Attachment I - 2014 Sample Redesign

Bureau of Labor Statistics
Current Population Survey (CPS)
Technical Documentation
April 2014

Redesign of the Sample for the
Current Population Survey
In accordance with usual practice, the sample for the Current Population Survey (CPS) has
been redesigned based on information from Census 2010. The sample redesign is expected to
have a negligible effect on published estimates.
The CPS—also known as the household survey—is a monthly survey of households that
provides information on the labor force status, demographics, and other characteristics of the
nation's civilian noninstitutional population age 16 and over. Historically, the CPS sample has
been redesigned after each decennial census. The last sample redesign occurred in 2004 and
introduced a sample based on Census 2000.
The introduction of the new CPS sample began in April 2014 and will be completed in July
2015. Households in the new sample will be phased into the survey by using the normal
“rotation” group pattern in the survey’s design, with one rotation group per month. Households
interviewed in the survey are divided into eight approximately equal panels, called rotation
groups. A rotation group is interviewed for 4 consecutive months, temporarily leaves the sample
for 8 months, and then returns for 4 more consecutive months before retiring permanently from
the CPS (after a total of eight interviews). Each month, one-eighth of the sample is being
interviewed for the first time, one-eighth for the second time, and so on. This rotation scheme
has been in use since July 1953 and strengthens the reliability of estimates of month-to-month
change as well as estimates of year-to-year change.
The CPS is conducted in approximately 60,000 eligible housing units throughout the United
States. (“Eligible” refers to an occupied housing unit having at least one person in the civilian
noninstitutional population.) This sample includes 10,000 eligible housing units from the
monthly supplementary sample to improve state-level estimates of health insurance coverage for
low-income children, also known as the CHIP expansion. The supplementary sample has been
part of the official CPS since July 2001. Thirty-two states plus the District of Columbia have
this supplementary sample each month.
The CPS sample is a probability sample based on a stratified two-stage sampling scheme:
selection of sample primary sampling units (PSUs) and selection of sample housing units within
those PSUs. In general, the CPS sample is selected from lists of addresses obtained from the
Master Address File with updates from the United States Postal Service twice a year. The
Master Address File is the Census Bureau’s permanent list of addresses, including their

geographic locations, for individual living quarters. It is continuously maintained through
partnerships with the United States Postal Service; with Federal, State, regional, and local
agencies; and with the private sector; and it is used as a sample frame by many Census Bureau
demographic surveys. The CHIP sample selection methodology is similar to that used for the
CPS.

State-based design
In the first stage of sampling, PSUs are selected. These PSUs consist of counties or groups of
contiguous counties in the United States, and are grouped into strata. The CPS is a state-based
design. Therefore, all PSUs and strata are defined within state boundaries and the sample is
allocated among the states to produce state and national estimates with the required reliability,
while keeping total sample size to a minimum. The specified coefficient of variation (CV)
requirement for the monthly unemployment level for the nation, given a 6 percent unemployment
rate, is 1.9 percent or less. (The CV of an estimate is the estimate itself divided by its standard
error, usually expressed as a percent.) This CV is based on the requirement that a difference of
0.2 percentage points in the unemployment rate between 2 consecutive months be statistically
significant at the 90 percent level of confidence. Additionally, the required CV on the annual
average unemployment level for each state and the District of Columbia, given a 6 percent
unemployment rate, is 8 percent or less. For New York and California, the state reliability
requirement applies to the following substate areas: New York City (five boroughs only), the
balance of New York State, Los Angeles County, and the balance of California.

First stage of the sample design: PSU stratification and selection
The variables chosen for grouping PSUs in each state into strata reflect the primary interest of
the CPS in maximizing the reliability of estimates of labor force characteristics. The same set of
stratification variables from Census 2010 and the American Community Survey (ACS) are used
for each state: unemployment statistics by gender; the number of families maintained by women;
and the proportion of occupied housing units with three or more people. In addition, the number
of persons employed in selected industries and the average monthly wage for selected industries
are used as stratification variables in some states. The industry-specific data are averages over
the period 2000 through 2008 and are obtained from the BLS Quarterly Census of Employment
and Wages (QCEW) program.
Each stratum consists of one or more PSUs. Within each stratum, a single PSU is chosen for
the sample, with probability proportional to its population as of the 2010 Census. Some strata
have only one PSU, and each is included in the sample as a self-representing PSU; these strata
generally include the most populous counties within each state. The remaining PSUs are
grouped into non-self-representing strata within state boundaries. In each of these strata, one
PSU is selected to represent all of the PSUs in that stratum.
The PSUs, strata, and sample PSUs are the same for CPS and CHIP. This differs from the
2000 sample design, which had three states with different designs. In total, 852 PSUs (1,385

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counties) from a total of 1,987 PSUs (3,143 counties) in the United States are in sample for
either just the basic CPS or for both the basic CPS and the CHIP expansion.

Second stage of the sample design: selection of housing units
The 2010 sample design comprises three frames: unit, coverage improvement, and group
quarters. The unit frame consists of housing units in census blocks that contain a very high
proportion of complete addresses. It covers most of the population and accounts for
approximately 95 percent of the CPS sample. It is updated every 6 months with new growth
records and will be sampled from annually. The coverage improvement frame (in 13 targeted
states) is intended to improve the coverage of the unit frame. The coverage improvement frame
is updated annually with information from July Master Address File extracts. There is a single
group quarters frame in the 2010 sample design and its sample is selected in a 3-year cycle.
Within these sampling frames, housing units are sorted based on characteristics from the
American Community Survey and geography. Then, from each frame, a systematic sample of
addresses within the sample PSUs is obtained. Most of the sample addresses are selected in a
single stage of sampling within the selected PSUs; for a relatively small proportion, an additional
stage of selection within the PSU is necessary.

Major differences from the 2000 CPS sample design
The 2010 sample design differs from that of 2000 in a variety of ways. These changes have
resulted after consideration of numerous factors, including improving reliability of the estimates,
minimizing costs, and maximizing comparability of estimates across time. Major changes
include the following.
1) With the phase-in beginning in 2014, sample is now selected from the continually
updated Master Address File, and American Community Survey (ACS) data is used
to sort and stratify the housing units on the Master Address File. Previously, sample
was selected from decennial census address lists and stratification was done using
information also from the decennial census.
2) In the past, the CPS sample universe was distributed across four frames: unit, permit,
group quarters, and area, with approximately 80 percent of the CPS sample coming
from the unit frame. As mentioned previously, the 2010 sample design comprises
three frames: unit (updated with new growth records), coverage improvement, and
group quarters. As the result of improved flexibility and reduced complexity of block
listing via the coverage improvement frame, an area frame no longer exists. Instead,
the block listing process will enable a flexible workload that can change as often as
annually, depending on budget resources and on the need for coverage improvement.
Rather than having group quarters split between the group quarters frame and the area
frame as in past designs, there is a now a single group quarters frame. An additional

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change is the exclusion of military group quarters from the sampling universe since
research showed that they are extremely unlikely to convert to civilian group quarters.
3) In past designs, the CPS had selected a decade of sample housing units all at once,
occurring just after the decennial census, with periodic supplementation of new
construction through sampling of building permits and area listing results. The
selected housing units were then parsed into monthly samples throughout the decade.
This approach was the most cost effective and sensible method of sampling in the
context of once-a-decade operations.
In the 2010 sample design, sampling occurs annually for the unit frame. This changes
the second-stage sample selection of housing units from once-a-decade sampling to
annual sampling. The benefits of selecting a fully representative sample of housing
units on an annual basis include:
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Better control of survey sample size.
More accurate addresses due to twice-a-year updates of valid/invalid status,
geocoding errors, and geography changes of previously existing records that
are eligible for selection.
Ability to modify or select new samples more quickly in response to
population shifts in order to meet reliability criteria.
More flexibility in accommodating sample expansions and contractions in
response to changes in budget or data requirements.
Ability to implement methodological changes and process improvements
more quickly and easily than before.
Potential to reduce variances on annual average estimates with annual
sampling; this is a potential for cost saving because less sample is needed.

Note that annual sampling does not apply to the group quarters frame, where sample
is selected 3 years at a time, or to the first-stage sample selection of the PSUs. Also,
a housing unit selected by any demographic survey will not be available for selection
by subsequent surveys until 5 years after its last interview.

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