Employment estimates from IMPLAN-- too high

Hello, We are assuming that the PA DOL follows the same definitions and procedures as the U.S. BLS' CEW data, in which case the figures only provide employment and wage information for workers covered by State Unemployment Insurance (UI) laws and Federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program. Those data do not include proprietors not the following types of workers: most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of certain small nonprofit organizations. Our suggestion would be to ask your DOL exactly what the figures represent and let us know if you are still concerned.

Social Science Consultants is aware that the Quarterly Census of Employment & Wages does not cover some aspects of the economy. However, the discrepancy, where the IMPLAN number of jobs in Allegheny County, PA is approximately 30% higher than the figure provided by the QCEW is too large for that explanation to suffice. The BLS estimates that the census includes over 95% of jobs. So, I ask again, since IMPLAN uses in part the census as a baseline figure, what accounts for the difference? Here is the text in our draft report on this issue. We would appreciate it if a fuller explanation could be provided... IMPLAN estimates that in 2012, Allegheny County had total employment of 863,266. This figure differs from the number of jobs in Allegheny County based on the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW). The number of jobs that derive from that survey approximates 685,000 in September 2012. However, the QCEW includes only jobs that are covered by “State unemployment insurance (UI) laws and Federal workers covered by the Unemployment Compensation for Federal Employees (UCFE) program.” The survey excludes some segments of the economy. “Major exclusions from UI coverage include self-employed workers, most agricultural workers on small farms, all members of the Armed Forces, elected officials in most states, most employees of railroads, some domestic workers, most student workers at schools, and employees of certain small nonprofit organizations.” The discrepancy between IMPLAN employment figures and those that derive from the QCEW has been documented by others. Thank you.

Hi Beth, We appreciate your concern about the Employment data but it appears that there may be some misunderstanding as regards the 95% of Wage and Salary workers. What you are seeing is that the remaining 25% difference in the Employment is proprietors. If you look at the BEA's REA data (table CA25) for Allegheny County, they report a Total Employment of 874,909, which is right in line with IMPLAN's estimate. Hopefully this helps, please let us know if you have any additional questions.

Hi Beth, We appreciate your concern about the Employment data but it appears that there may be some misunderstanding as regards the 95% of Wage and Salary workers. What you are seeing is that the remaining 25% difference in the Employment is proprietors. If you look at the BEA's REA data (table CA25) for Allegheny County, they report a Total Employment of 874,909, which is right in line with IMPLAN's estimate. Hopefully this helps, please let us know if you have any additional questions.