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	             Handbook of Methods > 
					                      Quarterly Census of Employment and Wages

                 Handbook of Methods Quarterly Census of Employment and Wages Design
                     Quarterly Census of Employment and Wages: Design
				  
				   				   
			  
			   				
				
				
				
			  				
				
				
				
			  				
				
				
				
			  				
				
				
				
			  				
				
				
				
			  				
				
				
				
			  				
				
				
				
			   



This section is based largely on the 2021 Office of Management and Budget (OMB) clearance of the Quarterly Census of Employment and Wages (QCEW) program.
The sampling frame universe
The universe respondent sampling frame BLS uses for the QCEW program consist of the 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The data source for these 53 entities is the Quarterly Contribution Reports (QCR) submitted to State Workforce Agencies (SWAs) by employers subject to state unemployment insurance (UI) laws. The QCEW data—which are compiled for each calendar quarter—provide a comprehensive business name and address file with monthly employment and quarterly wage information by industry. The data are available at the six-digit North American Industry Classification System (NAICS), national, state, Metropolitan Statistical Area (MSA), and county levels for employers subject to state UI laws. Similar data for federal government employees covered by the Unemployment Compensation for Federal Employees program (UCFE) also are included.
The QCEW program provides a virtual census of nonagricultural employees and their wages, with about 44 percent of the workers in agriculture covered as well. As shown in table 1 in the December 2019 data release, the number of covered private business establishments (worksites) is about 9.84 million, and the number of covered employment is about 128.27 million. Additionally, about 60,000 federal government, 70,000 state government, and 170,000 local government establishments are covered. In December 2019, the total number of covered establishments is about 10.29 million, and the total number of covered employment is about 150.85 million. The QCEW series has broad economic significance in measuring labor trends and major industry developments, in time series analyses and industry comparisons, and in special studies, such as analyses of establishments, employment, and wages by size of establishment.
The BLS role in the QCEW program is to establish and enforce uniform methods and processes that yield a consistent level of data quality for the multifaceted uses of QCEW data.
The BLS role is to take in raw UI administrative data and:
to understand error components,
to address each with methods and processes,
to reduce resulting error,
to yield high-quality economic data, and
to create a high-quality sample frame for other establishment surveys.The improvement processes include but are not limited to: efficiency in data collection from large multi-establishment employers through Electronic Data Interchange (EDI); statistically valid procedures for editing, estimating missing reports and data elements, record linkage and standardized processing systems, training of staff; and quality controls procedures for data review. (See sections 2b and 2c on estimation procedures and reliability for details.)⁠1 After the data have gone through extensive review at the state, regional, and national levels, BLS summarizes these data to produce totals for all counties, MSAs, the states, and the nation by various industrial levels.
Reliability
Since the QCEW is a census, the data are only subject to non-sampling errors. To control for these non-sampling errors, BLS has extensive quality control procedures that include:
improved data collection methods especially for large multi-establishment employers through EDI;
standardized data processing systems that include edits, imputation, record linkages including address standardization and industrial classification coding;⁠2 and
standardized training of staff at state, regional, and national levels in the review of data according to the guidelines provided by the QCEW policy council and stated in official memorandums (available upon request).⁠3Records that fail these edits are individually reviewed. Respondents are contacted often to validate significant movements or to correct the data.
The three most important initiatives undertaken by BLS to enhance the quality of QCEW data are the establishment of the Multiple Worksites Report (MWR) Survey, the Annual Re-filing Survey (ARS), and the development of a new comprehensive processing system for states use. Two separate OMB clearances are obtained for the ARS and MWR Survey. The MWR survey is sent quarterly to multi-establishment employers for the purpose of asking them to break out their consolidated UI reports to the establishment level. For example, some employers provide data for all of their operations within a state or at the county level; the MWR asks the employer to provide information for each establishment so that all records on the file can be at the establishment level, which is generally the sampling unit for most BLS surveys. This also improves the quality of local economic data by more accurately reporting the location and type of economic activity.
The ARS is conducted annually on about one-third of the establishments on the frame for the purpose of updating the industrial classification, business name, reporting and physical location addresses, and auxiliary status. Establishments with more than three employees are eligible for the ARS. Each eligible establishment is placed into a 3-year cohort using a random selection process.  In order to ensure data quality, state and regional staff are trained extensively in industrial classification coding. Additionally, standardized systems are provided to the state and regions to process the data.
Revisions
For the first quarter of each year, QCEW data are published five times. The original data are first released in September of the same year followed by revisions in the following December, March, June, and September. For example, March 2019 data were first published in September 2019, then in December 2019, and subsequently in March, June, and September of 2020. The second-quarter data are published four times; and the third-quarter data are published three times; and the fourth-quarter data are published twice. Table 5 provides data for the initial publication of each quarter in 2019 to their final publication in September 2020. As shown in table 6, the largest revision generally occurs from initial publication to the first revision, as missing reports, including out-of-business reports, for late responding employers come in. The magnitude of revisions is relatively small; that is, less than 0.05 percentage points.
Data collection cycles
The QCEW program is quarterly, as employers are required to file Quarterly Contribution reports (i.e. UI reports) on a quarterly basis.
Methods for maximizing response rates
Response rates are generally very high because employers are required to file Quarterly Contributions Reports under the UI law for each state. The unit response rates for employment are about 96 percent (table 2 and about 97 percent (table 4) for wages as reporting of wages are required by UI law. The response rates based on total covered employment are about 97 percent (table 3), as the nonresponse is mostly concentrated among smaller establishments.
Growth of Electronic Data Interchange (EDI), the direct transfer of data from the firm to BLS, also provides a high level of response and stability. BLS currently collects over 80,000 reports from nearly 100 large firms with about 10 million employees via EDI.  For final estimates, virtually all of these firms provide data by EDI.
BLS initiatives
BLS has undertaken several research initiatives in the control and measurement of nonsampling error. The 1991 Current Employment Statistics (CES) survey’s benchmark employment estimate transmitted to the QCEW revealed a substantial nonsampling error problem caused by payroll-processing firms. The American Statistical Association formed a committee to review BLS procedures and issued a report in January 1994.⁠4 BLS adopted most of the report’s recommendations. BLS also conducted a Response Analysis Survey (RAS) of payroll-processing firms.⁠5 The purpose of the survey was twofold: to identify practices that can affect the data collected by the CES survey and the QCEW (the benchmark source data), and to educate payroll processors on proper reporting procedures. In addition, BLS conducted a RAS of CES and QCEW covered employment reporting.⁠6 The survey identified factors that affected both CES and QCEW reporting within the same firm. Based on these RAS studies, BLS undertook an extensive education program with CES respondents. This included highlighting correct reporting of problem items on the CES report form and the inclusion of special notices on correct reporting in the monthly advance notice fax message. In 2008, another RAS was conducted and an executive summary of the report details the findings of the survey.⁠7
Statistical aspects contact
Mr. Edwin Robison, Chief, Statistical Methods Staff of the Office of Employment and Unemployment Statistics (phone: 202-691-6363), is responsible for the statistical aspects of the QCEW program. As mentioned in the above paragraph, BLS seeks consultation with other outside experts on an as needed basis. The QCEW Policy Council, composed of 10 state representatives and BLS staff, has been consulted on the content, uses, and methodology of the program.
Table 1. Quarterly Census of Employment and Wages (QCEW) summary data for 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, 2019 4th quarter (in thousands)
Industry description
Number of establishments
Employment, October 2019
Employment, November 2019
Employment, December 2019Total
10,364
149,527
150,260
150,005Total private
9,303
127,321
127,943
127,781Agriculture, forestry, fishing, and hunting
108
1,361
1,251
1,164Mining
33
665
653
643Utilities
19
548
548
548Construction
840
7,661
7,575
7,438Nondurable manufacturing
135
4,812
4,801
4,802Durable manufacturing
222
7,971
8,018
8,026Wholesale trade
618
5,894
5,906
5,914Retail trade
1,047
15,588
16,072
16,150Transportation and warehousing
266
5,612
5,818
5,944Information
190
2,842
2,900
2,865Finance and insurance
503
6,055
6,071
6,084Real estate and rental and leasing
424
2,322
2,318
2,325Professional, scientific, and technical services
1,289
9,626
9,684
9,699Management of companies and enterprises
71
2,408
2,414
2,420Administrative and support and waste management services
578
9,484
9,518
9,366Educational services
130
3,038
3,063
3,016Healthcare and social assistance
1,659
20,325
20,415
20,440Arts, entertainment, and recreation
158
2,414
2,304
2,320Accommodation and food services
733
14,046
13,964
13,956Other services, except public administration
869
4,574
4,574
4,575Unclassified
171
147
152
156Federal government
61
2,854
2,861
2,866State government
71
4,871
4,877
4,854Local government
171
14,688
14,786
14,711Note: Industries are categorized by North American Industry Classification System (NAICS) code.
Source: U.S. Bureau of Labor Statistics.Table 2. Percentage of imputed establishments, total private, January 2001–December 2019
Year
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec2001
5.96
5.96
5.99
5.72
5.73
5.81
5.04
5.06
5.08
5.02
5.04
5.092002
5.57
5.58
5.57
5.12
5.12
5.19
4.98
4.99
5.04
4.75
4.78
4.822003
6.25
6.26
6.26
5.65
5.62
5.70
5.27
5.27
5.29
5.49
5.51
5.572004
5.98
5.97
5.98
5.83
5.80
5.93
5.50
5.50
5.62
5.33
5.35
5.452005
5.66
5.68
5.74
5.13
5.11
5.28
5.23
5.25
5.26
4.65
4.71
4.802006
5.96
5.98
6.01
4.96
4.91
5.01
4.89
4.97
5.01
4.46
4.55
4.602007
5.14
5.28
5.31
4.59
4.70
4.78
4.37
4.40
4.45
4.15
4.18
4.252008
5.29
5.27
5.33
4.19
4.18
4.31
4.19
4.17
4.24
3.83
3.88
3.992009
4.88
4.90
4.99
4.12
4.09
4.21
3.71
3.72
3.79
3.64
3.66
3.812010
4.85
4.87
4.89
4.22
4.22
4.42
4.33
4.34
4.56
3.83
3.87
4.022011
4.76
4.80
4.88
5.02
5.02
5.21
3.44
3.46
3.59
2.93
3.00
3.122012
3.73
3.73
3.79
3.71
3.70
3.84
3.38
3.38
3.52
4.00
4.03
4.142013
4.28
4.19
4.27
3.43
3.43
3.58
3.01
2.95
3.06
2.95
2.90
3.042014
4.11
4.04
4.11
2.89
2.81
2.95
2.74
2.74
2.87
2.65
2.68
2.772015
3.38
3.38
3.41
2.78
2.74
2.84
3.36
3.36
3.49
2.52
2.56
2.682016
4.46
4.46
4.54
3.16
3.16
3.33
2.77
2.78
2.87
3.16
3.20
3.312017
3.87
3.87
3.89
2.95
2.94
3.04
2.36
2.39
2.47
2.31
2.35
2.472018
3.97
3.96
4.02
2.72
2.72
2.82
2.43
2.46
2.57
2.33
2.37
2.512019
3.29
3.26
3.34
2.93
2.94
3.05
2.76
2.77
2.90
2.25
2.29
2.43Note: Data include total private establishments (excluding households) in 50 states and the District of Columbia. Data do not include Puerto Rico and U.S. Virgin Islands.
Source: U.S. Bureau of Labor Statistics.Table 3. Percentage of imputed employment, total private, January 2001–December 2019
Year
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec2001
5.14
5.09
5.10
4.76
4.70
4.74
4.41
4.38
4.47
4.68
4.68
4.742002
4.41
4.42
4.38
4.16
4.13
4.24
4.49
4.44
4.47
4.26
4.20
4.232003
4.92
4.93
4.82
4.36
4.29
4.39
4.62
4.54
4.58
4.62
4.61
4.572004
4.52
4.42
4.35
4.70
4.59
4.77
5.07
5.01
5.24
4.54
4.48
4.492005
4.10
4.09
4.12
3.80
3.74
4.09
3.96
3.95
3.83
3.82
3.78
3.792006
3.78
3.74
3.75
3.14
3.04
3.06
3.29
3.31
3.28
3.23
3.28
3.272007
3.28
3.28
3.24
2.95
2.89
2.94
3.08
3.08
3.10
2.86
2.82
2.872008
3.07
2.97
3.00
2.60
2.53
2.68
2.69
2.58
2.68
2.49
2.44
2.562009
2.84
2.75
3.26
2.35
2.29
2.36
2.34
2.30
2.51
2.34
2.26
2.342010
2.85
2.81
2.79
2.32
2.25
2.43
2.70
2.67
3.09
2.42
2.44
2.572011
2.80
2.79
2.89
3.04
2.99
3.25
2.32
2.33
2.41
2.22
2.23
2.272012
2.49
2.41
2.45
2.37
2.30
2.45
2.31
2.18
2.29
2.71
2.53
2.642013
2.72
2.54
2.62
2.17
2.13
2.28
2.34
2.14
2.26
2.21
1.97
2.132014
2.46
2.31
2.37
1.88
1.80
1.92
1.91
1.84
1.96
2.13
2.09
2.192015
2.07
2.03
2.07
1.78
1.71
1.83
1.96
1.89
2.05
1.73
1.73
1.872016
2.17
2.14
2.23
1.56
1.56
1.87
1.72
1.67
1.84
1.94
1.90
2.002017
1.90
1.90
1.91
1.58
1.58
1.71
1.47
1.47
1.58
1.48
1.52
1.602018
1.98
1.96
2.05
1.55
1.55
1.64
1.50
1.47
1.62
1.57
1.61
1.712019
1.91
1.87
1.93
1.65
1.63
1.77
1.65
1.62
1.83
1.64
1.63
1.75Note: Data include total private establishments (excluding households) in 50 states and the District of Columbia. Data do not include Puerto Rico and U.S. Virgin Islands.
Source: U.S. Bureau of Labor Statistics.Table 4. Percentage of imputed wages in the Quarterly Census of Employment and Wages (QCEW), by quarter and year, first quarter 2001–fourth quarter 2019
Quarter and year
Total establishment count
Percentage imputedFirst quarter 2001
7,743,963
4.26Second quarter 2001
7,752,694
4.24Third quarter 2001
7,803,541
3.18Fourth quarter 2001
7,839,471
3.11First quarter 2002
7,891,412
3.94Second quarter 2002
7,901,173
3.40Third quarter 2002
7,935,862
3.31Fourth quarter 2002
7,973,775
3.28First quarter 2003
8,013,297
4.78Second quarter 2003
8,002,961
3.76Third quarter 2003
8,060,296
3.46Fourth quarter 2003
8,081,182
3.50First quarter 2004
8,129,247
4.31Second quarter 2004
8,133,737
4.07Third quarter 2004
8,192,688
3.71Fourth quarter 2004
8,259,088
3.70First quarter 2005
8,314,712
4.15Second quarter 2005
8,335,131
3.62Third quarter 2005
8,407,905
3.65Fourth quarter 2005
8,464,375
3.13First quarter 2006
8,542,371
4.39Second quarter 2006
8,550,053
3.61Third quarter 2006
8,617,164
3.52Fourth quarter 2006
8,703,001
3.06First quarter 2007
8,718,045
3.94Second quarter 2007
8,720,237
3.49Third quarter 2007
8,785,200
3.20Fourth quarter 2007
8,836,877
2.96First quarter 2008
8,875,359
4.04Second quarter 2008
8,876,227
3.34Third quarter 2008
8,918,706
3.24Fourth quarter 2008
8,943,568
2.99First quarter 2009
8,878,407
4.10Second quarter 2009
8,819,252
3.27Third quarter 2009
8,826,095
3.08Fourth quarter 2009
8,845,544
2.93First quarter 2010
8,802,125
3.99Second quarter 2010
8,769,242
3.53Third quarter 2010
8,802,038
3.30Fourth quarter 2010
8,842,899
2.94First quarter 2011
8,820,545
4.32Second quarter 2011
8,828,478
4.08Third quarter 2011
8,876,724
2.59Fourth quarter 2011
8,921,357
1.95First quarter 2012
8,951,937
2.89Second quarter 2012
8,968,693
2.84Third quarter 2012
8,918,033
2.59Fourth quarter 2012
8,958,625
3.25First quarter 2013
8,946,733
3.33Second quarter 2013
9,003,016
2.68Third quarter 2013
9,047,292
2.29Fourth quarter 2013
9,050,707
2.46First quarter 2014
9,045,619
3.45Second quarter 2014
9,041,974
2.14Third quarter 2014
9,092,059
2.17Fourth quarter 2014
9,149,628
1.96First quarter 2015
9,178,990
2.69Second quarter 2015
9,221,367
2.21Third quarter 2015
9,266,222
2.86Fourth quarter 2015
9,319,488
1.85First quarter 2016
9,320,160
3.88Second quarter 2016
9,371,351
2.72Third quarter 2016
9,432,306
2.35Fourth quarter 2016
9,489,189
2.76First quarter 2017
9,472,782
3.18Second quarter 2017
9,527,202
2.47Third quarter 2017
9,532,898
1.89Fourth quarter 2017
9,591,535
1.81First quarter 2018
9,618,757
2.80Second quarter 2018
9,663,973
2.07Third quarter 2018
9,731,525
1.83Fourth quarter 2018
9,781,919
1.78First quarter 2019
9,815,176
2.81Second quarter 2019
9,857,279
2.45Third quarter 2019
9,926,960
2.28Fourth quarter 2019
9,990,093
1.77Source: U.S. Bureau of Labor Statistics.Table 5. Revisions in published Quarterly Census of Employment and Wages (QCEW) data for March 2019, U.S. total, September 2019–September 2020
News release
Total records
First revision
Second revision
Third revision
Fourth revison
Total revisions since first releaseMarch 2019 (September 2019 release)
146,497,599March 2019 (December 2019 release)
146,513,849
16,250March 2019 (March 2020 release)
146,514,210

361March 2019 (June 2020 release)
146,527,125


12,915March 2019 (September 2020 release)
146,553,073



25,948Total revision since September 2019

55,474June 2019 (December 2019 Release)
149,089,158June 2019 (March 2020 Release)
149,133,921
44,763June 2019 (June 2020 Release)
149,157,402

23,481June 2019 (September 2020 Release)
149,191,158


33,756Revision since December 2019

102,000September 2019 (March 2020 release)
148,556,525September 2019 (June 2020 release)
148,655,575
99,050September 2019 (September 2020 release)
148,701,484

45,909Revision since March 2020

144,959December 2019 (June 2020 release)
149,857,130December 2019 (September 2020 release)
150,005,303
148,173Revision since June 2020

148,173Source: U.S. Bureau of Labor Statistics.Table 6. Percentage of revisions in published Quarterly Census of Employment and Wages (QCEW) data for March 2019, from original to next publication, December 2019–September 2020
Preliminary publication
March 2019 (December 2019 Release)
June 2019 (March 2020 Release)
September 2019 (June 2020 Release)
December 2019 (September 2020 Release)Percentage of revision from preliminary published data
0.01
0.03
0.07
0.1Source: U.S. Bureau of Labor Statistics.Table 7. Percentage of revision from original to final publication, March to December 2019 preliminary publication to September 2020 release
Preliminary publication
March 2019 (September 2020 release)
June 2019 (September 2020 release)
September 2019 (September 2020 release)
December 2019 (September 2020 release)Percentage of revision from preliminary published data
0.04
0.07
0.1
0.1Source: U.S. Bureau of Labor Statistics.Notes
⁠1 Kenneth Robertson, Larry Huff, Gordon Mikkelson, Timothy Pivetz, and Alice Winkler, “Improvement in record linkage processes for the Bureau of Labor Statistics’ Business Establishment List,” In *Record linkage techniques -- 1997: Proceedings of an international workshop and exposition*, pp. 212-221, https://www.nap.edu/read/6491/chapter/10#212.
⁠2 Official memorandums to the states and regional staff about the QCEW program are available upon request by contacting the QCEW program at https://www.bls.gov/cew/contact.htm.
⁠3 Ivan P. Fellegi and Alan B. Sunter, “A theory for record Linkage,” *Journal of the American Statistical Association*, vol. 64 no. 32, pp. 1183–1210, https://www.jstor.org/stable/2286061.
⁠4 American Statistical Association Panel for the Bureau of Labor Statistics’ Current Employment Statistics Survey, “A research agenda to guide and improve the Current Employment Statistics survey” (Alexandria, VA: American Statistical Association, January 1994), available upon request.
⁠5 Karen L. Goldenberg, Susan E. Moore, and Richard J. Rosen, “Commercial payroll software and the quality of employment data," *Proceedings of the Survey Research Methods Section, American Statistical Association, August 13*–*18, 1994* (Toronto: American Statistical Association, 1994), https://www.asasrms.org/Proceedings/papers/1994_178.pdf.
⁠6 George S. Werking, Richard L. Clayton, and Richard J. Rosen, “Studying the causes of employment count differences reported in two BLS programs,” *Proceedings of the Survey Research Methods Section, American Statistical Association, August 13–17, 1995* (Orlando, FL: American Statistical Association, 1995), https://www.asasrms.org/Proceedings/papers/1995_137.pdf.
⁠7 Sally Anderson, Margaret Applebaum, Michele Eickman, Greg Erkens, Kristin Fairman, Jeffrey Groen, Steve Kroll, Chris Manning, and Polly Phipps, “Differences in seasonality between the CES and QCEW programs: results from the 2008 Response Analysis Survey” (U.S. Bureau of Labor Statistics, August 21, 2009), https://www.asasrms.org/Proceedings/y2009/Files/304445.pdf.

				    				   
				   				   
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