Glossary of LMI Terms
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
PREFACE
This publication is a compilation of technical terms and concepts that occur throughout this website. Its main purpose is to provide the correct perception and meaning of these terms. The glossary is restricted to frequently used and DES-specific ideas and definitions. If you find any errors or oversights on this page, please do not hesitate to inform us.
A
ACCESSIONS - Permanent or temporary additions to the employment rolls, whether of new or former employees, or transfers from another establishment of the company.
ACTIVE APPLICANT FILE - The persons who have registered at an Area Office and who are currently considered by that Area Office as available for referral to job openings or needing related services.
ADDITIONAL CLAIM - A notice of new unemployment filed at the beginning of a second or subsequent series of claims within a benefit year or within a period of eligibility when a break of one week or more has occurred in the claim series with intervening employment.
AFFIRMATIVE ACTION PROGRAM - Affirmative Action is a program which requires Federal contractors, subcontractors, and Federally assisted construction contractors to develop and maintain a written plan that tells what equal employment opportunity problems exist within the company and what steps a contractor is taking (and will take) to insure equal employment opportunities regardless of race, color, sex, handicap, veteran's status, national origin, and religion. The Office of Federal Contract Compliance Programs (OFCCP), U.S. Department of Labor, enforces compliance with regard to Affirmative Action, while the Research offices of the State Employment Security agencies provide statistical packets which employers use when developing their plans.
AGENT STATE - This also appears as "interstate". It describes claims from people who worked in another state and are now filing at a Minnesota office. For these claims, Minnesota is acting as the "agent" for the other states which are "liable" for the claims.
AGRICULTURAL EMPLOYMENT - Hired workers who are on a wage and salary status, unpaid family workers, self-employed and any migrant workers employed in Agriculture.
AGRICULTURE, FORESTRY, AND FISHERY - Industrial category composed of establishments primarily engaged in agricultural production, forestry, commercial fishing, hunting, trapping, and related services.
AID TO FAMILIES WITH DEPENDENT CHILDREN (AFDC) - A program authorized by the Social Security Act to provide financial assistance and social services to needy families with children.
ALL OTHER EMPLOYMENT - All domestic employment (i.e. private household workers) plus nonagricultural self-employed and unpaid family workers.
ANNUAL PLANNING INFORMATION REPORT - A report issued yearly by the Research and Statistical Services and its network of Regional LMI Centers providing current and historical information on labor force developments and employment trends by industry and occupation for a defined geographical area.
APPEAL - A request for a hearing to be held by an appeals authority of the Minnesota Department of Employment and Economic Development concerning a determination on a claim for unemployment benefits, an employer's liability or contribution rate, or a request for a review by a higher appeals authority of a decision made by a lower appeals authority.
AREA OFFICE - A full-time office of the Minnesota Department of Employment and Economic Development.
B
BASE PERIOD - A 52 week period prior to the benefit year in which a claimant must have had a specified minimum amount of insured work in order to quality for benefits. Wages earned during this base period are used in determining a claimant's weekly and maximum benefit amounts.
BENCHMARK - A standard or point of reference in measuring or judging the quality of estimated figures.
BENCHMARKING - A continuous process of establishing a new set of data which affects the series of estimates through revisions. Once a new benchmark is established, the adjustments to estimates between the new benchmark and the preceding one are carried forward progressively to the current month by use of sample trends. The benchmark is established less frequently (usually once a year) either by the data collected from a universe or from a larger sample, while the estimates are done more frequently (usually once a month) based on sample or secondary data. In the case of employment data, the benchmark is used to establish the level of employment, while the sample is primarily used to measure the month to month changes in the level.
BENCHWORK - Occupations concerned with the use of body members, had tools, and bench machines to fit, grind, carve, mold, paint, sew, assemble, inspect, repair, and work relatively small objects and materials.
BENEFIT YEAR - A 52-week period during which benefits may be received based on insured work in the base period. The starting date is usually the Sunday of the week in which the claimant first files a claim.
BUSINESS CYCLE - A recurring succession of swings in aggregate economic activity divisible into periods of Downturn, Contraction, Upturn, and Expansion. Firms and industries vary in their susceptibility to cycles, or, may run counter to the prevailing condition of the economy.
C
CENSUS OF POPULATION - A decennial count of the population taken at the end of March or beginning of April. It includes population and socio-economic statistics and other information for the Nation, the States, and sub-divisions of States. Many characteristics of the population are estimated from samples rather than through complete counts. Note: The Census counts workers where they live and as such, the economic characteristics of the population lend themselves to the "labor force" concept. This is in contrast to counts of employment developed from Employer reports which represent a count of jobs on a place of work basis, and therefore, are aligned with the "work force" concept. To the degree that workers commute from one area to another and are multiple job holders, labor force data from a census will disagree with work force information.
CIVILIAN LABOR FORCE - That part of the population 16 years of age and older who are employed or unemployed as derived on a person by residence, basis. The monthly Current Population Survey (CPS) conducted by the Bureau of the Census for the U.S. Department of Labor yields labor force data, as does the decennial Census. The WORK FORCE concept, on the other hand, counts people where the work, the employment information usually coming from various employer reports, e.g. report of covered employment, surveys of current employment, etc. These reports provide an estimate of establishment employment as distinct from household survey estimates of employment. As such, the Work Force concept of employment becomes a measure of the number of jobs rather than workers. Work Force data derived from establishments will differ from labor force information to the degree that workers commute from one area to another and hold more than one job. Because unemployed workers are always counted at their place of residence, unemployment rates derived by the two concepts will also differ (even though the total number of unemployed remains the same regardless of the counting method). This difference is most evident in small geographical areas where the effect of commuting becomes more pronounced, and in heavily populated metropolitan areas where there is substantial in-commuting to work. In metropolitan areas, estimates of the employed will almost always be smaller when labor force rather than work force statistics are cited, and the unemployment rate will be higher. But if, for instance, a major layoff were to occur outside the metropolitan area the unemployment rate could appear higher using the work force concept if a major share of the workers were commuters from the metropolitan area. Adding to the effects of commuting, the tendency of most areas to have 4 to 5 percent more jobs than workers (some workers hold more than one job) will push work force estimates over the labor force by this amount.
CLAIM - A request for unemployment benefit payments. A claim may be filed under any one or more of the following categories: A. The State program of Unemployment Insurance (UC), B. The Federal program of Unemployment Compensation for Federal Employees (UCFE), and C. The Federal program of Unemployment Compensation for ex-servicemen (UCX).
CLAIMANT U.I. - An individual who has been determined monetarily eligible for benefit payments under one or more of the Federal or State programs and whose benefit year or compensation, by reason of an extended duration period, has not ended and who has not exhausted his or her benefit rights.
COMMUNICATION - Establishments furnishing point-to-point communication service whether by wire or radio, and whether intended to be received aurally or visually. This includes radio and television broadcasting and services for the exchange or recording of messages.
COMMUTER CLAIMANTS - People who file at a Minnesota area office, but live in another state. They are a subgroup of intrastate claimants.
COMPREHENSIVE EMPLOYMENT & TRAINING ACT OF 1973 (CETA) - The purpose of this act is to provide job training and employment opportunities for economically disadvantaged, unemployed, and underemployed persons, and to assure that training and other services leading to maximum employment opportunities and the enhancement of self-sufficiency are provided by establishing a flexible and decentralized system of Federal, State, and Local manpower programs.
CONSTANT DOLLARS (REAL DOLLARS) - The purchasing power or value of the dollar at a designated point in time. The 1967 dollar is commonly used as a base and its purchasing power is defined as its value in buying a standard mix of goods and services by urban wage earners and clerical workers. If the purchasing power of the 1975 dollar is only 60 percent as effective in buying these items as the dollar was in 1967, the current dollar is worth sixty cents in terms of the constant dollar. Conversely, it would take $1.67 in 1975 dollars to equal a 1967 dollar (100/60 = 1.67). Constant dollars are used in comparing prices and wages over time because they cancel out the effects of inflation. As an example, wages in a particular industry may have doubled since 1967, but in terms of constant dollars, the purchasing power of these workers may have increased by only 20 percent because of inflation as shown below. $300/ ($150 x 1.67) = $300/ $250.50 = 1.20 or a 20% increase in actual purchasing power where: $150 equals the wage in 1967 $300 equals the wage in 1975 1.67 equals the 1975 dollars needed to equal 1967 dollars.
CONSUMER PRICE INDEX (CPI) - A measure of the average changes in prices over time of a given market basket of goods and services. Effective with the January 1978 index, the Bureau of Labor Statistics began publishing CPI's for two population groups: (1) A new CPI for all Urban Consumers (CPI-U) and (2) a revised CPI for Urban Wage Earners and Clerical Workers (CPI-W). Base period for both indexes is 1967 = 100 and both are published monthly for the United States, bimonthly for Minneapolis-St. Paul. As a measure of changes in retail prices it is widely used to adjust payments in wages and other contracts. It cannot, however, be used to measure family budgets or compare relative costs of living between cities. Movements from one month or year to another are usually expressed as percent changes rather than changes in index points. Unless the index in consideration is being compared with 1967 (CPI = 100.0) one cannot merely subtract index points to compute the percent change in consumer prices. Instead, the figure must be divided by the index of the reference period. For example: Problem: To determine by what percent the cost of living increased from 1973 to 1974. 1973 CPI = 133.1 1974 CPI = 147.7 Then: 147.7/ 133.1 = 1.110 or, an 11.0 percent increase. (It is not: 147.7 - 133.1 = 14.6 percent increase)
CPI FOR ALL URBAN CONSUMERS - Includes groups which historically have been excluded from CPI coverage. The population covered is all urban residents including professional, technical, and managerial workers, self-employed workers, short-term workers, unemployed persons, retirees, and others not in the labor force as well as urban wage earners and clerical workers. Covers approximately 80 percent of the Total noninstitutional, civilian population of the United States.
CPI FOR URBAN WAGE EARNERS AND CLERICAL WORKERS - The population covered is urban wage earners and clerical worker families and single individuals living alone. At least one family member must have been employed for 37 weeks or more during the survey year in wage or clerical worker occupations. More than half of the Total family income had to be earned from wage earner or clerical worker occupations. Represents about one-half of the population covered by the CPI for All Urban Consumers. Note that neither index includes persons in the military services or in institutions, or persons in the military services or in institutions, or persons living outside urban areas such as farm families.
CONTRIBUTIONS - Payments required by the State Unemployment Insurance laws to be made by an employer to the State Unemployment Fund by reason of insured work.
COVERED EMPLOYMENT - A count of employed persons whose employment is covered by the Minnesota Employment Services Law. Excluded from coverage in the State of Minnesota are: (a) the self-employed; (b) farms with less than four employees in 20 weeks; (c) all railroad transportation employment; (d) insurance and real estate salesmen who work only on a commission basis; (e) those employed by a church for religious work; (f) minor children, spouse and parents working for the owner of a business; (g) elected public officials at the Federal, State, or Local levels of government; and (h) the Red Lake Chippewa Tribe.
COVERED WORKER - An individual who has earned wages in insured work.
CURRENT DOLLARS - In showing the monetary value of data over a period of time with no adjustment for inflation, the scale is said to be in current dollars. Current dollars differ from constant dollars in the current dollars have not been adjusted for the effects of inflation and represent prevailing prices at a given point in time.
CURRENT DURATION - The number of uninterrupted weeks each claimant has claimed during his or her current spell of unemployment.
CURRENT POPULATION SURVEY (CPS) - A nationwide monthly household survey conducted by the U.S. Bureau of the Census for the Bureau of Labor Statistics. The sample consists of approximately 70,000 households selected to represent the U.S. population 16 years of age and older. Households are interviewed on a rotating basis so that three-fourths of the sample is the same for any two consecutive months. The survey of the civilian noninstitutional population provides monthly statistics on employment, unemployment, and related subjects which are analyzed and published by the Bureau of Labor Statistics. Each month national labor force information from this survey is published by the U.S. Department of Labor in Employment and Earnings, Monthly Report on the Labor Force and the Labor Market Review.
D
DELAYED AND NEVER FILERS - Some workers laid off from covered employment delayed filing unemployment compensation claims (Delayed Filers) or never file (Never Filers), even though during the period of their separation from employment they were looking for work.
DEMOGRAPHY - The statistical science dealing with the distribution, density, vital statistics, etc. of populations.
DICTIONARY OF OCCUPATIONAL TITLES (DOT) - A classification structure of jobs that exist in the American economy, using a standard method of grouping jobs which have the same basic occupation, industrial, or worker characteristics and skill requirements to help the user discern relationships among occupations. The individual occupations are identified by a nine digit code with the first digit representing a very broad occupational grouping and each successive digit representing progressively finer categories.
DISASTER UNEMPLOYMENT ASSISTANCE (DUA) - UI - The Federal program that provides assistance payments to workers whose unemployment is attributable to situations declared as major disasters by the President of the United States.
DISCHARGES - A discharge is a termination of employment initiated by the employer for such reasons as incompetence, violation of rules, dishonesty, laziness, absenteeism, insubordination, failure to pass probationary period.
DISCOURAGED UNEMPLOYED - An unemployed person who thinks it is impossible to find a job so he or she does not seek employment. These persons are not included in the State or Bureau of Labor Statistics definition of unemployed because they are not actively seeking work.
DISPOSABLE INCOME - Personal income that is left for consumption and saving after deduction for direct Federal and State payroll taxes and contributions for social insurance.
Domain - Domains are the highest NAICS categories that consist of two aggregations representing either goods or service producing industries.
DURABLE GOODS OR HARD GOODS - Consumer or producer goods whose usefulness normally continues for three or more years and is not consumed or destroyed in a single usage (example of durables would include household appliances, automobiles and machinery). Durable Goods expenditures have traditionally been most sensitive to shifts in economic climate because of consumer ability to postpone the purchase of these commodities during recessionary periods. (Also see "Nondurable Goods").
DURATION OF BENEFITS - The maximum number of weeks for which unemployment benefits are to be paid or payable to an individual for total unemployment in a benefit year.
E
ECONOMICALLY DISADVANTAGED INDIVIDUAL - An individual who is a member of a family which (1) received public assistance; or (2) has a family income which, in relation to family size status, and location, does not exceed the most recently established poverty levels determined in accordance with criteria established by the Office of Management and Budget (OMB).
ECONOMIC DEVELOPMENT REGIONS - The Minnesota Regional Development Act of 1969 provided for the creation of regions to facilitate intergovernmental cooperation and to insure the orderly and harmonious coordination and development of programs on a regional basis. The boundaries of any region transcend the boundary lines of local government units containing multi-county areas. The Act also provided for the establishment of Regional Development Commissions to be responsible for socio-economic planning and development in their respective regions.
EMPLOYED PERSONS - All those who, during the mid-week of the month, did any work as paid employees in their own business, profession or farm, those who worked unpaid 15 hours or more in a family enterprise, or those who had jobs but were not working because of illness, bad weather, vacation, strike or personal reasons - regardless of whether they were paid or were seeking other employment. In the labor force concept even though persons may have held more than one job they are counted only once - at the job they worked the most hours. Using the work force concept, employment represents a count of jobs rather than workers, counting jobs at the place of business.
EMPLOYMENT (LABOR FORCE CONCEPT) - An estimate of unduplicated count of all those, who, during the calendar week including the 12th day of each month, did any work at all as paid employees or in their own business, profession, or on their own farm, or who worked 15 hours or more as unpaid workers in a family-operated enterprise. This estimate also includes all those who did not work, but had jobs or businesses from which they were temporarily absent due to illness, bad weather, vacation, labor-management dispute or various personal reasons.
EMPLOYMENT RATIO - The proportion of the non-institutionalized civilian population 16 years of age and older that is employed. Employment Ratio = Employed /Population 16 years and older.
EMPLOYMENT SECURITY AUTOMATED REPORTING SYSTEM (ESARS) - A computer assisted system that generates job order, applicant, and local office activity reports on a monthly, quarterly, and annual basis. Reports are prepared for the State, local office areas, districts, and regions.
EMPLOYMENT SERVICE - Also called Job Service. A publicly financed State agency such as the Minnesota Department of Employment and Economic Development which is designed to increase the employability of the unemployed, provide employment counseling to job seekers, provide assistance to employers, collect statistics relating to the labor market, and publish information and data on employment trends.
EMPLOYMENT STATUS - The indication of whether or not an individual is employed and the regular period of time that the individual is employed. Part-time: Employment which does not meet the full-time employment definition. Full-time: Varies with objective of the institution defining it. The Bureau of Labor Statistics uses 35 hours per week as the dividing line between full and part-time.
Establishment - An establishment is defined as the smallest operating business unit for which information can be provided on the cost of resources materials, labor, and capital employed to produce output. An establishment is generally a single physical location where business is conducted or where services or industrial operations are performed.
EXPANSION DEMAND - New job openings created by an expansion in a given occupation or industry. This is determined by a simple subtraction of the current year employment level from the projected year employment level. See also LABOR DEMAND and REPLACEMENT DEMAND.
EXPERIENCE RATING - A method of determining the contribution rates of individual employers based on benefits charged to that employers account as it relates to that employers taxable payroll during the rate determining period.
EXTENDED BENEFITS - The supplemental program that pays extended compensation during periods of specified high unemployment to individuals for weeks of unemployment after (1) they draw the maximum potential entitlement to regular compensation within their benefit year, or (2) after their benefit year ends while they are in continued unemployment status and have insufficient wage credits to establish a new claim provided, however, that the extended benefit period in the state began prior to the end of their benefit year. Extended benefits paid to claimants under state unemployment compensation law are jointly financed on a 50-50 basis by state and federal funds; extended benefits paid to UCFE and UCX claimants are totally financed by federal funds.
F
FARMING, FISHING, FORESTRY, AND RELATED - An occupational category concerned with growing, harvesting, catching, and gathering land and aquatic plant and animal life and the products thereof. It includes occupations that are concerned with providing services in support of these activities.
FINANCE, INSURANCE, AND REAL ESTATE - An industrial category composed of establishments operating primarily in the fields of finance, insurance, and real estate. This includes banks, trust companies, holding companies, credit agencies, investment companies, commodity and security dealers and exchanges; insurance carriers, brokers, and agents; and owners, lessors, lessees, buyers, sellers, agents, and developers of real estate.
FISCAL YEAR- A twelve month period between settlement of financial accounts. Starting in 1976, the U.S. Government fiscal year begins on October 1 and ends on September 30. Previously, the Federal fiscal year began on July 1 and ended on June 30. Fiscal Year 1980 designates the time period between October 1, 1979 and September 30, 1980. The State of Minnesota fiscal year runs from July 1 through June 30.
G
GROSS NATIONAL PRODUCT (GNP) - Gross National Product is the market value of all goods and services produced by the labor and property supplied by residents of the United States before deduction of depreciation charges and other allowances for business and institutional consumption of capital goods. On the expenditure side GNP is composed of the purchase of goods and services by consumers and government, gross private domestic investment by business and industry (including the change in business inventories), and net exports (exports less imports). On the income side it is the value added in the processes of producing goods and services that flows as income to the owners of productive resources (labor, property, and entrepreneurship).
H
I
INA - Information not available.
INDEX NUMBERS - A device for measuring change in the magnitude of a group of related physical variables such as costs, prices, volume of production, etc. Index numbers are obtained by specifying the base equal to 100 and then comparing subsequent measurements of comparable variables to it. An index number represents the relative position of a variable in terms of base value which is customarily expressed as 100.0. For example, an index number of 116.2 means that the value of the variable in question is 116.2 percent of its base. Alternately, an index number 93.1 indicates that the value of the variable is 93.1 percent of its base value. Thus, if the Consumer Price Index were 93.1 it would mean that prices had decreased by 6.9 percent from base period prices.
INDUSTRY - Defines a classification of firms according to the similarity of their economic output. The Standard Industrial Classification (SIC) system provides numerical classification of these activities.
INITIAL CLAIM - Any application for unemployment filed (1) to request a determination of entitlement to and eligibility for compensation, or (2) to begin a second or subsequent period of unemployment within a benefit year period or eligibility. Minnesota initial claims are claims filed in Minnesota and are not known to solely be against a federal employer. Also see new or additional claim definitions.
INSURED UNEMPLOYMENT - Unemployment during a given week for which waiting-period credit or benefits are claimed under the State Unemployment Insurance program (UC), the unemployment compensation for Federal employees program (UCFE), or the unemployment compensation for veterans program (UCX).
INTERSTATE CLAIM - A claim filed in one state (agent state) against another state (liable state).
INTRASTATE CLAIM- A term that describes claims from residents of Minnesota and other states who file at a Minnesota office.
J
JOB BANK - This is a computerized listing of the job openings placed by employers with the Job Service. The listings are both alphabetical and by Dictionary of Occupational Titles (DOT) code. This service is provided at no cost to either employers or applicants. In addition to computer printouts, Job Service local offices are equipped with microfiche readers to assist applicants in locating a job for which they are qualified. An interviewer will interview the applicant and, if the applicant is qualified, telephone the employer to arrange for a job interview. See also REFERRAL and PLACEMENT.
JOB DEVELOPMENT - The process of soliciting a public or private employer's order for a specific applicant for whom an Area Office has no suitable opening currently on file.
JOB OPENING - A single job for which an Area Office of the Department of Economic Security has on file a request to select and refer an applicant or applicants.
K
L
LABOR DEMAND - An estimate of the relationship between the number of job opportunities which exist and will occur in a given period of time at a given wage rate. It is comprised of the following major components:
EXPANSION DEMAND and REPLACEMENT DEMAND. By strict economic definition it is a schedule showing the
number of workers or amount of labor (e.g. hours) that will be demanded at different wage rates in a given period of time.
LABOR FORCE CONCEPT - Represents the employment status of persons residing within a specific area, regardless of
where they work. It counts persons not jobs so that a person holding more than one job is counted only once. Both
employed and unemployed persons are included in the labor force count.
LABOR FORCE PARTICIPATION RATE - The proportion of the total civilian noninstitutional population or of a demographic subgroup of that population classified as "in the labor force".
LABOR-MANAGEMENT DISPUTES - This is more commonly known as a "strike" or "work stoppage". It could also be a "lockout" where an employer locks workers out. Workers are engaged in a work stoppage to improve their position in negotiations with management for increased wages, fringe benefits and/or improved working conditions.
LABOR MARKET AREA - Geographic area consists of a central city or cities and the surrounding territory within commuting distance which usually includes one or more entire counties. It is an economically integrated geographical unit within which workers may readily change jobs without changing their place of residence. A major labor market area denotes a geographical unit consisting of at least one central city with a population of 50,000 or more, coinciding in most instances with an SMSA as determined by the Office of Management and Budget.
LABOR MARKET INFORMATION (LMI) - That body of information that deals with the functioning of labor markets and the determination of the demand for supply of labor. It includes, but is not limited to, such key factors as changes in the level and/or composition of economic activity, the population, employment and unemployment, income and earnings, and wage rates and fringe benefits. Additionally, it concerns itself with the effects that changes in technology and production processes have on the demand for labor and which education, mobility, the work ethic, and income from work and nonwork has on the supply of labor.
LABOR SUPPLY - The relationship between the number of persons (unemployed and employed) in a given occupation who are seeking work or would seek employment at the given level of wages. However, it is more appropriate for employed persons to also be included when considering the aggregate supply available for producing goods and services.
LABOR TURNOVER - Usually expressed as a rate based on total employment in the establishment or industry and is shown in terms of so many per 100 workers on the payroll at a given time. The term has multiple definitions varying with the context. a. As applied to the total labor force for an occupation, industry or areas, it refers to he movement into and out of jobs during a given period of time by workers. b. The usual measurement of turnover in the context of labor market statistics and which is applied to individual establishments is the gross movement of wage and salary workers into and out of employed status. This movement is comprised of two broad types: ACCESSIONS and SEPARATIONS.
LAYOFFS - a layoff is a suspension from pay status (lasting or expected to last more than seven consecutive calendar days without pay) initiated by the employer without prejudice to the worker.
LEADING INDICATOR - A measure of economic activity that reaches peaks or troughs before total business does (often measured against GNP). Among the list of leading indicators, two are produced and disseminated by the Department of Economic Security; namely, Average Weekly Hours of Production Workers and Average Weekly Initial Claims.
LIABLE STATE - This also appears as "interstate" and "interstate as liable state". It describes claims from people who worked in Minnesota and are now living in another state and filing claims at office outside of Minnesota. Minnesota is "liable" for these claims. Other states act as the "agents" for Minnesota.
M
MACHINE TRADES - Occupations concerned with feeding, tending, operating, controlling, and setting up machines to cut, bore, mill, abrade, print, and similarly work such materials as metals, paper, wood, and stone.
MANUFACTURING - An industrial category of establishments engaged in the mechanical or chemical transformation of materials or substances into new products.
MAXIMUM BENEFIT AMOUNT (MBA) - The total amount of benefits an individual claimant may receive during a benefit year.
MAXIMUM WEEKLY BENEFIT AMOUNT (Max. WBA) - The highest weekly benefit amount provided by State law for a week of total unemployment.
MEASURES OF CENTRAL TENDENCY - A term used for any of several averages of which three are described below.
MEAN - The sum of several numerical values divided by the number of values summed. Or simply, the arithmetic average. For example, the mean of the following nine observations: 10, 14, 17, 17, 17, 22, 25, 28, 40 is 190/9 = 21.1
MEDIAN - In a distribution of values, that value where half of the members of the distribution are larger and half are smaller. If the median of both of these halves is taken the measures split the data into Quartiles which divides the distribution into four quarters. Similarly, the distribution could be split into Deciles (dividing into ten equal parts) or any number of other position divisions. For example: The median of the values 10, 14, 17, 17, 17, 22, 25, 28, 40 is 17 or, that value about which 50 percent of the values fall above and 50 percent fall below.
MODE - The most frequent or typical value in a distribution of data. The value that occurs most often. For example: The mode of the values 10, 14, 17, 17, 17, 22, 25, 28, 40 is 17.
COMPARISONS OF THE MEAN, MEDIAN AND MODE - The relative positions of the mean, median, and mode depend upon the symmetry of the distribution. If the distribution is symmetrical (value equally distributed about so me value ) the three measures all have the same value, Mean, Median & Mode but of course, very few actual distributions are symmetrical and these measures usually have different values. Consider a common topic - incomes. If you recall, the Census describes average incomes in terms of "Median Family Income". The reason this measure of central tendency is chosen is that the distribution of incomes is not symmetrical, being influenced by comparatively few relatively high incomes. For instance, if a distribution of annual incomes for a group of the population was: 10 people @ $ 2,000 = $ 20,000 15 people @ 5,000 = 75,000 20 people @ 10,000 = 200,000 40 people @ 20,000 = 800,000 20 people @ 50,000 = 1,000,000 15 people @ 75,000 = 1,125,000 10 people @ 750,000 = 7,500,000 130 $10,720,000 The mean in this example is $82,462 while the median is much lower $20,000. An annual average income in excess of 82 thousand dollars just does not seem to be the most typical income for the group above when only 10 out of the 130 people earn in excess of that amount. However, $20,000 does seem typical, in fact 40 out of 130 people earn that amount while 45 earn more and 45 earn less.
MINIMUM WEEKLY BENEFIT AMOUNT (Min. WBA) - The lowest weekly benefit amount provided by state law for a week of total unemployment.
MINING - The industrial categorization of establishments primarily engaged in mining or quarrying, developing mines, or exploring for nonmetallic minerals, except fuels. Also included are certain well and brine operations, and primary preparation plants, such as those engaged in crushing, grinding, washing, or other concentration.
MINORITY GROUP - Individuals not classified as "White, not Hispanic" under the Race/Ethnic designation for programs. The basic racial and ethnic categories are defined as follows: White, Not Hispanic - A person having origins in any of the original peoples of Europe, North Africa, or the Middle East. Black, Not Hispanic - A person having origins in any of the black racial groups of Africa. Hispanic - A person of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish culture or origin, regardless of race. American Indian or Alaskan Native - A person having origins in any of the original peoples of North America, and who maintains cultural identification through tribal affiliation or community recognition. Asian or Pacific Islander - A person having origins in any of the original peoples of the Far East, Southeast Asia, the Indian Subcontinent, or the Pacific Islands. This area includes, for example, China, India, Japan, Korea, the Philippine Islands, and Samoa.
MISCELLANEOUS OCCUPATIONS - Occupations concerned with transportation services; packaging and warehousing; utilities; amusement, recreation, motion picture services; mining and logging; graphic arts; and various miscellaneous activities.
MOBILITY - The movement of place of residence from one geographic area to another or movement from one occupation to another.
MODS - Manpower Operations Data System. A system of filing characteristics of individual applicants in a computer along with Job Bank placements, referrals, and other activities. This information is then integrated and matched in the computer to create a method of reporting data. The resultant reports are generated by a method known as ESARS.
MONETARY DETERMINATION - A written determination as to whether an individual meets the employment and wage requirements necessary to establish entitlement for unemployment insurance benefits and, if so, the claimants weekly and maximum benefit amounts.
N
NATIONAL INCOME - The income that originates in the production of goods and services attributable to the labor and property supplied by residents of the United States. Incomes are recorded in the from in which they accrue to residents and are measured before the deduction of taxes on those earnings. They consist of compensation of employees, the profits of corporate and incorporated enterprises, net interest, and rental income of persons.
NEW CLAIM - The first claim filed in person to request a determination of entitlement to and eligibility for compensation which results in an agency generated document of an appealable monetary determination provided to the potential claimant (excludes transitional claims).
NEW HIRES - Temporary or permanent additions to the employment roll. Includes former employees who are rehired but have not been called back from a layoff.
NEW AND REENTRANTS - The unemployed entrants are those persons whose current spell of unemployment has not been preceded by employment, either those who want a job and have never been employed (new entrants) or those who were once employed but subsequently dropped out of the labor force (reentrants).
NONAGRICULTURAL WAGE AND SALARY EMPLOYMENT - All full-time and part-time employees of all classes (including employees on paid vacation or paid sick leave) who work in or receive compensation from nonagricultural establishments for any part of the pay period including the 12th of the month. It does not include pensioners, members of the armed forces, self-employed or unpaid family workers and persons on leave or absence without pay.
NONAGRICULTURAL WAGE AND SALARY EMPLOYMENT (PLACE OF RESIDENCE) - Employment in the area where the employees live regardless of the area where they work. Multiple job holders are counted only once and the effects of commuting into and out of the area are negated.
NONAGRICULTURAL WAGE AND SALARY EMPLOYMENT (PLACE OF WORK) - Refers to employees on establishment payrolls during the survey week (pay period including the 12th of the month) regardless of where they live. Self-employed, unpaid family domestic, agricultural workers and workers involved in labor-management disputes are excluded. Multiple job holders are counted for each job.
NONDURABLE GOODS - Consumer or producer goods (such as textiles, food, clothing, petroleum, chemical products) that last for a comparatively short period of time (less than three years) or that are consumed or destroyed in a single usage. The purchase of these goods is generally less postponable than is the case with durables and is, therefore, less sensitive to shifts in economic climate. (Also see "Durable Goods".)
NONMONETARY DETERMINATION - A determination as to whether a claimant is barred from receiving benefits or waiting-period credits for reasons other than those affecting the claimant's monetary determination. These are often referred to as separation and eligibility (non-separation) determinations.
North American Industrial Classification System - NAICS is an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. It is a comprehensive system covering the entire field of economic activities, producing, and non-producing. The structure of NAICS is hierarchical; there are 2 domains, 11 super-sectors, 20 sectors, and 1,196 industries in NAICS. NAICS was developed by Mexicos INEGI, Statistics Canada, and the U.S. ECPC to provide common industry definition s for Canada, Mexico, and the United States that will facilitate economic analyses of the economies of the three North American countries. The statistical agencies in the three countries produce information on inputs and outputs, industrial performance, productivity, unit labor costs, and employment. NAICS, which is based on a production-oriented concept, ensures maximum usefulness of industrial statistics for these and similar purposes.
O
OCCUPATION - A person's trade, profession, or business.
OCCUPATIONAL CATEGORY - A category into which occupations are coded. The following comprise the broad categories into which occupations are coded by the Dictionary of Occupational Titles (DOT). More detailed coding is generally employed when job placement and training activity is involved.
First Digit of DOT Code Occupational Category
0 or 1 : Professional, Technical, & Managerial
2: Clerical and Sales
3: Services
4: Agricultural, Fishery, Forestry & Related
5: Processing
6: Machine Trades
7: Benchwork
8: Structural Work
9: Miscellaneous
OCCUPATIONAL EMPLOYMENT STATISTICS PROGRAM (OES) - A program by which estimates of employment by occupation in all industry groups including Federal, State, and Local Government are developed from periodic sample surveys of public and private establishments.
OCCUPATIONAL PROJECTIONS - Projections of occupational employment based on a variety of methods. One of which is that developed by the Bureau of Labor Statistics. It involves making projections of industry employment and occupational staffing patterns based on an analysis of labor demand and technology.
OPENINGS - A single job for which an area office has on file a request to select and refer an applicant or applicants.
OTHER NONAGRICULTURAL EMPLOYMENT - This refers to self-employed, unpaid family, and private household workers.
P
PARTICIPATION RATE - Represents the number who are in the labor force for every 100 noninstitutional persons in the population that are 16 years of age and older. A participation rate of 62.1 means that 62.1 percent of the noninstitutional population 16 years and older is in the labor force (that is, either employed or unemployed).
PER CAPITA PERSONAL INCOME- Per Capita Personal Income is the ratio of the measure of the residence-adjusted total personal income to population estimates. It is an arithmetic mean of personal income (usually expressed in dollars) per person.
PERSONAL INCOME - The income received by persons from all sources; that is, from participation in production, from transfer payments from government and business, and from government interest, which is treated like a transfer payment. Proprietors' income is treated in its entirety as received by individuals. Life insurance carriers and private noninsured pension funds are not counted as persons, by their savings is credited to persons. Personal income is the sum of wage and salary disbursements, other labor income, proprietors' income, rental income of persons, dividends, personal interest income, and transfer payments, less personal contributions for social insurance.
PLACEMENT - The hiring by an employer of an individual referred by the employment office for a job or an interview, providing that the employment office completed certain procedural steps: (1) Prior arrangement with the employer for the referral of an individual or individuals: (2) Referred an individual who had not been specifically designated by the employer; (3) Verified from a reliable source, preferably the employer that the individual had entered on a job; and (4) Recorded the transaction on an employer order form prior to referral and other appropriate Job Service forms.
PLACE OF RESIDENCE - When used in conjunction with labor force estimates it counts employment and unemployment, workers where they live rather than where they work. (See LABOR FORCE).
PLACE OF WORK - For work force estimates, a count of workers where they work. (See WORK FORCE).
PRIME SPONSOR - As defined under guidelines of the Comprehensive Employment and Training Act of 1973, a prime sponsor may be a State, a unit of local government which has a population of 100,000 or more, in any combination of units of local government which is authorized to carry out all or a substantial part of a comprehensive manpower program under the CETA. The Secretary of Labor, in exceptional circumstances, may determine any unit of local government which has a population of less than 100,000 to be a prime sponsor if that unit is to serve a substantial portion of a functioning labor market area, or to be a rural area having a high level of unemployment.
PROCESSING - Refers to occupations concerned with refining, mixing, compounding, chemically treating, heat treating, or similarly working materials and products.
PRODUCER PRICE INDEX - An index that measures average changes in prices of commodities sold in primary markets in the United States. "Producer", as used here, refers to sales in large quantities by producers, not to prices received by wholesalers, jobbers, or distributors. It represents the movement of prices of all commodities produced in the manufacturing, agriculture, forestry, fishing, mining, gas and electricity, and public utilities sectors. It also includes all commodities produced or imported for sale in commercial transactions in primary markets in the United States.
PRODUCTION WORKERS - Working foreman and all nonsupervisory workers.
PROFESSIONAL, TECHNICAL, AND MANAGERIAL - Occupations concerned with the theoretical or practical aspects of such fields of human endeavor as art, science, engineering, education, medicine, law, business relations, and administrative, managerial, and technical work.
PROGRAM, U.I. - Current U.I. Programs are: A. Regular - The standard program for UC, UCFE, and UCX claims. B. Extended benefits - An extended duration program for UC, UCFE, and UCX claims. (Please refer to the definition in this glossary.) C. TRA - Trade Readjustment Allowance. (See the definition.) D. DUA - Disaster Unemployment Assistance. (See the definition.)
PUBLIC ADMINISTRATION - The legislative, judicial, administrative, and regulatory activities of Federal, State, Local and International governments.
PUBLIC UTILITIES - An industrial category composed of establishments which provide electricity, gas, steam, water, or sanitary services to the general public or to other business enterprises.
Q
QUITS - A quit is a termination of employment initiated by the employee for any reason except to retire, to transfer to another establishment of the same firm, or for service in the Armed Forces.
R
REAL WAGES - Current earnings that are standardized to the value of the dollar at a specific period in time. For example, if a worker earns $300.00 a week in April 1975 and wants to know what his real increase in wages (purchasing power) has been since April 1973 when he earned $ 230.00, the CPI can be used to derive the comparable purchasing power or each. Thus: ($300.00/$230.00) x [130.7 (April 1973 CPI)/158.6 (April 1973 CPI)] = 1.3043 x .824 = 1.0747 1.0747 x $230.00 = $247.18 in real wages during April 1975 (compared with April 1973). $247.18 - $230.00 = increase in real wages = $17.18
RECALLS - Additions to employment of persons called to a job in the same establishment following a layoff of more than seven consecutive days.
REFERENCE WEEK - The time period covered in the current Population Survey (CPS) and used by all State Employment Security Agencies as a reference period for employment and unemployment estimates. The calendar week Sunday through Saturday, which includes the 12th day of the month, has been designated as the reference week because it fulfills the conditions of the period that must be short enough so that the data obtained are "current", but not so short that the occurrence of holidays or accidental events might cause erratic fluctuations in the information obtained. The actual survey is conducted during the following week, which is the week containing the 19th of the month. Most of the federal reports reflect the data for the reference week in order to be consistent and comparable to the CPS data.
REGIONAL LABOR MARKET INFORMATION CENTER - An office established by the Minnesota Department of Employment and Economic Development's Labor Market Information Office to develop and disseminate local area labor market information to job seekers, employers, and other users.
REOPENED CLAIM - The first claim following a break in the unemployment insurance claims series due to illness, disqualification, unavailability, or failure to report for any reason other than intervening employment.
REPLACEMENT DEMAND - The demand or job openings created by workers who leave the labor force for any reason (e.g. death, retirement) is known as replacement demand and is part of TOTAL DEMAND. See also LABOR DEMAND and EXPANSION DEMAND.
RESEARCH ANALYST - A person who analyzes the data products of research and produces usable information based on these data.
RETAIL TRADE - An industrial category composed of establishments engaged in selling merchandise for personal or household consumption, and rendering services incidental to the sale of the goods.
S
SEASONAL ADJUSTMENT - This is an adjustment process for eliminating the change which can be ascribed to usual seasonal variation in economic time series data. This adjustment reflects a regularly recurring seasonal movement on economic statistics which is estimated on the basis of past experience. It is important to note that seasonal adjustment is merely an approximation and the seasonally adjusted estimates have a broader margin of possible error than the original data on which they are based because they are subject not only to sampling and other errors but, in addition, are affected by the uncertainties of the seasonal adjustment process itself.
Sectors - Sectors are the third highest NAICS categories. These 20 categories represent more specific categories of economic activity where the aggregated industries that make up each sector are more closely related.
SELF EMPLOYED, UNPAID FAMILY, AND DOMESTIC WORKERS - Persons who work in nonfarm industries who are not on payrolls, i.e. self-employed persons, domestic workers in private households and unpaid family workers.
SEPARATIONS - All terminations of employment, generally classifiable as layoffs, quits, discharges, or other separations.
SERVICE - (1) Occupations concerned with performing tasks in and around private households, serving individuals in institutions and in commercial and other establishments; and protecting the public against crime, fire, accidents, and acts of war. (2) An industrial category composed of establishments primarily engaged in providing a wide variety of services for individuals, business, and government establishments and other organizations. Hotels and other lodging places; establishments providing personal, business, repair, and amusement services; health, legal, engineering, and other professional services; private educational institutions; membership organizations, and other miscellaneous services are included.
STANDARD INDUSTRIAL CLASSIFICATION (SIC) - A standardized form of classification of all business establishments for the uniform and consistent use of Government, Industry, and the Public, based on principles set forth by a technical group made up of Government and Industry experts. The three basic criteria followed in developing the SIC are: (1) classification should conform to the existing structure of American Industry, (2) each establishment is to be classified according to its primary activity, and (3) to be recognized as an industry, the group of establishments constituting the proposed classification must be statistically significant in the number of persons employed, the volume of business done, an other measures of economic activity. The most current SIC manual in use issued by the Office of Management and Budget is dated 1987. Each establishment is assigned a four digit industry code. Each digit represents a level of industry detail with the first digit being the most general and the fourth digit the most detailed.
STANDARD METROPOLITAN STATISTICAL AREA (SMSA) - The general concept of a SMSA is one of an integrated economic and social unit indicative of metropolitan character population, urban character, nonagricultural employment, population density, and commuting ties. The SMSA is designated by the office of Management and Budget generally on the basis of population statistics of Federal reporting purposes and for use in the distribution of Federal funds. A SMSA always included a city (cities) of specified population which constitutes the central city and the county (counties) in which it (they) is (are) located. It also includes contiguous counties when the economic and social relationships between the central and contiguous counties meet certain criteria of metropolitan character and integration. SMSA's often cross state lines.
Super-Sector - Super-sectors are the second highest NAICS categories. These 11 categories represent general categories of economic activity.
T
TAXABLE WAGES - Wages subject to contribution under the State Unemployment Insurance laws, or wages subject to tax under the Federal Unemployment Tax Act.
TOTAL EMPLOYED - When used in reference to labor force estimates, the sum of agricultural, non-agricultural wage and salary, self-employed, unpaid family and domestic workers adjusted to eliminate double counting of persons holding more than one job and to place of residence basis.
TOTAL UNEMPLOYED - When used in reference to labor force estimates, the sum of persons receiving unemployment insurance benefits, persons who have exhausted their unemployment insurance benefits and are still unemployed, persons who have delayed filing for benefits but who are not working, unemployed persons who applied for benefits but were not working, unemployed persons who applied for benefits but were not qualified to receive them, workers separated from industries not covered by unemployment insurance, and unemployed persons newly entering or re-entering the labor force. These persons may not have done any work for pay and not worked more than 15 hours without pay in a family owned business.
TRADE READJUSTMENT ALLOWANCE - U. I. - The Federal program that pays trade readjustment allowances to workers whose unemployment is certified as attributable to foreign imports.
TRANSITIONAL CLAIM - A new unemployment insurance claim filed to request a determination of eligibility and establishment of a new benefit year having an effective date within the seven-day period immediately following the benefit year ending date and a week for which compensation or waiting period credit was claimed.
TRANSPORTATION - An industrial category composed of establishments providing passenger and freight transportation services to the general public or other business enterprises.
TREND - The general tendency of conditions or events over a period of time.
U
UNDUPLICATED COUNT OF CLAIMANTS, WEEK OF THE 12TH - A count of individual claimants who were unemployed during the week including the twelfth of the month. Any claimant with earnings in excess of his or her weekly benefit amount is removed from the count.
UNEMPLOYED PERSONS - All persons who did not work during the survey week who made specific efforts to find a job within the past four weeks, and who were available for work during the mid-week (except for temporary illness). Also included are those who did not work, were available, and were waiting to be called back from a layoff or were waiting to start a new job with in 30 days. Not all person 16 years and older are unemployed if not working. One must be actively looking and available in order to qualify. Otherwise, these persons are not in the labor force. Unemployed persons are always counted at their place of residence as opposed to place of previous employment, if any. Unemployed persons may be so by virtue of being laid off or having quit a job. This usually qualifies them for UI benefits and they can be counted as part of the covered unemployed. New entrants and reentrants are persons who are looking for and able to work, but either have not held previous employment lasting more than two weeks (such as high school or college students) or are reentrants (job seekers who have held a job but were out of the labor force prior to seeking work). Measuring these groups is much more difficult because, with the exception of the Current Population Survey which provides National data and a rough measure for the States, there are no programs in which they show up. The unemployment rate is the number unemployed as a percent of the labor force (or work force) and is computed: (Unemployed/Employed and Unemployed) x 100 = Unemployment Rate
UNEMPLOYED EXHAUSTEES - Those persons who remain unemployed after depleting their unemployment insurance benefits.
UNEMPLOYMENT - See definition of Unemployed Persons.
UNEMPLOYMENT INSURANCE - Unemployment insurance is a program for the accumulation of funds paid by employers to be used for the payment of unemployment insurance to workers during periods of unemployment which is beyond the worker's control. Unemployment insurance replaces a part of the worker's wage loss if he becomes eligible for payments. UI serves as an economic stabilizer by maintaining an individual's purchasing power when unemployed.
UNEMPLOYMENT RATE - See definition of Unemployed Persons.
UNFILLED JOB OPENINGS - Job openings received by the local Job Service Office that have not been filled within a specified period of time.
V
W
WAGES AND SALARY EMPLOYMENT - Workers who are paid wages, salaries, bonuses, commissions, payment in kind, incentive payment, and tips. It does not include proprietors compensated in residual profits, the self employed, those paid on a fee basis, farm or other real estate owners, or unpaid family workers.
WAITING PERIOD - A week during which an unemployment insurance claimant may not draw benefits and during which he or she must meet the same requirements essential to the establishment of his or her eligibility for benefits during subsequent weeks of unemployment during the benefit year. (In Minnesota, a claimant may receive benefits for the waiting week when returning to work after four or more weeks of unemployment).
WEEKLY BENEFIT AMOUNT (WBA) - The full amount of benefits a claimant is entitled to receive for a week of total unemployment.
WEEKS CLAIMED - The weeks covered by intrastate continued claims and interstate continued claims for which waiting period credit or payment of compensation is requested. A week for which excessive earnings are reported does not constitute a claim for a week of unemployment. (Earnings are considered excessive when they exceed the claimant's weekly benefit amount).
WEEKS OF UNEMPLOYMENT - A week in which an individual performs less than full time work for any employing unit if the wages payable with respect to such week are less than his or her weekly benefit amount.
WEEK OF PARTIAL UNEMPLOYMENT - A week in which an individual worked less than regular full-time hours for his or her regular employer, because of lack of work. Earnings were less than the individual's weekly benefit amount, but more than the partial earnings allowed so that if eligible for benefits, the individual received less than his or her full weekly benefit amount.
WEEK OF PART-TOTAL UNEMPLOYMENT - A week of otherwise total unemployment in which an individual has odd jobs or subsidiary work with other than the individual's regular employer with earnings in excess of the allowable earnings prescribed by the State unemployment compensation law, so that, if eligible, the individual received less than his/her full weekly benefit payment.
WEEK OF TOTAL UNEMPLOYMENT - A week in which an individual performs no work and earns no wages or has less than full-time work and earns not more than the allowable earnings prescribed in the State unemployment compensation law, so that, if eligible, the individual receives his/her full weekly benefit amount. (An exception may be the final payment when an individual's benefit balance would preclude payment of the full weekly benefit amount).
WHOLESALE TRADE - An industrial category composed of establishments primarily engaged in selling merchandise to retailers; to industrial, commercial, institutional, farm, or professional business users; or to other wholesales; or acting as agents or brokers in buying merchandise for or selling merchandise to such persons or companies.
WORK FORCE - The total count of persons unemployed by place of residence and the number of jobs in employing establishments by place of work. Place-of-work figures tend to overestimate the unemployment rate for most suburban areas that experience heavy commuting out of the area, and understate the rate for areas of heavy unemployment concentration (central cities) where there is a large amount of commuting into the area. The basic difference between the work force and labor force concepts is that work force employment is by place of work and a count of jobs whereas labor force employment is by place of residence and an unduplicated count of individuals.
WORK FORCE CONCEPT - Refers to employment by place of work regardless of where the workers reside.
WORK INCENTIVE PROGRAM (WIN) - Designation for programs which provide necessary services, training, and employment opportunities to AFDC applicants and recipients.