This document defines key labor force concepts and population classifications used to calculate important labor force indicators: 1) The civilian noninstitutional population ages 14-24 is divided into those in the labor force (civilian labor force), and those out of the labor force. 2) Those in the labor force are further divided into employed and unemployed categories. Employed individuals work for pay or in a family business, while unemployed individuals want a job but do not currently have one. 3) Key labor force indicators like the labor force participation rate, employment-population ratio, and unemployment rate are calculated using formulas that divide segments of the population and labor force.

1. David L. Passmore

2.  Raw — Direct (or raw) responses from a
questionnaire or other survey instrument.
 Symbol — Usually contains “!”
 Roster — Usually identified in codebook
 Created — Question name usually starts with
“CV” or “CVC”

4. From NLS Investigator

5. From NLS Investigator

7. From NLS Investigator

9.  Are lists of variables on one topic
 The lists can vary among respondents
 Simple example — ages of siblings
• Number of siblings varies among respondents
• Respondents, then, can have a varying number of
roster variables
• e.g., Mary has 5 siblings, so there are 5 entries as
separate variables in her roster
• e.g., John has 1 sister, so there is 1 entry as a separate
variable in his roster

15. Population

16. Population
Civilian noninstutional population, 14–24 years
The civilian population is classified according to its attachment to the labor force

17. Population
Civilian non institutional population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants

18. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed

19. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
Employed work at least 1 hour per week for an employer for pay or at least 15 hours
per week in a family enterprise (even if not for pay)

20. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
Employed work in an occupation within an industry from which they can earn wages
and salaries for offering hours of work to an employer or through self-employment

21. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
Unemployed might have been employed in a previous occupation and industry, are
unemployed for various reasons, and are unemployed for a period of time (duration)

22. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
Those out of the labor force do not have a job and are not seeking a job

23. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
Most frequently, people out of the labor force are doing their own home housework,
going to school, or have stopped looking for work

24. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
labor force participation rate = (labor force ÷ civilian population, 14-24) as a %
employed + unemployed as % of the civilian population, 14-24

25. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
employment–population ratio = employed ÷ civilian population, 14-24
proportion of the civilian population, 14-24, that is employed

26. Population
Civilian population, 14–24 years
In labor force; civilian labor force;
Out of labor force
labor force participants
Employed Unemployed
unemployment rate = (unemployed ÷ civilian labor force) as a %
percentage of the civilian labor force that is unemployed

27. In-Class Task
Use NLS97 data
in Excel
spreadsheet to
calculate labor
force indicators
for any two of
the following
three years:
1997
2000
2006