Comparing Metro Phoenix
Unemployment Rates
Description: The unemployment rate is estimated by state employment agencies under contract with the U.S. Department of Labor, Bureau of Labor Statistics. The basis for the estimate is the Current Population Survey.
Rationale: The unemployment rate is an indicator of the strength of a labor market.
Data Sources: U.S. Department of Labor, Bureau of Labor Statistics: http://www.bls.gov/lau/home.htm.
Comments on the Quality of the Data: The Current Population Survey (CPS), a survey of individuals, was designed to provide data for the nation as a whole as well as four broad regions that constitute the nation. State and substate data have extremely large sampling error. To improve the quality of the unemployment estimates, the raw data from the CPS are input into an economic model that produces the official estimates of state and local unemployment rates. Even with this modeling, the estimates have a large margin of error. To be counted as unemployed, a survey respondent must be actively seeking work.
