Supporting Statement A (1220-0170)

Supporting Statement A (1220-0170).doc

Job Openings and Labor Turnover Survey (JOLTS)

OMB: 1220-0170

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Supporting Statement for Requests for OMB Approval

Job Openings and Labor Turnover Survey (JOLTS)



A. Justification


1. Necessity of Collection:


The Job Openings and Labor Turnover Survey (JOLTS) collects data on job vacancies, labor hires, and labor separations. The data can be used as demand-side indicators of labor shortages. These indicators of labor shortages at the national level will greatly enhance policy makers' understanding of imbalances between the demand for and supply of labor. Presently there is no other economic indicator of the demand for labor with which to assess the presence of labor shortages in the U.S. labor market. The availability of unfilled jobs - the number of job vacancies or the vacancy rate - is an important measure of tightness of job markets, parallel to existing measures of unemployment.


JOLTS statistics reveal structural labor market conditions, such as the effectiveness of job matching and training processes, the implications of unemployment insurance and welfare, and deficient demand for labor.


JOLTS statistics can be used as a potential indicator of business cycles. In addition, JOLTS statistics allow businesses to compare their turnover rates to national rates.


Title 29, chapter 1, part 2 of United States Code authorizes JOLTS data collection.


2. Description of the Information Collected:


The information is collected once a month at the Bureau of Labor Statistics, Atlanta Data Collection Center (DCC), Atlanta, Georgia. Data is collected from the private sector, State and Local governments, and the Federal Government. It is collected using Computer Assisted Telephone Interviewing (CATI), Touchtone Data Entry (TDE), email, and fax. For the next survey round, an establishment is in the sample for 24 months.


Upon receiving the selected sample, the sample units are distributed among the Atlanta DCC interviewers. The interviewer then conducts address refinement. Address refinement requires interviewers to confirm correct contact information for an establishment. Once this has been done, the enrollment package is printed and mailed to the respondent. During the first six months of collection, the interviewer calls the respondent and conducts the interview over the phone using CATI. The first month includes clarification on the reporting unit. During the sixth month interview, the interviewer prepares the respondent for rollover to fax or TDE. Each respondent is encouraged to report all remaining months of data using fax or TDE.


There are 6 data elements collected by the form. Those elements are Total Employment, Total Number of Job Openings, Total Hires, Quits, Layoffs and Discharges, and Other Separations. Quits, Layoffs and Discharges, and Other Separations comprise Total Separations.


The reference period for Total Employment is the pay period including the 12th of the month. The reference period for Job Openings is the last business day of the month. Hires and Separations are requested for the entire month.


The information is published monthly at the NAICS Supersector level for the U.S and total non-agriculture for the major Census regions. The data are made public via press releases and the BLS Web Site. The data are used by BLS economists in their efforts to interpret and report labor market developments. Businesses use the data to compare their own turnover rates to a national figure. JOLTS data are useful to academics studying labor economics. Policy analysts can use the data to track the business cycle.


3. Use of Technology to Reduce Burden:


JOLTS collects data using CATI for the first six months a unit is in the sample. JOLTS then encourages use of TDE technology in collecting data after a sample unit's sixth month in the sample. Both Fax and email are other alternatives for collection. These options allow the respondent to save time since they do not have to process and return the form by mail. The initial six months reporting via CATI is necessary to help the respondent understand the form and data requested.


Although every attempt is made to schedule CATI interviews at the most convenient time for respondents, TDE, email, or fax allow respondents an even greater flexibility in responding at their most convenient time.


Respondents who are not able to break out Separations into Quits, Layoffs and Discharges, and Other Separations, are routed through TDE in such a way as to only report Total Separations. This use of TDE reduces their response time and their overall burden.


4. Identification of Duplication and Availability or Similar Information:


Extensive research using libraries, other statistical agencies, and the Internet has not identified similar information. Some academics have made use of proxies, such as the “Help-Wanted Advertising Index” from the Conference Board Economics Watch (http://www.conference-board.org/economics/helpwanted.cfm), but this measure falls short of an accurate measurement of true job openings since it creates the index based solely on help-wanted advertising in newspapers.


5. Small Businesses:


The information requested is readily available in both small and large firms. Special attention was paid to selecting reference periods for data elements that were easily understandable to all respondents.


The JOLTS sampling frame is stratified by geographic Region, Industry Supersector, and employment size class. A stratified sample is allocated using the Neyman allocation (Cochran, 1977, pp. 259-261) methodology. This stratification and allocation methodology ensures that small businesses are sampled at a lower rate (i.e., lower probability of selection) than large businesses; this reduces the respondent burden on small establishments relative to large establishments.


6. Less Frequent Conduct of Study:


As an indicator of the demand for labor that would be parallel to existing measures of unemployment, less frequent conduct of study would diminish the ability of BLS to produce meaningful statistical estimates. In addition, it would prevent the estimates from being used as a leading indicator of business cycles and current economic trends.


7. Special Circumstances:


JOLTS releases data rates and levels on a monthly basis, therefore requiring collection of information on a monthly basis to support the monthly estimate.


8. Consultation with Persons Outside BLS:


No comments were received as a result of the Federal Register Notice published in 73 FR 62325 on October 20, 2008.


During the original development of the JOLTS concepts and forms, the JOLTS form was sent to seven experts for their comments regarding the data elements to be collected. The comments were solicited to ensure that the form collected only essential data elements and/or appropriate breakouts. The result is a form that imposes the least respondent burden while capturing data essential to produce a quality economic indicator.


Reviewers of Form:

Katharine Abraham Past Commissioner, BLS

Carolyn Bagin Center for Clear Communications, Inc.

Dan Hamermesh University of Texas

Harry Holzer Chief Economist, DOL/Michigan State University

Larry Katz Harvard University

Bruce Meyers Northwestern University

Dan Sullivan Federal Reserve Bank of Chicago

William Wascher National Bureau of Economic Research/

Bank for International Settlements

Joyce Zickler Federal Reserve - DC


Also, during 2008 an OMB approved response analysis survey was conducted to determine the cause for employment divergence within the temporary help industry. Discussions were held with the owner of a Manpower Inc. franchise to identify possible areas of improvement in our survey questions.


9. Gifts or Payments to Respondents:


There will be no gifts or payments to respondents.


10. Confidential Responses:


The Bureau of Labor Statistics Commissioner's Order 1-06 "Confidential Nature of BLS Statistical Data," explains the Bureau's policy on confidentiality:


In conformance with existing law and Departmental regulations, it is the policy of the BLS that:


Respondent identifiable information collected or maintained by, or under the auspices of, the BLS for exclusively statistical purposes and under pledge of confidentiality shall be treated in a manner that will ensure that the data will be used only for statistical purposes and will be accessible only to authorized persons.


Pre-release economic data, including embargoed data, prepared for release to the public will not be disclosed or used in an unauthorized manner before they officially have been released, and will be accessible only to authorized persons.


This policy remains in effect.


The front page of the JOLTS form indicates that “The Bureau of Labor Statistics, its employees, agents, and partner statistical agencies, will use the information you provide for statistical purposes only and will hold the information in confidence to the full extent permitted by law. In accordance with the Confidential Information Protection and Statistical Efficiency Act of 2002 (Title 5 of Public Law 107-347) and other applicable federal laws, your responses will not be disclosed in identifiable form without your informed consent.”


The Confidential Information Protection and Statistical Efficiency Act of 2002 (CIPSEA) safeguards the confidentiality of individually identifiable information acquired under a pledge of confidentiality by controlling access to, and uses made of, such information. CIPSEA includes fines and penalties for any knowing and willful disclosure of individually identifiable information by an officer, employee, or agent of the BLS.


BLS releases JOLTS data only after they pass the p-rule disclosure test (see Federal Committee on Statistical Methodology Working Paper 22 on Disclosure Limitation Methodology).


11. Sensitive Questions:


No sensitive questions will be asked.


12. Burden of Collection:


Explanation of how the total burden hours were derived for fiscal years 2009-2012 is illustrated below.


Private

Fiscal Year 2009 (Partial)

(April 2009 - September 2009)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 27,794 10 minutes


TDE 8,894 10 minutes


Fax 10,006 10 minutes


Email 8,894 10 minutes


State, Local, and Tribal Government

Fiscal Year 2009 (Partial)

(April 2009 - September 2009)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 4,267 10 minutes


TDE 1,365 10 minutes


Fax 1,536 10 minutes


Email 1,365 10 minutes


Federal Government

Fiscal Year 2009 (Partial)

(April 2009 - September 2009)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 1,204 10 minutes


TDE 385 10 minutes


Fax 434 10 minutes


Email 385 10 minutes


Estimated fiscal year 2009 total Burden Hours are 11,088.

Estimated fiscal year 2009 total Burden Cost is $203,576.


Private

Fiscal Year 2010

(October 2009 - September 2010)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 55,586 10 minutes


TDE 17,788 10 minutes


Fax 20,011 10 minutes


Email 17,788 10 minutes


State, Local, and Tribal Government

Fiscal Year 2010

(October 2009 - September 2010)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 8,534 10 minutes


TDE 2,731 10 minutes


Fax 3,072 10 minutes


Email 2,731 10 minutes


Federal Government

Fiscal Year 2010

(October 2009 - September 2010)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 2,408 10 minutes


TDE 770 10 minutes


Fax 867 10 minutes


Email 770 10 minutes


Estimated fiscal year 2010 total Burden Hours are 22,176.

Estimated fiscal year 2010 total Burden Cost is $419,570.


Private Fiscal Year 2011

(October 2010 – September 2011)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 55,586 10 minutes


TDE 17,788 10 minutes


Fax 20,011 10 minutes


Email 17,788 10 minutes


State, Local, and Tribal Government

Fiscal Year 2011

(October 2010 - September 2011)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 8,534 10 minutes


TDE 2,731 10 minutes


Fax 3,072 10 minutes


Email 2,731 10 minutes


Federal Government

Fiscal Year 2011

(October 2010 - September 2011)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 2,408 10 minutes


TDE 770 10 minutes


Fax 867 10 minutes


Email 770 10 minutes


Estimated fiscal year 2011 total Burden Hours are 22,176.

Estimated fiscal year 2011 total Burden Cost is $431,988.


Private

Fiscal Year 2012 (Partial)

(October 2011 – March 2012)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 27,794 10 minutes


TDE 8,894 10 minutes


Fax 10,006 10 minutes


Email 8,894 10 minutes


State, Local, and Tribal Government

Fiscal Year 2012 (Partial)

(October 2011 – March 2012)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 4,267 10 minutes


TDE 1,365 10 minutes


Fax 1,536 10 minutes


Email 1,365 10 minutes


Federal Government

Fiscal Year 2012 (Partial)

(October 2011 – March 2012)


Annual Average

Form Responses Response Time

---------------------------------------------------------

CATI 1,204 10 minutes


TDE 385 10 minutes


Fax 434 10 minutes


Email 385 10 minutes


Estimated fiscal year 2012 total Burden Hours are 11,088.

Estimated fiscal year 2012 total Burden Cost is $222,536.



Average Fiscal Year Burden


Average FY Burden Hours are 22,176.

Average FY Burden Cost is $425,890.



Average Calendar Year Burden


Average Calendar Year Burden Hours are 22,176.

Average Calendar Year Burden Cost is $425,890.


Burden cost was calculated by obtaining the hourly wage rate for Human Resource Assistants, except Payroll and Timekeeping, as determined by Occupational Employment Statistics (OES) National Occupational Employment and Wage Estimates. The wage rate for 2007, the most current year available, was $17.31. This base was increased by 3% for each of the years until FY 2012. The hourly rate was then multiplied by the number of hours required for responding (burden hours). The resulting hourly wages used for FY 2009, FY 2010, FY 2011, and FY 2012 are $18.36, $18.92, $19.48, and $20.07 respectively.


Respondents to each survey round remain in a panel for 24 months. Fiscal year 2010 is representative of a complete year as it includes 12 months.


Fiscal year 2012 reflects the time period from the beginning of the fiscal year until the anticipated expiration date of the OMB approval, March 31, 2012.


13. Capital/Start-up Cost


There are no capital/start-up costs.


14. Cost to the Federal Government:


The annual JOLTS budget is $4.2 million, which includes approximately $1.3 million annually for data collection labor hours.


15. Changes in Burden:


This request shows an overall increase in respondents, annual responses, and burden hours due to the small increase in the number of overall respondents in the JOLTS sample – from 16,400 in our previously approved clearance package to 16,800 in this submittal.


In addition, an OMB Action "Approved without change" was granted to JOLTS on 6/27/2008 (ICR reference number 200806-1220-005) to increase the responses to 132,890 and the burden hours to 22,153. JOLTS has completed the research associated with ICR 200806-1220-005 and has used the allotted additional responses and burden hours. Therefore, this package is using the number of respondents, annual responses, and burden hours provided in our March 2006 approval (16,400; 132,840; and 22,140, respectively). No changes in burden will occur.


16. Publication Plans/Schedule:


The JOLTS program releases data on a monthly basis. The release is available within 30 - 60 working days of the survey reference month. Regular monthly releases began April 15, 2004.


17. OMB Approval Expiration Date:


Permission for suppressing the expiration date for OMB approval is not being requested.


18. Exception to Certification Statement:


There are no exceptions to the certification.

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File Typeapplication/msword
File TitleSupporting Statement for Requests for OMB Approval
AuthorBrian Riordon
Last Modified Byrowan_c
File Modified2009-01-13
File Created2009-01-13

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