Monthly Labor Review • March 2007 

Labor Market Improvements in 2006

Sara Kline

Household survey data show

labor market improvements in 2006

The number of unemployed persons declined by 641,000 over the year, reaching 6.8 

million in the fourth quarter. Setting the pattern for the overall unemployment rate, the 

number of unemployed fell by 375,000 between the fourth quarter of 2005 and the first 

quarter of 2006, remained fairly flat during the 

second and third quarters of 2006, and then fell 

by an additional 289,000 between the third and 

fourth quarters. (See table 1 and chart 1; tables 

are collected at the end of this article.)

Like the overall unemployment rate, the 

unemployment rates for all of the major worker groups declined over the year. The decrease 

was greatest for blacks and those of Hispanic 

or Latino ethnicity: both were down 1.2 percentage points by the fourth quarter of 2006. 

Blacks ended the year with an unemployment 

rate of 8.5 percent, Hispanics with 4.8 percent. The unemployment rate of whites also 

fell over the year, to 3.9 percent at the end of 

2006 from 4.3 percent the previous year. Over 

2006, the unemployment rate among Asians 

dropped by 0.7 percentage point, to 2.8 percent (not seasonally adjusted) at the end of 

the year.

Both adult men and adult women ended 

the year with an unemployment rate of 3.9 

percent, down 0.4 percentage point and 0.6 

percentage point, respectively. The unemployment rate of teenagers (those aged 16 to 

19 years) varied throughout the year and was 

15.1 percent in the fourth quarter, 1.0 perSara Kline is an economist 

formerly in the Division 

of Labor Force Statistics, 

Office of Employment and 

Unemployment Statistics, 

Bureau of Labor Statistics. 

Unemployment decreased, and employment, as measured by the Current Population Survey (CPS), rose.1

Other labor market measures showed improvement over the year. In the fourth quarter of 2006, 6.8 million people were unemployed and the unemployment rate was 4.5 

percent. Both measures were down from a 

year earlier. Total employment and the employment-population ratio increased during 

the year, to 145.6 million and 63.3 percent, 

respectively. The labor force—the sum of the 

employed and the unemployed—grew over 

the year at about the same pace as the population; as a result, the proportion of the population in the labor force—the labor force 

participation rate—was little changed in 

2006.

Unemployment levels and rates—both overall and for all of the major worker groups—

were lower at the end of 2006 than a year 

earlier. The unemployment rate for persons aged 16 years and older was 4.5 percent in the fourth quarter of 2006, down 

from 5.0 percent a year before. Between the 

fourth quarter of 2005 and the first quarter 

of 2006, the unemployment rate declined by 

0.3 percentage point, to 4.7 percent. The rate 

remained at that level for the next two quarters and then declined by an additional 0.2 

percentage point, to 4.5 percent, in the final 

quarter of 2006.

Unemployment declined, employment increased,

and earnings were about in line with inflation in 2006;

the long-term unemployed saw their numbers fall
Labor Market Improvements in 2006

 Monthly Labor Review • March 2007

The Bureau of Labor Statistics produces two monthly employment series that are independently obtained: 

the estimate of total nonfarm jobs derived from the 

Current Employment Statistics (CES) program, also 

called the establishment or payroll survey; and the estimate of total civilian employment based on the Current Population Survey (CPS), also called the household survey.

These surveys use different definitions of employment, as well as different survey and estimation methodologies. The CES survey is a survey of employers that 

provides a measure of the number of payroll jobs in 

nonfarm industries. The CPS is a survey of households 

that provides a measure of employed persons aged 16 

years and older in the civilian noninstitutional population. Employment estimates from the CPS give information about workers in both the agricultural and 

nonagricultural sectors and in any type of work arrangement: wage and salary jobs (including employment in a 

private household), self-employment, and unpaid work 

of at least 15 hours a week in a business or farm operated by a family member. CES payroll employment estimates are restricted to nonagricultural wage and salary jobs and exclude private household workers. As a 

result, employment estimates from the CPS are higher than those from the CES survey. In the CPS, however, employed persons are counted only once, regardless 

of whether they hold more than one job during the survey reference period. By contrast, because the CES survey counts the number of jobs rather than persons, multiple jobholders are counted once for each nonfarm job 

they hold.

The reference periods for the surveys also differ. In the CPS, the reference period is the calendar 

week that includes the 12th day of the month. In the 

CES survey, employers report the number of workDifferences between employment estimates 

from the establishment and household surveys

ers on their payrolls for the pay period that includes 

the 12th of the month. Because pay periods vary in 

length among employers and may be longer than 1 

week, the CES employment estimates can reflect a 

longer reference period.

For purposes of comparison, however, some adjustments can be made to CPS employment estimates to 

make them more similar in definitional scope to CES

employment. The Bureau routinely carries out these adjustments to evaluate how the two employment series 

are tracking. The long-term trends in the two surveys’ 

employment measures are quite comparable. Nonetheless, throughout the history of the surveys, there have 

been periods when the trends diverged or when growth 

in one series significantly outpaced growth in the other. For example, following the end of the 2001 recession, CPS employment began to trend upward while 

CES employment continued to decline for a number 

of months.

In 2006, CES employment (revised as of February 

2007) and CPS employment (adjusted for comparability with CES employment) showed similar growth over 

the first two quarters. In the third and fourth quarters, 

CPS employment expanded more than CES employment. Short-term trend differences such as this are not 

uncommon, but if such a discrepancy persists over a 

number of quarters, it becomes an issue of interest for 

labor market analysts.

The Bureau publishes a monthly report with the latest trends and comparisons of CES and CPS employment. (See “Employment from the BLS household and 

payroll surveys: summary of recent trends,” on the Internet at http://www.bls.gov/web/ces_cps_trends.pdf.) 

This report includes a summary of possible causes of 

differences in the surveys’ employment trends, as well as 

links to additional research on the topic.
Monthly Labor Review • March 2007 

centage point lower than a year earlier.

Among workers aged 25 years and older, the unemployment rate of those with less than a high school diploma declined 1.0 percentage point, to 6.3 percent in the 

fourth quarter of 2006. The unemployment rates for high 

school graduates with no college and for those with some 

college or an associate’s degree each fell 0.5 percentage 

point, to 4.2 percent and 3.4 percent, respectively. The jobless rate declined and remained lowest for college graduates, 1.9 percent at the end of the year. (See chart 2.) 

The number of persons who were unemployed due to job loss declined in 2006, as did the number of long-term unemployed.

The number of persons who were unemployed due to job 

loss fell to 3.2 million in the fourth quarter of 2006, down 

339,000 from the previous year. The majority of the overall decrease in unemployment was among job losers. This 

involuntary job loss category includes those on temporary 

layoff (awaiting recall) and those not on layoff—permanent 

job losers and persons who completed temporary jobs. The 

over-the-year decline occurred largely among persons who 

did not expect to be recalled to work. Reentrants to the labor force accounted for about one-quarter of the decrease in 

the number of unemployed persons. (Reentrants had been 

in the labor force previously, had spent time out of the labor 

force, and once again were actively seeking work.) Over the 

year, the number of unemployed reentrants fell by 160,000, 

to 2.2 million. Both the number of job leavers (unemployed 

persons who voluntarily left their jobs) and the number of 

new entrants to the labor force were down slightly from 1 

year earlier. (See table 2 and chart 3.)

The number of persons unemployed 27 weeks or longer at the end of 2006 was down 285,000 from a year earlier. (See chart 4.) These long-term unemployed accounted for a slightly smaller portion of total unemployment 

than they did the previous year: 16.3 percent in the fourth 

quarter of 2006, down from 18.7 percent in the last quarter of 2005. At the end of 2006, the number of unemployed persons who had been looking for work for less 

than 5 weeks was 2.6 million, a decline of 126,000 over 

the year. The percentage of the unemployed who were jobless for less than 5 weeks was up 1.7 percentage points, 

to 38.4 percent. The average (mean) duration and median 

duration of unemployment were 16.2 and 7.8 weeks, respectively, in the last quarter of 2006, both figures slightly 

lower than a year earlier.

Paralleling the unemployment rate, the alternative measures 

of labor underutilization showed improvement in 2006. In 

addition to publishing the official unemployment rate, the 

Bureau produces five alternative labor underutilization 

Chart 1. Unemployment rate, seasonally adjusted quarterly data, 1969–2006

Percent

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

12

0

2

4

6

8

10

12

0

2

4

6

8

10

Percent

SOURCE: Bureau of Labor Statistics, Current Population Survey.

1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005
Labor Market Improvements in 2006

  Monthly Labor Review • March 20

	 	

indicators each month. These measures performed much 

as did the official unemployment rate: over the year, they 

were all down. Labeled U-1 through U-6 (U-3 is the official unemployment rate), the measures provide additional insight into the degree to which labor resources are underutilized; each one is presented as a percent of the labor 

force.2 The first two measures single out a subgroup of the 

unemployed: persons unemployed 15 weeks or longer (U1); and job losers and persons who completed temporary 

jobs (U-2). U-4 through U-6 include broader groups in 

addition to the unemployed persons in U-3: discouraged 

workers (U-4); all marginally attached workers (U-5); and 

the marginally attached plus persons employed part time 

for economic reasons (U-6). (See table 3.)

The civilian labor force grew by 2.3 million in 2006, but the 

labor force participation rate remained little changed from the 

previous year. In 2006, as in the previous 2 years, the labor force participation rate was relatively flat, with both 

the U.S. population and the Nation’s labor force having 

grown in roughly equal proportions. In the fourth quarter 

of 2006, the rate was 66.3 percent. (See chart 5.)

The labor force participation rates for most of the major 

racial and ethnic groups—blacks (64.2 percent), Hispanics 

(68.8 percent), and Asians (66.4 percent, not seasonally adjusted)—showed little or no change over the year, as did the 

participation rate for whites (66.6 percent). (See table 1.)

As the following tabulation shows, labor force participation rates and trends varied by age:

 Quarter IV, Quarter IV,

 Age 2005 2006

Total, 16 years and older .................	 66.1	

16 to 19 years ........................................	 43.5	 43.4

16 to 17 years ....................................	 31.5	 32

18 to 19 years..................................... 	 57.9	 56

20 to 24 years ........................................	 74.8	 75.0

25 to 34 years ........................................	 82.9	 83.1

35 to 44 years ........................................	 83.7	 84.1

45 to 54 years......................................... 81.6	 82.1

55 years and older .................................	 37.5 38.4

In the fourth quarter of 2006, the labor force participation rate for teenagers aged 16 to 19 years was little 

changed, at 43.4 percent. The teen participation rate remained close to the levels seen in recent years, but lower than the rates of several decades ago. In 2006, approximately three-quarters of young adults (those aged 20 to 

24 years) were in the labor force, about the same as a year 

Chart 2. Unemployment rate by educational attainment, seasonally adjusted data, selected quarters

Percent

SOURCE: Bureau of Labor Statistics, Current Population Survey.

0

2

4

6

8

1

7

5

3

0

2

4

6

8

1

7

5

3

2005, Quarter IV

2006, Quarter IV

Total, 25 years 

 and older

Less than a high 

 school diploma

 High school 

graduate, no college

Less than a 

bachelor’s degree

College graduate

Percent
Monthly Labor Review • March 2007

earlier. The labor force participation rate for adults aged 

25 to 54 years was 83.1 percent at the end of 2006, slightly higher than in the previous year. In recent years, the rate 

has remained below the historical highs seen in the late 

1990s. In contrast, the labor force participation rate for 

adults aged 55 years and older has been rising for several 

years, and it continued to do so in 2006, increasing by 0.9 

percentage point, to 38.4 percent. Since 1994, the labor 

force participation rate for those 55 years and older has increased by 8.1 percentage points.3

Employment continued to grow in 2006, as did the employment-population ratio. The number of employed persons, as measured by the CPS, continued to grow in 2006, 

increasing by 3.0 million over the year, to 145.6 million in 

the fourth quarter. (For more information on the concept 

of employment, as defined for the household survey and 

in comparison to its definition for the establishment survey, see the box on page 4.) In 2006, the employment gain 

for adult men was 1.6 million; for adult women, it was 

1.2 million. Employment among teens was little changed 

over the year.

The number of employed whites rose by 2.1 million in 

2006—a slightly larger increase than in the previous year—to 

119.7 million in the fourth quarter. The number of employed 

blacks rose by 525,000 over the year, following a similar-sized 

gain of 472,000 in 2005. The number of employed Hispanics 

rose by about 1 million over the year, 34 percent of the overall 

increase in employment. By comparison, Hispanics accounted for about 14 percent of all employed persons.

The overall employment-populationratio increased 0.5 

percentage point, to 63.3 percent, in the fourth quarter 

of 2006. The ratio edged up over the four quarters of the 

year. (See chart 5.) The employment-population ratio for 

both adult men and adult women increased over the year. 

Although the gap between the ratios for men and women 

has narrowed significantly over time, the employmentpopulation ratio for adult men remains higher than that 

for their female counterparts. In the fourth quarter of 

2006, the ratios were 73.1 percent and 58.3 percent, respectively. In 2006, the employment-population ratio for 

teenagers, 36.8 percent, was little changed from the previous year’s figure.

With the exception of Asians, whose employmentChart 3. Reasons for unemployment, seasonally adjusted quarterly data, 1990–2006

Thousands

6,000

0

1,000

2,000

3,000

4,000

5,000

Thousands

1990 1993 1996 1999 2002 2005

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Reentrants

Job leavers

New entrants

Job losers

6,000

 0

1,000

2,000

3,000

4,000

5,000
Labor Market Improvements in 2006

 Monthly Labor Review • March 2007

population ratio remained little changed over the year, 

at 64.6 percent (not seasonally adjusted), the major race 

and ethnic groups saw their ratios increase. During 2006, 

the Hispanic employment-population ratio—the highest 

among all the major groups—increased by 1.3 percentage 

points, to 65.5 percent. For blacks, the ratio rose by 0.9 

percentage point, to 58.7 percent, while for whites it rose 

by 0.5 percentage point, to 64.0 percent. 

The number of persons who were self-employed edged up over 

the year, while the percentage of all employed persons who 

were self-employed was little changed. In the fourth quarter of 2006, 7.3 percent of employed persons, or 10.6 million, were self-employed. This percentage has changed little since 2000. About 9 of every 10 self-employed persons 

worked in nonagricultural industries.

 The likelihood of self-employment increases with age, as 

shown in the following tabulation of the self-employed as 

a percentage of the total employed, not seasonally adjusted: 

                    

	 	 	 Total, 16 years and older ..................... 	 7

16 to 19 years. .........................................	 

	 	 16 to 17 years .......................................	 1

	 	 18 to 19 years .......................................	 1

20 to 24 years ...........................................	 2

25 to 34 years ...........................................	 5

35 to 44 years ...........................................	 7

45 to 54 years...........................................	 

55 to 64 years ..........................................	 1

65 years and older ...................................	 1

The self-employment rate was highest for those aged 65 

years and older—18.9 percent in 2006. In addition, men 

(8.7 percent) were more likely than women (5.7 percent) 

to be self-employed. 

Employment grew among workers in management, service, 

and construction occupations in 2006. The number of people employed in management, professional, and related 

occupations grew by 1.2 million in 2006, slightly more 

growth than in each of the past few years. (The data in this 

section are annual averages.) Men and women have a relatively equal share of employment in these occupations and 

shared the growth fairly equally as well. (See table 4.)

Employment in service occupations rose by 678,000 in 

2006. Women accounted for the majority of the increase 

(402,000). Most found employment in either food preparation (136,000) or personal care (192,000). Among men 

in service occupations, the largest growth was in building 

and grounds cleaning and maintenance (119,000). Employment in construction occupations, a traditionally male-dominated category, continued to grow. By far, most of the 362,000 

gain in the number of construction workers was among men 

(345,000). Similarly, in transportation, in which many more 

Chart 4. Long-term unemployed as a percent of total unemployed, seasonally adjusted 

 quarterly data, 1990–2006

Percent

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

25

 5

10

15

20

 0

25

5

10

15

20

0

1990 1993 1996 1999 2002 2005

Percent
Monthly Labor Review • March 2007 

men than women work, more than 85 percent of the increase 

was among men. Employment in sales and office occupations was little changed in 2006. 

Median weekly earnings for full-time wage and salary workers increased in 2006 at about the same rate as inflation, as 

measured by the Consumer Price Index (CPI). In 2006, 

median usual weekly earnings rose by 3.1 percent, to 

$671. (The data in this section are annual averages.) Over 

the year, the Consumer Price Index for All Urban Consumers (CPI-U) increased by 3.2 percent. (See chart 6.) 

While both men’s and women’s earnings grew, the ratio 

of women’s earnings to men’s earnings was little changed, 

at 80.8 percent, in 2006. Women’s earnings grew 2.6 percent, compared with a 2.9-percent gain in men’s earnings. 

Over time, the earnings gap between the sexes has narrowed considerably: in 1979, women’s earnings were 62.5 

percent of men’s earnings.4 (See table 5 and chart 7.)

In 2006, among the major racial and ethnic groups, 

blacks saw the largest percent increase in earnings, 6.5 percent. Asians experienced the next-highest rate, 4.1 percent. 

The relative earnings increases for Hispanics and whites 

were lower: 3.2 percent and 2.7 percent, respectively.

Workers aged 25 years and older with at least a bachelor’s degree continued to have the highest earnings among 

the major education groups, $1,039 in 2006, a 2.6-percent increase over the previous year’s figure. Workers with 

some college or an associate’s degree saw the largest overthe-year percentage increase in 2006: earnings for the 

group were up 3.3 percent, to $692 per week. Earnings of 

high school graduates with no college rose 2.1 percent in 

2006. Workers with less than a high school diploma earned 

$419 per week, up 2.4 percent from 2005. (See table 5.) 

The number of persons employed part time for economic reasons and the number of multiple jobholders were essentially 

unchanged over the year. In the fourth quarter of 2006, 

the number of persons who worked part time involuntarily, also known as those employed part time for economic reasons, was about the same as in the previous year, 4.2 

million. (The data in this section are quarterly averages.) 

Involuntary part-time workers are persons who would 

prefer to work full time, but could not because of slack 

work or business conditions, as well as those who are unable to find full-time work. (See chart 8.)

The number of workers holding more than one job was 

7.9 million (not seasonally adjusted) in the fourth quarter of 2006, not significantly different from a year earliChart 5. Labor force participation rate and employment-population ratio, seasonally adjusted 

 quarterly data, 1998–2006

NOTE: Shaded regions represent recessions as designated by the National Bureau of Economic Research.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

70

62

64

66

68

60

Percent

1998 1999 2000 2001 2002 2003 2004 2005 2006

70

62

64

66

68

60

Percent

Labor force participation rate

Employment-to-population ratio
Labor Market Improvements in 2006

10 Monthly Labor Review • March 2007

er. The percentage of employed persons who were multiple jobholders was unchanged at 5.4 percent. The majority 

of multiple jobholders have a full-time job with a part-time 

secondary job (53.0 percent). About 1 in 5 multiple jobholders have two part-time jobs (21.7 percent), and another 

1 in 5 have at least one job with hours that vary (20.7 percent). The remainder have two full-time jobs (4.0 percent). 

These proportions remained stable in 2006. (See table 6.) 

The number of persons who wanted a job but were not in the 

labor force decreased over the year, as did the number of those 

discouraged over their job prospects. Persons in the civilian noninstitutional population are categorized as either 

in the labor force—those who are either employed or unemployed—or not in the labor force—those who are neither employed nor actively seeking employment. In 2006, 

there were 77.4 million persons who were not in the labor 

force. Of those who were not in the labor force, about 2 

in 5 were aged 65 years and older. The number of persons 

not in the labor force who wanted a job but were not currently looking for one was 4.4 million in the fourth quarter of 2006, down 271,000 from a year earlier. 

Among the 4.4 million persons who indicated that they 

wanted, but were not currently looking for, a job, about 

1.4 million had searched for employment in the preceding year and were available to work had they been offered 

a job. This group is known as marginally attached workers. 

In the fourth quarter of 2006, the number of such workers 

was 108,000 lower than it was a year earlier. Some marginally attached persons were not currently looking for a 

job specifically because they felt that no jobs were available 

for them. These discouraged workers numbered 318,000 

in the fourth quarter of 2006, down from 416,000 a year 

earlier. (See table 7.) 

From October 2005 through October 2006, the Bureau of Labor Statistics and the Census Bureau collected special data 

on Hurricane Katrina evacuees. Following Hurricane 

Katrina, which struck the Gulf Coast in August 2005, 

questions were added to the CPS in order to provide labor force information about persons who were forced to 

leave their homes by the disaster. In October 2006, after 

13 months of data collection, the additional questions 

were discontinued.5

The CPS data collected from these questions did not 

represent all evacuees: persons living outside of the scope 

Chart 6. Over-the-year percent change in median usual weekly earnings of full-time wage and 

 salary workers, annual averages, 2005–06

NOTE: Data by educational attainment are for those aged 25 years and older.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Total Men Women Less than 

 high school

Percent 

 change

5.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Percent 

 change

 Some 

 college

High school 

 graduate

Bachelor’s 

 degree and higher 

5.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Over-the-year percent change in the CPI-U = 3.2 percent
Monthly Labor Review • March 2007 11

of the survey (such as those living in hotels or shelters) 

were not included. The number of evacueesidentified varied over the period the data were collected—October 

2005 through October 2006—due to persons moving in 

and out of the scope of the survey, as well as both sampling and nonsampling error present in a sample survey 

such as the CPS. 

In October 2006, 1.1 million persons aged 16 years and 

older were identified as having evacuated the residence 

in which they were living in August 2005 due to Hurricane Katrina. Within the group of evacuees, persons were 

identified as either having returned to their homes or living in other residences within the scope of the survey. In 

October 2006, about 3 in 5 persons who had evacuated 

had returned to their pre-Katrina residences. 

The labor force participation rate for all evacuees, including those who had returned to their pre-Katrina 

homes as well as those who had not, was 62.8 percent. 

The unemployment rate for all evacuees was 11.0 percent in October. Throughout the year, the unemployment rate for evacuees living in their pre-Katrina residences was considerably lower than the rate for those 

who had not returned to their pre-Katrina homes (7.0 

percent and 17.9 percent, respectively, in October). (See 

table 8.) 

CPS DATA INDICATE THAT THE LABOR MARKET continued to improve in 2006, as shown by a decline in unemployment and an increase in employment. Median 

weekly earnings increased at a rate similar to that of inflation. Also, fewer persons were unemployed due to job 

loss, and the long-term unemployed continued to decline in number as well. Labor force participation was 

little changed over the year. Finally, special labor force 

data collected on Hurricane Katrina evacuees reflected differences in the labor force status of those who returned to their August 2005 residences and those who 

had not yet done so.

Chart 7. Women’s median usual weekly earnings as a percent of men’s, full-time wage and 

 salary workers, annual averages, 1979–2006

Percent 

85

80

75

70

65

60

50

55

Percent 

85

80

75

70

65

60

50

55

1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

SOURCE: Bureau of Labor Statistics, Current Population Survey.
Labor Market Improvements in 2006

12 Monthly Labor Review • March 2007

Notes

1 The data in this article are based on information collected in the 

Current Population Survey (CPS), also called the household survey, a 

sample survey of some 60,000 households nationwide conducted for 

the Bureau of Labor Statistics by the Census Bureau. (For more information about the household survey, see box on page 4.)

Although the CPS is a monthly survey, the data analyzed throughout this article are seasonally adjusted quarterly averages, unless otherwise noted. All over-the-year changes are comparisons of fourthquarter data from 2005 to 2006.

2 For further information about the alternative measures of unemployment, see John E. Bregger and Steven E. Haugen, “BLS introduces new range of alternative unemployment measures,” Monthly Labor 

Review, October 1995, pp. 19-26; on the Internet at www.bls.gov/

opub/mlr/1995/10/art3full.pdf.

3 For additional information on trends in labor force participation, see Abraham Mosisa and Steven Hipple, “Trends in labor force 

participation in the United States,” Monthly Labor Review, October 

2006, pp. 35–57; on the Internet at www.bls.gov/opub/mlr/2006/10/

art3full.pdf.

4 The CPS first began collecting weekly earnings data each month 

in 1979.

5 For more information on the discontinuation of data relating to 

Hurricane Katrina evacuees, see stats.bls.gov/katrina/notice.htm.

NOTE: Shaded areas represent recessions as designated by the National Bureau of Economic Research. Beginning in 1994, 

data are affected by the redesign of the Current Population Survey and are not strictly comparable with data for previous years.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Thousands

Chart 8. Persons employed part time for economic reasons, seasonally adjusted quarterly data, 

 1970–2006

7,000

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

7,000

6,500

6,000

5,500

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

Thousands
Monthly Labor Review • March 2007 1

 Total

Civilian labor force............................................. 150,093 150,429 151,094 151,703 152,425 2,332

 Participation rate.......................................... 66.1 66.0 66.1 66.2 66.3 .2

 Employed ....................................................... 142,655 143,366 144,065 144,618 145,629 2,974

 Employment-population ratio....................... 62.8 62.9 63.1 63.1 63.3 .5

 Unemployed ................................................... 7,438 7,063 7,029 7,086 6,797 –641

 Unemployment rate ..................................... 5.0 4.7 4.7 4.7 4.5 –.5

Men, 20 years and older

Civilian labor force............................................. 76,779 77,118 77,389 77,592 78,131 1,352

 Participation rate.......................................... 75.7 75.9 75.9 75.8 76.1 .4

 Employed ....................................................... 73,484 73,966 74,201 74,465 75,082 1,598

 Employment-population ratio....................... 72.5 72.8 72.8 72.8 73.1 .6

 Unemployed ................................................... 3,294 3,152 3,188 3,128 3,049 –245

 Unemployment rate ..................................... 4.3 4.1 4.1 4.0 3.9 –.4

 Women, 20 years and older

Civilian labor force............................................. 66,134 66,068 66,417 66,828 67,002 868

 Participation rate.......................................... 60.5 60.3 60.5 60.7 60.7 .2

 Employed ....................................................... 63,149 63,269 63,651 64,042 64,359 1,210

 Employment-population ratio....................... 57.8 57.7 58.0 58.1 58.3 .5

 Unemployed ................................................... 2,985 2,798 2,765 2,786 2,644 –341

 Unemployment rate ..................................... 4.5 4.2 4.2 4.2 3.9 –.6

 Both sexes, 16 to 19 years

Civilian labor force............................................. 7,181 7,244 7,289 7,284 7,292 111

 Participation rate.......................................... 43.5 43.8 43.8 43.5 43.4 –.1

 Employed ....................................................... 6,022 6,131 6,212 6,112 6,188 166

 Employment-population ratio....................... 36.5 37.1 37.3 36.5 36.8 .3

 Unemployed ................................................... 1,159 1,113 1,076 1,172 1,104 –55

 Unemployment rate ..................................... 16.1 15.4 14.8 16.1 15.1 –1.0

 White

Civilian labor force............................................. 122,857 123,104 123,561 124,065 124,561 1,704

 Participation rate.......................................... 66.3 66.3 66.4 66.5 66.6 .3

 Employed ....................................................... 117,555 118,088 118,546 119,024 119,653 2,098

 Employment-population ratio....................... 63.5 63.6 63.7 63.8 64.0 .5

 Unemployed ................................................... 5,302 5,016 5,015 5,041 4,908 –394

 Unemployment rate ..................................... 4.3 4.1 4.1 4.1 3.9 –.4

 Black or African-American

Civilian labor force............................................. 17,101 17,199 17,292 17,318 17,445 344

 Participation rate.......................................... 64.0 64.1 64.2 64.0 64.2 .2

 Employed ....................................................... 15,441 15,622 15,724 15,743 15,966 525

 Employment-population ratio....................... 57.8 58.2 58.4 58.2 58.7 .9

 Unemployed ................................................... 1,659 1,577 1,567 1,575 1,479 –180

 Unemployment rate ..................................... 9.7 9.2 9.1 9.1 8.5 –1.2

 Asian1

Civilian labor force............................................. 6,628 6,652 6,696 6,767 6,795 167

 Participation rate.......................................... 66.3 66.3 66.0 66.2 66.4 .1

 Employed ....................................................... 6,397 6,435 6,471 6,577 6,606 209

 Employment-population ratio....................... 63.9 64.1 63.8 64.4 64.6 .7

 Unemployed ................................................... 231 217 225 190 188 –43

 Unemployment rate ..................................... 3.5 3.3 3.4 2.8 2.8 –.7

 Hispanic or Latino ethnicity

Civilian labor force............................................. 20,185 20,463 20,616 20,686 20,998 813

 Participation rate.......................................... 68.3 68.9 68.8 68.4 68.8 .5

 Employed ....................................................... 18,982 19,342 19,542 19,581 19,981 999

 Employment-population ratio....................... 64.2 65.1 65.2 64.8 65.5 1.3

 Unemployed ................................................... 1,203 1,121 1,074 1,105 1,017 –186

 Unemployment rate ..................................... 6.0 5.5 5.2 5.3 4.8 –1.2

Characteristic

 2006

Quarter 

IV,

2005

Employment status of the civilian noninstitutional population 16 years and older, by selected characteristics, quarterly averages, seasonally adjusted, 2005–06

[In thousands]

Quarter I Quarter II Quarter III Quarter IV

Table 1.

Change,

Quarter IV,

2005, to

Quarter IV,

2006

1 Data for Asians are not seasonally adjusted.

NOTE:  Beginning in 2006, data reflect revised population controls.

Estimates for race and Hispanic-ethnicity groups do not sum to totals 

because data are not presented for all races and because persons 

of Hispanic ethnicity may be of any race and are also included in the 

race groups.

SOURCE: Bureau of Labor Statistics, Current Population Survey.
Labor Market Improvements in 2006

14 Monthly Labor Review • March 20

Reason for unemployment

Level:

 Job losers and persons who completed

 temporary jobs............................................. 3,507 3,389 3,437 3,278 3,168 –339

 On temporary layoff ..................................... 914 894 948 896 960 46

 Not on temporary layoff ............................... 2,593 2,495 2,489 2,382 2,207 –386

 Job leavers ..................................................... 879 830 846 836 794 –85

 Reentrants...................................................... 2,402 2,239 2,154 2,310 2,242 –160

 New entrants .................................................. 658 643 582 637 595 –63

Percent distribution:

 Job losers and persons who completed

 temporary jobs............................................. 47.1 47.7 49.0 46.4 46.6 –.5

 On temporary layoff ..................................... 12.3 12.6 13.5 12.7 14.1 1.8

 Not on temporary layoff ............................... 34.8 35.1 35.5 33.7 32.5 –2.3

 Job leavers ..................................................... 11.8 11.7 12.1 11.8 11.7 –.1

 Reentrants...................................................... 32.3 31.5 30.7 32.7 33.0 .7

 New entrants .................................................. 8.8 9.1 8.3 9.0 8.8 .0

Duration of unemployment

Level:

 Less than 5 weeks.......................................... 2,730 2,608 2,608 2,628 2,604 –126

 5 to 14 weeks ................................................. 2,245 2,115 2,139 2,149 2,079 –166

 15 weeks or longer......................................... 2,460 2,359 2,267 2,317 2,098 –362

 15 to 26 weeks............................................. 1,068 1,083 1,010 1,025 990 –78

 27 weeks or longer ...................................... 1,393 1,275 1,257 1,293 1,108 –285

Average (mean) duration, in weeks .................. 17.6 17.2 16.7 17.3 16.2 –1.4

Median duration, in weeks ................................ 8.5 8.6 8.2 8.3 7.8 –.7

Percent distribution:

 Less than 5 weeks.......................................... 36.7 36.8 37.2 37.0 38.4 1.7

 5 to 14 weeks ................................................. 30.2 29.9 30.5 30.3 30.7 .5

 15 weeks or longer......................................... 33.1 33.3 32.3 32.7 30.9 –2.2

 15 to 26 weeks............................................. 14.4 15.3 14.4 14.4 14.6 .2

 27 weeks or longer ...................................... 18.7 18.0 17.9 18.2 16.3 –2.4

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Reason and duration

 2006

Quarter 

IV,

2005

Unemployed persons by reason and duration of unemployment, quarterly averages, seasonally 

adjusted, 2005–06

[In thousands]

Quarter I Quarter II Quarter III Quarter IV

Table 2.

Change,

Quarter IV,

2005, to

Quarter IV,

2006
Monthly Labor Review • March 2007 1

U-1, Persons unemployed 15 weeks or longer, 

 as a percent of the civilian labor force............ 1.6 1.6 1.5 1.5 1.4 –0.2

U-2, Job losers and persons who completed

 temporary jobs, as a percent of the civilian

 labor force ...................................................... 2.3 2.3 2.3 2.2 2.1 –.2

U-3, Total unemployed, as a percent of the

civilian labor force (official unemployment

 rate)................................................................ 5.0 4.7 4.7 4.7 4.5 –.5

U-4, Total unemployed plus discouraged

 workers, as a percent of the civilian labor

 force plus discouraged workers...................... 5.2 5.0 4.9 4.9 4.7 –.5

U-5, Total unemployed, plus discouraged

 workers, plus all other marginally attached

 workers, as a percent of the civilian labor 

 force plus all marginally attached workers ..... 5.9 5.7 5.5 5.6 5.3 –.6

U-6, Total unemployed, plus all marginally

 attached workers, plus total employed part

 time for economic reasons, as a percent of

 the civilian labor force plus all marginally 

 attached workers ............................................ 8.6 8.4 8.3 8.3 8.1 –.5

SOURCE: Bureau of Labor Statistics, Current Population Survey. 

Measure

 2006

Quarter 

IV,

2005

Alternative measures of labor underutilization, quarterly averages, seasonally adjusted, 2005–06

[In thousands]

Quarter I Quarter II Quarter III Quarter IV 

Table 3.

Change,

Quarter IV,

2005, to

Quarter IV,

2006
Labor Market Improvements in 2006

16 Monthly Labor Review • March 2007

 

 

2005 2006 2005 2006 2005 2006 

 Total, 16 years and older..... 141,730 144,427 2,697 75,973 77,502 1,529 65,757 66,925 1,168

Management, professional, and 

 related .................................... 49,245 50,420 1,175 24,349 24,928 579 24,896 25,492 596

 Management, business, and 

financial operations ............... 20,450 21,233 783 11,761 12,347 586 8,689 8,886 197

 Professional and related .......... 28,795 29,187 392 12,588 12,581 –7 16,207 16,606 399

 Service......................................... 23,133 23,811 678 9,882 10,159 277 13,251 13,653 402

 Health care support ................. 3,092 3,132 40 339 333 –6 2,753 2,799 46

 Protective service ..................... 2,894 2,939 45 2,246 2,284 38 648 654 6

 Food preparation and serving

 related................................... 7,374 7,606 232 3,202 3,297 95 4,173 4,309 136

 Building and grounds cleaning 

 and maintenance .................. 5,241 5,381 140 3,111 3,230 119 2,130 2,151 21

 Personal care and service........ 4,531 4,754 223 984 1,014 30 3,548 3,740 192

Sales and office........................... 35,962 36,141 179 13,190 13,275 85 22,772 22,866 94

 Sales and related ..................... 16,433 16,641 208 8,362 8,478 116 8,072 8,163 91

Office and administrative

 support................................... 19,529 19,500 –29 4,829 4,797 –32 14,700 14,703 3

Natural resources, construction, 

 and maintenance...................... 15,348 15,830 482 14,635 15,079 444 713 752 39

Farming, fishing, and forestry... 976 961 –15 756 750 –6 220 212 –8

 Construction and extraction ..... 9,145 9,507 362 8,871 9,216 345 274 292 18

 Installation, maintenance, and 

 repair .................................... 5,226 5,362 136 5,008 5,114 106 219 248 29

Production, transportation, and 

 material moving ........................ 18,041 18,224 183 13,917 14,061 144 4,124 4,163 39

 Production ................................ 9,378 9,378 0 6,540 6,529 –11 2,838 2,850 12

 Transportation and material 

 moving ................................... 8,664 8,846 182 7,377 7,533 156 1,286 1,313 27

NOTE: Data may not sum to totals due to rounding. 

Occupation

Total

Employment by major occupation and sex, annual averages, 2005–06

 Men Women

Table 4

[In thousands]

Change,

2005–06

Change,

2005–06

Change,

2005–06

SOURCE: Bureau of Labor Statistics, Current Population Survey.
Monthly Labor Review • March 2007 17

Median usual weekly earnings of full-time wage and salary workers, by selected characteristics, annual 

averages, 2005–06

Characteristic 2005 2006

Percentage

change,

2005–06

Table 5.

Total, 16 years and older............................................................. $651 $671 3.1

 Men .......................................................................................... 722 743 2.9

 Women ..................................................................................... 585 600 2.6

 Race or ethnicity

 White ........................................................................................ 672 690 2.7

 Men........................................................................................ 743 761 2.4

 Women .................................................................................. 596 609 2.2

 Black or African-American ........................................................ 520 554 6.5

 Men........................................................................................ 559 591 5.7

 Women .................................................................................. 499 519 4.0

 Asian ........................................................................................ 753 784 4.1

 Men........................................................................................ 825 882 6.9

 Women .................................................................................. 665 699 5.1

 Hispanic or Latino ethnicity ...................................................... 471 486 3.2

 Men........................................................................................ 489 505 3.3

 Women .................................................................................. 429 440 2.6

 Occupation

Management, business, and financial operations .................... 997 1,045 4.8

 Professional and related........................................................... 902 928 2.9

 Service ..................................................................................... 413 422 2.2

 Sales and related ..................................................................... 622 628 1.0

Office and administrative support............................................. 550 572 4.0

Farming, fishing, and forestry................................................... 372 387 4.0

 Construction and extraction...................................................... 604 619 2.5

 Installation, maintenance, and repair ....................................... 705 742 5.2

 Production ................................................................................ 538 559 3.9

 Transportation and material moving......................................... 543 556 2.4

 Educational attainment

 Total, 25 years and older1 ....................................................... 696 718 3.2

 Less than a high school diploma ........................................... 409 419 2.4

 High school graduate, no college .......................................... 583 595 2.1

 Some college or associate’s degree...................................... 670 692 3.3

 Bachelor’s degree or higher................................................... 1,013 1,039 2.6

1 Earnings figures by educational attainment pertain to persons aged

25 years and older.

SOURCE: Bureau of Labor Statistics, Current Population Survey.
Labor Market Improvements in 2006

18 Monthly Labor Review • March 20

Multiple jobholders1 ......................................... 7,688 7,485 7,429 7,496 7,893 205

 Percent of employed ...................................... 5.4 5.3 5.2 5.2 5.4 .0

 Level

 Primary job full time, secondary part time ...... 4,085 3,926 3,864 3,954 4,180 95

 Primary and secondary jobs both part time.... 1,736 1,698 1,683 1,611 1,710 –26

 Primary and secondary jobs both full time ..... 287 298 307 318 317 30

 Hours vary on primary or secondary job ........ 1,529 1,527 1,528 1,570 1,633 104

 Percent distribution

 Primary job full time, secondary part time ...... 53.1 52.5 52.0 52.7 53.0 –.1

 Primary and secondary jobs both part time.... 22.6 22.7 22.7 21.5 21.7 –.9

 Primary and secondary jobs both full time ..... 3.7 4.0 4.1 4.2 4.0 .3

 Hours vary on primary or secondary job ........ 19.9 20.4 20.6 20.9 20.7 .8

Category

 2006 Quarter

IV,

2005 

Multiple jobholders, quarterly averages, not seasonally adjusted, 2005–06

Quarter I Quarter II Quarter III Quarter IV 

Table 6.

Change,

Quarter IV,

2005, to

Quarter IV,

2006

[In thousands]

1 Include persons who work part time on their primary job and full 

time on their secondary job(s), not shown separately. 

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Total not in the labor force................................. 77,057 78,163 77,279 76,731 77,377 320

 Persons who currently want a job .................. 4,690 4,874 4,992 4,857 4,419 –271

 Marginally attached1 ................................... 1,473 1,528 1,427 1,471 1,365 –108

 Reasons not currently looking:

 Discouragement over job prospects2 ...... 416 411 395 400 318 –98

 Reasons other than discouragement3 .... 1,057 1,117 1,032 1,071 1,047 –10

Category

 2006

Quarter 

IV,

2005 

Persons not in the labor force, quarterly averages, not seasonally adjusted, 2005–06

Quarter I Quarter II Quarter III Quarter IV 

Table 7.

Change,

Quarter IV,

2005, to

Quarter IV,

2006

[In thousands]

1

 Persons who have searched for work during the previous 12 months 

and who were available to take a job during the reference week.

 2 Reasons for discouragement include (1) thinks no work is available, 

(2) could not find work, (3) lacks schooling or training, (4) employer thinks

respondent is too young or too old, and (5) other types of discrimination.

 3 Includes those respondents who did not actively look for work 

in the previous 4 weeks for such reasons as childcare problems or 

transportation problems, as well as a small number whose reason for 

nonparticipation was not identified.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Employment status in October 2006 Different than in

August 2005

Table 8.

 

Civilian noninstitutional population.............................................. 1,065 659 407

 Civilian labor force.................................................................... 669 421 247

 Participation rate.................................................................. 62.8 64.0 60.8

 Employed............................................................................... 595 392 203

 Employment-population ratio............................................... 55.8 59.5 50.0

 Unemployed........................................................................... 74 30 44

 Unemployment rate ............................................................. 11.0 7.0 17.9

 Not in the labor force ................................................................ 397 237 159

[Numbers in thousands, not seasonally adjusted] 

Employment status in October 2006 of persons 16 years and older who evacuated their August 2005 

residence, even temporarily, due to Hurricane Katrina1 

1 Represents persons in the civilian noninstitutional population 

aged 16 years and older who resided in households that were eligible 

to be selected for the Current Population Survey (CPS). These data are 

not representative of the total evacuee population because they do not 

include children or people residing in shelters, hotels, places of worship, 

or other units outside the scope of the CPS. The total number of evacuees 

estimated from the CPS varied from month to month as people moved in 

and out of the scope of the survey and because of sampling variability.

NOTE: These data use population controls that have been adjusted 

to account for interstate moves by evacuees. 

Same as in

August 2005

Total

Residence in October 2006