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The Atlanta Fed's macroblog provides commentary and analysis on economic topics including monetary policy, macroeconomic developments, inflation, labor economics, and financial issues.

Authors for macroblog are Dave Altig, John Robertson, and other Atlanta Fed economists and researchers.


« The ZPOP Ratio: A Simple Take on a Complicated Labor Market | Main | Should We Be Concerned about Declines in Labor Force Growth? »

October 05, 2015


Labor Report Silver Lining? ZPOP Ratio Continued to Rise in September

We have received several requests for an update of our ZPOP ratio statistic to incorporate September's data. We have also been asked whether the ZPOP ratio can be constructed from labor force data from the U.S. Bureau of Labor Statistics (BLS).

The ZPOP ratio is an estimate of the share of the civilian population aged 16 years and over whose labor market status is what they say they currently want (assuming that people who work full-time want to do so). A rising ZPOP ratio is consistent with a strengthening labor market. We constructed the ZPOP ratio from the microdata in the BLS's Current Population Survey, but we can also construct a very close approximation from the BLS's Labor Force Statistics data. Here's how (using data that are not seasonally adjusted):

The following chart shows the history of the resulting ZPOP ratio over 20 years, seasonally adjusted.


Unlike the headline U-3 unemployment rate, which remained unchanged from August to September, the seasonally adjusted ZPOP ratio improved slightly (from 92.0 to 92.1 percent). Relative to an estimated 230,000 increase in the population over the month, the improvement in the ZPOP ratio was the result of an increase in the number of people who said they do not currently want a job and a decline in involuntary part-time employment in excess of the decline in total employment.

Finally, the chart below shows the performance of the seasonally adjusted ZPOP ratio relative to the comparable employment-to-population (EPOP ratio) and the EPOP ratio for those aged 25–54. The relatively greater recovery in the ZPOP ratio since 2009 is primarily because the EPOP ratios do not adjust for the share of the population who say they do not currently want a job.

Macroblog_2015-10-05_chart2


October 5, 2015 in Employment , Labor Markets , Unemployment | Permalink

Comments

The relatively greater recovery in the ZPOP ratio since 2009 is primarily because the EPOP ratios do not adjust for the share of the population who say they do not currently want a job.
From the post.

I assume, historically, for EPOP, that persons who said they did not want a job were included, i.e. epop has always been calculated that way but still the epop was higher previously than now.
What is the difference in the do not want a job numbers since 2009(second chart) and 1995(first chart). Has it increased. And are there reasons given for not wanting a job.
This comments box is very small and makes for difficult typing.

Posted by: am | October 15, 2015 at 04:28 PM

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