Employment, Unemployment & Labor Force: Monthly Unemployment Rate
This trend is improving.
Erie County’s unemployment rate, on a seasonally adjusted basis, has fallen to 5.5 percent in July 2015, compared to 6.2 percent a year ago. This continues the downward trend since 2010, when Erie’s unemployment rate was above 10 percent. However, as of July 2015, Erie’s unemployment rate was slightly higher than that for the state of Pennsylvania (5.4 percent), the U.S. as a whole (5.3 percent), and the average for the thirteen Erie Vital Signs peer areas (4.7 percent).
The labor force includes individuals who are employed as well as those who are unemployed. To be considered unemployed, an individual must be actively looking for a job. (Individuals who are on layoff but expecting recall need not be looking for work to be counted as unemployed.) The monthly unemployment rate is the total number of individuals unemployed as a percent of the labor force in a given month.
Why is this important?
It is important to monitor unemployment rates because unemployment can produce economic losses. Unemployed workers suffer income loss, which results in lower consumption and possible negative health and other social consequences. Unemployment could also lead to economic losses since more goods and services could have been produced by those unemployed.
At the beginning of each month, the U.S. Bureau of Labor Statistics (BLS) releases the latest civilian labor force data (for the previous month) for the national economy, including the unemployment rate. The BLS also works cooperatively with state government agencies such as the Center for Workforce Information & Analysis of the Pennsylvania Department of Labor & Industry to provide state and local data through the Local Area Unemployment Statistics (LAUS) and Current Employment Statistics (CES) programs.
Civilian labor force data include estimates of the number of individuals in the labor force (individuals aged 16 and above who are working or looking for work), the number employed, the number unemployed, and the unemployment rate. The statistics come from several sources, including the Current Population Survey (CPS), a sample survey of households that is conducted for the BLS by the U.S. Census Bureau; the Current Employment Statistics (CES) survey; and state unemployment insurance claims data. The monthly data are seasonally adjusted in order to eliminate the influences of recurring seasonal events such as weather, holidays, and the opening and closing of schools, allowing month-to-month economic trends to be more discernable.
Labor Force Definitions:
The labor force: includes both the employed and unemployed (who are actively seeking work).
Employed persons: those who did any work at all for pay or profit in the survey reference week (the week including the 12th of the month) or worked 15 hours or more without pay in a family business or farm, plus those not working who have a job from which they were temporarily absent, whether or not paid, for such reasons as labor-management dispute, illness, or vacation.
Unemployed persons: those who did not work at all in the reference week, have actively looked for a job sometime in the 4-week period ending with the survey reference week, and are currently available for work. Note: persons on layoff expecting recall need not be looking for work to be counted as unemployed.
Monthly unemployment rate: the total number of individuals unemployed as a percent of the labor force in a given month.
The Nitty-Gritty Details
- U.S. Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, How the Government Measures Unemployment
- U.S. Bureau of Labor Statistics, Labor Force Data Derived from the Current Population Survey, BLS Handbook of Methods
- U.S. Bureau of Labor Statistics, Local Area Unemployment Statistics
- U.S. Bureau of Labor Statistics, Metropolitan Area Employment and Unemployment Statistics, Schedule of Release Dates
This EVS indicator has no subcategories. The BLS does provide data at the national level for subcategories based on sex, age, education, race, and other selected characteristics.
These variables include data on all 13 of the standard peer areas, along with U.S. and PA data.
Other Related Data
Latest Erie Data from the Economic Research Institute of Erie, at the Black School of Business at Penn State Behrend