4.3: The Household Survey II

The Household Survey or the Current Population Survey (CPS) is an important survey conducted monthly by the U.S. Census Bureau for the Bureau of Labor Statistics (BLS). It provides essential data such as employment status, and workforce participation, in the United States. The CPS classifies individuals into three broad categories: employed, unemployed, and not in the labor force. These classifications are fundamental for calculating labor force statistics, including the unemployment rate.

The employed category includes individuals who worked for pay or profit during the survey reference week. It also includes individuals who were temporarily absent from work due to vacation, illness, or other reasons.

The unemployed category consists of individuals who do not have a job but are actively seeking work and available for employment. To be considered unemployed, a person must have engaged in a job search ending with the survey reference week.

Individuals who are neither employed nor actively seeking employment are classified as not in the labor force. This group includes retirees, homemakers, full-time students, and discouraged workers—those who have stopped looking for work due to repeated unsuccessful attempts. People in this category are not counted in the official unemployment rate because they are not actively participating in the job market.

The labor force is the sum of employed and unemployed individuals.

One challenge of the CPS is the potential for response errors. Some survey respondents may provide inaccurate information, either intentionally or due to misunderstanding the questions. Additionally, non-response issues occur when individuals refuse to participate or fail to provide complete answers.

Despite its challenges, the CPS remains one of the most important tools for understanding employment trends, shaping economic policies, and guiding workforce development programs in the United States.

The Household Survey, or the Current Population Survey or CPS, is conducted monthly.

Based on its data, people are classified into three groups. These groups are employed, unemployed, and not in the labor force.

Employed individuals include those who worked for pay or profit during the survey reference week and those who were temporarily away from their jobs due to vacation, illness, or other reasons.

The unemployed are individuals who do not have a job but are actively seeking employment and are available to work. They must have searched for a job during the four weeks ending with the survey reference week.

Then, there are those not in the labor force. They are neither working nor looking for work. People not in the labor force include retirees, homemakers, full-time students, and discouraged workers.

One challenge of this survey is that respondents sometimes provide inaccurate information. For example, some individuals may report that they are actively looking for work and thus be counted as 'unemployed' when in reality they have stopped searching. This can happen due to social pressure to appear proactive. Additionally, in many cases, the requested information is not provided at all.