How the Federal Government Calculates the Unemployment Rate

With the discussion of the unemployment rate on most news channels and on-line blogs, it seems appropriate to explore just what the numbers mean. Many of us assume that to be counted as employed, a person should be working at least 20 hours a week and to be counted as unemployed, a person simply needs to be just that – unemployed. For the purpose of this Extra Info, we’ll discuss how the Federal Government calculates the Unemployment Rate. Let’s start with where the numbers come from. During the first few days of each month, the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor releases the total number of employed and unemployed persons in the U.S. for the previous month, along with the unique characteristics of these people. Lately, the most important part of that information seems to be the number of people who are unemployed. Many people assume that the Government only uses the number of persons filing for Unemployment Insurance Benefits (UI) through State or Federal Government programs as their source. But since many people are not eligible for UI and many more have exhausted all their UI benefits, that data source would not give us a real picture of the number of unemployed people. Other people believe that the Government actually counts the number of all unemployed people each month. But this would require the level of work done by the U.S. Census every ten years. So, the BLS uses a monthly survey called the Current Population Survey (CPS) to measure unemployment across the country. This survey has been conducted in the United States every month since 1940. The CPS began as a Work Project Administration project and is one of the oldest continuous monthly sample survey of households in the world. It has been expanded and modified several times since its inception but the concept remains the same. Currently, there are about 60,000 households (or approximately 110,000 individuals) in the sample for this survey. The sample is selected so that it is representative of the entire population of the U.S. The selection begins with all of the counties and county-equivalent cities in the U.S. being grouped into 2,025 geographic areas, then the Census Bureau designs and selects a sample consisting of 824 of these areas so that each State and the District of Columbia is represented. This sample is a State-based design so that it reflects both urban and rural areas, as well as industrial and farming areas. Every month, one-fourth of the households in the sample are changed so that no household is interviewed more than 4 consecutive months. The individuals in the survey are questioned either in person or over the phone and the data is compiled electronically so that it can be “weighted” or adjusted to independent population estimates. However, a sample is not a total count but it is consistent data and the calculations are estimated to be within a 10% plus or minus range. The survey relies on three basic concepts of employment and unemployment: · Individuals with jobs are counted as employed · Individuals who are jobless, looking for a job, and available for work are unemployed · Individuals who are neither employed or unemployed are not counted in the labor force People who are under 16 or in the Armed Forces are not counted in the survey. Unfortunately, these definitions are not as simple as they may sound. Let’s look at the definition of employed. People are considered employed if they did any work at all for pay or profit during the survey week so this would also include all part-time work, regardless of the number of hours worked or the number of weeks worked during the full month. As an example, an 18 year old high school student who baby-sits for 6 hours a week would be counted as employed, just as her mother who might work 40 hours per week. The definition for unemployed is just as tenuous. People are classified as unemployed if they do not have a job, have actively looked for work in the prior 4 weeks, and are currently available for work. “Actively looking for work” can mean directly contacting employers, and participating in active job search. If they are in training or educational activities, they are not counted as either employed or unemployed. People are also not counted in either category if they are not working but are physically unable to job search for the survey period. Other examples of people not considered in the labor force would be persons confined to institutions such as prisons, jails, or hospitals. As you might expect, there is much work that is done outside these simple definitions. The BLS keeps data on persons who would be counted as “marginally attached to the labor force” but not counted as either employed or unemployed. This group contains individuals who don’t have a job but are not actively looking for work. “Discouraged workers” are a subset of this group. Many of these individuals are the people our community partners see every day. They don’t believe that there is a job available for them and that they lack the skills necessary to find employment. The BLS keeps numbers on these individuals as well, but doesn’t count them in the official numbers. If you would like to know more about how the government calculates the unemployment rate or other issues concerning either the Bureau of Labor Statistics or the Current Population Survey, check out some of the links below: The Current Population Survey: A Historical Perspective and the BLS role: http://www.bls.gov/opub/mlr/1984/06/art2exc.htm The Current Population Survey: http://www.ciesin.org/datasets/cps/cps-home.html The Bureau of Labor Statistics: Labor Force Statistics from the Current Population Survey: http://www.bls.gov/cps/cps_htgm.htm

Channel 11 Posts Important Story about filing for Unemployment Innsurance

Channel 11 (CBS) is on the ball again. They did an excellent job in covering yet another scam that takes advantage of Texans in crisis. We've got a portion of the story they delivered yesterday along with the link that will let you watch the video for yourself. Thanks to Jay Gormley and all of the folks at Channel 11 for helping us "Survive in 09". From CBS 11/TXA 21: Written by Jay Gormley Most parents with three children need every penny they can get. So, when Alfredo Mayoral of west Fort Worth was laid off, he immediately filed online for unemployment. "So, I'm waiting and waiting," he said. "I waited a whole month." Mayoral and his wife, Jacque, went to Google, searched for the Texas Workforce Commission, and clicked on TXWORKFORCE.ORG. After waiting a month, they went to the Texas Workforce Commission office, and were greeted with bad news. "They had no record that I applied for benefits whatsoever," said Alfredo. "I said, 'How can that be? We applied on the website.'" "I asked the lady, 'What is the correct website?' When she brought it up, the web page, I said, 'That's not the one,'" explained Jacque. As it turns out, the couple applied for unemployment on one of several websites that appear to be the agency's official website.The five websites listed provide employment-related links, but are not the official site for the Texas Workforce Commission. These generic sites contains links to file for Texas unemployment benefits. The sites even issue identification numbers. However, filing on the sites can delay and even deny benefits The correct site for filing unemployment claims is TEXASWORKFORCE.ORG. "I was crying," said Jacque, "because you try your hardest to do what's right for your family."The Texas Workforce Commission is aware of the confusion and said they are doing their best to make the public understand that not all websites are created equal.The Mayorals were finally directed to the correct website and began receiving unemployment benefits over the weekend. To see this full report, click here: http://cbs11tv.com/survivein09/Texas.Workforce.Commission.2.1084260.html

UI Benefit Estimator

The Texas Workforce Commission announced a new web-based application that is available to assist unemployment claimants estimate the potential amount of their unemployment benefits. UI claimants can enter their wage information and pay period and receive an estimate of the weekly benefit amount (WBA) and maximum benefit amount (MBA) on a regular claim. This application is not designed to provide estimates of special UI programs such as Emergency Unemployment Compensation, Disaster Unemployment Assistance, or Trade Readjustment Assistance. Applicants can access the Benefits Estimator through the TWC homepage, Unemployment Benefits Services portal page. Just remember, the estimator is designed to provide estimates based on a 40-hr work week. Any claimants that were part-time workers need to estimate their wages by month or quarter. Also remember to enter wages before taxes (gross pay). The Benefits Estimator includes the following 3 key fields: 1. Calendar Quarter – the application will automatically display the current base period quarters. For example, if you access the application on June 30, 2009 (the second quarter of 2009), the quarters displayed will be all four quarters of 2008; however, if you access the application on July 10, 2009 (third quarter of 2009), the application will use the last three quarters of 2008 and the first quarter of 2009 as the base period quarters 2. Wages – You must enter wage information for each base quarter. There is no need to enter a dollar sign ($) but a decimal point should be used if you are entering wage information in both dollars and cents. 3. Pay Period – You should enter the pay period that corresponds to the wage information entered. You may select from the following pay periods: o Per hour o Per day o Per Week o Every Two Weeks o Twice a Month o Per Month o Per Quarter o Per Year Remember, the WBA or MBA provided by the Benefits Estimator is an estimate and there may be instances when a claimant files for unemployment and is eligible for a lower WBA than the one quoted by the Benefits Estimator. You should also be aware that the actual WBA or MBA may be lowered for a variety of reasons which may include: ü Claimants used best-guessed estimates of his or her wages ü Last employer has not yet reported wages to TWC ü Wages were earned in another state ü Claimant may have earned military and/or federal wages ü Claimant worked part-time for any part of the base wage period; and/or ü Claimant failed to deduct vacation pay, pension payments, and/or secondary income before entering wage information into the Benefits Estimator And , most importantly this is merely an estimator, it doesn't tell you if you will be eligible, the only person that can make that determination is a TWC call center employee. This will give you an idea of how much money you may receive, making it easier to plan ahead. To access the Estimator, click here: http://www.twc.state.tx.us/ui/uiclaim.html

Applying for a Job with the Federal Government (part one)

The federal government is the nation’s largest employer and only 15% of those jobs are located in Washington D.C. That’s the good news. On the flip side, the federal government is a vast multi-pronged entity with complex rules and regulations for hiring qualified applicants. This series of articles will provide job seekers with bite- sized tips that will hopefully demystify the process.

Let’s start with the application process. Don’t expect this to be a quick or painless endeavor. You have to be prepared to sort through hundreds of job announcements and really review the procedures and deadlines for each application. You also have to be prepared for the whole process to take months, not necessarily weeks. However, you’ll be excited to see that the government hires people at all levels of experience, from inexperienced high school graduates to experienced college graduates. Veterans are also highly sought after in all federal agencies, as are people with disabilities.

Salaries with the government are comparable to corporate America and offer locality pay which assures the salary will reflect that area’s cost of living. The government is also known for strong employee benefits, which are the same for every employee and they have sick days and paid vacation time that increases over the years. Their retirement benefits are secure and based on salary and years of service, with health benefits that continue into retirement.

There are two classes of jobs with the Federal Government:

Competitive Services jobs: These jobs fall under the jurisdiction of the Office of Personnel Management (OPM) and are subject to civil service laws passed by Congress. These laws are in place to ensure that all applicants receive fair and equal treatment. These laws may make it feel as if the entire process is extremely cumbersome, but it also ensures that the best qualified candidate gets interviewed based on job-related criteria.

Excepted Service agencies: These agencies set their own qualifications and requirements. They are not subject to the appointment, pay, and classification rules found in Title 5, US Code, which outlines the role of government organization and employees in the United States Code. However, they are subject to veterans’ preference. Some Federal agencies, such as the Federal Bureau of Investigations and the Central Intelligence Agency, have only excepted service positions. You will find that many other agencies may have some divisions or even specific jobs that may fall under the excepted from civil service procedures. These job postings should be clearly marked for the job seeker. To understand your own eligibility for Competitive Services jobs, you should understand the basics that these agencies usually choose from. The foundation of competition starts with a competitive list of eligibles. This record lists the applicants (in their rank order) who meet the qualification requirements for a specific vacancy announcement. You’ll always find a detailed list of qualifications under the “Qualifications & Evaluations” tab in job postings on USAJOBS. If these aren’t clearly defined in your application, you will most likely not make it to the top of that rank order.

Finally, agencies in the competitive service are required by law and OPM regulations to post vacancies with OPM whenever they are seeking candidates from outside their own workforce for positions lasting more than 120 days. These jobs are posted on USAJOBS.gov. Excepted agencies are not required to post their job announcement in USAJOBS. To learn about these job opportunities, you must go to their individual websites.

We’ll devote more articles to just how you can make your application rise to the top of that competitive list of eligibles.

Meanwhile, if you have specific questions, email debby.kratky@twc.state.tx.us and we’ll try to direct you to the best source for your answer. Good luck with your job hunting!

Summer Jobs with Delta

Tell your friends and family about Delta's Summer Airport Customer Service program. Delta is looking for people who want to work full-time during the summer months only. They are seeking people who are committed to providing exceptional front-line service - assisting customers at check-in and baggage handling. Employees will receive $10.82 per hour as well as worldwide travel privilegesthat enable them to fly on Delta. Applicants must be at least 18 years old, able to lift at least 70lbs, authorizedto work in the US, have a H.S. diploma/GED equivalent as well as a valid driver’s license and the ability to pass an extensive background check and drug test. TELL YOUR FRIENDS & FAMILY TODAY! Go to http://www.deltajobs.net/ Select Apply Now, and then select either Airport Customer Service Ticket/Gateor Ramp Operations/Baggage Handler. Happy hunting!

More Programs for Homeowners in Trouble

On May 14, the Treasury Department and the Department of Housing and Urban Development expanded the $50 billion Making Home Affordable (MHA) program, announcing foreclosure alternatives for homeowners who may not qualify for other assistance. These new initiatives are intended to streamline the process of selling homes worth less than the mortgage or facilitate transferring ownership to the lender. Neither option helps the homeowner's credit score, but it beats foreclosure. On May 14th, the Secretary of Treasury announced new details on the Making Home Affordable program: Foreclosure Alternatives provide incentives for servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a MHA modification but does not qualify or is unable to complete the process, which helps prevent costly foreclosures and minimizes the damage that foreclosures impose on borrowers, financial institutions and communities. Home Price Decline Protection Incentives will provide lenders additional incentives for modifications where home price declines have been most severe and lenders fear these declines may persist. To encourage the modification of more mortgages and enable more families to keep their homes, the Administration, building on insights pioneered by Chairman Bair and the FDIC, has developed an innovative payment that provides compensation based on recent home price declines. These kinds of programs are great for everyone concerned but, like most programs from the government (or financial institutions, for that matter), they tend to be extremely difficult to understand. To help make this process easier to digest, the new Administration has constructed a new consumer website, www.MakingHomeAffordable.gov, to provide homeowners with detailed information about these programs along with self-assessment tools and calculators to empower borrowers with the resources they need to determine whether they might be eligible for a modification or a refinance. Through this website, borrowers can also connect with free counseling resources to help with outstanding questions; locate homeowner events in their communities; find a pretty neat checklist of key documents and materials to have ready when making that call to their servicer. There are also a FAQ section that is updated often.

Prescription Assistance through Phfizer

Article from Journalnews.com May 15,2009 By Tiffany Y. Latta Staff Writer http://www.journal-news.com/ FRANKLIN — Pfizer is offering a prescription to help its unemployed customers struggling to make ends meet in this economic downturn. The pharmaceutical giant, which has a plant in Franklin, announced this week plans to distribute more than 70 of its medications free to customers who meet certain requirements, including a job loss since Jan. 1 and lack of prescription drug insurance. The drugs will be made available free through a program called MAINTAIN or Medicines Assistance for Those who Are in Need. “We all know people who have been laid off recently and have lost their health insurance, making it difficult for them to pay for health care,” said Dr. Jorge Puente, Pfizer’s regional president of Worldwide Pharmaceuticals. “We thought there must be some way we could help recently unemployed people who are taking Pfizer medicines to continue treatment during these challenging economic times.” The program officially begins July 1. People in need before then may call (866) 706-2400 for help. The application is available at Pfizerhelpfulanswers.com. Applicants must attest to their financial hardship and have been prescribed Pfizer medications for at least three months to be eligible for the program. Eligibility requirements of the new program include: • Loss of employment since Jan. 1, 2009 • Prescribed and taking a Pfizer medicine for at least three months prior to becoming unemployed and enrolling in the program • Lack of prescription drug coverage • Can attest to financial hardship People who qualify will receive their Pfizer medicines for free for up to 12 months or until they become re-insured, whichever comes first.