Supporting Statement A_CPS Displaced Worker Supplement 1220-0104

Displaced Worker Supplement to the Current Population Survey

OMB Control Number: 1220-0104

OMB Expiration Date: Reinstatement

SUPPORTING STATEMENT FOR

DISPLACED WORKER SUPPLEMENT TO THE CURRENT POPULATION SURVEY

OMB CONTROL NO. 1220-0104

This ICR seeks to reinstate the Displaced Worker, Job Tenure, and Occupational Mobility Supplement to the Current Population Survey (CPS).

1. JUSTIFICATION

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

The purpose of this request for review is for the Bureau of Labor Statistics (BLS) to obtain clearance for the Displaced Worker, Job Tenure, and Occupational Mobility Supplement to the Current Population Survey (CPS), scheduled to be conducted in January 2022 and January 2024. The supplement was last conducted in conjunction with the January 2020 CPS. The proposed supplement questions are shown in Attachment A. The displaced worker portion of the supplement will be asked of all persons age 20 or older who have been displaced from a job in the past three years. The tenure and occupational mobility questions will be asked of all employed persons age 15 years or older. The supplement is sponsored by the Department of Labor's Chief Evaluation Office (CEO).

Unemployment increased rapidly at the onset of the coronavirus (COVID-19) pandemic, and the pandemic may also have accelerated structural changes in the economy. The results of this supplement will be used to determine the size and characteristics of the population affected by job displacements, assess employment stability, and evaluate occupational change. The data are necessary for planning, funding, and evaluating job training and reemployment programs. The Council of Economic Advisors, Congress, and private organizations have shown significant interest in data from this supplement, especially information regarding the extent to which displaced workers received advance notice of job cutbacks or the closing of their plant or business.

The CPS has been the principal source of the official Government statistics on employment and unemployment for over 75 years. Collection of labor force data through the CPS helps BLS meet its mandate as set forth in Title 29, United States Code, Sections 1 through 9 (Attachment B).

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

This supplement will gather information on workers who have lost or left their jobs because their plant or company closed or moved, there was insufficient work for them to do, or their position or shift was abolished. Information about the lost job—such as earnings, occupation, and industry—will be collected. For those workers who have been reemployed, the survey will gather data on the types of jobs they found and will compare current earnings with those from the lost job. This will assist in developing training programs that will provide other displaced workers with the skills necessary to adjust to the changing economic environment.

The incidence and nature of occupational changes in the preceding year will be queried. The survey also will obtain information on the length of time workers (including those who have not been displaced) have been with their current employer. Tenure data are used to calculate displacement rates for long-tenured workers so that comparisons can be made over time and among different worker groups. Additional data to be collected include information on the receipt of unemployment compensation, the loss of health insurance coverage, and the length of time spent without a job. In combination, these supplemental data will provide the information needed to assess the economic hardship experienced by displaced workers.

The information collected by this survey will be used to determine the size and nature of the population affected by job displacements and the need for and necessary scope of programs serving adult displaced workers. It will also be used to assess employment stability by determining the length of time workers have been with their current employer and estimating the incidence of occupational change over the course of a year. Combining the questions on displacement, job tenure, and occupational mobility will enable analysts to obtain a more complete picture of employment stability, particularly in the wake of the COVID-19 pandemic.

Because this supplement is part of the CPS, the same detailed demographic information collected in the CPS will be available about respondents to the supplement. Comparisons will be possible across characteristics of the respondent, such as sex, race and ethnicity, age, and educational attainment.

Recent BLS publications using data from the January 2020 supplement include press releases in August and September 2020. (See attachments C and D.)

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also, describe any consideration of using information technology to reduce burden.

The Census Bureau, which conducts the actual collection of the CPS data—designing the sample, training and monitoring the interviewers, and conducting a continuing quality control program—uses methods designed to keep respondent burden as low as possible. These interviewing methods, which include the use of computer-assisted interviewing, were improved as part of a complete redesign of the CPS implemented in January 1994. The redesign was preceded by years of wide-ranging discussions, research, and large-scale field tests aimed at long-range improvements in the survey.

The CPS and all of its supplements are collected 100 percent electronically by using Computer Assisted Telephone Interviews and Computer Assisted Personal Interviews (CATI/CAPI). With the collection of Basic CPS data for January 2007, an updated computer-assisted interviewing software, called Blaise, was introduced for running the data collection instrument. Blaise is a Windows-based survey processing system developed by Statistics Netherlands and licensed by Westat in the United States. The questions in the Displaced Worker Supplement were designed to obtain the required information with minimal respondent burden.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item A.2 above.

There are few data sources about worker displacement. Prior to its discontinuation in 2013, some information was available through the Mass Layoff Statistics program. This program had reported statistics about mass layoff actions resulting in the separation of workers from their jobs for at least 31 days involving 50 or more individuals from a single establishment filing initial claims for unemployment insurance during a consecutive 5-week period. Data on the demographic characteristics of unemployment insurance claimants had been available from this program. However, unlike the displaced worker survey, data were not available on the eventual employment outcomes of job losers.

5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.

The data are collected from households; their collection does not involve any small businesses or other small entities.

6. Describe the consequence to federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

The displaced worker, job tenure, and occupational mobility information must be collected biennially in order to assure timely information for the planning, evaluation, and funding of job training programs.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• requiring respondents to report information to the agency more often than quarterly;

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

• requiring respondents to submit more than an original and two copies of any document;

• requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

• in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

• requiring the use of statistical data classification that has not been reviewed and approved by OMB;

• that includes a pledge of confidentially that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

• requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentially to the extent permitted by law.

There are no special circumstances. The CPS data are collected in a manner that is consistent with the guidelines in 5 CFR 1320.5.

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.

Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years -- even if the collection-of-information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.

No comments were received as a result of the Federal Register notice published in 86 FR 27481 on May 20, 2021.

The following people have been in continuous consultation concerning the development of the survey:

Bureau of the Census

Kyra Linse

Associate Director Demographic Programs

Bureau of the Census

Department of Commerce

(301) 763-9280

In addition to the above, a statement soliciting comments for improving CPS data is prominently placed in all Census Bureau publications that cite CPS data. A similar statement is included in the technical documentation that accompanies the microdata files. Finally, the CPS advance letters (Attachments F and G) provide respondents with an address at the Census Bureau to which they can submit general comments on the survey, specifically those regarding respondent burden.

9. Explain any decision to provide any payments or gifts to respondents, other than remuneration of contractors or grantees.

The Census Bureau does not make any payments or provide any gifts to individuals participating in the CPS.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

The Census Bureau will collect the supplement data in compliance with the Privacy Act of 1974 and OMB Circular A-130. Each sample household will receive an advance letter (Attachment F) approximately one week before the start of the initial CPS interview and a follow-up letter approximately one week before the start of the fifth CPS interview (Attachment G). The letters include the information required by the Privacy Act of 1974, explain the voluntary nature of the survey, and state the estimated time required for participating in the survey. Field representatives must ask each respondent if he/she received the advance letter and, if not, must provide a copy of the letter to each respondent during in-person interviews and allow sufficient time for him/her to read the contents. Also, interviewers provide households with the pamphlet "How the Census Bureau Keeps Your Information Confidential," which further describes the Census Bureau’s commitment to data confidentiality (Attachment I). If they feel it will be helpful, interviewers also provide households with the “Factsheet for the Current Population Survey,” which contains information about and data from the CPS (Attachment E). All information given by respondents to Census Bureau employees is held in strict confidence under Title 13, United States Code, Section 9 (Attachment H). Each Census Bureau employee has taken an oath to that effect and is subject to a jail penalty and/or substantial fine if he/she discloses any information given to him/her.

As is the case with data collection, data released to the public in tabular form or as microdata files are released in compliance with Title 13. Tabular data released to the public by BLS are always in aggregated form. No tabulations of individual survey records are made available to the public. Any microdata files that are released by the Census Bureau are public use files with all identifying information removed from the records.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

No sensitive questions are asked in this supplement.

12. Provide estimates of the hour burden of the collection of information. The statement should:

• Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. General, estimates should not include burden hours for customary and usual business practices.

• If this request for approval covers more than one form, provide separate hour burden estimates for each form

• Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead, this cost should be included in Item 14.

The estimated respondent burden for the January 2022 Displaced Worker, Job Tenure, and Occupational Mobility Supplement is 6,400 hours. This is based on an average respondent burden of approximately 8 minutes for each of the 48,000 households interviewed for the supplement. This estimate was based on the time required to answer these supplement questions in the January 2020 supplement. The actual respondent burden is dependent upon the size of the household and the characteristics of its occupants. Generally, one respondent answers for the household. The overall annualized dollar cost to the respondents for collection of the supplement data is $104,704. This estimate assumes a wage rate for all respondents of $16.36 an hour, the median hourly earnings for workers paid by the hour in 2020.

Estimated Annualized Respondent Cost and Hour Burden

Activity	No. of Respondents	No. of Responses per Respondent	Total Responses	Average Burden (Hours)	Total Burden (Hours)	Hourly Wage Rate	Total Burden Cost
CPS Displaced Worker Supplement	48,000	1	48,000	8/60	6,400	$16.36	$104,704

13. Provide an estimate of the total annual cost burden to respondents or record-keepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14).

• The cost estimate should be split into two components: (a) a total capital and start up cost component (annualized over its expected useful life); and (b) a total operation and maintenance and purchase of service component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information. Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.

• If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

• Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.

1. Capital start-up costs: $0

2. Total operation and maintenance and purchase of services: $0

14. Provide estimates of the annualized cost to the Federal Government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 into a single table.

The total estimated cost of the January 2022 supplement is approximately $700,000. This cost is borne by the Department of Labor’s Chief Evaluation Office and largely represents the charge by the Census Bureau for conducting the supplement. Census activities for this supplement include programming the collection instrument, updating interviewer training materials, collecting and processing data, and creating a public use microdata file. Also included are costs for BLS staff to prepare a news release and publish estimates.

15. Explain the reasons for any program changes or adjustments.

This is a reinstatement of a previously approved collection. Response burden is estimated to be slightly lower than the January 2020 supplement. This is due to slightly lower response rates for the CPS overall.

16. For collections of information whose results will be published, outline plans for tabulations, and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

The January 2022 CPS, of which this supplement is a part, will be conducted during the week of January 16-22, 2022. Processing of this supplement will commence in February 2022. Survey results will appear as news releases in August 2022 and September 2022. The January 2024 CPS, of which this supplement is a part, will be conducted during the week of January 14-20, 2024. Processing of this supplement will commence in February 2024. Survey results will appear as news releases in August 2024 and September 2024.

These news releases will be published in electronic format. The electronic news releases will be posted on the BLS webpage at www.bls.gov/cps. Additionally, the Census Bureau will release a public use version of the microdata after the publication of the news releases.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

The Census Bureau does not wish to display the assigned expiration date of the information collection because the instrument is automated and the respondent, therefore, would never see the date. The advance letter sent to households by the Census Bureau contains Census’s OMB clearance number for the CPS and Census’s version of the failure to comply notice. (See attachments F and G.) Copies of this advance letter are stockpiled by the Census Bureau for use as needed; changes to the letter would make the current inventory of letters unusable.

18. Explain each exception to the certification statement.

There are no exceptions to the certification.

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