Quality Improvement in the Quarterly Census of Employment and Wages (QCEW) Program and Its Implications for Comparability Over Time
The changes introduced in the 2007 revision to the North American Industry Classification System (NAICS) are relatively small and primarily affect the information sector.
Each year approximately one-fourth of employers with four or more employees covered by Unemployment Insurance (UI) in Wyoming are contacted by mail questionnaire to confirm that they have been assigned to the correct county and industry category (e.g., mining, construction, manufacturing) based on the North American Industry Classification System (NAICS; U.S. Census Bureau, 2007). If it is found that an employer has changed primary business activity, a different NAICS code is assigned to reflect that change. If their primary work location has moved to another county, the county code is changed. These are known as 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.
QCEW 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 2007 ended December 31 and the taxes were due January 31, 2008). Then the data must be electronically 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 2006 were first published in July 2007 Wyoming Labor Force Trends, total employment was shown in the tables as 270,182. However, the tables accompanying the article beginning on page 1 show fourth quarter 2006 total employment as 270,472, a revision of 290 jobs (0.1%).References
U.S. Census Bureau. (2007, August 28). 2007 NAICS codes and titles. Retrieved September 20, 2007, from http://www.census.gov/naics/2007/NAICOD07.HTM