Monthly Labor Review March 2006 3

Household Survey Developments

Lower unemployment

in 2005

in 2005, as employment grew substantially

and unemployment declined

Emy Sok

Emy Sok is an

economist in the

Division of Labor

Force Statistics,

Bureau of Labor

Statistics. E-mail:

Sok.Emy@bls.gov

Unemployment continued to decline and

employment, as measured by the Current

Population Survey (CPS), rose in 2005. The

unemployment rate continued the downward trend

that began in 2003, declining to 5.0 percent by the

fourth quarter of 2005. The employment-population

ratio increased during the year, while the labor force

participation rate was essentially unchanged.1

Other labor market measures from the CPS also

showed improvement during the year.

Major hurricanes Katrina, Rita, and Wilma

struck the Gulf Coast area from late August through

October of 2005. Hurricane Katrina, in particular,

resulted in a large loss of life and widespread economic damage and disruption. At the national level,

however, the effects of the hurricanes were not

discernible in the major labor market indicators from

the household survey. (For more information about

the household survey, see box on page 14.) Special

questions designed to measure the labor force

status of Hurricane Katrina evacuees were added

to the CPS beginning in October 2005; some early

findings are discussed later in this article.

In 2005, unemployment levels and rates generally

continued to decline. The unemployment rate for

persons aged 16 years and older was 5.0 percent in

the fourth quarter of 2005, 0.4 percentage point

lower than a year earlier. Even though the unemployment rate declined through 2005 from its

most recent peak in mid-2003, it remained above the

jobless rate that preceded the 2001 downturn. (See

chart 1.) The number of unemployed persons, at 7.5

million in the fourth quarter of 2005, was down by

563,000 from the same quarter in 2004 and by more

than 1.5 million from its postrecession peak in the

second quarter of 2003. (See table 1.)

For most major worker groups, the unemployment rate continued to edge down in 2005. The

unemployment rate for adult men, at 4.3 percent in

the last quarter of 2005, was 0.6 percentage point

lower than a year earlier. The large decrease in the

level of unemployment among adult men (–414,000)

accounted for most of the decline in total unemployment (–563,000). The jobless rate for women edged

down by 0.2 percentage point over the year to 4.5

percent in the fourth quarter of 2005. In 2004, the

women’s jobless rate fell by 0.4 percentage point.

For teenagers (those aged 16 to 19), the jobless

rate, at 16.1 percent in the fourth quarter, was little

changed in 2005.

The unemployment rate for whites, at 4.3

percent, was down over the year by 0.3 percentage

point. For blacks, the unemployment rate dropped

1.1 percentage points to 9.7 percent, and the rate

among Asians declined by 0.9 percentage point to

3.5 percent (not seasonally adjusted). For

Hispanics, the unemployment rate decreased in

2005 to 6.0 percent, down from 6.6 percent a year

earlier.

Reflecting the rise in employment, the

employment-to-population ratio increased to

62.8 percent. Total employment, as measured by

the CPS, increased by 2.6 million in 2005, reaching

142.6 million in the fourth quarter. This exceeded

the gain of 2.1 million in 2004.2 Employment among

adult men increased by 1.5 million in 2005, and

employment among adult women increased by

about 1.1 million. Teenage employment was little

changed.

Employment among whites grew by 1.7 million

over the year, to 117.6 million in the fourth quarter

of 2005. Blacks experienced stronger employment

CPS data show that the labor market continued to improve
4 Monthly Labor Review March 2006

Household Survey Developments

growth in 2005 than in 2004; the number of employed blacks rose

by 471,000 to 15.4 million, more than double the increase in 2004.

Employment among Hispanics at year’s end was 19.0 million, an

increase of 765,000 over the year, following a gain of 572,000 in

2004.

The employment-population ratio was 62.8 percent in the

fourth quarter of 2005, an increase of 0.4 percentage point over

the year. After trending down by 2.2 percentage points between

the first quarter of 2001 and the third quarter of 2003, the

employment-population ratio edged up in 2004. Although it rose

in 2005, the employment-population ratio remained below its

prerecession level. (See chart 2.)

The employment-population ratio for adult men increased by

0.5 percentage point in 2005 to 72.5 percent, and the ratio for

adult women rose by 0.4 percentage point to 57.8 percent. At 36.4

percent in the fourth quarter, the ratio for teenagers was little

changed over the year.

The employment-population ratio for whites was 63.5

percent at the end of 2005, an over-the-year increase of 0.3

percentage point. The ratio for blacks rose by 0.8 percentage

point over the year, to 57.8 percent in the fourth quarter of

2005. Over the same period, the ratio for Asians also rose,

from 63.2 percent to 63.9 percent (not seasonally adjusted).

The employment-population ratio for Hispanics, at 64.2

percent in the fourth quarter, remained about the same over

the year. The Hispanic employment-population ratio had

increased in 2004.

In 2005, the civilian labor force grew by 2.0 million,

although the participation rate was about unchanged from

the previous year. The labor force participation rate has been

relatively flat since the last quarter of 2003. In 2005, it remained

below its prerecession high. (See chart 2.) Trends in

participation rates differed among the major demographic

groups.

Among teenagers aged 16 to 19 years, the labor force

participation rate fell to 43.4 percent by the last quarter of 2005,

compared with 44.2 percent during the same period a year earlier.

The labor force participation rate for teens has trended down

since the late 1970s (it was 57.8 percent in 1978), and the fall

accelerated significantly after 2000. In the second quarter of 2000,

the teen participation rate was 52.6 percent; since then, it has

fallen nearly 10 percentage points. The decline in labor force

participation among teens tends to be inversely related to school

enrollment rates, which have been trending upwards for about

30 years.

The participation rate among young adults (aged 20 to 24

years)—74.8 percent in the fourth quarter of 2005—edged down

from a year earlier and remained below the rate before the 2001

recession. Among adults aged 25 to 54 years, the participation

CHART 1

1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005

0

2

4

6

8

10

12

0

2

4

6

8

10

12

Chart 1. Unemployment rate, quarterly averages, seasonally adjusted, 1969—2005

 NOTE: Shaded regions represent recessions using quarterly turning points as designated by the National Bureau of Economic 

Research. 

 SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent
Monthly Labor Review March 2006 5

Employment status of the civilian noninstitutional population aged 16 years and older, by selected

characteristics, quarterly averages, seasonally adjusted, 2002–05

 Total

Civilian labor force ........................................... 145,143 146,851 148,077 148,148 149,094 149,827 150,126 2,049

Participation rate ........................................ 66.4 66.1 66.0 65.8 66.1 66.2 66.1 .1

Employed1 ..................................................... 136,639 138,280 140,059 140,373 141,506 142,324 142,671 2,612

Employment-population ratio ...................... 62.5 62.2 62.4 62.4 62.7 62.9 62.8 .4

Unemployed ................................................... 8,503 8,571 8,018 7,775 7,589 7,503 7,455 –563

Unemployment rate .................................... 5.9 5.8 5.4 5.2 5.1 5.0 5.0 –.4

 Men, 20 years and older

Civilian labor force ........................................... 73,753 75,028 75,723 75,848 76,373 76,732 76,763 1,040

Participation rate ........................................ 76.0 75.9 75.7 75.6 75.9 76.0 75.7 .0

Employed ....................................................... 69,717 70,924 72,016 72,284 73,047 73,385 73,469 1,453

Employment-population ratio ...................... 71.9 71.8 72.0 72.1 72.6 72.7 72.5 .5

Unemployed ................................................... 4,036 4,104 3,707 3,565 3,326 3,347 3,293 –414

Unemployment rate .................................... 5.5 5.5 4.9 4.7 4.4 4.4 4.3 –0.6

 Women, 20 years and older

Civilian labor force ........................................... 63,930 64,775 65,160 65,208 65,524 65,906 66,204 1,044

Participation rate ........................................ 60.5 60.4 60.3 60.2 60.3 60.5 60.6 .3

Employed ....................................................... 60,682 61,463 62,084 62,195 62,498 62,906 63,193 1,109

Employment-population ratio ...................... 57.5 57.3 57.4 57.4 57.5 57.7 57.8 .4

Unemployed ................................................... 3,247 3,312 3,076 3,013 3,026 3,000 3,011 –65

Unemployment rate .................................... 5.1 5.1 4.7 4.6 4.6 4.6 4.5 –.2

 Both sexes, 16 to 19 years

Civilian labor force ........................................... 7,460 7,047 7,194 7,092 7,198 7,188 7,159 –35

Participation rate ........................................ 46.8 43.6 44.2 43.5 44.0 43.8 43.4 –.8

Employed ....................................................... 6,240 5,893 5,959 5,895 5,961 6,032 6,008 49

Employment-population ratio ...................... 39.1 36.5 36.6 36.1 36.4 36.7 36.4 –.2

Unemployed ................................................... 1,220 1,154 1,235 1,197 1,237 1,155 1,151 –84

Unemployment rate .................................... 16.4 16.4 17.2 16.9 17.2 16.1 16.1 –1.1

 White

Civilian labor force ........................................... 120,197 120,773 121,451 121,551 122,085 122,638 122,872 1,421

Participation rate ........................................ 66.6 66.3 66.2 66.1 66.3 66.4 66.4 .2

Employed ....................................................... 114,029 114,618 115,841 116,113 116,760 117,323 117,574 1,733

Employment-population ratio ...................... 63.2 63.0 63.2 63.2 63.4 63.5 63.5 .3

Unemployed ................................................... 6,167 6,155 5,611 5,438 5,325 5,315 5,298 –313

Unemployment rate .................................... 5.1 5.1 4.6 4.5 4.4 4.3 4.3 –.3

 Black or African American

Civilian labor force ........................................... 16,610 16,474 16,763 16,757 17,057 17,132 17,082 319

Participation rate ........................................ 64.5 63.7 63.9 63.6 64.5 64.5 64.0 .1

Employed ....................................................... 14,851 14,733 14,958 14,991 15,315 15,504 15,429 471

Employment-population ratio ...................... 57.7 57.0 57.0 56.9 57.9 58.3 57.8 .8

Unemployed ................................................... 1,759 1,741 1,806 1,766 1,742 1,628 1,653 –153

Unemployment rate .................................... 10.6 10.6 10.8 10.5 10.2 9.5 9.7 –1.1

 Asian2

Civilian labor force ........................................... 6,715 6,178 6,381 6,396 6,429 6,558 6,628 247

Participation rate ........................................ 67.4 66.0 66.1 66.0 65.7 66.3 66.3 .2

Employed ....................................................... 6,330 5,835 6,103 6,127 6,177 6,276 6,397 294

Employment-population ratio ...................... 63.5 62.4 63.2 63.3 63.1 63.5 63.9 .7

Unemployed ................................................... 5.7 5.6 4.4 4.2 3.9 4.3 3.5 –.9

 Hispanic or Latino ethnicity

Civilian labor force ........................................... 18,111 18,984 19,503 19,478 19,737 19,887 20,184 681

Participation rate ........................................ 68.7 67.8 68.4 67.8 68.1 68.0 68.3 –.1

Employed ....................................................... 16,690 17,639 18,211 18,294 18,547 18,702 18,976 765

Employment-population ratio ...................... 63.3 63.0 63.9 63.7 64.0 63.9 64.2 .3

Unemployed ................................................... 1,421 1,344 1,292 1,184 1,190 1,185 1,208 –84

Unemployment rate .................................... 7.8 7.1 6.6 6.1 6.0 6.0 6.0 –.6

2005

 IV

Change, IV

2004 to IV

2005

Characteristic

Table 1.

 IV IV I II III IV

[In thousands]

2002 2003 2004

1Data for total employment may differ from data in the text because the

data in the text were “smoothed” to adjust for revisions to population

controls in January 2004 and January 2006.

2Data for Asians are not seasonally adjusted.

NOTE: Detail for race and Hispanic-origin groups will not sum to totals

because data for the “other races” group are not presented and Hispanics

are included in both the white and black population groups.

SOURCE: Bureau of Labor Statistics, Current Population Survey.
6 Monthly Labor Review March 2006

Household Survey Developments

rate was 82.8 percent at the end of 2005, little changed from the

fourth quarter of 2004 and still below the rate prior to the 2001

recession. (See chart 3.)

In contrast, persons aged 55 years and older continued to

participate in the labor force in growing numbers. At 37.5 percent

in the last quarter of 2005, the participation rate for this age group

was 1.0 percentage point higher than it had been a year earlier.

Participation rates for persons aged 55 years and older have

been rising for the last 10 years. Some of the increase in

participation rates for older adults may be related to the flow of

baby boomers into this age cohort.3

In 2005, labor force participation rates for the major race

and ethnic groups remained below their pre-2001 recession

rates. The participation rates among whites and blacks were

little changed over the year, at 66.4 percent and 64.0 percent,

respectively, in the fourth quarter of 2005. The participation

rate for Asians, at 66.3 percent at year’s end (not seasonally

adjusted), also remained essentially the same in 2005. The

participation rate for Hispanics or Latinos, at 68.3 percent,

was also about unchanged. (See table 1.)

The numbers of job losers and long-term unemployed

continued to decline in 2005. Over the year, the number of

persons who were unemployed because they had lost jobs fell

by 558,000, to 3.5 million. (See chart 4.) This decline accounted

for nearly all of the drop in total unemployment. Among persons

who were unemployed as a result of losing their job, about 2.6

million were not expecting to be recalled from a temporary layoff;

this figure was down by about half a million over the year.

Job losers not expecting a recall accounted for about a

third of the total number of unemployed persons. This

proportion has fallen each year since a recent peak in the third

quarter of 2003, when it was 43.2 percent. Unemployed

persons on temporary layoff made up 12.4 percent of the total

unemployed, about unchanged from the previous year. In

contrast, the percentage of those who voluntarily left their

jobs rose slightly over the year, to 11.8 percent. Also, the

share of reentrants to the labor market increased in 2005, to

32.7 percent in the fourth quarter. New entrants to the labor

force made up about 8.8 percent of the unemployed, little

changed over the year.4

 (See table 2.)

About 1.4 million unemployed persons had been jobless

for at least 27 weeks at the end of 2005, a decrease of 317,000

over the year. These long-term unemployed persons made up

18.6 percent of total unemployment in the last quarter of 2005,

down from 21.2 percent at the end of 2004. (See chart 5.)

CHART 2

Chart 2. Labor force participation rate and employment-population ratio, quarterly averages, 

 seasonally adjusted,1998—2005

Percent Percent

Labor force participation rate

Employment-population ratio

 NOTE: Shaded regions represent recessions using quarterly turning points as designated by the National Bureau of Economic 

Research. 

 SOURCE: Bureau of Labor Statistics, Current Population Survey.

1998 1999 2000 2001 2002 2003 2004 2005

60

62

64

66

68

70

60

62

64

66

68

70
Monthly Labor Review March 2006 7

CHART 3

CHART 4

16–19 years 20–24 years 25–54 years 55 years and older

0

10

20

30

40

50

60

70

80

90

0

10

20

30

40

50

60

70

80

90

2001, QI

2004, QIV

2005, QIV

Chart 3. Labor force participation rate by age group, seasonally adjusted, selected quarters

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent

1990 1993 1996 1999 2002 2005

0

1,000

2,000

3,000

4,000

5,000

6,000

0

1,000

2,000

3,000

4,000

5,000

6,000

Chart 4. Reasons for unemployment, quarterly averages, seasonally adjusted, 1990—2005

 NOTE: Shaded regions represent recessions using quarterly turning points 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 

to data for previous years. 

 SOURCE: Bureau of Labor Statistics, Current Population Survey.

Thousands Thousands

Job losers

Job leavers

New entrants

Reentrants
8 Monthly Labor Review March 2006

Household Survey Developments

The average (mean) duration of unemployment in the fourth

quarter of 2005, at 17.7 weeks, was lower than a year earlier, as

was the median, at 8.5 weeks. (See table 2.) The average duration

of unemployment peaked at 19.9 weeks in 2004, 3 years after the

onset of the last recession. After the post-2001 recession peak,

mean duration remained close to 20 weeks for about a year before

it began to decline in 2005. In contrast, mean duration in the

postrecession period of the early 1990s began to decline

immediately following its peak.5

The number of persons who worked part time for economic

reasons in 2005 continued to decline, while the number of

multiple jobholders remained about the same. In 2005, the

number of persons who worked part time involuntarily, also

referred to as those employed part time for economic reasons,

declined by 405,000, to 4.2 million. This drop followed a smaller

decline (–205,000) in 2004. Involuntary part-time workers are

those who would prefer to work full time and include those who

have had their hours cut back due to slack work or business

conditions, as well as those who are unable to find full-time work.

Although the number of workers who were employed part time

for economic reasons has declined over the last 2 years, it

remained higher (by about 900,000) at the end of 2005 than it had

been prior to the 2001 recession. (See chart 6.)

The number of multiple jobholders (7.7 million in the fourth

quarter of 2005) and the percentage of the employed that held

more than one job (5.4 percent) were little changed from a year

earlier. Both of these measures remained below their

prerecession levels. (See table 3.)

In 2005, the number of persons who wanted a job but were

not in the labor force edged down and the number of

discouraged workers was little changed.6 The category “not

in the labor force” consists of persons who are neither employed

nor actively seeking employment (the unemployed). In the

fourth quarter of 2005, there were 77.1 million people in this

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

2002–05

 Reason for unemployment

Job losers and persons who completed

temporary jobs .............................................. 4,738 4,668 4,041 3,876 3,669 3,599 3,483 –558

On temporary layoff ................................... 1,103 1,075 954 959 904 933 926 –28

Not on temporary layoff ............................. 3,635 3,593 3,087 2,917 2,765 2,666 2,558 –529

Job leavers ....................................................... 847 834 876 873 895 846 877 1

Reentrants ........................................................ 2,414 2,444 2,384 2,370 2,318 2,430 2,439 55

New entrants .................................................... 536 644 719 689 696 629 659 –60

Percent distribution:

Job losers and persons who completed

temporary jobs ............................................... 55.5 54.3 50.4 49.6 48.4 48.0 46.7 -3.7

On temporary layoff ................................... 12.9 12.5 11.9 12.3 11.9 12.4 12.4 0.5

Not on temporary layoff ............................. 42.6 41.8 38.5 37.4 36.5 35.5 34.3 –4.2

Job leavers ....................................................... 9.9 9.7 10.9 11.2 11.8 11.3 11.8 .9

Reentrants ........................................................ 28.3 28.4 29.7 30.4 30.6 32.4 32.7 3.0

New entrants .................................................... 6.3 7.5 9.0 8.8 9.2 8.4 8.8 –.2

 Duration of unemployment

Less than 5 weeks ........................................... 2,859 2,657 2,744 2,612 2,675 2,637 2,750 6

5 to 14 weeks ................................................... 2,542 2,530 2,314 2,329 2,293 2,324 2,257 –57

15 weeks and over ........................................... 3,126 3,401 2,972 2,825 2,575 2,580 2,462 –510

15 to 26 weeks ............................................. 1,358 1,444 1,267 1,195 1,089 1,139 1,074 –193

27 weeks and over ........................................ 1,768 1,958 1,705 1,631 1,487 1,441 1,388 –317

Average (mean) duration, in weeks ................. 18.0 19.7 19.6 19.2 18.5 18.3 17.7 –1.9

Median duration, in weeks ............................... 9.5 10.3 9.5 9.3 9.0 9.0 8.5 –1.0

Percent distribution:

Less than 5 weeks ........................................... 33.5 30.9 34.2 33.6 35.5 35.0 36.8 2.6

5 to 14 weeks ................................................... 29.8 29.5 28.8 30.0 30.4 30.8 30.2 1.4

15 weeks and over ........................................... 36.7 39.6 37.0 36.4 34.1 34.2 33.0 –4.0

15 to 26 weeks ............................................. 15.9 16.8 15.8 15.4 14.4 15.1 14.4 –1.4

27 weeks and over ........................................ 20.7 22.8 21.2 21.0 19.7 19.1 18.6 –2.6

SOURCE: Bureau of Labor Statistics, Current Population Survey.

2005

2002 IV

Change, IV

2004 to IV

2005

Reason and duration I 2003 IV 2004 IV II III IV

[In thousands]

Table 2.
Monthly Labor Review March 2006 9

CHART 5

1990 1993 1996 1999 2002 2005

0

5

10

15

20

25

0

5

10

15

20

25

Chart 5. Long-term unemployment as a percent of total unemployed, quarterly averages, 

 seasonally adjusted, 1990—2005

 NOTE: Shaded regions represent recessions using quarterly turning points as designated by the National Bureau of Economic 

Research.

 SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent

1970 1972 1975 1977 1980 1982 1985 1987 1990 1992 1995 1997 2000 2002 2005

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

Chart 6. Persons employed part time for economic reasons, quarterly averages, seasonally 

 adjusted, 1970—2005

 NOTE: Shaded regions represent recessions using quarterly turning points 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 to data for previous years.

 SOURCE: Bureau of Labor Statistics, Current Population Survey. 

Thousands Thousands
10 Monthly Labor Review March 2006

Household Survey Developments

category, nearly 40 percent of whom were aged 65 years and

older. Of the total number of persons not in the labor force in

2005, about 4.7 million indicated that they wanted a job, but

were not currently looking for one when they were surveyed;

that figure is slightly lower than the comparable one from a

year earlier.

Among the group of people who indicated that they wanted

a job but were not currently engaged in an active job search,

some had looked for a job at some point during the year before

they were surveyed and would have been available to work had

they been offered a job. This group, referred to as “marginally

attached workers,” numbered 1.5 million in the fourth quarter of

2005, down slightly from the previous year. At 416,000, the

number of discouraged workers—a subgroup of the marginally

attached consisting of persons who have specifically given up

their job search because they feel that no jobs are available for

them—was still above levels that existed prior to the 2001

recession. (See table 4.)

All of the alternative measures of labor underutilization

showed improvement in 2005. A number of alternative labor

underutilization indicators are constructed from CPS data. After

reaching a peak in 2003, the alternative measures began to decline

and continued to do so in 2005. Known as U–1 through U–6, the

various alternative measures provide additional information on

the degree to which labor resources are underutilized. U–1 shows

the number of persons unemployed 15 weeks or longer as a

percent of the labor force, and U–2 presents job losers and

persons who completed temporary jobs as a percent of the labor

force. U–3 is the official unemployment rate. Alternative measures

U–4 through U–6 include increasingly broader groups of

persons who may be underutilized in the labor market. U–4

adds discouraged workers to U–3, U–5 adds all other

marginally attached workers to U–4, and U-6 adds persons

employed part time for economic reasons. (See table 5.)

Employment continued to grow in 2005 among workers in

management, professional, sales, and construction occupations. Among the major occupation groups, the largest overthe-year employment increase in 2005 occurred in management,

professional, and related occupations, which added 713,000 jobs.

(The data in this section are annual averages.) Employment in

construction occupations showed another year of strong growth,

increasing by 623,000 in 2005, while employment in production

occupations was essentially flat, after a loss in 2004. Employment

in service occupations increased by 413,000 in 2005, while

employment in transportation occupations was little changed.

(See table 6.)

 Employment among women in management, professional,

and related occupations increased by 500,000 in 2005,

accounting for a majority of the total gains in those

occupations. Similarly, employment among women in service

occupations increased by 357,000, a figure that made up

almost 90 percent of the increase in employment in those

occupations. In construction occupations, where men make

up the vast majority of workers, men’s employment increased

by 565,000 in 2005; the increase represented about 90 percent

of the total job gains in those occupations. Both men and

women had increases in sales jobs, with gains of 257,000 and

194,000, respectively.

Multiple jobholders, quarterly averages, not seasonally adjusted, 2002–05

 Multiple jobholders1

Multiple jobholders ........................................... 7,410 7,359 7,839 7,504 7,484 7,508 7,688 –151

Percent of employed ........................................ 5.4 5.3 5.6 5.4 5.3 5.3 5.4 –.2

 Primary job full time, secondary part time ... 3,954 3,813 4,126 3,868 3,872 3,943 4,085 –41

 Primary and secondary jobs both part time . 1,694 1,719 1,728 1,708 1,734 1,653 1,736 8

 Primary and secondary jobs both full time ... 238 244 284 269 331 287 287 3

 Hours vary on primary or secondary job ...... 1,481 1,541 1,665 1,606 1,511 1,585 1,529 –136

Percent distribution:

 Primary job full time, secondary part time ... 53.4 51.8 52.6 51.5 51.7 52.5 53.1 .5

 Primary and secondary jobs both part time . 22.9 23.4 22.0 22.8 23.2 22.0 22.6 .6

 Primary and secondary jobs both full time ... 3.2 3.3 3.6 3.6 4.4 3.8 3.7 –1.3

Hours vary on primary or secondary job ...... 20.0 20.9 21.2 21.4 20.2 21.1 19.9 –1.3

Category

2005

2002 IV

Change, IV

2004 to IV

I 2005

2003 IV 2004 IV

II III IV

SOURCE: Bureau of Labor Statistics, Current Population Survey.

 [In thousands]

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

their secondary job(s), not shown separately.

Table 3.
Monthly Labor Review March 2006 11

Persons not in the labor force, quarterly averages, not seasonally adjusted, 2002–05

 Not in the labor force

Total not in the labor force ............................... 73,549 75,523 76,384 77,532 76,514 75,946 77,057 673

Persons who currently want a job ................ 4,276 4,372 4,809 4,946 5,351 4,952 4,690 –119

Marginally attached1 ................................... 1,416 1,514 1,543 1,688 1,507 1,512 1,473 –70

 Reasons not currently looking:

 Discouragement over job prospects2 .... 382 451 421 494 420 415 416 –5

 Reasons other than discouragement3 ... 1,034 1,064 1,121 1,195 1,087 1,097 1,057 –64

Change, IV

2004 to IV

2005

Range of alternative measures of labor underutilization, quarterly averages, seasonally adjusted, 2002–05

U–1 Persons unemployed 15 weeks or longer,

as a percent of the civilian labor force ........ 2.2 2.3 2.0 1.9 1.7 1.7 1.6 –.4

U–2 Job losers and persons who completed

temporary jobs, as a percent of the civilian

labor force ..................................................... 3.3 3.2 2.7 2.6 2.5 2.4 2.3 –.4

U–3 Total unemployed, as a percent of the

civilian labor force (official unemployment

rate) ............................................................... 5.9 5.8 5.4 5.2 5.1 5.0 5.0 –.4

U–4 Total unemployed plus discouraged

workers, as a percent of the civilian labor

force plus discouraged workers .................... 6.1 6.1 5.7 5.6 5.4 5.3 5.2 –.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 ... 6.8 6.8 6.4 6.3 6.0 6.0 5.9 –.5

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 .......................................... 9.7 10.0 9.5 9.2 9.0 8.9 8.6 –.9

SOURCE: Bureau of Labor Statistics, Current Population Survey.

2005

Category 2002 IV

Table 4.

I 2003 IV 2004 IV II III IV

[In thousands]

1Data refer to persons who have searched for work during the prior 12

months and were available to take a job during the reference week. 2Reasons include thinks no work available, could not find work, lacks

schooling or training, employer thinks too young or old, and other types of

discrimination.

3Includes those who did not actively look for work in the prior 4 weeks for

such reasons as child-care and transportation problems, as well as a small

number for which reason for nonparticipation was not determined.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

2005

2002 IV

Change, IV

2004 to IV

2005

Measure

I 2003 IV 2004 IV II III IV

Median weekly earnings for full-time wage and salary workers

increased less than the inflation rate, as measured by the

Consumer Price Index. Median usual weekly earnings rose to

$651 in 2005, an increase of 2.0 percent. (The earnings data

analyzed in this article are annual averages.) During the same

period, the Consumer Price Index for All Urban Consumers (CPIU) increased 3.4 percent. Among the major occupation groups,

farming, fishing, and forestry occupations and transportation

and material moving occupations saw the largest percent

increases in earnings, at 4.5 percent and 4.4 percent, respectively.

(See table 7.)

 Workers aged 25 years and older with at least a bachelor’s

degree experienced an over-the-year increase of 2.7 percent in

weekly earnings, from $986 to $1,013, the largest percent increase

in earnings for workers of that age among the major education

groups. Workers with less than a high school diploma saw their

usual weekly earnings grow by 2.0 percent in 2005. Those

with only a high school diploma and no college earned $583

per week in 2005, up 1.6 percent from 2004, while earnings for

those with some college education or an associate degree

rose 1.4 percent. (See chart 7.)

Women’s earnings continued to increase faster than men’s

earnings. Women’s median weekly earnings, at $585 in 2005,

grew by 2.1 percent, compared with a 1.3-percent increase in

men’s earnings (to $722). The ratio of women’s to men’s median

usual weekly earnings was 81.0 percent. The earnings gap has

narrowed substantially since 1979, when women’s earnings were

Table 5.
12 Monthly Labor Review March 2006

Household Survey Developments

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

averages, 2004–05

Total, 16 years and older .................................................................................................. $638 $651 2.0

Management, business, and financial operations occupations .................................... 965 997 3.3

Professional and related occupations ........................................................................... 883 902 2.2

Service occupations ...................................................................................................... 411 413 .5

Sales and related occupations ...................................................................................... 604 622 3.0

Office and administrative support occupations ............................................................ 535 550 2.8

Farming, fishing, and forestry occupations ................................................................... 356 372 4.5

Construction and extraction occupations ...................................................................... 604 604 .0

Installation, maintenance, and repair occupations ....................................................... 704 705 .1

Production occupations ................................................................................................. 526 538 2.3

Transportation and material moving occupations .......................................................... 520 543 4.4

Men ................................................................................................................................. 713 722 1.3

Women ............................................................................................................................ 573 585 2.1

White............................................................................................................................... 657 672 2.3

Men .............................................................................................................................. 732 743 1.5

Women ......................................................................................................................... 584 596 2.1

Black or African American ............................................................................................. 525 520 –1.0

Men .............................................................................................................................. 569 559 –1.8

Women ......................................................................................................................... 505 499 –1.2

Asian............................................................................................................................... 708 753 6.4

Men .............................................................................................................................. 802 825 2.9

Women ......................................................................................................................... 613 665 8.5

Hispanic or Latino ethnicity ........................................................................................... 456 471 3.3

Men .............................................................................................................................. 480 489 1.9

Women ......................................................................................................................... 419 429 2.4

Total, 25 years and older .................................................................................................. 683 696 1.9

Less than a high school diploma ................................................................................... 401 409 2.0

High school graduates, no college ................................................................................ 574 583 1.6

Some college or associate degree ................................................................................ 661 670 1.4

Bachelor’s degree or higher ........................................................................................... 986 1,013 2.7

 NOTE: Earnings figures by educational attainment pertain to persons aged 25 years

 and older.

2004 2005 Percent change, Characteristic 2004—2005

Table 7.

Employment by major occupation and sex, annual averages, 2004–05

Total, 16 years and older ......................................................... 139,252 141,730 2,478 74,524 75,973 1,449 64,728 65,757 1,029

Management, professional, and related occupations .............. 48,532 49,245 713 24,136 24,349 213 24,396 24,896 500

Management, business, and financial

 operations occupations ....................................................... 20,235 20,450 215 11,718 11,761 43 8,517 8,689 172

Professional and related occupations ..................................... 28,297 28,795 498 12,418 12,588 170 15,879 16,207 328

Service occupations ................................................................. 22,720 23,133 413 9,826 9,882 56 12,894 13,251 357

Healthcare support occupations ............................................. 2,921 3,092 171 311 339 28 2,609 2,753 144

Protective service occupations ............................................... 2,847 2,894 47 2,230 2,246 16 616 648 32

Food preparation and serving related occupations ................. 7,279 7,374 95 3,196 3,202 6 4,084 4,173 89

Building and grounds cleaning and maintenance

 occupations ......................................................................... 5,185 5,241 56 3,085 3,111 26 2,100 2,130 30

Personal care and service occupations ................................. 4,488 4,531 43 1,004 984 –20 3,484 3,548 64

Sales and office occupations ................................................... 35,464 35,962 498 12,805 13,190 385 22,660 22,772 112

Sales and related occupations ................................................ 15,983 16,433 450 8,105 8,362 257 7,878 8,072 194

Office and administrative support occupations ...................... 19,481 19,529 48 4,700 4,829 129 14,781 14,700 –81

Natural resources, construction, and

maintenance occupations ....................................................... 14,582 15,348 766 13,930 14,635 705 652 713 61

Farming, fishing, and forestry occupations ................................. 991 976 –15 786 756 –30 204 220 16

Construction and extraction occupations .................................. 8,522 9,145 623 8,306 8,871 565 216 274 58

Installation, maintenance, and repair occupations ................. 5,069 5,226 157 4,838 5,008 170 231 219 –12

Production, transportation, and material

moving occupations ................................................................. 17,954 18,041 8 13,827 13,917 90 4,126 4,124 –2

Production occupations ........................................................... 9,462 9,378 –84 6,587 6,540 –47 2,875 2,838 –37

Transportation and material moving occupations .................... 8,491 8,664 173 7,240 7,377 137 1,251 1,286 35

Women

2004

Change,

2004 to

2005

Occupation

Table 6.

2005 2004

Change,

2004 to

2005

2005 2004 2005

[In thousands]

Change,

2004 to

2005

Total Men

NOTE: Occupations reflect the introduction of the 2002 Census

occupational classification system (derived from the 2000 Standard

Occupational Classification system) into the Current Population Survey. Data

may not sum to totals due to rounding.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

 SOURCE: Bureau of Labor Statistics, Current Population Survey.
Monthly Labor Review March 2006 13

CHART 7

CHART 8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Chart 7. Over-the-year percent change in median usual weekly earnings of full-time wage and 

 salary workers by selected characteristics, annual averages, 2004—2005

Percent Percent

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

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Over-the-year percent change in the CPI-U = 3.4 percent

Total Men Women Less than 

high school

High school 

graduate

Some 

college

Bachelor's

 degree or higher

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

50

55

60

65

70

75

80

85

50

55

60

65

70

75

80

85

Chart 8. Women's median usual weekly earnings of full-time wage and salary workers as a 

percent of men's, annual averages, 1979—2005

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent
14 Monthly Labor Review March 2006

Household Survey Developments

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 or establishment) survey, and the estimate of

total civilian employment, based on the Current Population

Survey (CPS or household survey).

The CES survey is an employer-based survey that

provides data on the number of payroll jobs in nonfarm

industries. The CPS is a survey of about 60,000 households

(conducted by the Census Bureau) that furnishes data on the

employment status of individuals and includes information

on their demographic characteristics. The surveys are largely

complementary.

Employment estimates from the CPS include both agricultural

and nonagricultural sectors and count persons in any type of

work arrangement: wage and salary workers, self-employed

persons, private household workers, and unpaid workers who

worked 15 hours or more in an enterprise operated by a family

member. Estimates from the CES survey refer only to persons on

nonfarm wage and salary payrolls and exclude private

household workers. As a result, the count of employment from

the CPS is larger than that from the CES survey.

Partially offsetting the higher estimates from the CPS is the

fact that that survey is a count of persons, and individuals are

counted only once, regardless of the number of jobs they hold.

In contrast, the CES survey is an estimate of jobs and counts

each job for persons who work in more than one establishment.

The surveys’ methodology and coverage exhibit other

differences as well. For example, the reference period for the

CPS is the week that includes the 12th day of the month, whereas,

for the CES survey, it is the pay period that includes the 12th of

the month. Pay periods vary in length and can be longer than 1

week. It is therefore possible for the CES survey estimate of

employment to reflect a longer reference period than that used

for the CPS.

The “universe” for the CPS is the civilian noninstitutional

population, which comprises persons 15 years of age and older

residing in the United States who are not confined to

institutions (for example, correctional, psychiatric, and longterm care facilities) and who are not on active duty in the Armed

Forces. (Data are published for those aged 16 and older.) In this

regard, the coverage of the CES survey is broader: the survey

has no age restriction, wage and salary civilian jobs held by

uniformed military personnel are counted, and persons who

commute to the United States from Mexico or Canada to work

are classified as employed.

Differences in conceptual and survey methodology between

the two surveys result in different employment estimates from

each survey. As a result, employment data from the two surveys

can show contrasting employment trends over time. (For more

information on this issue, see Mary Bowler and Teresa L.

Morisi, “Understanding the employment measures from the

CPS and CES survey,” Monthly Labor Review, February 2006,

pp. 23–38.)

62.5 percent of men’s.7 The smaller gender earnings gap reflects

stronger growth in weekly earnings among women than among

men. (See chart 8.)

After Hurricane Katrina, the Bureau of Labor Statistics and

the Census Bureau collected special data on hurricane

evacuees.8

 In order to understand the effect of Hurricane Katrina

on CPS labor force estimates, it is important to review how

concepts such as employment are defined in the household

survey. Persons who did any work for pay or profit and those

temporarily absent from jobs to which they expect to return are

counted as employed in the CPS, even if they are not paid.

These concepts of employment may, in part, explain why the

major hurricanes did not have discernible effects on the

estimates of major labor force indicators at the national level.

In contrast, employment in the BLS payroll survey—the

Current Employment Statistics (CES) survey—is estimated by

measuring the number of workers who were paid for any part

of the survey reference period. (For more information on the

differences between the CPS and the CES survey, see box on

this page.)

Among the data on employed persons who were absent

from their jobs, the CPS provides information on individuals

who reported that they were not at work during the survey

reference week due to bad weather. In September 2005, after

Hurricane Katrina struck, that figure totaled 210,000, far more

than the average for the month of September. While this level

was about the same as in September 2004 (after Hurricane

Ivan), the number of employed persons who were not at work

due to bad weather remained unusually high for several

months in the fall of 2005. (There were 130,000 such workers

reported in October 2005, for example, and 113,000 in

November.) The high figures for October and November may

reflect the lingering impact of Hurricane Katrina and the effects

of other hurricanes during those months. It is not possible to

determine the outcomes in the subsequent months for people

 Conceptual differences between employment estimates from establishment and household surveys
Monthly Labor Review March 2006 15

CHART9

Employment status in December 2005 of persons

aged 16 years and older who evacuated from their

August residence, even temporarily, due to

Hurricane Katrina

Civilian noninstitutional population .... 1,105 605 500

Civilian labor force .......................... 643 353 290

Participation rate ...................... 58.2 58.4 58.0

Employed ...................................... 563 333 230

Employment-population ratio .... 51.0 55.1 46.0

Unemployed .................................. 80 20 60

Unemployment rate ................... 12.4 5.6 20.7

Not in the labor force ...................... 462 252 210

NOTE: 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 may change from month to month as people move 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

August Total

Different

than in

August

Employment status

in December 2005

Table 8.

[Numbers in thousands, not seasonally adjusted]

Residence in December

who were in this category. That is, it is not known whether

they returned to their original job, found another one, became

unemployed and were looking for jobs, or left the labor force

entirely. (See chart 9.)

Following Hurricane Katrina, the Bureau of Labor Statistics

and the Census Bureau designed a set of questions aimed at

identifying evacuees from the storm. These questions were

first asked in the October 2005 CPS. Information collected

through them does not represent all evacuees, because

persons outside of the scope of the survey (such as those

living in hotels or shelters) were not included. The questions

determined whether evacuees had returned to their homes by

the time of the survey. Data obtained from these questions

showed that those who had evacuated and returned to their

August residences were more likely to be in the labor force

and had lower unemployment rates than evacuees who had

not returned. In December 2005, just over half of the evacuees

measured by the survey had returned to their August

residences. The unemployment rate of evacuees who had

returned was 5.6 percent, compared with 20.7 percent for

evacuees who had not returned. (See table 8.)

In sum, CPS data show continued improvement in the labor

market in 2005, as reflected by a decline in unemployment and

substantial employment growth. Also notable were the decline in the long-term unemployed—both in their level and as

a percentage of total unemployment—and the continuing

decline of involuntary part-time workers. Overall, participation

rates were little changed over the year. In addition, weekly

earnings increased in 2005, but at a slower pace than inflation.

Finally, special labor force data collected on Hurricane Katrina

evacuees revealed a marked difference in the employment

status of those who had returned to their prehurricane residence and those who had not.

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Chart 9. Persons with a job, but not at work due to bad weather, nonagricultural industries, monthly 

 data, not seasonally adjusted, 1994—2005

Thousands Thousands

Snowstorm, January 1996

Hurricane Floyd, September 1999

Hurricane Ivan, September 2004

Hurricane Katrina, September 2005

 NOTE: Hurricane Katrina struck the United States in late August 2005, but the effects of the storm were first 

reflected in the CPS data for September 2005.

 SOURCE: Bureau of Labor Statistics, Current Population Survey.
16 Monthly Labor Review March 2006

Household Survey Developments

Notes

1

 The employment-population ratio is the proportion of the civilian

noninstitutional population aged 16 years and older that is employed,

and the labor force participation rate is the percent of the population

that is in the labor force (the sum of the employed and unemployed).

Although the CPS is a monthly survey, seasonally adjusted quarterly

averages are analyzed throughout this article and over-the-year changes

are based on comparisons of fourth-quarter data, unless otherwise

noted.

2 The data on total employment in the text are based on a

“smoothed” employment series that adjusts for revisions to population

controls introduced in January 2004 and January 2006. The estimate

for total employment in the fourth quarter of 2005 (142.6 million)

and the over-the-year changes will not match the data in Table 1. The

technique that was used to smooth the series is discussed in Marisa DiNatale, “Creating Comparability in CPS Employment Series,”

unpublished paper, December 2003; available on the Internet at

http://www.bls.gov/cps/cpscomp.pdf.

3

 Beginning in 2000, older baby boomers started moving into the

55-years-and-older age bracket. This movement pushed overall

participation rates for the group upwards, in part because baby boomers

have a relatively high propensity to engage in labor market activity.

Also, the sheer number of boomers accounts for a growing share of

older workers, thereby putting additional upward pressure on

participation rates for older workers overall.

4

 The figures on unemployed persons by reason for unemployment

as a percent of total unemployment do not necessarily sum to 100

percent, due to independent seasonal adjustment.

5

 For additional information on long-term unemployment during

the 1990-91 and 2001 recessions, see Randy Ilg, “A glance at longterm unemployment during recent recessions,” Issues in Labor

Statistics, January 2006.

6 The data analyzed in this section are not seasonally adjusted

quarterly averages.

7

 The CPS first began collecting weekly earnings data each month in

1979.

8

 In the month following Hurricane Katrina, the CPS was conducted

largely according to standard procedures. In September 2005, CPS

interviewers attempted to contact sample households in the stormaffected States except for households in two areas (Orleans and

Jefferson Parishes) that were under mandatory evacuation orders.

Following standard procedures, people who moved out of sample

households, including evacuees from the hurricane, were not contacted

for further interviews. Also according to standard procedures, people

staying in temporary shelters or hotels were not surveyed. Evacuees

who relocated to other households that were in the CPS sample were

interviewed—if they reported that they could not return to their usual

residence. Hurricane Rita made landfall during the September data

collection period. As a result, response rates for the CPS were lower

than normal in some areas not affected by Katrina, particularly Texas.

Throughout the Nation, only about 1 percent fewer households were

interviewed in September than in August. In October, the total number

of interviews nationally was about the same as in August. In January

2006, Katrina-related questions also were added to the CPS supplement

on displaced workers. For more information on how Hurricane Katrina

affected the national labor force data, including data collection, visit

the Katrina page of the BLS Web site on the Internet at http://

www.bls.gov/katrina/home.htm.