© Copyright 2007 by the Wyoming Department of Employment, Research & Planning

WYOMING LABOR FORCE TRENDS

Vol. 44 No. 7

Quality Improvement in the Quarterly Census of Employment and Wages (QCEW) Program and Its Implications for Comparability Over Time

by: David Bullard, Senior Economist

Each year, approximately one-third of employers covered by Unemployment Insurance (UI) in Wyoming are contacted by mail questionnaire to confirm that they have been assigned to the correct industry category (e.g., Mining, Construction, Manufacturing) based on the North American Industry Classification System (NAICS; U.S. Census Bureau, 2002). If it is found that an employer has changed primary business activity, a different NAICS code is assigned to reflect that change. This is known as a noneconomic code change. In Fiscal Year 2006, there were 38 noneconomic code changes. Research staff also review employers’ NAICS codes if the business is sold, becomes incorporated, or otherwise changes ownership. In this manner, Research & Planning continuously ensures that employers are assigned to the correct industry category. However, these noneconomic code changes also make it difficult for data users to make direct comparisons across years. Sometimes, large employers may move from one NAICS sector to another.

Quarterly Census of Employment and Wages data are usually published six to nine months after the end of the reference quarter. The deadline for employers to file their quarterly unemployment insurance contributions report is one month after the end of the quarter (fourth quarter ended December 31 and the taxes were due on January 31). Then the data must be scanned, edited, and cleaned up. Missing reports must be researched and errors corrected. Despite the time lag, QCEW provides employment and wage data at the county and industry level that are not available from any other source.

Each quarter, QCEW data are revised to reflect the receipt of late reports and corrections from employers. At the total level, these revisions are usually quite small. For example, when data for fourth quarter 2005 were first published, total employment was shown in the tables as 258,820, but the tables accompanying this article show fourth quarter 2005 total employment as 257,490, a revision of 1,330 jobs or 0.5%.

References

U.S. Census Bureau. (2002, September 10). 2002 NAICS codes and titles. Retrieved December 18, 2003, from http://www.census.gov/epcd/naics02/ naicod02.htm