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In This Chapter |
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Chapter 4.
Measurement of Unemployment in States and Local Areas
Producing Estimates for Parts of LMA's
Current labor force estimates at the sub-LMA level are
required by several Federal allocation programs. However,
for areas this small, the data required to compute
independent Handbook estimates are generally not
available, nor was the Handbook procedure designed to
produce sub-LMA estimates. Based on data availability,
two alternative methods are used to disaggregate the LMA
estimates to the sub-area level.
The population-claims method is the preferred
technique for unemployment. If residence-based UI claims
data are available for the sub-areas within the labor
market area, the ratio of the sub-area to the total
number of claims within the LMA is used to disaggregate
the estimate of experienced unemployed to the sub-area
level. The estimate of unemployed entrants is allocated
based on the latest available decennial census
distribution of adult and teenage population groups. When
the population-claims method is used for unemployment,
employment is disaggregated using current population
distributions prepared by the Bureau of the Census and
weighted by each area's decennial census relative share
of employment to population. This preferred combination
of techniques is used to derive estimates for all
counties in multi-county LMA's and for cities in some
States.
If the necessary UI claims data are not available at
the city level, the census-share method is used. This
method uses each subarea's decennial census share of
county employment and unemployment, respectively, in
order to disaggregate the monthly estimates of employment
and unemployment.
Next: Uses and
Limitations
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