Unemployment Rates During the COVID-19
March 12, 2021
Pandemic: In Brief
Gene Falk, Coordinator
The Coronavirus Disease 2019 (COVID-19) pandemic has had a significant effect on
Specialist in Social Policy
unemployment in every state, industry, and major demographic group in the United
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
Research Assistant
workers, women, workers with low educational attainment, part-time workers, and racial
and ethnic minorities had relatively high unemployment rates in April 2020. Many, but
Isaac A. Nicchitta
not al , of these groups had relatively high rates in February 2021 as wel . The report
Research Assistant
also compares the overal unemployment rate during the current recession with the
unemployment rate experienced during the Great Recession (December 2007 to June
Emma C. Nyhof
2009). This report shows the following:
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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 -
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elevated level in February 2021 (6.2%) relative to February 2020 (3.5%).
In April 2020, every state and the District of Columbia reached unemployment
rates 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, the unemployment rates were highest in industries that
provide in-person services. Notably, the leisure and hospitality industry experienced an
unemployment rate of 39.3% in April 2020, before declining to 13.5% in February 2021. 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
unemployment rate of 19.3% in February 2021, the highest observed among al industries.
Part-time workers experienced an unemployment rate almost twice that of their full-time
counterparts in April 2020 (24.5% vs. 12.9%), but this gap has since effectively closed.
Workers without a college degree experienced worse unemployment rates in April 2020 (e.g.,
21.2% 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 February 2021.
Teenaged women experienced an unemployment rate of 36.6% in April 2020, and teenaged 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 still experiencing high rates of
unemployment relative to other age categories in February 2021.
Racial and ethnic minorities had relatively high unemployment rates in April 2020 (16.7% for
Black 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 February 2021.
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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 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. Unemployment Rates by Industry......................................................................... 6
Figure 5. Monthly Unemployment Rates for Part- and Full-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 ....................................................................................................... 12
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Introduction
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
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
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
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
U.S. demand.3 Although unemployment rates have declined since April 2020, the rate in February
2021 (6.2%) remains much higher than the rate observed in February 2020 (3.5%).
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
Survey (CPS) and the Local Area Unemployment Statistics (LAUS) program. In addition to the
usual caveats about estimates (see “General Data Caveats”), there were additional data chal enges
caused by the COVID-19 pandemic (see “COVID 19 Pandemic-Related Data Issues”). The
pandemic led to lower survey response rates by businesses and households, and BLS detected an
error in their categorization procedures that likely underestimated unemployment early in the
recession.4 This report general y finds the following:
The unemployment rate peaked in April 2020, at a level not seen since data
collection started in 1948, before declining to a stil -high level in February 2021
relative to February 2020.
In April 2020, every state and the District of Columbia reached unemployment
rates greater than their highest unemployment rates during the Great Recession.
Unemployment rates during the current recession have been relatively highest
among workers who were last employed in industries that provide in-person
services and among young workers, women, workers with low educational
attainment, part-time 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
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
orders. Therefore, the trends in the unemployment rate in the current recession differ from those
in prior recessions (see Figure 1). Rates observed during prior recessions rose relatively
gradual y over the course of an economic downturn and then peaked. The current recession
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 contractions, see
https://www.nber.org/cycles/recessions_faq.html#:~:text=
What%20is%20an%20expansion%3F,more%20than%20a%20few%20months.& text=
Expansion%20is%20the%20normal%20state,economy%3B%20most%20recessions%20are%20brief .
2 T he unemployment rates observed during the Great Recession, however, never surpassed those of the early 1980s.
3 See CRS Insight IN11388, COVID-19: U.S. Economic Effects, by Rena S. Miller and Marc Labont e.
4 See CRS Insight IN11456, COVID-19: Measuring Unemployment, by Lida R. Weinstock.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
exhibited an unprecedented sharp increase in the rate (10.3 percentage points) from February to
April 2020.5 Following April, the rate declined rapidly (6.4 percentage points from April 2020 to
August 2020) as temporarily furloughed workers returned to work. Despite these rapid declines,
the February 2021 unemployment rate persisted at a high level (6.2%). The share of workers on
furlough has declined since peaking in April 2020, while the share of permanently laid off
workers has steadily increased.6 Although economic projections have general y improved since
early in the recession, the Congressional Budget Office (CBO) has projected that elevated
unemployment rates over 5.0% wil persist over the next two years.7
Figure 1. Historical Unemployment Rate
Seasonal y adjusted monthly data from January 1948 to February 2021
Source: 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 Research.
Comparing the Great Recession and the COVID-19 Recession
During the Great Recession, the unemployment rate increased from 5.0% in December 2007 (the
start of the recession) to 9.5% in June 2009 (the end of the recession) (see Figure 2). The
unemployment rate peaked at 10.0% in October 2009, four months after the recession official y
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 April 2020, and then fel to 6.2% in February
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 Unemployment 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.
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 18.0 million in April 2020 to 2.2 million in February 2021 as the number of permanent
job losers increased from 2.0 million in April 2020 to 3.5 million in February 2021.
7 For CBO’s 10-year economic projections of unemployment rates as of February 2021, see https://www.cbo.gov/
about/products/budget-economic-data#4.
8 T hroughout this report, peak refers to the highest level of unemployment between January 2020 and February 2021. It
does not account for months outside this range.
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2021. The peak represents the quickest month-over-month increase in unemployment rates and
the highest overal unemployment rate since the CPS data started being collected in 1948.9
Figure 2. U.S. Unemployment Rate
Seasonal y adjusted monthly data from November 2004 to February 2021
Source: 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
major demographic group. In the early stages of the current recession, unemployment rates
disproportionately increased in industries delivering in-person services. Some demographic
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 December 2020 and
indicates whether the rate increased or decreased from November to December. Further, the
figure shows that no state was immune from economic damage early in the pandemic.11 The data
for January and February 2021 have not been released as of the cover date of this report. Since
the onset 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 number of factors, including the proportion of jobs in sectors that provide non-
9 T here are many differences in labor force statistics observed during the Great Recession, its aftermath, and the
COVID-19 recession. For more on this and for information on labor market patterns since 2007, see CRS Report
R45330, Labor Market Patterns Since 2007, by Sarah A. Donovan and Marc Labonte.
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
Early-Stage Losses from the April 2020 Current Population Survey,” NBER Working Paper No. 27309, June 2020.
11 Felipe Lozano-Rojas et al., “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.,
“Labor Demand in the T ime of COVID-19: Evidence from Vacancy Postings and UI Claims,” NBER Working Paper
No. 27061, April 2020.
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essential services to in-person customers,12 individual concerns of contracting COVID-19 causing
declines in personal 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 November to December 2020 and change since last month
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS) Local Area Unemployment
Statistics program.
Notes: 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
data for January and February 2021 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 December
2020, the five states with the highest unemployment rates were Hawai (9.3%), Nevada (9.2%),
California (9.0%), Colorado (8.4%), and New Mexico (8.2%). The states with the lowest
12 Matthew Dey and Mark Loewenst ein, “How many workers are employed in sectors directly affected by COVID-19
shutdowns, where do they work, and how much do they earn?” Monthly Labor Review, April 2020.
13 Austan Goolsbee and Chad Syverson, “Fear, lockdown, and diversion: comparing drivers of pandemic economic
decline 2020,” NBER Working Paper No. 27432, June 2020.
14 Sumedha Gupta et al., “Effects of Social Distancing Policy on Labor Market Outcomes,” NBER Working Paper No.
2780, May 2020.
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unemployment rates in December 2020 were Nebraska (3.0%), South Dakota (3.0%), Iowa
(3.1%), Vermont (3.1%), and Utah (3.6%).
While the figure shows that in December 2020 most states were substantial y below their peak
unemployment rates, 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
unemployment (39.3% in April 2020) than did workers who were previously employed in any
other industry; they also had the second highest unemployment rate in February 2021 (13.5%).
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
steadily increasing unemployment since the onset of the recession; in February 2021 they
exhibited the highest rate among al workers across industries (19.3%) and the steepest year-over
year increase (up from 5.4% in February 2020). The lowest February 2021 rates were among
workers whose last job was in the government (2.8%), financial activities (3.7%), or education
and health services (3.7%) industries. These industries have had unemployment rates below 15%
from February 2020 through February 2021.15 Within industries, some workers were more likely
to lose their jobs than others early in the recession. For example, recent studies suggest that low-
wage workers in the leisure and hospitality industry and other services industries experienced
disproportionately large employment losses.16
Figure 4 displays the change in industry unemployment rates from February 2020, at the start of
the recession but before unemployment rates increased, to February 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 to compare February 2020 with February 2021
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
report attempts to minimize seasonal influences (for non-adjusted data) by comparing year-over-
year estimates.
15 T hese data are not seasonally adjusted and do not account for the likely seasonal variation in employment within the
education and health services sector.
16 Alexander Bartik et al., “ Measuring the labor market at the onset of the COVID-19 crisis,” NBER Working Paper
No. 27613, 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.
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 year -over-year difference is statistically significant. CRS used
these formulas to calculate significance at the 95% confidence level. Bureau of Labor Statistics, “ Calculating
Approximate Standard Errors and Confidence Intervals for Current Population Survey Estimates,” Washington, DC,
2018, p. 10, https://www.bls.gov/cps/calculating-standard-errors-and-confidence-intervals.pdf.
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Figure 4. Unemployment Rates by Industry
Non-seasonal y adjusted data, displaying dif erences between February 2020 and February 2021
Source: Bureau of Labor Statistics (BLS).
Notes: Due to the lack of seasonal adjustment for these data, the 2021 unemployment rates for the different
industries are compared to their non-seasonal y adjusted values from 2020. 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 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 in Figure 5, part-time workers experienced a higher peak unemployment rate (24.5%
in April 2020) than full-time workers (12.9% in April 2020). This disparity has closed as the
recession has progressed, as the unemployment rate for part-time workers in February 2021
(6.0%) is less than the unemployment rate for full-time workers (6.3%).
There are a few reasons why part-time workers’ apparent economic recovery may not reflect the
realities they face. First, some workers with part-time jobs may have left the labor force, and
hence are not counted in the official statistics used in this report. It is unclear whether that is the
case. Additional y, more workers who would have been working full-time before the pandemic
have been working part-time for economic reasons.18 This could reduce the unemployment rate
among part-time workers. Further, BLS has observed that labor underutilization has remained
elevated for workers, including those who have been working part-time for economic reasons.19
Figure 5. Monthly Unemployment Rates for Part- and Full-Time Workers
Seasonal y adjusted data, January 2020 to February 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Both groups experienced their peak unemployment rate in April 2020.
Unemployment Rates by Sex and Age
As seen in Figure 6, unemployment rates tended to increase more for younger workers and were
higher for women early in the recession. Between February and April 2020, the rate for women
ages 16-19 increased by 25.6 percentage points to 36.6%; in contrast, the rates for men of the
same age increased by 15.8 percentage points to 27.6%. Since then, the gap between younger
men and women has reversed. The unemployment rate for teenaged men (16.6%) was higher than
the rate for teenaged women (11.2%) in February 2021. Although unemployment rates for
younger workers remain relatively high compared to older workers, the February 2021 rates for
18 T he number of workers working part -time for economic reasons has increased from 4.4 million in February 2020 to
6.1 million in February 2021 on a seasonally adjusted basis. See https://www.bls.gov/web/empsit/cpseea07.htm.
19 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
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, Introduction to U.S. Econom y: Unem ployment, by Lida R. Weinstock.
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men and women across the remaining age groups have declined to similar levels. The rate for
men ages 20-24 (10.1%) was slightly higher than the rate for women of the same age (9.1%). The
large disparities observed in April 2020 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
higher than their male counterparts. This relatively modest gap has since closed; the rate in
February 2021 for women ages 25 to 54 (5.7%) was similar to that of men (5.6%), and the rate for
women ages 55 and over (5.1%) was lower than that of men ages 55 and over (5.6%).
Figure 6. Monthly Unemployment Rates by Sex and Age
Seasonal y adjusted data, January 2020 to February 2021
Source: 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 in Figure 7, the unemployment rates for Black, Asian, and White20 workers increased
sharply in early 2020. But whereas the unemployment rate for White workers peaked in April
2020, the rate for Black and Asian workers continued to rise through May 2020. The February
2021 rates for Black (9.9%), Asian (5.1%), and White (5.6%) workers were al higher than their
respective rates in January 2020. The rate for Black workers has declined 6.9 percentage points
since peaking in May 2020, compared to a decline of 9.9 percentage points for Asian workers and
6.8 percentage points for White workers across the same period.
20 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.
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Figure 7. Monthly Unemployment Rates by Racial Group
Seasonal y adjusted data, January 2020 to February 2021
Source: 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
Figure 8, Hispanic workers, like Black and Asian workers, continue to experience elevated
unemployment rates. In February 2021, unemployment rates experienced by Hispanic (9.0%) and
non-Hispanic (6.0%) workers were almost twice as high as those experienced in the previous
February, early in the recession. While unemployment remains elevated compared to February
2020, these rates are much lower than the peak exhibited in April 2020. The unemployment rate
for Hispanic workers rapidly increased by 13.7 percentage points to 18.5% from February to
April 2020. For non-Hispanic workers the unemployment rate increased by 10 points to 13.6%.
Figure 8. Monthly Unemployment Rates by Hispanic Origin
Non-seasonal y adjusted data, February 2020 to February 2021
Source: Created by CRS using data from the Bureau of Labor Statistics (BLS).
Notes: Due to the lack of seasonal adjustment for these data, the 2021 unemployment rates for the Hispanic
and non-Hispanic groups are compared to their non-seasonal y adjusted values from 2020. Statistical significance
is not calculated because BLS does not provide formula parameters for non-Hispanic workers.
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Unemployment Rates During the COVID-19 Pandemic: In Brief
Unemployment Rates by Education
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 in Figure 9.
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 February 2021 rate
for workers with less than a high school diploma (10.1%) was also higher than the rate for al
other 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 2020) and the lowest
February 2021 rate (3.8%) among al education levels.
Figure 9. Monthly Unemployment Rates by Education
Seasonal y adjusted data, January 2020 to February 2021
Source: 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
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
using multiple data sources, including the CPS.21
21 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
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Both the CPS and LAUS estimates are subject to sampling and non-sampling error.22 Sampling
error occurs when the survey sample is not representative of the underlying population, while
non-sampling error describes errors often associated with data collection.23 Sampling error is a
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
accurately estimate certain nationwide statistics.24 Non-sampling error refers to al sources of
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
records responses or a respondent incorrectly responds to a question.
COVID 19 Pandemic-Related Data Issues
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.25 (The
bureau has made statements affirming the robustness of its estimates despite these lower response
rates.26) Furthermore, BLS detected an error in its categorization procedures that likely
underestimated unemployment early in the recession.27 Specifical y, large numbers of workers
were classified as employed but not at work 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
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
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,
0.6 in December, and 0.6 in January 2021. In February 2021, the error underestimated seasonal y
adjusted unemployment by an estimated 0.5 percentage points. 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, noting that, “these assumptions probably overstate the size
of the misclassification error.”28 In later months, BLS made efforts to correct this classification
error during data collection and processing.29
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
Community Survey and Population Estimates Program; https://www.bls.gov/lau/laumthd.htm.
22 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,
see https://www.bls.gov/lau/laumthd.htm.
23 For more information, see https://www.bls.gov/opub/hom/topic/error-measurements.htm.
24 For more information, see https://www.bls.gov/opub/hom/topic/sampling.htm.
25 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.
26 See https://www.bls.gov/covid19/employment-situation-covid19-faq-april-2020.htm.
27 See CRS Insight IN11456, COVID-19: Measuring Unemployment, by Lida R. Weinstock.
28 See https://www.bls.gov/covid19/employment-situation-covid19-faq-january-2021.htm#ques3.
29 Among other protocols, the Census Bureau monitored survey responses 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
misclassification, see https://www.bls.gov/covid19/employment -situation-covid19-faq-august-2020.htm#ques9.
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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.30
General Data Caveats
Other data considerations include the following:
Lack of seasonally adjusted data: Seasonal y adjusted data are published by BLS
for selected labor force indicators to better account for seasonality in the trends.31
Without seasonal adjustments, it is difficult to distinguish between trends related
to the recession and seasonal trends. Where adjusted data are not available, this
report compares year-over-year estimates to minimize seasonal influences.
Reference week: In general, CPS data are collected for the calendar week
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.
CPS and LAUS comparability: While the LAUS program uses the same
unemployment concepts as the CPS and uses the CPS as an input, LAUS
estimates are based on multiple sources (including administrative data).
Consequently, CPS and LAUS estimates are not directly comparable.
Statistical significance: CRS used BLS formulas to calculate year-over-year
statistical significance in changes in monthly data. As a tool, statistical
significance does not guarantee that year-over-year changes were meaningful.
Author Information
Gene Falk, Coordinator
Emma C. Nyhof
Specialist in Social Policy
Research Assistant
Jameson A. Carter
Paul D. Romero
Research Assistant
Research Assistant
Isaac A. Nicchitta
Research Assistant
Acknowledgments
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 in Social Policy. Questions from
congressional staff should be directed to Mr. Falk.
30 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.
31 See CPS and LAUS documentation for more on seasonal adjustmen t at https://www.bls.gov/cps/seasonal-
adjustment -methodology.htm and https://www.bls.gov/lau/lauseas.htm.
Congressional Research Service
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Unemployment Rates During the COVID-19 Pandemic: In Brief
Disclaimer
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
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
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
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
copy or otherwise use copyrighted material.
Congressional Research Service
R46554 · VERSION 9 · UPDATED
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