Bureau of Labor Statistics in
coordination with state workforce agencies conducts a three year survey of 1.2
million establishments. The results are organized into occupational categories
by industry. The occupational classification system is a four digit hierarchical
coding system. There are 821 detailed occupations grouped under 23 major
categories. These groupings are based on occupations having similar education,
skill, experience, or performance requirements.

Seasonal Adjustment
Statistical techniques used to adjust or smooth out seasonal influences in
economic data. Economic data that is produced on a regular cycle— monthly,
quarterly, annually— is subject to sudden peaks or troughs. For example, if one
is measuring sales data, the analyst is likely to see a sudden spike during a
holiday because of increased shopping and travel activity; heating oil usage is
likely to increase when there is colder weather. These seasonal influences make
it difficult to analyze discrete changes in economic performance. Thus, for
analysis purposes, researchers adjust or smooth out the data. The Census
Bureau, for instance, seasonally adjusts housing data.

Survey of Business Owners

The Survey of Business Owners (SBO) provides summary statistics on business
owners by gender, race and ethnicity, age, education level, veteran status, and
primary function in the business. The Survey tracks the following information
on businesses: number of employer and non-employer firms, number of family,
home-based and start-up firms, employment, sales and receipts, annual
payroll, sources of financing for expansion, and capital improvements. The U.S.
Census Bureau conducts this survey every five years. Businesses not captured in
this survey are farm and farm workers, air and rail transportation services,
government, non-profits, and household help. Prior to 2002, this survey was
called the Census of Minority and Women-Owned Business.
Unemployment Insurance (UI)
The UI program provides workers who are displaced or laid off from their jobs
with temporary financial assistance—monies for at least twenty-six weeks to
offset lost income. UI is financed through federal and state taxes on employer
payrolls. The federal portion of the tax on employers is collected annually by
the Internal Revenue Service. These federal tax monies are then used by the
U.S. Department of Labor to fund state workforce agencies. State workforce
agencies collect the state portion of UI taxes. It is these employer contributions
to states that are provided as unemployment benefits to qualified workers. Not
all employers, however, pay UI taxes and therefore not all workers are covered.
State law governs administration, eligibility and disbursement rules for the UI
programs. Generally, UI programs do not cover farms and farm workers,
domestic workers (household help), railroad workers, self-employed, active
military and religious organizations. One of the reporting requirements of the
Unemployment Insurance program is for state workforce agencies to collect
quarterly covered employment data and transmit that detail to the U.S.
Department of Labor; also make summary information accessible to the public.

Unemployment Rate
The unemployment rate is a good measure of the economy’s health. A
consistently rising unemployment rate is an indicator of a slowing or
recessionary economy. As unemployment rises, for example, consumer
spending is likely to decrease. The unemployment rate is the ratio of
unemployed persons to the civilian labor force. The Bureau of Labor Statistics
estimates the number of unemployed persons based on responses to the
Census Bureau’s Current Population Survey, and the number of workers filing
unemployment insurance claims. An unemployed person is 16 years or older,
currently out of work but actively seeking employment. The unemployment
rate does not capture persons who have left the labor force: the retired, those
going to school, those with a disability, and those with family responsibilities.
Discouraged workers are also not counted in the unemployment rate.
Links to Employment Data Sources

U.S. Department of Labor, Bureau of Labor Statistics

Quarterly Census of Employment and Wages

Current Employment Statistics

Local Area Unemployment Statistics

Occupation Employment Statistics

U.S. Department of Commerce, Bureau of the Census

American Community Survey

County Business Patterns

Current Population Survey

Economic Census

U.S. Department of Commerce, Bureau of Economic Analysis

Journey-to-Work

Regional Economic Statistics

Maryland Department of Labor, Licensing, & Regulation

Career and Workforce Information

Maryland Department of Planning, State Data Center

Maryland National Capital Park and Planning Commission

Research & Technology Center, Montgomery County Planning Department