Unemployment Rates During the COVID-19
January 12, 2021
January 12, 2021
Pandemic: In Brief
Gene Falk, Coordinator
The Coronavirus Disease 2019 (COVID-19) pandemic has had a significant effect on
The Coronavirus Disease 2019 (COVID-19) pandemic has had a significant effect on
Specialist in Social Policy
Specialist in Social Policy
unemployment in every state, industry, and major demographic group in the United
unemployment in every state, industry, and major demographic group in the United
States. This report provides information on which groups have experienced the largest
States. This report provides information on which groups have experienced the largest
Jameson A. Carter
increases in unemployment rates since the onset of the pandemic in 2020. Young
increases in unemployment rates since the onset of the pandemic in 2020. Young
Research Assistant
Research Assistant
workers, women, workers with low educational attainment, part-time workers, and racial
workers, women, workers with low educational attainment, part-time workers, and racial
and ethnic minorities had relatively high unemployment rates in Apriland ethnic minorities had relatively high unemployment rates in April
2020. Many, but . Many, but
not al ,
Isaac A. Nicchitta
not al , of these groups had relatively high rates in of these groups had relatively high rates in
DecemberJanuary 2021 as wel . The report also as wel . The report also
compares
Research Assistant
Research Assistant
compares the overal unemployment rate during the current recession with the the overal unemployment rate during the current recession with the
unemployment rate
unemployment rate experienced during the Great Recession. This report shows the experienced during the Great Recession. This report shows the
following:
Emma C. Nyhof
following:
Research Assistant Research Assistant
The unemployment rate peaked at an unprecedented level, not seen since data
The unemployment rate peaked at an unprecedented level, not seen since data
Paul D. Romero
collection started in 1948, in April 2020 (14.8%) before declining to a stil -
collection started in 1948, in April 2020 (14.8%) before declining to a stil -
Paul D. RomeroResearch Assistant
elevated level in
elevated level in
December (6.7%).
Research Assistant January 2021 (6.3%).
In April
In April
2020, every state and the District of Columbia reached unemployment , every state and the District of Columbia reached unemployment
rates
rates greater than their highest unemployment rates during the Great Recession. greater than their highest unemployment rates during the Great Recession.
State-level unemployment has since general y declined, although some states’ recoveries have recently showed signs of slowing down or reversing.
In the early months of the recession, unemployment was concentrated in In the early months of the recession, unemployment was concentrated in
industries that provide industries that provide
in-person services. Notably, the leisure and hospitality industry in-person services. Notably, the leisure and hospitality industry
experienced an unemployment experienced an unemployment
rate of 39.3% in Aprilrate of 39.3% in April
2020, before declining to , before declining to
16.7% in December. 15.9% in January 2021. While rates for service industries remain elevated, other industries with loose attachment to in-While rates for service industries remain elevated, other industries with loose attachment to in-
person services are now experiencing high rates. For example, the mining industry exhibited an person services are now experiencing high rates. For example, the mining industry exhibited an
unemployment rate of unemployment rate of
13.1% in December14.2% in January 2021, the second highest observed among al industries. , the second highest observed among al industries.
Part-time workers experienced an unemployment rate almost twice that of their full-time
Part-time workers experienced an unemployment rate almost twice that of their full-time
counterparts in April
counterparts in April
2020 (24.5% vs. 12.9%), but this gap has since effectively closed. (24.5% vs. 12.9%), but this gap has since effectively closed.
Workers without a college degree experienced worse unemployment rates in April
Workers without a college degree experienced worse unemployment rates in April
2020 (e.g., (e.g.,
21.2% 21.2%
for workers with no high school degree) than workers with a Bachelor’s degree or higher (8.4%). for workers with no high school degree) than workers with a Bachelor’s degree or higher (8.4%).
The gap between educated and less-educated workers remained in The gap between educated and less-educated workers remained in
DecemberJanuary 2021. .
Teenaged women experienced an unemployment rate of 36.6% in April
Teenaged women experienced an unemployment rate of 36.6% in April
2020, and teenaged men, , and teenaged men,
28.6%; compared with 13.7% for women and 12.1% for men ages 25-54. The gap between men
28.6%; compared with 13.7% for women and 12.1% for men ages 25-54. The gap between men
and women has since narrowed overal , but young workers are stil experiencing relatively high and women has since narrowed overal , but young workers are stil experiencing relatively high
rates of unemployment. rates of unemployment.
Racial and ethnic minorities had relatively high unemployment rates in April
Racial and ethnic minorities had relatively high unemployment rates in April
2020 (16.7% for (16.7% for
Black
Black workers compared to 14.2% for White workers, and 18.9% for Hispanic workers compared to workers compared to 14.2% for White workers, and 18.9% for Hispanic workers compared to
13.6% for non-Hispanic workers), and these gaps persisted in 13.6% for non-Hispanic workers), and these gaps persisted in
DecemberJanuary 2021. .
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1615 Unemployment Rates During the COVID-19 Pandemic: In Brief
Contents
Introduction ................................................................................................................... 1
U.S. Unemployment Rate: Historical Trends ....................................................................... 1
Comparing the Great Recession and the COVID-19 Recession ......................................... 2
COVID-19 Recession: Unemployment Trends..................................................................... 3
Unemployment Rates by State ..................................................................................... 3
Unemployment Rates by Industry ................................................................................ 5
Unemployment Rates for Full- and Part-Time Workers.................................................... 7
Unemployment Rates by Sex and Age .......................................................................... 7
Unemployment Rates by Racial Group and Hispanic Ethnicity ......................................... 8
Unemployment Rates by Education ............................................................................ 10
Data Limitations and Caveats.......................................................................................... 10
COVID-19 19 Pandemic-Related Data Issues ................................................................................. 11
General Data Caveats ............................................................................................... 12
Figures
Figure 1. Historical Unemployment Rate ............................................................................ 2
Figure 2. U.S. Unemployment Rate.................................................................................... 3
Figure 3. Monthly State Unemployment Rates ..................................................................... 4
Figure 4. Monthly Unemployment Rates by Industry ......................................................................... 6
Figure 5. Monthly Unemployment Rates for FullPart- and PartFull-Time Workers ............................... 7
Figure 6. Monthly Unemployment Rates by Sex and Age ...................................................... 8
Figure 7. Monthly Unemployment Rates by Racial Group ..................................................... 9
Figure 8. Monthly Unemployment Rates by Hispanic Origin ................................................. 9
Figure 9. Monthly Unemployment Rates by Education .................................................................... 10
Contacts
Author Information ....................................................................................................... 1312
Congressional Research Service
Congressional Research Service
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Unemployment Rates During the COVID-19 Pandemic: In Brief
Introduction
The National Bureau of Economic Research declared the start of the current economic downturn The National Bureau of Economic Research declared the start of the current economic downturn
in February 2020, marking the end of the longest period of expansion in U.S. history.1 This in February 2020, marking the end of the longest period of expansion in U.S. history.1 This
expansion followed the Great Recession (December 2007 to June 2009), a downturn widely
expansion followed the Great Recession (December 2007 to June 2009), a downturn widely
considered to be the worst since the Great Depression (August 1929 to March 1933).2 The considered to be the worst since the Great Depression (August 1929 to March 1933).2 The
unemployment rate rose quickly in March 2020, and by April 2020 it had greatly surpassed its unemployment rate rose quickly in March 2020, and by April 2020 it had greatly surpassed its
previous peaks observed during and just after the Great Recession. This spike in unemployment previous peaks observed during and just after the Great Recession. This spike in unemployment
coincided with various mandated stay-at-home orders implemented in response to the coincided with various mandated stay-at-home orders implemented in response to the
Coronavirus Disease 2019 (COVID-19) pandemic and other pandemic-related factors affecting Coronavirus Disease 2019 (COVID-19) pandemic and other pandemic-related factors affecting
U.S. demand.3 Although unemployment rates have declined since April
U.S. demand.3 Although unemployment rates have declined since April
2020, the rate in January
2021 (6.3%) remains much higher than, the December rate
(6.7%) remains almost twice as high as the rate observed the rate observed
duringin February February
2020 (3.5%). (3.5%).
This report discusses recent unemployment rate patterns at the national and state levels using
This report discusses recent unemployment rate patterns at the national and state levels using
Bureau of Labor Statistics (BLS) data. The two primary sources are the Current Population Bureau of Labor Statistics (BLS) data. The two primary sources are the Current Population
Survey (CPS) and the Local Area Unemployment Statistics (LAUS) program. In addition to the Survey (CPS) and the Local Area Unemployment Statistics (LAUS) program. In addition to the
usual caveats about estimates (see usual caveats about estimates (see
“General Data Caveats”), there were additional data chal enges ), there were additional data chal enges
caused by the COVID-19 pandemic (see caused by the COVID-19 pandemic (see
“COVID-19 19 Pandemic-Related Data Issues”). The pandemic led to ”). The pandemic led to
lower survey response rates by businesses and households, and BLS detected an lower survey response rates by businesses and households, and BLS detected an
error in their error in their
categorization procedures that likely underestimated unemployment early in the categorization procedures that likely underestimated unemployment early in the
recession.4 This recession.4 This
report general y finds the following: report general y finds the following:
The unemployment rate peaked
The unemployment rate peaked
, at a level at a level
not seen since data collection started in not seen since data collection started in
1948, in April 2020 before declining to a stil -high level in
1948, in April 2020 before declining to a stil -high level in
DecemberJanuary 2021. .
In April
In April
2020, every state and the District of Columbia reached unemployment , every state and the District of Columbia reached unemployment
rates
rates greater than their highest unemployment rates during the Great Recession. greater than their highest unemployment rates during the Great Recession.
Unemployment during the current recession is concentrated among workers who
Unemployment during the current recession is concentrated among workers who
were last employed in industries that provide in-person services and among
were last employed in industries that provide in-person services and among
young workers, women, workers with low educational attainment, part-time young workers, women, workers with low educational attainment, part-time
workers, and racial and ethnic minorities. workers, and racial and ethnic minorities.
U.S. Unemployment Rate: Historical Trends
Prior recessions typical y developed with gradual y increasing economic distress. The current Prior recessions typical y developed with gradual y increasing economic distress. The current
recession was caused by the COVID-19 pandemic, which was an abrupt and exogenous shock to recession was caused by the COVID-19 pandemic, which was an abrupt and exogenous shock to
the economy. The pandemic resulted in limiting contact among individuals and in many shutdown the economy. The pandemic resulted in limiting contact among individuals and in many shutdown
orders. Therefore, the trends in the unemployment rate in the current recession differ from those orders. Therefore, the trends in the unemployment rate in the current recession differ from those
in prior recessions (sein prior recessions (se
e Figure 1). Rates observed during prior recessions rose relatively ). Rates observed during prior recessions rose relatively
gradual y over the course of an economic downturn and then peaked. The current recession
gradual y over the course of an economic downturn and then peaked. The current recession
exhibited an unprecedented sharp increase in the rate (10.3 percentage points) from February to exhibited an unprecedented sharp increase in the rate (10.3 percentage points) from February to
1 T he National Bureau of Economic Research; see https://www.nber.org/cycles.html for their historical series of 1 T he National Bureau of Economic Research; see https://www.nber.org/cycles.html for their historical series of
expansions and contractions. For more on their process for determining expansions and expansions and contractions. For more on their process for determining expansions and
contractionscontracti ons, see , see
https://www.nber.org/cycles/recessions_faq.html#:~:text=https://www.nber.org/cycles/recessions_faq.html#:~:text=
What%20is%20an%20expansion%3F,more%20than%20a%20few%20months.& text=What%20is%20an%20expansion%3F,more%20than%20a%20few%20months.& text=
Expansion%20is%20the%20normal%20state,economy%3B%20most%20recessions%20are%20brief . Expansion%20is%20the%20normal%20state,economy%3B%20most%20recessions%20are%20brief .
2 T he unemployment rates observed during the Great Recession, 2 T he unemployment rates observed during the Great Recession,
howeverho wever, never surpassed those of the early 1980’s., never surpassed those of the early 1980’s.
3 See CRS Insight IN11388, 3 See CRS Insight IN11388,
COVID-19: U.S. Economic Effects, by Rena S. Miller and Marc Labonte. , by Rena S. Miller and Marc Labonte.
4 See CRS Insight IN11456, 4 See CRS Insight IN11456,
COVID-19: Measuring Unemployment, by Lida R. Weinstock. , by Lida R. Weinstock.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
April 2020.5 Following April, the rate declined rapidly (8
April 2020.5 Following April, the rate declined rapidly (8
.4 percentage points from April percentage points from April
2020 to January 2021to December 2020) as temporarily furloughed workers returned to work. Despite these rapid ) as temporarily furloughed workers returned to work. Despite these rapid
declines, declines,
the January 2021the December unemployment rate persisted at a high level unemployment rate persisted at a high level
(6.7 (6.3%). The share of workers %). The share of workers
on furlough has declined since peaking in Aprilon furlough has declined since peaking in April
2020, while the share of permanently laid off workers , while the share of permanently laid off workers
has steadily increased and has now passed the number furloughed for the first time since March has steadily increased and has now passed the number furloughed for the first time since March
2020.6 The Congressional Budget Office (CBO) and the Federal Reserve have projected2020.6 The Congressional Budget Office (CBO) and the Federal Reserve have projected
that
that elevated unemployment rates over 6% wil persist over the next three years.7 elevated unemployment rates over 6% wil persist over the next three years.7
Figure 1. Historical Unemployment Rate
Seasonal y adjusted monthly data from January 1948 to
Seasonal y adjusted monthly data from January 1948 to
December 2020January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS). Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Shaded regions indicate recessionary periods as identified by the National Bureau of Economic Shaded regions indicate recessionary periods as identified by the National Bureau of Economic
Research Research . .
Comparing the Great Recession and the COVID-19 Recession
During the Great Recession, the unemployment rate increased from 5% in December 2007 (the During the Great Recession, the unemployment rate increased from 5% in December 2007 (the
start of the recession) to 9.5% in June 2009 (the end of the recession) (sestart of the recession) to 9.5% in June 2009 (the end of the recession) (se
e Figure 2). The ). The
unemployment rate peaked at 10% in October 2009, four months after the recession official y unemployment rate peaked at 10% in October 2009, four months after the recession official y
concluded. In the current recession, the unemployment rate increased from 3.5% in February concluded. In the current recession, the unemployment rate increased from 3.5% in February
2020 to 4.4% in March 2020, peaked8 at 14.8% in April2020 to 4.4% in March 2020, peaked8 at 14.8% in April
2020, and then fel to 6., and then fel to 6.
7% in December3% in January
2021. The . The
peak represents the quickest month-over-month increase in unemployment rates and peak represents the quickest month-over-month increase in unemployment rates and
the highest the highest
overal unemployment rate since the CPS data started being collected in 1948.9 overal unemployment rate since the CPS data started being collected in 1948.9
5 For information on the differences between the congressional response to the current recession compared to the 5 For information on the differences between the congressional response to the current recession compared to the
congressional response during the Great Recession in the congressional response during the Great Recession in the
UnemploymentUnemp loyment Insurance system, see CRS Report R46472, Insurance system, see CRS Report R46472,
Com paring the Congressional Response to the Great Recession and the COVID -19-Related Recession: Unem ploym ent
Insurance (UI) Provisions, by Katelin P. Isaacs and Julie M. Whittaker. , by Katelin P. Isaacs and Julie M. Whittaker.
6 CRS analysis of BLS data, which can be found at https://www.bls.gov/webapps/legacy/cpsatab11.htm. Workers on
6 CRS analysis of BLS data, which can be found at https://www.bls.gov/webapps/legacy/cpsatab11.htm. Workers on
temporary layoff declined from 18 million in April temporary layoff declined from 18 million in April
2020 to 2.7to 3 million in million in
DecemberJanuary 2021 as the number of permanent job losers as the number of permanent job losers
increased from 2 million in April increased from 2 million in April
2020 to 3.to 3.
35 million in million in
December. January 2021.
7 See CRS Insight IN11460,
7 See CRS Insight IN11460,
COVID-19: How Quickly Will Unemployment Recover?, by Lida R. Weinstock. , by Lida R. Weinstock.
8 T hroughout this report, 8 T hroughout this report,
peak refers to the highest level of unemployment between January 2020 and refers to the highest level of unemployment between January 2020 and
December 2020. It January 2021. It does not account for months outside this range. does not account for months outside this range.
9 T here are many differences in labor force 9 T here are many differences in labor force
statisticsstat istics observed during the Great Recession, its aftermath, and the observed during the Great Recession, its aftermath, and the
COVID-19 recession. For more on this and for information on labor market COVID-19 recession. For more on this and for information on labor market
patter nspatterns since 2007, see CRS Report since 2007, see CRS Report
R45330, R45330,
Labor Market Patterns Since 2007, by Sarah A. Donovan and Marc Labonte. , by Sarah A. Donovan and Marc Labonte.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
Figure 2. U.S. Unemployment Rate
Seasonal y adjusted monthly data from November 2004 to
Seasonal y adjusted monthly data from November 2004 to
December 2020January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS).Created by CRS using data from the Bureau of Labor Statistics (BLS).
COVID-19 Recession: Unemployment Trends
The COVID-19 pandemic has affected the unemployment rates for every state, industry, and The COVID-19 pandemic has affected the unemployment rates for every state, industry, and
major demographic group. In the early stages of the current recession, unemployment rates
major demographic group. In the early stages of the current recession, unemployment rates
disproportionately increased in industries delivering in-person services. Some demographic disproportionately increased in industries delivering in-person services. Some demographic
groups are overrepresented in such industries, contributing to higher rates for those workers.10
groups are overrepresented in such industries, contributing to higher rates for those workers.10
Unemployment Rates by State
Figure 3 displays state-level monthly unemployment rates from January to displays state-level monthly unemployment rates from January to
NovemberDecember 2020 and 2020 and
indicates whether the rate increased or decreased from indicates whether the rate increased or decreased from
October to November. The data for December 2020 have not been released as of the cover date of this reportNovember to December. Further, the figure . Further, the figure
shows that no state was immune from economic damage early in the pandemic.11 shows that no state was immune from economic damage early in the pandemic.11
The data
for January 2021 have not been released as of the cover date of this report. Since the onset Since the onset
of the current recession, the unemployment rate for every state and the District of Columbia of the current recession, the unemployment rate for every state and the District of Columbia
surpassed levels seen during the Great Recession. The variation in economic damage was due to a surpassed levels seen during the Great Recession. The variation in economic damage was due to a
number of factors, including the proportion of jobs in sectors that provide non-essential services number of factors, including the proportion of jobs in sectors that provide non-essential services
to in-
10 Guido Matias Cortes and Eliza Forsythe, “ T he Heterogeneous Labor Market Impacts of the Covid-19 Pandemic,” 10 Guido Matias Cortes and Eliza Forsythe, “ T he Heterogeneous Labor Market Impacts of the Covid-19 Pandemic,”
Upjohn Institute, May 2020; and Robert Fairlie, “ T he Impact of Covid-19 on Small Business Owners: Evidence of Upjohn Institute, May 2020; and Robert Fairlie, “ T he Impact of Covid-19 on Small Business Owners: Evidence of
Early-Stage Losses from the April 2020 Current Population Survey,” NBER Working Paper No. 27309, June 2020. Early-Stage Losses from the April 2020 Current Population Survey,” NBER Working Paper No. 27309, June 2020.
11 Felipe Lozano-Rojas et al., “
11 Felipe Lozano-Rojas et al., “
Is the Cure Worse than the Problem Itself? Immediate Labor Market Effects of COVID-Is the Cure Worse than the Problem Itself? Immediate Labor Market Effects of COVID-
19 Case Rates and School Closures in the U.S.,” NBER Working Paper No. 27127, May 2020; Eliza Forsythe et al., 19 Case Rates and School Closures in the U.S.,” NBER Working Paper No. 27127, May 2020; Eliza Forsythe et al.,
“Labor Demand in the T ime of COVID-19: Evidence from Vacancy “Labor Demand in the T ime of COVID-19: Evidence from Vacancy
PostingsP ostings and UI Claims,” NBER Working Paper and UI Claims,” NBER Working Paper
No. 27061, April 2020. No. 27061, April 2020.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
to in-person customers,12 individual person customers,12 individual
fearsconcerns of contracting COVID-19 causing declines in personal of contracting COVID-19 causing declines in personal
consumption,13 and the implementation of stay-at-home orders and business closure policies.14
consumption,13 and the implementation of stay-at-home orders and business closure policies.14
Figure 3. Monthly State Unemployment Rates
Seasonal y adjusted data, displaying rates from
Seasonal y adjusted data, displaying rates from
January to NovemberNovember to December 2020 and change since last month 2020 and change since last month
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS) Local Area Unemployment Created by CRS using data from the Bureau of Labor Statistics (BLS) Local Area Unemployment
Statistics program. Statistics program.
Notes: The National Bureau of Economic Research identified February of 2020 as the first month of the current The National Bureau of Economic Research identified February of 2020 as the first month of the current
recession. The month-over-month changes are point estimates and have not been tested for significance. The recession. The month-over-month changes are point estimates and have not been tested for significance. The
data for data for
December 2020January 2021 have not been released as of the cover date of this report. have not been released as of the cover date of this report.
The unemployment rate in most states peaked in April 2020 and has since declined. In
The unemployment rate in most states peaked in April 2020 and has since declined. In
November, December 2020, the five states with the highest unemployment rates were the five states with the highest unemployment rates were
New Jersey (10.2%), Hawai (10.1%), Nevada (10.1%), New York (8.4%), and Louisiana (8.3Hawai (9.3%), Nevada (9.2%), California (9.0%), Colorado (8.4%), and New Mexico (8.2%). The states with the lowest %). The states with the lowest
12 Matthew Dey and Mark 12 Matthew Dey and Mark
Loewenst einLoewenstein, “How many workers are employed in sectors directly affected by COVID, “How many workers are employed in sectors directly affected by COVID
-19 -19
shutdowns, where do they work, and how much do they earn?” shutdowns, where do they work, and how much do they earn?”
Monthly Labor Review, April 2020. , April 2020.
13 Austan Goolsbee and Chad Syverson, “Fear, lockdown, and diversion: comparing drivers of pandemic economic 13 Austan Goolsbee and Chad Syverson, “Fear, lockdown, and diversion: comparing drivers of pandemic economic
decline 2020,” NBER Working Paper No. 27432decline 2020,” NBER Working Paper No. 27432
, June 2020. June 2020.
14 Sumedha Gupta et al., “Effects of Social Distancing Policy on Labor Market 14 Sumedha Gupta et al., “Effects of Social Distancing Policy on Labor Market
OutcomesOut comes,”,”
NBER Working Paper No. NBER Working Paper No.
2780, May 2020. 2780, May 2020.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
unemployment rates in
unemployment rates in
NovemberDecember 2020 were Nebraska (3. were Nebraska (3.
0%), South Dakota (3.0%), Iowa
(3.1%), Vermont (3.1%), 1%), Vermont (3.1%),
South Dakota (3.5%),
Iowa (3.6%), and New Hampshire (3.8%)and Utah (3.6%).
While the figure shows that most states were substantial y below their peak unemployment rates
in December 2020, several states’ recoveries have seemingly slowed. Colorado’s unemployment rate has either plateaued or increased in every month, month-over-month, from September (6.4%) to December 2020 (8.4%). Nine other states with elevated rates exhibited wavering recoveries over the same period, as rates either increased or stal ed in at least two of three months. Ranked by their recent unemployment rates, these states are Rhode Island (10.5% in September 2020 to
8.1% in December 2020), New Jersey (6.7% to 7.6%), Arizona (6.5% to 7.5%), Michigan (8.6% to 7.5%), North Carolina (7.2% to 6.2%), Tennessee (6.5% to 6.4%), Kentucky (5.6% to 6.0%), Wisconsin (5.4% to 5.5%), and South Carolina (5.2% to 4.6%). For most of these states, rates
declined from September to October before stal ing or increasing in November and December. .
Unemployment Rates by Industry
Workers whose last job was in the leisure and hospitality industry experienced a higher peak in Workers whose last job was in the leisure and hospitality industry experienced a higher peak in
unemployment (39.3% in April 2020) than did workers who were previously employed in any unemployment (39.3% in April 2020) than did workers who were previously employed in any
other industry; they also had the highest unemployment rate in other industry; they also had the highest unemployment rate in
December 2020 (16.7January 2021 (15.9%). %).
However, elevated unemployment rates are not constrained to industries providing in-person However, elevated unemployment rates are not constrained to industries providing in-person
services. Workers whose last job was in the mining or extraction industry have experienced services. Workers whose last job was in the mining or extraction industry have experienced
steadily increasing unemployment since the onset of the recession; in steadily increasing unemployment since the onset of the recession; in
DecemberJanuary 2021 they exhibited they exhibited
the second highest rate among al workers across industries (the second highest rate among al workers across industries (
13.1%). The lowest December14.2%) and the steepest year-over year increase (up from 1.9% in January 2020). The lowest January 2021 rates rates
were among workers were among workers
whose last job was in the government (3.whose last job was in the government (3.
20 %) or financial activities (3.%) or financial activities (3.
14%) %)
industries. These two industries have had unemployment rates below 15% from January industries. These two industries have had unemployment rates below 15% from January
through December2020 through January 2021.15 Within industries, some workers were more likely to lose their jobs than others. For .15 Within industries, some workers were more likely to lose their jobs than others. For
example, recent studies suggest that low-wage workers in the leisure and hospitality industry and example, recent studies suggest that low-wage workers in the leisure and hospitality industry and
other other
services industries experienced disproportionately large employment losses.16 services industries experienced disproportionately large employment losses.16
Figure 4 displays the displays the
unemployment rate data for industries while indicating whether the change from 2019 to 2020 in a given month is statistical y significant.17change in industry unemployment rates from January 2020, before the recession, to January 2021. CRS estimated that al of these year-over-year changes were statistical y significant, except for those exhibited by agricultural workers.17 Further, CRS chose
CRS chose to compare to compare
2019 and 2020January 2020 with January 2021 because of a lack of seasonal y adjusted data. Without seasonal adjustments, it is difficult to because of a lack of seasonal y adjusted data. Without seasonal adjustments, it is difficult to
determine whether unemployment trends are related to the recession or to seasonal trends. This determine whether unemployment trends are related to the recession or to seasonal trends. This
report attempts to minimize seasonal influences report attempts to minimize seasonal influences
(for non-adjusted data) by comparing year-over-(for non-adjusted data) by comparing year-over-
year estimates for each month. For example, the figure shows that over the course of the current
recession, the unemployment rate steadily declined for agricultural workers (before increasing as winter approached) and steadily increased for mining and extraction workers. However, the changes in unemployment rates for agricultural workers are not considered statistical y significant when tested against the prior year of data, while increases for mining and extraction workers are
statistical y significant. year estimates.
15 T he third lowest 15 T he third lowest
December 2020January 2021 unemployment rate was in the education and health services sector (4. unemployment rate was in the education and health services sector (4.
13%). T hese %). T hese
data are not seasonally adjusted and do not account for the likely seasonal variation in data are not seasonally adjusted and do not account for the likely seasonal variation in
employmentemployme nt within the within the
education and health services sector. education and health services sector.
16 Alexander Bartik et al., “ Measuring the labor market at the onset of the COVID-19 crisis,”16 Alexander Bartik et al., “ Measuring the labor market at the onset of the COVID-19 crisis,”
NBER Working Paper NBER Working Paper
No. 27613No. 27613
, July 2020; and Guido Matias Cortes and Eliza Forsythe, “ T he Heterogeneous Labor Market Impacts of the July 2020; and Guido Matias Cortes and Eliza Forsythe, “ T he Heterogeneous Labor Market Impacts of the
Covid-19 Pandemic,” Upjohn Institute Working Paper, May 2020. Covid-19 Pandemic,” Upjohn Institute Working Paper, May 2020.
17 BLS publishes a series of formulas used to produce standard errors for unemployment rates, from which they can
17 BLS publishes a series of formulas used to produce standard errors for unemployment rates, from which they can
calculate confidence intervals to determine whether a yearcalculate confidence intervals to determine whether a year
-over-year difference is statistically significant. CRS used -over-year difference is statistically significant. CRS used
these formulas to calculate significance at the 95% confidence level. Bureau of Labor these formulas to calculate significance at the 95% confidence level. Bureau of Labor
Statistics, “Statistic s, “ Calculating Calculating
Approximate Standard Errors and Confidence Intervals for Current Population Approximate Standard Errors and Confidence Intervals for Current Population
Surv eySurvey Estimates,” Washington, DC, Estimates,” Washington, DC,
2018, p. 10, https://www.bls.gov/cps/calculating-standard-errors-and-confidence-intervals.pdf. 2018, p. 10, https://www.bls.gov/cps/calculating-standard-errors-and-confidence-intervals.pdf.
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Figure 4. Monthly Unemployment Rates by Industry
Non-seasonal y adjusted data, displaying dif erences between
Non-seasonal y adjusted data, displaying dif erences between
2019 and 2020 for each month, and
statistical significance of year-over-year dif erences from January to December 2020January 2020 and January 2021
Source: Bureau of Labor Statistics (BLS). Bureau of Labor Statistics (BLS).
Notes: Due to the lack of seasonal adjustment for these data, the Due to the lack of seasonal adjustment for these data, the
20202021 unemployment rates for the different unemployment rates for the different
industries are compared to their non-seasonal y adjusted values from industries are compared to their non-seasonal y adjusted values from
2019. Statistical significance of year-over-year differences is indicated by a black outline2020. Industry sectors are defined by the North American Industry . Industry sectors are defined by the North American Industry
Classification System (NAICS) and can be found at https://www.bls.gov/iag/tgs/iag_index_naics.htm. The figure Classification System (NAICS) and can be found at https://www.bls.gov/iag/tgs/iag_index_naics.htm. The figure
shows unemployment rates for wage and salary workers. shows unemployment rates for wage and salary workers.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
Unemployment Rates for Full- and Part-Time Workers
As shown iAs shown i
n Figure 5, part-time workers experienced a higher peak unemployment rate (24.5% part-time workers experienced a higher peak unemployment rate (24.5%
in April 2020) than full-time workers (12.9% in April
in April 2020) than full-time workers (12.9% in April
2020). This disparity has closed as the recession ). This disparity has closed as the recession
has progressed, as the unemployment rate for part-time workers in has progressed, as the unemployment rate for part-time workers in
December 2020 (7.0%)
roughly equalsJanuary 2021 (6.4%)
is equivalent to the unemployment rate for full-time workers (6. the unemployment rate for full-time workers (6.
74%). %).
There are a few reasons why part-time workers’ apparent recovery since April may not reflect the
There are a few reasons why part-time workers’ apparent recovery since April may not reflect the
economic realities they face. First, the gap between full- and part-time workers may have economic realities they face. First, the gap between full- and part-time workers may have
narrowed because workers with part-time jobs are leaving the labor force. It is unclear whether narrowed because workers with part-time jobs are leaving the labor force. It is unclear whether
that is the case, though labor force participation rates have declined since March. Additional y, that is the case, though labor force participation rates have declined since March. Additional y,
workers who normal y would be working full-time may be working part-time for economic workers who normal y would be working full-time may be working part-time for economic
reasons. This could reduce the unemployment rate among part-time workers. BLS has observed
reasons. This could reduce the unemployment rate among part-time workers. BLS has observed
that during the current recession, measures of labor underutilization, including workers who are that during the current recession, measures of labor underutilization, including workers who are
part-time due to economic reasons, have remained elevated.18
part-time due to economic reasons, have remained elevated.18
Figure 5. Monthly Unemployment Rates for FullPart- and PartFull-Time Workers
Seasonal y adjusted data, January 2020 to
Seasonal y adjusted data, January 2020 to
December 2020January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS). Created by CRS using data from the Bureau of Labor Statistics (BLS).
Note: Both groups experienced their peak unemployment rate in April 2020.
Unemployment Rates by Sex and Age
As seen inAs seen in
Figure 6, unemployment rates tended to increase more for younger workersunemployment rates tended to increase more for younger workers
and were and were
higher for women early in the recession.higher for women early in the recession.
Between February and April 2020, the rate for women Between February and April 2020, the rate for women
ages 16-19 increased by 25.8 percentage points to 36.6%; in contrast, the rates for men of the ages 16-19 increased by 25.8 percentage points to 36.6%; in contrast, the rates for men of the
same age increased by 16.4 percentage points to 27.6%. Since then, the gap same age increased by 16.4 percentage points to 27.6%. Since then, the gap
betweenbetw een men and men and
women has narrowed. Although unemployment rates for younger workers remain relatively high women has narrowed. Although unemployment rates for younger workers remain relatively high
compared to older workers, the compared to older workers, the
DecemberJanuary 2021 rates for men and women across age groups have rates for men and women across age groups have
declined to declined to
somewhat similar levels. The unemployment rate for teenaged men (15.similar levels. The unemployment rate for teenaged men (15.
57%) was %) was
lowerhigher than the rate for teenaged women ( than the rate for teenaged women (
16.5%) in December14.0%) in January 2021. The rate for men ages 20-24 . The rate for men ages 20-24
(12.1%) was slightly higher than the rate for women of the same age (10.1%). The large(10.0%) was
18 See https://www.bls.gov/news.release/empsit.t15.htm for U-6 unemployment rates, a measure of the total 18 See https://www.bls.gov/news.release/empsit.t15.htm for U-6 unemployment rates, a measure of the total
unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic
reasons, as a percentage of the civilian labor force plus all persons marginally attached to the labor force. For more on reasons, as a percentage of the civilian labor force plus all persons marginally attached to the labor force. For more on
this measure, see CRS In Focus IF10443, this measure, see CRS In Focus IF10443,
Introduction to U.S. Econom y: Unem ployment, by Lida R. Weinstock. , by Lida R. Weinstock.
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slightly higher than the rate for women of the same age (9.5%). The large disparities observed in disparities observed in
April April between younger men and women were not observed in older age between younger men and women were not observed in older age
groups, although women ages 25-54 and 55 and over had rates 1-3 percentage points high than groups, although women ages 25-54 and 55 and over had rates 1-3 percentage points high than
their male counterparts. This relatively modest gap has since their male counterparts. This relatively modest gap has since
narrowedclosed; the rate in ; the rate in
DecemberJanuary 2021 for for
women ages 25 to 54 (5.8%) women ages 25 to 54 (5.8%)
equaledwas lower than that of men (5. that of men (5.
89%), and the rate for women ages 55 and %), and the rate for women ages 55 and
over (over (
65.1%) was .1%) was
very similar to
also lower than that of men (5. that of men (5.
94%) from the same age group. %) from the same age group.
Figure 6. Monthly Unemployment Rates by Sex and Age
Seasonal y adjusted data, January 2020 to
Seasonal y adjusted data, January 2020 to
December 2020January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS). Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Every group experienced their peak unemployment rate in April 2020, except for 16 - to 19-year-old men, who experienced their peak rate in May 2020.
Unemployment Rates by Racial Group and Hispanic Ethnicity
As seen inAs seen in
Figure 7, the unemployment rates for Black, Asian, and White19 workers increased the unemployment rates for Black, Asian, and White19 workers increased
sharply in early 2020. But whereas the unemployment rate for White workers peaked in Aprilsharply in early 2020. But whereas the unemployment rate for White workers peaked in April
2020, the , the
rate for Black and Asian workers continued to rise through Mayrate for Black and Asian workers continued to rise through May
2020. The January 2021. The December rates for Black rates for Black
(9.9(9.2%), Asian (%), Asian (
5.96.6%), and White (%), and White (
6.05.7%) workers were al higher than their respective rates in %) workers were al higher than their respective rates in
FebruaryJanuary 2020. The rate for Black workers has declined 2020. The rate for Black workers has declined
6.97.6 percentage points since peaking in percentage points since peaking in
MayMay 2020, compared to a decline of , compared to a decline of
9.18.4 percentage points for Asian workers and percentage points for Asian workers and
6.76.4 percentage points percentage points
for White workers across the same period. for White workers across the same period.
19 Asian, Black, and White are the three racial categories used in BLS, T able A2: Employment status of the civilian 19 Asian, Black, and White are the three racial categories used in BLS, T able A2: Employment status of the civilian
population by race, sex, and age. See https://www.bls.gov/news.release/empsit.t02.htm. population by race, sex, and age. See https://www.bls.gov/news.release/empsit.t02.htm.
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Figure 7. Monthly Unemployment Rates by Racial Group
Seasonal y adjusted data, January 2020 to
Seasonal y adjusted data, January 2020 to
December 2020January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS).Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Black and Asian workers experienced their peak unemployment rate in May 2020. White workers peak rate occurred in April 2020.
People of any race can identify as being either Hispanic or non-Hispanic in the CPS. As seen in
People of any race can identify as being either Hispanic or non-Hispanic in the CPS. As seen in
Figure 8, Hispanic workers, like Black and Asian workers, Hispanic workers, like Black and Asian workers,
have experienced strong negative outcomes during the current recession. For Hispanic workers, unemploymentcontinue to experience elevated unemployment rates. In January 2021, unemployment rates experienced by Hispanic (9.4%) and non-Hispanic (6.2%) workers were almost twice as high as those experienced in the previous
January, before the recession. While unemployment remains elevated compared to January 2020, these rates are much lower than the peak exhibited in April 2020. The unemployment rate for Hispanic workers rapidly increased by 13.7 increased by 13.7
percentage points to 18.9% from February to April percentage points to 18.9% from February to April
2020. For non-Hispanic workers the 2020. For non-Hispanic workers the
unemployment rate increased by 10 points to 13.6%.unemployment rate increased by 10 points to 13.6%.
These conditions have partial y improved, as Hispanic workers experienced an unemployment rate of 9.2% in December, compared to 5.9%
for non-Hispanics.
Figure 8. Monthly Unemployment Rates by Hispanic Origin
Non-seasonal y adjusted data, January
Non-seasonal y adjusted data, January
to December, 2019 and 20202020 and January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS). Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Due to the lack of seasonal adjustment Due to the lack of seasonal adjustment
for thesefor these
data, the data, the
20202021 unemployment rates for the Hispanic unemployment rates for the Hispanic
and non-Hispanic groups are compared to their non-seasonal y adjusted values from and non-Hispanic groups are compared to their non-seasonal y adjusted values from
20192020. Statistical significance . Statistical significance
is not calculated because BLS does not provide formula parameters for non-Hispanic workers. is not calculated because BLS does not provide formula parameters for non-Hispanic workers.
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Unemployment Rates by Education
In general, workers with lower levels of educational attainment have higher rates of In general, workers with lower levels of educational attainment have higher rates of
unemployment. This pattern has been amplified during the current recession, as seen i
unemployment. This pattern has been amplified during the current recession, as seen i
n Figure 9. .
The unemployment rate for workers with less than a high school diploma peaked in April 2020 The unemployment rate for workers with less than a high school diploma peaked in April 2020
(21.2%), which was higher than the peak for al other education levels. The (21.2%), which was higher than the peak for al other education levels. The
DecemberJanuary 2021 rate for rate for
workers with less than a high school diploma (9.workers with less than a high school diploma (9.
81%) was also higher than the rate for al other %) was also higher than the rate for al other
education levels. Workers with a Bachelor’s degree or higher, the highest educational level education levels. Workers with a Bachelor’s degree or higher, the highest educational level
classified here, had the lowest peak unemployment rate (8.4% in April
classified here, had the lowest peak unemployment rate (8.4% in April
2020) and the lowest ) and the lowest
December
rate (3.8
January 2021 rate (4%) among al education levels. %) among al education levels.
Figure 9. Monthly Unemployment Rates by Education
Seasonal y adjusted monthly data, January
Seasonal y adjusted monthly data, January
to December 20202020 to January 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS). Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Al groups experienced their peak unemployment rate in April 2020.
Data Limitations and Caveats
National level data presented in this report are from the CPS and state level data are from the National level data presented in this report are from the CPS and state level data are from the
LAUS program. The CPS is a sample survey of about 60,000 households conducted by the LAUS program. The CPS is a sample survey of about 60,000 households conducted by the
Census Bureau for BLS. LAUS is a BLS program that calculates state-level unemployment rates Census Bureau for BLS. LAUS is a BLS program that calculates state-level unemployment rates
using multiple data sources, including the CPS.20
using multiple data sources, including the CPS.20
20 In addition to the CPS, LAUS uses the Current Employment Statistics survey, state Unemployment Insurance claims 20 In addition to the CPS, LAUS uses the Current Employment Statistics survey, state Unemployment Insurance claims
counts, the Quarterly Census of Employment and Wages program, and data from the Census Bureau’s American counts, the Quarterly Census of Employment and Wages program, and data from the Census Bureau’s American
Community Survey and Population Estimates Program; https://www.bls.gov/lau/laumthd.htm.
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Both the CPS and LAUS estimates are subject to sampling and non-sampling error.21 Sampling
Both the CPS and LAUS estimates are subject to sampling and non-sampling error.21 Sampling
error occurs when the survey sample is not representative of the underlying population, while error occurs when the survey sample is not representative of the underlying population, while
non-sampling error describes errors often associated with data collection.22 Sampling error is a non-sampling error describes errors often associated with data collection.22 Sampling error is a
result of statistical theory that underlies any estimate generated through surveys. While the CPS result of statistical theory that underlies any estimate generated through surveys. While the CPS
sample is selected to be representative of the nation, the possibility remains that it does not sample is selected to be representative of the nation, the possibility remains that it does not
accurately estimate certain nationwide statistics.23 Non-sampling error refers to al sources of accurately estimate certain nationwide statistics.23 Non-sampling error refers to al sources of
error that are not due to sampling. They can result from incorrect or biased collection and
error that are not due to sampling. They can result from incorrect or biased collection and
processing of the data. For example, non-sampling error can occur if a surveyor incorrectly processing of the data. For example, non-sampling error can occur if a surveyor incorrectly
records responses or a respondent incorrectly responds to a question.
records responses or a respondent incorrectly responds to a question.
COVID-19 19 Pandemic-Related Data Issues
The COVID-19 pandemic increased non-sampling error in the CPS due to a number of factors. The COVID-19 pandemic increased non-sampling error in the CPS due to a number of factors.
For example, BLS reported that the survey experienced lower household response rates.24 (The For example, BLS reported that the survey experienced lower household response rates.24 (The
bureau has made statements affirming the robustness of its estimates despite these lower response bureau has made statements affirming the robustness of its estimates despite these lower response
rates.25) Furthermore, BLS detected an error in its categorization procedures that likely
rates.25) Furthermore, BLS detected an error in its categorization procedures that likely
underestimated unemployment early in the recession.26 underestimated unemployment early in the recession.26
Specifical ySpecifically, large numbers of workers , large numbers of workers
were classified as were classified as
employed but not at work when they should have been recorded as when they should have been recorded as
unemployed
on temporary layoff. .
Per agency policy, BLS did not adjust CPS records, but it did provide adjusted estimates of the
Per agency policy, BLS did not adjust CPS records, but it did provide adjusted estimates of the
unemployment rate. BLS estimated that its categorization error underestimated seasonal y unemployment rate. BLS estimated that its categorization error underestimated seasonal y
adjusted unemployment by roughly 0.9 percentage points in March 2020, 4.8 points in April, 3.1 adjusted unemployment by roughly 0.9 percentage points in March 2020, 4.8 points in April, 3.1
in May, 1.2 in June, 0.9 in July, 0.7 in August, 0.4 in September, 0.3 in October, 0.4 in November, in May, 1.2 in June, 0.9 in July, 0.7 in August, 0.4 in September, 0.3 in October, 0.4 in November,
and 0.6 in December.
and 0.6 in December.
In January 2021, the error underestimated seasonal y adjusted unemployment by an estimated 0.6 percentage points. These estimates evaluate what the impact would be in the worst-case These estimates evaluate what the impact would be in the worst-case
scenario, as the true impact is uncertain. BLS released a statement regarding the underestimate, scenario, as the true impact is uncertain. BLS released a statement regarding the underestimate,
noting that, “these assumptions probably overstate the size of the misclassification error.”27 In noting that, “these assumptions probably overstate the size of the misclassification error.”27 In
later months, BLS made efforts to correct this classification error later months, BLS made efforts to correct this classification error
during data collection and during data collection and
processing.28 processing.28
LAUS was impacted by both the low response rate and the categorization error due to its
LAUS was impacted by both the low response rate and the categorization error due to its
connection with the CPS. Considering that LAUS is dependent on a number of other data sources connection with the CPS. Considering that LAUS is dependent on a number of other data sources
that were impacted by COVID-19 in their own right, the net effect of the pandemic on LAUS
estimates is unknown.29
Community Survey and Population Estimates Program; https://www.bls.gov/lau/laumthd.htm.
21 For further discussion of error, see the “Reliability of the Estimates” section of the Employment Situation report’s 21 For further discussion of error, see the “Reliability of the Estimates” section of the Employment Situation report’s
T echnical Note at https://www.bls.gov/news.release/empsit.tn.htm. For a description of LAUS estimation procedures, T echnical Note at https://www.bls.gov/news.release/empsit.tn.htm. For a description of LAUS estimation procedures,
see https://www.bls.gov/lau/laumthd.htm. see https://www.bls.gov/lau/laumthd.htm.
22 For more information, see https://www.bls.gov/opub/hom/topic/error-measurements.htm.
22 For more information, see https://www.bls.gov/opub/hom/topic/error-measurements.htm.
23 For more information, see https://www.bls.gov/opub/hom/topic/sampling.htm. 23 For more information, see https://www.bls.gov/opub/hom/topic/sampling.htm.
24 See the FAQ BLS produced on this topic for more on the impact of COVID-19 on data collection by month at 24 See the FAQ BLS produced on this topic for more on the impact of COVID-19 on data collection by month at
https://www.bls.gov/covid19/home.htm. https://www.bls.gov/covid19/home.htm.
25 See https://www.bls.gov/covid19/employment-situation-covid19-faq-april-2020.htm.
25 See https://www.bls.gov/covid19/employment-situation-covid19-faq-april-2020.htm.
26 See CRS Insight IN11456, 26 See CRS Insight IN11456,
COVID-19: Measuring Unemployment, by Lida R. Weinstock. , by Lida R. Weinstock.
27 See https://www.bls.gov/covid19/employment-situation-covid19-faq-27 See https://www.bls.gov/covid19/employment-situation-covid19-faq-
december-2020january-2021.htm#ques5. .htm#ques5.
28 Among other protocols, the Census Bureau monitored survey 28 Among other protocols, the Census Bureau monitored survey
resp onsesrespon ses in August and marked those they felt could in August and marked those they felt could
be misclassified. T hese responses were then re-evaluated. For more on BLS and Census efforts to reduce the be misclassified. T hese responses were then re-evaluated. For more on BLS and Census efforts to reduce the
misclassification, see https://www.bls.gov/covid19/employment -situation-covid19-faq-august-2020.htm#ques9. misclassification, see https://www.bls.gov/covid19/employment -situation-covid19-faq-august-2020.htm#ques9.
29 For more on the impacts of COVID-19 on LAUS and its inputs, see https://www.bls.gov/covid19/effects-of-covid-19-pandemic-on-employment-and-unemployment-statistics.htm.
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that were impacted by COVID-19 in their own right, the net effect of the pandemic on LAUS
estimates is unknown.29
General Data Caveats
Other data considerations include the following: Other data considerations include the following:
Lack of seasonally adjusted data: Seasonal y adjusted data are published by BLS : Seasonal y adjusted data are published by BLS
for selected labor force indicators to better account for seasonality in the trends.30
for selected labor force indicators to better account for seasonality in the trends.30
Without seasonal adjustments, it is difficult to distinguish between trends related Without seasonal adjustments, it is difficult to distinguish between trends related
to the recession and seasonal trends. Where adjusted data are not available, this to the recession and seasonal trends. Where adjusted data are not available, this
report compares year-over-year estimates to minimize seasonal influences. report compares year-over-year estimates to minimize seasonal influences.
Reference week: In general, CPS data are collected for the calendar week In general, CPS data are collected for the calendar week
containing the 12th of the month. This could lead to incongruity between actual
containing the 12th of the month. This could lead to incongruity between actual
labor force conditions over the course of a month and the conditions observed. labor force conditions over the course of a month and the conditions observed.
CPS and LAUS comparability: While the LAUS program uses the same : While the LAUS program uses the same
unemployment concepts as the CPS and uses the CPS as an input, LAUS
unemployment concepts as the CPS and uses the CPS as an input, LAUS
estimates are based on multiple sources (including administrative data). estimates are based on multiple sources (including administrative data).
Consequently, CPS and LAUS estimates are not directly comparable. Consequently, CPS and LAUS estimates are not directly comparable.
Statistical significance: CRS used BLS formulas to calculate year-over-year : CRS used BLS formulas to calculate year-over-year
statistical significance in changes in monthly data. As a tool, statistical
statistical significance in changes in monthly data. As a tool, statistical
significance does not guarantee that year-over-year changes were meaningful. significance does not guarantee that year-over-year changes were meaningful.
30 See CPS and LAUS documentation for more on seasonal adjustment at https://www.bls.gov/cps/seasonal-adjustment -methodology.htm and https://www.bls.gov/lau/lauseas.htm.
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Author Information
Gene Falk, Coordinator Gene Falk, Coordinator
Emma C. Nyhof
Emma C. Nyhof
Specialist in Social Policy
Specialist in Social Policy
Research Assistant
Research Assistant
Jameson A. Carter
Jameson A. Carter
Paul D. Romero
Paul D. Romero
Research Assistant
Research Assistant
Research Assistant
Research Assistant
Isaac A. Nicchitta
Isaac A. Nicchitta
Research Assistant
Research Assistant
Acknowledgments
The four Research Assistants in CRS’s Domestic Social Policy Division were responsible for the analysis The four Research Assistants in CRS’s Domestic Social Policy Division were responsible for the analysis
and writing of this report, under the guidance of Gene Falk, Specialist inand writing of this report, under the guidance of Gene Falk, Specialist in
Social Policy. Questions from Social Policy. Questions from
congressional staff should be directed to Mr. Falk.congressional staff should be directed to Mr. Falk.
29 For more on the impacts of COVID-19 on LAUS and its inputs, see https://www.bls.gov/covid19/effects-of-covid-19-pandemic-on-employment-and-unemployment-statistics.htm. 30 See CPS and LAUS documentation for more on seasonal adjustment at https://www.bls.gov/cps/seasonal-adjustment -methodology.htm and https://www.bls.gov/lau/lauseas.htm.
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Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
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