Monthly Labor Review • March 2008 

Household Survey 2007

Household survey indicators 

weaken in 2007

Household survey data show that, in 2007, unemployment rose,

employment growth slowed, and the labor force participation rate

and employment–population ratio trended down; the data also show

that earnings grew faster than inflation over the year

Unemployment rose in 2007 and 

employment, as measured by the 

Current Population Survey (CPS), 

grew at a slower pace than in the previous year.1

 Both the rate and level of unemployment increased in 2007. In the fourth 

quarter of 2007, 7.4 million people were 

unemployed and the unemployment rate 

was 4.8 percent. The labor force grew over 

the year at a slightly slower pace than the 

population; as a result, the labor force participation rate declined in 2007. Reflecting 

the relatively weak employment growth, 

the employment-population ratio trended 

down during the year, from 63.4 percent in 

the fourth quarter of 2006 to 62.8 percent 

in the fourth quarter of 2007. 

Unemployment levels and rates—both overall and for most major worker groups—were 

higher in 2007. The unemployment rate 

for persons aged 16 years and older was 

4.8 percent in the fourth quarter of 2007, 

up from 4.4 percent in the same quarter a 

year earlier; it remained below the 10-year 

averages for the 1970s, 1980s, and 1990s. 

(See chart 1.) The unemployment rate held 

at 4.5 percent for the first two quarters of 

2007 before rising to 4.7 percent in the 

third quarter. The number of unemployed 

James Marschall Borbely 

James Marschall Borbely 

is an economist 

in the Division of Labor 

Force Statistics, 

Bureau of Labor Statistics. 

E-mail: borbely.james@bls.gov

persons, at 7.4 million in the fourth quarter 

of 2007, increased by 600,000 over the year. 

(See table 1.)

Much like the overall unemployment rate, 

the rates for most of the major racial and ethnic groups were higher over the year. The increase was greatest for persons of Hispanic or 

Latino ethnicity, as their unemployment rate 

rose 1.0 percentage point from the previous 

year, to 5.9 percent in the fourth quarter of 

2007. The unemployment rate for whites increased by 0.4 percentage point over the year, 

to 4.3 percent. The unemployment rate for 

Asians was 0.9 percentage point higher than 

a year earlier, at 3.7 percent (not seasonally 

adjusted). The unemployment rate for blacks 

or African Americans was little changed, at 

8.6 percent in the fourth quarter of 2007.

The unemployment rates for adult men 

and adult women rose to 4.3 percent and 4.2 

percent, respectively, in the fourth quarter of 

2007, up from 3.9 percent in the fourth quarter of 2006. The jobless rate among teenagers 

(those aged 16 to 19 years) was 16.4 percent 

in the fourth quarter of 2007, 1.4 percentage 

points higher than a year earlier.

Education is a major determinant of success and activity in the labor market. Individuals with more education tend to have 

lower unemployment rates. In 2007, indi-
Household Survey 2007

 Monthly Labor Review • March 2008

viduals with less education experienced greater increases 

in unemployment than their more educated counterparts. 

In 2007, the unemployment rate for individuals with less 

than a high school diploma (aged 25 years and older) 

increased by 1.2 percentage points to 7.5 percent in the 

fourth quarter. The unemployment rate for high school 

graduates with no college rose by 0.4 percentage point, to 

4.6 percent. Among college graduates, the unemployment 

rate increased by 0.3 percentage point, to 2.2 percent. The 

jobless rate for those with some college or an associate 

degree was little changed over the year and stood at 3.5 

percent in the fourth quarter of 2007. (See chart 2.)

The overall civilian labor force increased at a slightly slower 

pace than the population in 2007, and the participation rate 

trended down; the rate for teenagers continued to trend down, 

while the participation rate for those 55 years and older remained on an upward trend. In 2007, the civilian labor 

force grew by about 1.3 million and the labor force participation rate trended down to 66.0 percent in the fourth 

quarter, declining from 66.3 in the fourth quarter of the 

previous year. This decline in the participation rate indicates that the relatively weak growth in the labor force 

did not keep pace with U.S. civilian population growth in 

2007. (See chart 3.)

The labor force participation rates for all major worker 

groups edged down or were little changed in 2007. The 

participation rate for adult men declined by 0.3 percentage point, to 75.8 percent in the fourth quarter, while the 

rate for adult women was little changed at 60.6 percent. 

The participation rate for blacks decreased by 1.0 percentage point over the year, to 63.2 percent. The rate for whites 

declined by 0.3 percentage point, to 66.3 percent in the 

fourth quarter of 2007. In contrast, the rates for Hispanics or Latinos and for Asians (not seasonally adjusted) 

showed little change over the year, at 68.7 percent and 

66.7 percent, respectively. 

As the following tabulation shows, labor force participation rates varied by age (data are seasonally adjusted):

Age Quarter IV, Quarter IV, Change

 2006 2007

Total, 16 years and older..... 66.3 66.0 –0.3

16 to 19 years.................. 43.3 41.0 –2.3

 16 to 17 years................ 32.4 29.7 –2.7

 18 to 19 years................ 56.7 54.4 –2.3

20 to 24 years................ 74.9 74.0 –.9

25 to 54 years................ 83.1 83.0 –.1

 25 to 34 years.............. 83.1 83.1 .0

 35 to 44 years............... 84.1 83.8 –.3

 45 to 54 years.............. 82.0 82.2 .2

55 years and older............ 38.4 38.8 .4

In the fourth quarter of 2007, the labor force participation 

 Chart 1. Unemployment rate, persons aged 16 years and older, seasonally adjusted, quarterly data, 1969–2007

12.0

10.0

8.0

6.0

4.

2.0

0.0

12.0

10.0

8.0

6.0

4.

2.0

0.0

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

SOURCE: Bureau of Labor Statistics, Current Population Survey (CPS).

Percent

1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 191  1993 1995 1997 19992001  2003 2

Percent
Monthly Labor Review • March 2008

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

characteristics, quarterly averages, seasonally adjusted, 2006–07	 	

[In thousands]	

 2007 

 Characteristic 

Quarter I Quarter II Quarter III Quarter IV

 

 Total

Civilian labor force...................................................	 152,414	 152,855	 152,801	 153,191	 153,667	 1,253

Participation rate.............................................	 66.3	 66.2	 66.0	 66.0	 

Employed............................................................	 145,642	 145,983	 145,905	 146,019	 146,291

Employment–population ratio.........................	 63.4	 63.2	 63.0	 62.9	 

Unemployed.......................................................	 6,772	 6,873	 6,896	 7,172	 7,375

Unemployment rate........................................	 4.4	 4.5	 4.5	 4.7

 Men, 20 years and older

Civilian labor force...................................................	 78,130	 78,391	 78,476	 78,611	 78,914	 784

Participation rate ............................................	 76.1	 76.1	 75.9	 75.8	 

Employed ...........................................................	 75,081	 75,196	 75,305	 75,310	 75,536

Employment–population ratio.........................	 73.1	 73.0	 72.9	 72.6	 

Unemployed.......................................................	 3,049	 3,195	 3,172	 3,301	 3,378

Unemployment rate........................................	 3.9	 4.1	 4.0	 4.2

 Women, 20 years and older

Civilian labor force...................................................	 67,016	 67,351	 67,292	 67,659	 67,755	 739

Participation rate ............................................	 60.7	 60.7	 60.5	 60.7	 

Employed. ..........................................................	 64,387	 64,731	 64,672	 64,884	 64,906

Employment–population ratio.........................	 58.3	 58.4	 58.2	 58.2	 

Unemployed.......................................................	 2,629	 2,620	 2,620	 2,775	 2,849

Unemployment rate........................................	 3.9	 3.9	 3.9	 4.1

 Both sexes, 16 to 19 years

Civilian labor force...................................................	 7,268	 7,113	 7,033	 6,921	 6,998	 –270

Participation rate ............................................	 43.3	 42.1	 41.5	 40.7	 4

Employed. ..........................................................	 6,174	 6,056	 5,927	 5,826	 5,849	

Employment–population ratio.........................	 36.7	 35.8	 34.9	 34.3	 3

Unemployed.......................................................	 1,093	 1,057	 1,105	 1,095	 1,14

Unemployment rate........................................	 15.0	 14.9	 15.7	 15.8	 

 White

Civilian labor force...................................................	 124,536	 124,795	 124,663	 124,952	 125,347	 811

Participation rate ............................................	 66.6	 66.5	 66.3	 66.3	 

Employed ...........................................................	 119,635	 119,819	 119,684	 119,681	 119,989

Employment–population ratio.........................	 64.0	 63.9	 63.7	 63.5	 

Unemployed.......................................................	 4,901	 4,976	 4,980	 5,271	 5,358

Unemployment rate........................................	 3.9	 4.0	 4.0	 4.2

 Black or African American

Civilian labor force...................................................	 17,459	 17,536	 17,448	 17,533	 17,474	 15

Participation rate ............................................	 64.2	 64.2	 63.6	 63.7	 6

Employed ...........................................................	 15,988	 16,121	 15,992	 16,131	 15,962

Employment–population ratio.........................	 58.8	 59.0	 58.3	 58.6	 5

Unemployed.......................................................	 1,471	 1,416	 1,456	 1,402	 1,51

Unemployment rate........................................	 8.4	 8.1	 8.3	 8.0

 Asian1

Civilian labor force...................................................	 6,795	 6,957	 7,033	 7,106	 7,172 	 377

Participation rate ............................................	 66.4	 66.2	 66.4	 66.6	

Employed ...........................................................	 6,606	 6,750	 6,815	 6,881	 6,908 

Employment–population ratio.........................	 64.6	 64.2	 64.3	 64.5	 

Unemployed.......................................................	 188	 207	 218	 225	 26

Unemployment rate........................................	 2.8	 3.0	 3.1	 3.2

Change,

quarter IV 

 2006 to 

 quarter IV 

2007

Quarter IV

 2006

Table 1.

See footnotes at end of table.
Household Survey 2007

  Monthly Labor Review • Marc  20

rate for teenagers aged 16 to 19 years was 41.0 percent, 

2.3 percentage points lower than a year earlier, and down 

from its most recent high point of 52.6 percent in the 

second quarter of 2000. The participation rate for young 

adults (those aged 20 to 24 years) declined by 0.9 percentage point over the year, to 74.0 percent. Young people may 

be participating in the labor force at a lower rate in recent 

 Hispanic or Latino ethnicity

Civilian labor force..................................................	 21,007	 21,366	 21,444	 21,756	 21,846	 839

Participation rate ...........................................	 68.9	 69.0	 68.6	 69.0	 

Employed...........................................................	 19,981	 20,215	 20,235	 20,514	 20,565

Employment–population ratio........................	 65.5	 65.3	 64.8	 65.1	 

Unemployed.......................................................	 1,026	 1,150	 1,209	 1,242	 1,281

Unemployment rate........................................	 4.9	 5.4	 5.6	 5.7	

 

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

characteristics, quarterly averages, seasonally adjusted, 2006–07	 	

[Numbers in thousands

 2007 

Characteristic C

 2006 to IV Quarter I Quarter II Quarter III Quarter IV 2007

1 Data for Asians are not seasonally adjusted.

NOTE:  Beginning in 2007, data reflect revised population controls.

Estimates for race and Hispanic-ethnicity 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.	

Quarter IV,

 2006

Table 1.

years for a number of reasons; examples are that they face 

greater pressure to do well in school and that they attend 

college at higher rates.2 By comparison, the labor force 

participation rate for adults aged 25 to 54 years was 83.0 

percent at the end of 2007, about unchanged from the 

previous year. This rate was relatively flat throughout 2007 

and remained below the historical highs seen in the late 

 Chart 2. Unemployment rate by educational attainment for individuals aged 25 years and older, 

seasonally adjusted, quarter IV 2006 to quarter IV 2007

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent

8.0

7.0

6.0

5.0

4.

3.

2.0

1.0

0.0

8.0

7.0

6.0

5.0

4.

3.

2.0

1.0

0.0

Total, 25 and older Less than a high 

 school diploma

High school 

 graduate, no college 

Less than a 

bachelor’s degree

College degree

Quarter IV 2006

Quarter IV 2007
Monthly Labor Review • March 2008

 Chart 3. Labor force participation rate and employment-population ratio, seasonally adjusted, 

quarterly data, 1998–2007

1990s. The participation rate for adults aged 55 years and 

older had been trending up for several years and continued to do so in 2007, increasing by 0.4 percentage point, 

to 38.8 percent. Between the fourth quarters of 1995 and 

2007, the labor force participation rate for those 55 years 

and older increased by 8.6 percentage points. Several 

factors may have contributed to the recent rise in labor 

force participation among older individuals; including the 

gradual increase in the normal retirement age for receiving Social Security benefits, a decline in the number of individuals covered by defined-benefit plans, and decreased 

availability of employer-provided retiree health benefits.3

 

Employment increased at a slower pace in 2007 and the employment-population ratio declined. The number of employed persons, as measured by the CPS, was 146.3 million 

in the fourth quarter of 2007; the over-the-year increase of 

649,000 was relatively small compared with that of 2006, 

when employment grew by 3.0 million. (For a comparison 

of the concept of employment as defined by the household and establishment surveys, see the box on page 8.) 

In 2007, the employment gain for adult men was 455,000, 

compared with an increase of 1.6 million in 2006. Employment among adult women increased by 519,000 in 

2007, after rising by 1.2 million in 2006. By comparison, 

employment among teens declined by 325,000 during 

2007, after edging up by 164,000 in 2006. 

In the fourth quarter of 2007, the number of employed 

whites was 120.0 million, 354,000 higher than a year earlier, a much lower increase than the 2.1 million gain in 

employment among whites in 2006. Employment among 

Hispanics or Latinos rose by 584,000 in 2007, to 20.6 

million, considerably less than the increase of 1.0 million 

in 2006. Following a job gain of 530,000 in 2006, employment among blacks was about unchanged, at 16.0 million, in 2007. Employment among Asians increased by 

302,000 over the year (not seasonally adjusted). 

Reflecting the relatively slow employment growth in 

2007, the overall employment-population ratio (the proportion of the population who are employed) trended 

down during the year. The ratio had been on an upward 

trend since the third quarter of 2003, increasing from 62.1 

percent to 63.4 percent in the fourth quarter of 2006. (See 

chart 3.) In the fourth quarter of 2007, the employmentpopulation ratio was 62.8 percent, 0.6 percentage point 

lower than a year earlier. Over the year, the employmentPercent

70.0

68.0

66.0

64.

62.0

60.0

70.0

68.0

66.0

64.

62.0

60.0

Percent

1998 1999 2000 2001 2002 2003 2004 2005 2006 

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

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Labor force particpation rate

Employment–population ratio
Household Survey 2007

  Monthly Labor Review • Marc  20

population ratio for adult men fell by 0.5 percentage point, 

to 72.6 percent, while the ratio for women was about unchanged at 58.1 percent. In 2007, the teen employmentpopulation ratio trended down. In the fourth quarter, the 

employment-population ratio among teenagers was 34.3 

percent, 2.4 percentage points lower than in the fourth 

quarter of 2006. 

During 2007, the Hispanic or Latino employment-population ratio declined by 0.8 percentage point, to 64.7 percent. 

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 workers 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, during the late 1990s CES employment 

grew more rapidly than CPS employment. Conversely, 

following the end of the 2001 recession, CPS employment began to trend upward while CES employment 

continued to decline for a number of months. 

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.

Differences between employment estimates from 

the establishment and household surveys

The ratio for blacks fell by 1.1 percentage points, to 57.7 percent over the year, and the ratio for whites (63.5 percent) was 

down by half a percentage point. The employment-population ratio for Asians (64.3 percent, not seasonally adjusted) 

was essentially unchanged over the year.

The employment-population ratio decreased at all levels of educational attainment in 2007. For high school 

graduates and college graduates age 25 and over, the employment-population ratios each fell by 0.6 percentage 
Monthly Labor Review • March 2008

point, to 59.9 percent and 75.9 percent, respectively. The 

employment-population ratios for individuals with less 

than a high school diploma and for individuals with some 

college or an associate degree decreased by 0.5 percentage 

point each, to 43.3 percent and 69.2 percent, respectively. 

The number of persons who were unemployed due to job loss 

increased in 2007, as did the number of long-term unemployed. Nearly all of the increase in total unemployment 

in 2007 was among job losers. Over the year, the number 

of persons who were unemployed due to job loss rose by 

about a half million, to 3.7 million in the fourth quarter 

of 2007. In contrast, the number of unemployed job losers 

had declined from 5.0 million in the third quarter of 2003 

to 3.2 million in the fourth quarter of 2006. Unemployed 

job losers are those who lost their jobs involuntarily; they 

include persons on temporary layoff (awaiting recall) and 

those not on layoff—permanent job losers and persons 

who completed temporary jobs. The over-the-year increase in unemployed job losers occurred largely among 

persons who did not expect to be recalled to work. Also 

contributing to the over-the-year increase in total unemployment was an increase of 105,000 in the number of 

unemployed new entrants to the labor force. The number 

of reentrants to the labor force, at 2.2 million in the fourth 

quarter of 2007, was about unchanged over the year; it 

had been on a downward trend since the second quarter of 2003. There was little change in the number of job 

leavers—persons who quit or otherwise terminated their 

employment voluntarily and immediately began looking 

for work—in 2007. (See chart 4.) 

About 1.3 million unemployed persons had been jobless for at least 27 weeks at the end of 2007, an increase of 

237,000 from a year earlier. (See table 2.) These long-term 

unemployed accounted for a larger portion of total unemployment than they did in the previous year: 18.2 percent 

in the fourth quarter of 2007, up from 16.3 percent a year 

earlier. At 18.2 percent, the proportion of long-term unemployed is well above its most recent low of 10.7 percent 

in the second quarter of 2001, but below its most recent 

high of 23.0 percent in the first quarter 2004. (See chart 

5.) At the end of 2007, the number of unemployed persons who had been looking for work for less than 5 weeks 

was 2.6 million, about the same as the previous year. The 

average (mean) duration of unemployment in the fourth 

quarter of 2007, at 16.9 weeks, was slightly higher than a 

 Chart 4. Reasons for unemployment, seasonally adjusted, quarterly data, 1990–2007

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2

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

SOURCE: Bureau of Labor Statistics, Current Population Survey.

In thousands

6,000

5,000

4,00

3,00

2,000

1,000

0

Job losers

Reentrants

Job leavers

New entrants

6,000

5,000

4,00

3,00

2,000

1,000

0

In thousands
Household Survey 2007

10 Monthly Labor Review • March 2008

 

 

 

Quarter I Quarter II Quarter III Quarter IV

 Reason for unemployment		

Job losers and persons who completed

temporary jobs......................................... 	 3,182	 3,363	 3,370	 3,628	 3,732	 550

	 	 On temporary layoff ............................... 	 966	 966	 959	 975	 1,006	 40

	 	 Not on temporary layoff ......................... 	 2,217	 2,397	 2,410	 2,653	 2,726	 509

Job leavers.................................................. 	 794	 785	 776	 819	 790	 –4

Reentrants................................................... 	 2,226	 2,123	 2,148	 2,104	 2,202	 –24

New entrants............................................... 	 587	 598	 595	 630	 692	 105

Percent distribution

Job losers and persons who completed

temporary jobs......................................... 	 46.9	 49.0	 48.9	 50.5	 50.3	 3.4

	 	 On temporary layoff ............................... 	 14.2	 14.1	 13.9	 13.6	 13.6	 –.6

	 	 Not on temporary layoff ......................... 	 32.6	 34.9	 35.0	 36.9	 36.8	 4.2

Job leavers.................................................. 	 11.7	 11.4	 11.3	 11.4	 10.7	 –1.0

Reentrants................................................... 	 32.8	 30.9	 31.2	 29.3	 29.7	 –3.1

New entrants............................................... 	 8.6	 8.7	 8.6	 8.8	 9.3	 .7

 Duration of unemployment

Less than 5 weeks. ..................................... 	 2,584	 2,501	 2,471	 2,548	 2,645	 61

5 to 14 weeks.............................................. 	 2,076	 2,212	 2,158	 2,250	 2,313	 237

15 weeks or longer...................................... 	 2,121	 2,156	 2,263	 2,390	 2,428	 307

15 to 26 weeks ........................................ 	 1,013	 969	 1,100	 1,109	 1,083	 70

27 weeks or longer.................................. 	 1,108	 1,187	 1,163	 1,281	 1,345	 237

Average (mean) duration,

in weeks. ................................................... 	 16.2	 16.7	 16.8	 16.9	 16.9	 

Median duration, in weeks .......................... 	 7.9	 8.3	 8.4	 8.8	 8.6	 .7

Percent distribution

Less than 5 weeks ...................................... 	 38.1	 36.4	 35.9	 35.4	 35.8	 –2.3

5 to 14 weeks.............................................. 	 30.6	 32.2	 31.3	 31.3	 31.3	 .7

15 weeks or longer...................................... 	 31.3	 31.4	 32.8	 33.2	 32.9	 1.6

15 to 26 weeks ........................................ 	 14.9	 14.1	 16.0	 15.4	 14.7	 –.2

27 weeks or longer.................................. 	 16.3	 17.3	 16.9	 17.8	 18.2	 1.9

SOURCE: Bureau of Labor Statistics, Current Population Survey.	 	

Change, 

quarter IV 

2006 to 

quarter IV 

2007

2007

Quarter IV, 

2006 Reason and duration

Table 2.

[In thousands]

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

2006–07

year earlier, as was median duration at 8.6 weeks.

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

labor force declined over the year, and the number of persons 

employed part time for economic reasons increased. The category “not in the labor force” consists of persons who are 

neither employed nor unemployed. In 2007, there were 

79.2 million persons who were not in the labor force (not 

seasonally adjusted). Of those who were not in the labor 

force, about half were aged 55 years and older. 

The number of persons not in the labor force who 

wanted a job but who were not currently looking for 

one was 4.3 million in the fourth quarter of 2007, which 

is 130,000 lower than a year earlier (not seasonally adjusted). Among this group, 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. These “marginally attached workers” numbered 1.4 

million in the fourth quarter of 2007, about the same as 

a year earlier. Some marginally attached workers were not 

currently looking for a job specifically because they felt 

that no jobs were available for them; such “discouraged 

workers” numbered 344,000 in the fourth quarter of 2007, 

little changed from a year earlier. (See table 3.)
Monthly Labor Review • March 2008 11

The number of persons who were employed part time 

for economic reasons, also known as those who worked 

part time involuntarily, increased by 268,000 over the year, 

to 4.5 million in the fourth quarter of 2007. 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. Nearly all of the increase occurred among 

those who cited slack work or business conditions as their 

reason for working part time. (See chart 6.) 

 

Paralleling the unemployment rate, the five alternative measures of labor underutilization increased in 2007. Alternative measures of labor underutilization indicators are 

constructed by the Bureau of Labor Statistics using CPS

data. Labeled U-1 through U-6 (U-3 is the official unemployment rate), the measures, which tend to show similar 

cyclical patterns, provide additional insight into the degree to which labor resources are underutilized and are 

presented as a percent of the labor force.4 U-4 through U6 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). 

In 2007, U-4 rose to 5.0 percent, U-5 to 5.6 percent, and 

U-6 to 8.6 percent. (See table 4.)

The number of persons who were self-employed declined in 

2007 and the number of multiple job holders edged down over 

the year. The number of self-employed persons began to 

trend down in the second half of 2007. In the fourth quarter, 10.1 million persons, or 6.9 percent of total employed, 

were self-employed, down from 10.7 million (7.3 percent) 

in the fourth quarter of 2006. The likelihood of self-employment increases with age, and in the fourth quarter of 

2007, those aged 65 years and older had the highest rate 

of self-employment (16.3 percent not seasonally adjusted). 

In addition, men were more likely than women to be selfemployed—8.1 percent versus 5.5 percent, respectively. 

In the fourth quarter of 2007, there were 7.7 million 

workers who held more than one job, down slightly from 

a year earlier (not seasonally adjusted). The percentage of 

the employed who were multiple job holders (5.3 percent) 

was little changed over the year. The majority (55.3 per-

 Chart 5. Long-term unemployed as a percent of total unemployed, seasonally adjusted, quarterly data, 

1990–2007

25

20

15

10

5

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2

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

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent

25

20

15

10

5

0
Household Survey 2007

12 Monthly Labor Review • March 2008

 

 2007 

 

Quarter I Quarter II Quarter III Quarter IV	 	

 Not

Total not in the labor force .................................... 	 77,377	 78,826	 78,671	 78,289	 79,185	 1,8

Persons who currently want a job....................... 	 4,419	 4,544	 5,189	 4,790	 4,289	 

Marginally attached1 ......................................... 	 1,365	 1,471	 1,417	 1,336	 1,3

Reasons not currently 

Discouragement over job prospects2........... 	 318	 399	 389	 34

Reasons other than discouragement3 ......... 	 1,047	 1,072	 1,028	 991	

1

Data refer to persons who have searched for work during the

prior 12 months and were available to take a job during the reference

week.

2

Includes thinks no work available, could not find work, lacks schooling or training, employer thinks too young or old, and other types of

discrimination.	

3

Includes those respondents 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

Category Quarter IV,

2006

Change,

quarter IV

2006 to

quarter IV

2007

[In thousands]

Table 3. Persons not in the labor force, quarterly averages, not seasonally adjusted, 2006–07

cent) of multiple job holders in 2007 had a full-time job 

with a part-time secondary job. (See table 5.)

In 2007, employment grew in management, professional, 

 Chart 6. Persons employed part-time for economic reasons, seasonally adjusted, quarterly data, 1970–2007

7,000

6,500

6,000

5,500

5,000

4,50

4,00

3,50

3,00

2,500

2,000

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2

7,000

6,500

6,000

5,500

5,000

4,50

4,00

3,50

3,00

2,500

2,000

In thousands In thousands

NOTE: Shaded regions 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 (denoted by black line) and are not strictly comparable with data for prior years.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

and related occupations and in service occupations, while it 

edged down in installation and transportation occupations; 

construction employment was flat over the year. In 2007, 

the number of people employed in management, professional, and related occupations grew by about 1.4 million, 
Monthly Labor Review • March 2008 1

 

 

 

Quarter I Quarter II Quarter III Quarter IV 

U–1 Persons unemployed 15 weeks or longer,

	as a percent of the civilian labor force....................................	 1.4	 1.4	 1.5	 1.6	 1.6	 .2

U–2 Job losers and persons who completed	 	 	

temporary jobs, as a percent of the civilian	 	 	

labor force...............................................................................	 2.1	 2.2	 2.2	 2.4	 2.4	 .3

U–3 Total unemployed, as a percent of the 	 	

civilian labor force (official unemployment rate)...................... 4.4 4.5 4.5 4.7 4.8 .4

U-4 Total unemployed plus discouraged	 	 	

workers, as a percent of the civilian labor force	 	 	

plus discouraged workers.......................................................	 4.6	 4.7	 4.8	 4.9	 5.0	 .4

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...................................................................................	 5.3	 5.4	 5.4	 5.5	 5.6	 .3

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....................................................................................	 8.1	 8.2	 8.2	 8.4	 8.6	 .5

SOURCE: Bureau of Labor Statistics, Current Population Survey.

 Measure

Table 4. Range of alternative measures of labor underutilization, quarterly averages, seasonally adjusted, 2006–07

Quarter IV, 

2006

Change, 

quarter IV

2006 to

quarter IV

 2007

2007

637,000 more jobs than they held in 2006. 

Median weekly earnings for full-time wage and salary workers 

increased in 2007 at a faster rate than inflation, as measured 

by the Consumer Price Index (CPI). Median usual weekly 

earnings rose to $695 in 2007, an increase of 3.6 percent. 

(The data in this section are annual averages.) During the 

same period, the Consumer Price Index (CPI-U) increased 

by 2.8 percent. (See table 7 and chart 7.) Workers with 

usual weekly earnings in the ninth decile (top 10 percent 

of workers) experienced an increase of 3.7 percent, to 

$1,602 in 2007, while workers with earnings in the first 

decile (bottom 10 percent of workers) experienced an increase of 3.4 percent, to $330. While median earnings for 

both men and women grew in 2007, men experienced a 

larger percent increase than women (3.1 percent versus 

2.3 percent, respectively.) The ratio of women’s earnings 

to men’s edged down to 80.2 percent over the year. Over 

time, however, the earnings gap between the sexes has 

narrowed considerably: in 1979, women’s earnings were 

62.5 percent of men’s earnings.5 (See chart 8.)

In 2007, among the major racial and ethnic groups, 

slightly larger growth than in 2006. (The data in this section are annual averages.) The professional and related occupations component added just over 1.0 million workers 

in 2007, and employment in management, business, and 

financial operations occupations increased by 344,000. 

Service occupations, which include protective service and 

food preparation and serving related occupations, experienced another year of employment growth, increasing 

by 326,000 in 2007; this was only half as much as the increase recorded in 2006. In 2007, employment in installation, maintenance, and repair occupations edged down by 

117,000, and transportation and material moving occupations employment edged down by 70,000. (See table 6.) 

Employment in construction and extraction occupations 

was essentially flat in 2007, following an increase of 1.6 

million over the 4-year period from 2002 to 2006. 

Employment among women in management, business, 

and financial operations occupations increased by 317,000 

in 2007, accounting for 92 percent of the overall increase 

in employment in this occupation group. In contrast, men 

accounted for the majority of the employment gain in 

professional and related occupations in 2007 by filling 
Household Survey 2007

14 Monthly Labor Review • Marc  20

 

 

 

Quarter I Quarter II Quarter III Quarter IV

 Multiple jobholders1

Multiple jobholders............................................................ 	 7,893	 7,696	 7,693	 7,493	 7,740	 –153

Percent of employed......................................................... 	 5.4	 5.3	 5.3	 5.1	 5.3	 –.1

Primary job full time, secondary part time..................... 	 4,180	 4,151	 4,157	 4,109	 4,277	 97

Primary and secondary jobs both part time................... 	 1,710	 1,841	 1,813	 1,625	 1,776	 66

Primary and secondary jobs both full time.................... 	 317	 291	 286	 310	 265	 –52

Hours vary on primary or secondary job....................... 	 1,633	 1,360	 1,384	 1,408	 1,379	 –254

Percent distribution

Primary job full time, secondary part time...................... 	 53.0	 53.9	 54.0	 54.8	 55.3	 2.3

Primary and secondary jobs both part time....................	 21.7	 23.9	 23.6	 21.7	 22.9	 1.2

Primary and secondary jobs both full time..................... 	 4.0	 3.9	 3.7	 4.1	 3.4	 –.6

Hours vary on primary or secondary job........................ 	 20.7	 17.7	 18.0	 18.8	 17.8	 –2.9

Quarter IV, 

2006

1 Includes 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.

Table 5.

[Numbers in thousands]

 Category

Change, 

quarter IV

 2006 to

quarter IV

 2007

 2007

 Multiple jobholders, quarterly averages, not seasonally adjusted, 2006–07

		 	

 

 Change, Change, 

2006 2007 2006 to 2006 2007 2006 to 2006 2007 

 2007 2007 

Total, 16 years and older....................................... 	 144,427 	 146,047 	 1,620	 77,502	 78,254	 752	 66,925	 67,792	

Management, professional, and related

occupations.............................................................. 	 50,420	 51,788 	 1,368	 24,928	 25,593	 665	 25,492	 26,195	 703

Management, business, and financial operatio

	 	 occupations.......................................................... 	 21,233	 21,577 	 344	 12,347	 12,375	 28	 8,886	 9,203	 317

Professional and related occupations ..................... 	 29,187	 30,210 	 1,023	 12,581	 13,218	 637	 16,606	 16,992	 3

Service occupations.................................................. 	 23,811	 24,137 	 326	 10,159	 10,337	 178	 13,653	 13,800	 147

Healthcare support occupations.............................. 	 3,132	 3,138 	 6	 333	 338	 5	 2,799	 2,800	

Protective service occupations................................ 	 2,939	 3,071 	 132	 2,284	 2,380	 96	 654	 691	 

 Food preparation and serving related

	 	 occupations.......................................................... 	 7,606	 7,699 	 93	 3,297	 3,354	 57	 4,309	 4,345	 36

Building and grounds cleaning and maintenan

	 	 occupations.......................................................... 	 5,381	 5,469 	 88	 3,230	 3,280	 50	 2,151	 2,189	 38

Personal care and service occupations .................. 	 4,754	 4,760 	 6	 1,014	 986	 –28	 3,740	 3,774	 

Sales and office occupations .................................... 	 36,141	 36,212 	 71	 13,275	 13,264	 –11	 22,866	 22,948	 82

Sales and related occupations................................ 	 16,641	 16,698 	 57	 8,478	 8,424	 –54	 8,163	 8,275	 1

Office and administrative support occupations ....... 	 19,500	 19,513 	 13	 4,797	 4,840	 43	 14,703	 14,673	 –

Natural resources, construction, and maintenance

occupations ........................................................... 	 15,830	 15,740 	 –90	 15,079	 15,078	 –1	 752	 662	 –90

Farming, fishing, and forestry occupations ............. 	 961	 960	 –1	 750	 759	 9	 212	 201	 –

Construction and extraction occupations ................ 	 9,507	 9,535 	 28	 9,216	 9,276	 60	 292	 258	 –

Installation, maintenance, and repair occupations.. 	 5,362	 5,245 	 –117	 5,114	 5,043	 –71	 248	 202	 –

Production, transportation, and material moving

occupations ........................................................... 	 18,224	 18,171 	 –53	 14,061	 13,983	 –78	 4,163	 4,188	 25

Production occupations........................................... 	 9,378	 9,395 	 17	 6,529	 6,563	 34	 2,850	 2,832	 –

Transportation and material moving occupations.... 	 8,846	 8,776 	 –70	 7,533	 7,420	 –113	 1,313	 1,355	 

NOTE: Data may not sum to totals due to rounding.	 SOURCE: Bureau of Labor Statistics, Current Population Survey.

Employment by major occupation and sex, annual averages, 2006–07

[In thousands]

Occupation

 Women

Table 6.

Change,

2006 to

2007

Total Men
Monthly Labor Review • March 2008 15

Percent change, 

2006–2007 

Total, 16 years and older..................................................	 $671	 $695	 3.6	 	 	

CPI-U...............................................................................	 201.6	 207.3	 2.8	 	 	

Men..................................................................................	 $743	 $766	 3.1	 	 	

Women.............................................................................	 600	 614	 2.3	 	 	

White................................................................................ 690	 716	 3.8

Men................................................................................	 761	 788	 3.5	 	 	

Women...........................................................................	 609	 626	 2.8	 	 	

Black or African American................................................	 554	 569	 2.7	 

Men................................................................................	 591	 600	 1.5	 	 	

Women..........................................................................	 519	 533	 2.7	

Asian................................................................................	 784	 830	 5.9	 	 	

Men................................................................................	 882	 936	 6.1	 	

Women...........................................................................	 699	 731	 4.6	 	 	

	 	

Hispanic or Latino ethnicity..............................................	 486	 503	 3.5	

Men................................................................................	 505	 520	 

Women...........................................................................	 440	 473	 7.5	

	 	

  Management, business, and financial operations

	 	 occupations...................................................................	 1,045	 1,080	 3.3	 	

Professional and related occupations.............................	 928	 951	 2.5	 	 	

Service occupations........................................................	 422	 454	 7.6	 	 	

Sales and related occupations........................................	 628	 643	 2.4	 	 	

  Office and administrative support occupations............... 572 581 1.6

  Farming, fishing, and forestry occupations..................... 387 372 –3.9

Construction and extraction occupations........................	 619	 646	 4.4	 	 	

Installation, maintenance, and repair occupations..........	 742	 749	 .9	 	 	

Production occupations..................................................	 559	 581	 3.9	 	 	

Transportation and material moving occupations...........	 556	 570	 2.5	

Total, 25 years and over1.................................................	 718	 738	 2.8	 

Less than a high school diploma....................................	 419	 428	 2.1	 

High school graduates, no college.................................	 595	 604	 1.5	 

Some college or associate degree.................................	 692	 704	 1.7	 	 	

Bachelor’s degree or higher, total...................................	 1,039	 1,072	 3.2

1 Earnings figures by educational attainment pertain to pe

age 25 and older.

SOURCE: Bureau of Labor Statistics, Current Population Survey

and Consumer Price Index.

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

 annual averages, 2006–07

Characteristic

Table 7.

2006 2007

Asians saw the largest percent increase in median earnings, 5.9 percent. The earnings increases for whites (3.8 

percent) and Hispanics (3.5 percent) were about in line 

with the previous year, while the earnings increases for 

blacks were considerably lower: 2.7 percent in 2007, compared with 6.5 percent in 2006. 

Among the major occupation groups, workers in service occupations saw the largest over-the-year percent 

increase in 2007: earnings for this occupation group were 

up 7.6 percent, to $454 per week. Earnings for workers in 

farming, fishing, and forestry occupations remained the 

lowest among the major occupation groups and declined 

by 3.9 percent in 2007, to $372 per week. 

Educational attainment is also a major determinant of 

earnings. Workers aged 25 years and older with at least a 

bachelor’s degree continued to have the highest median 

earnings among the major education groups, $1,072 in 

2007; this group also saw the largest over-the-year percentage increase, 3.2 percent. Workers with some college 

or an associate degree earned $704, and high school graduates earned $604 in 2007, both up slightly from a year 

earlier. Earnings of workers with less than a high school 

diploma were up 2.1 percent, to $428 per week. Workers 

with at least a bachelor’s degree were the only education 

group to experience an increase in earnings greater than 

inflation. (See table 7.) 
Household Survey 2007

16 Monthly Labor Review • March 2008

 Chart 8. Women’s median usual weekly earnings as a percent of men’s, full-time wage and salary workers, 

annual averages, 1979–2007

85.0

80.0

75.0

70.0

65.0

60.0

55.0

50.0

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent

85.0

80.0

75.0

70.0

65.0

60.0

55.0

50.0

Percent

1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 200

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

not seasonally adjusted, annual averages, 2006–07

Percent

change

Percent

change

5.0

4.

4.

3.

3.

2.5

2.0

1.5

1.0

0.5

0.0

Over-the-year percent change in the CPI-U = 2.8

Total Men Women Less than 

high school 

High school

graduate 

Some college Bachelor’s 

degree and 

higher

5.0

4.

4.

3.

3.

2.5

2.0

1.5

1.0

0.5

0.0

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

SOURCE: Bureau of Labor Statistics, Current Population Survey and Consumer Price Index.
Monthly Labor Review • March 2008 17

 Chart 9. 	 Likelihood of the unemployed finding employment, remaining unemployed, or leaving the labor force,

December 2006 to December 2007, seasonally adjusted

55.0

50.0

45.

40.

35.

30.

25.0

20.0

15.0

10.0

5.0

0.0

NOTE: UU = unemployed to unemployed, UE = unemployed to employed, UN = unemployed to not in labor force.

SOURCE: Bureau of Labor Statistics, Current Population Survey.

Percent Percent

55.0

50.0

45.

40.

35.

30.

25.0

20.0

15.0

10.0

5.0

0.0

Dec.

2006

Jan.

2007

Feb.

2007

Mar.

2007

Apr.

2007

May

2007

Jun.

2007

Jul.

2007

Aug.

2007

Sept.

2007

Oct.

2007

Nov.

2007

Dec.

2007

UU

UE

UN

New research series on labor force status flows from the CPS.

Each month, the BLS reports the number of people employed, unemployed, or not in the labor force as estimated 

from the CPS. The net changes in the number of people 

employed and unemployed from month to month are 

important gauges of the health of the U.S. job market. 

Underlying these relatively small net changes, however, is 

a great deal more churning. Millions of individuals move 

between employment and unemployment each month, 

and millions of others enter or leave the labor market. In 

addition, people move into and out of the survey universe 

of the civilian noninstitutional population aged 16 and 

over each month.6

Labor force status flow data can be used to show the 

number of people who change labor force status or remain in the same labor force status from one month to 

the next. Chart 9, for example, shows the proportion of 

unemployed individuals finding employment, remaining 

unemployed, or leaving the labor force each month from 

December 2006 to December 2007. The data indicates 

that, over that 1-year period, unemployed individuals became less likely to find employment (flows from unemployment to employment, or UE), and much more likely to 

remain unemployed (UU). The percentage of unemployed 

individuals who remained unemployed (UU) from one 

month to the next rose from 45.9 percent in December 

2006 to 52.0 percent in December 2007, while the proportion of unemployed individuals finding employment 

(UE) or exiting the labor force (UN) trended down. 

Greater understanding of the rise in unemployment 

in 2007 can be gained by examining the flow of persons 

from employed to unemployed status. The proportion of 

employed persons who became unemployed the subsequent month was little changed during the year. Thus, the 

flow data suggest that the rise in unemployment in 2007 

was due to an increased likelihood of individuals staying 

unemployed rather than to an increase in the likelihood 

of employed persons becoming unemployed. 

IN SUM, DATA FROM THE HOUSEHOLD SURVEY indicate that the labor market weakened in 2007. Following the recession in 2001, the labor market slowly began 

to recover in late 2003 and continued to improve from 

2004 to 2006.7 In 2007, however, employment growth 

slowed compared with recent years, and the unemployment level and rate increased. The labor force participation rate and the employment-population ratio both 

declined in 2007, and the unemployment rates for most 

major worker groups edged higher. Also, more individuals were unemployed due to job loss, a greater number 
Household Survey 2007

18 Monthly Labor Review • March 2008

were unemployed for 27 weeks or longer, and the number of persons employed part time for economic reasons 

increased. Median weekly earnings for full-time wage 

and salary workers increased at a faster rate than inflation, although the gains for some groups of workers were 

less than the rate of inflation. 

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 about 60,000 households nationwide sponsored 

jointly by the Bureau of Labor Statistics and the Census Bureau. (For 

more information about the household survey, see the box on page 8.) 

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 fourth quarter 

data from 2006 to 2007.

2

 For further information on teen school enrollment and employment, see Teresa L. Morisi, “Youth Enrollment and Employment during 

the School Year,” Monthly Labor Review, February 2008, pp. 51–63; on 

the Internet at http://www.bls.gov/opub/mlr/2008/02/art3full.pdf 

(visited Mar. 12, 2008).

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 (visited Mar. 12, 2008).

4 For further information about the alternative measures of unemployment, see John E. Bregger and Steven E. Haugen, “BLS introduces 

a 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 (visited Mar. 12, 2008).

5

 The CPS first began collecting weekly earnings data each month 

in 1979.

6

 For further information about labor force status flows, see Randy 

Ilg, “Analyzing CPS data using gross flows,” Monthly Labor Review, 

September 2005, pp. 10–18; on the Internet at http://www.bls.gov/

opub/mlr/2005/09/art2full.pdf (visited Mar. 12, 2008).

7

 The National Bureau of Economic Research (NBER) is generally 

recognized as the official arbiter of recessions in the United States. The 

organization determined that the most recent recession lasted from 

March 2001 to November 2001.