Download Full Labor Market Information 101 PDF
“Labor Market Information 101” is a resource designed to help our stakeholders better understand and access labor market information (LMI) materials from the Massachusetts Department of Economic Research (DER). It covers these topics and more:
- What DER is and who its stakeholders are
- What LMI is, why it is important, and how it can be used
- Key LMI definitions, concepts, and framework, including North American Industry Classification System (NAICS) and Standard Occupational Codes (SOC)
- An overview of the main types of data found on the DER website including units/source, available geography, links to download data, and more
- An appendix including common acronyms and links to additional resources
Download the PDF below (tagged for ADA Compliance).
Additional Resources
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Open PDF file, 569.56 KB, LMI 101 2024 Version (PDF 569.56 KB)
Labor Market Information (LMI) Basics
What is LMI?
- Labor Market Information (LMI) includes quantitative and qualitative data and analysis related to employment or the labor force.
- LMI includes information on jobs and people (employed and unemployed); occupations and industries; establishments and households; as well as wages and other factors that impact employment and/or the labor force.
Who uses LMI?
- Labor Market Information is used by many groups including policymakers in state, local, and federal government; workforce development and training agencies; employers and businesses; jobseekers; students, educators, and academic institutions; researchers; and advocacy organizations.
Why is LMI important?
- LMI encourages data-driven decision making for a wide range of stakeholders.
- LMI is important for understanding local and regional economies, efficient resource allocation, understanding compensation and wages, guiding policy and strategy, and more.
Geographic Regions in Massachusetts
Use DER's Cities and Towns Tool to identify which cities/towns are in a particular geographic region and vice versa.
Statewide Data: Most data sets offered by DER include statewide data for Massachusetts. Data for other states can be found through the Bureau of Labor Statistics.
Counties: All of Massachusetts's cities and towns fall into one of 14 counties.
Cities & Towns: Massachusetts has 351 cities and towns that make up counties. Not all data is available on a city and town level due to sample sizes and suppression.
Workforce Skills Cabinet and Workforce Development Areas: Every city and town in Massachusetts falls within one of 16 Workforce Development Areas, that then make up 7 Workforce Skills Cabinet Areas.
Map of Workforce Skills Cabinet Regions divided into Workforce Development Areas
| Workforce Skills Cabinet (WSC) Region | Workforce Development Areas (WDA) |
|---|---|
| 1. Berkshire Region | Berkshire WDA |
| 2. Pioneer Valley Region | Franklin/Hampshire and Hampden WDAs |
| 3. Central MA Region | North Central and Central WDAs |
| 4. Northeast Region | Greater Lowell, Lower Merrimack, and North Shore WDAs |
| 5. Greater Boston Region | Boston, Metro North, and Metro South/West WDAs |
| 6. Southeast Region | South Shore, Brockton, Bristol, and Greater New Bedford WDAs |
| 7. Cape Cod & Islands Region | Cape Cod & Islands WDA |
Occupations and Standard Occupational Classification (SOC)
"The 2018 Standard Occupational Classification (SOC) system is a federal statistical standard used by federal agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data. All workers are classified into one of 867 detailed occupations according to their occupational definition." (Bureau of Labor Statistics)
| SOC Example: Surgical Technicians | ||
|---|---|---|
| Digits/Code | Level of Detail | Title |
| 29-0000 | Major Groups | Healthcare Practitioners and Technical Occupations |
| 29-2000 | Minor Groups | Health Technologists and Technicians |
| 29-2050 | Broad Occupations | Health Practitioner Support Technologists and Technicians |
| 29-2055 | Detailed Occupation | Surgical Technicians |
Additional Resources
Industries and the North American Industry Classification System (NAICS)
“The North American Industry Classification System (NAICS) is the standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy." (US Census Bureau). A firm may have multiple establishments with multiple NAICS codes - for example, a firm that has a warehouse and a retail location.
| NAICS Example: Other Outpatient Care Centers | ||
|---|---|---|
| Digits/Code | Level of Detail | Description |
| 620000 | Economic Sector | Healthcare and Social Assistance |
| 621000 | Subsector | Ambulatory Health Care Services |
| 621400 | Industry Group | Outpatient Care Centers |
| 621490 | NAICS Industry | Other Outpatient Care Centers |
Additional Resources
Current Employment Statistics (CES) Data
“The Current Employment Statistics (CES) program produces detailed industry estimates of nonfarm employment, hours, and earnings of workers on payrolls.” (Bureau of Labor Statistics)
| Current Employment Statistics (CES) At-A-Glance | |
|---|---|
| Units of Analysis & Source | Estimates employment (# of jobs) by industry; Wages (state level). Modeled based on sample of payroll data |
| Available Geographies | State-wide; New England City and Town Area (transitioning to MSAs) |
| Timing of Data | Monthly release, typically 3rd Friday of the following month. Subject to annual benchmarking process. |
Additional Details
- Also known as the “Payroll Survey,” CES surveys about 119,000 businesses and government agencies representing 629,000 workers nationally each month (BLS)
- Counts jobs not people, meaning an individual with two jobs is counted twice
- Excludes workers in agriculture, private households, and the self-employed
- A wide array of public and private policy makes use CES data because it is one of the earliest indicators of economic conditions each month
- PROS: Recent data available; time series | CONS: Smaller sample size; seasonally adjusted data is unavailable at the local level
Additional Resources
Local Area Unemployment Statistics (LAUS) Data
“The Local Area Unemployment Statistics (LAUS) Program Produces monthly and annual employment, unemployment, and labor force data…” (Bureau of Labor Statistics)
| Local Area Unemployment Statistics (LAUS) At-A-Glance | |
|---|---|
| Units of Analysis and Source | Estimates number of people employed, unemployed, and in the labor force. Models use data from CPS, CES, UI Systems, and ACS depending on geography |
| Available Geographies | State-wide; New England City and Town Areas (NECTA) (transitioning to MSAs); Workforce Development Areas (WDA); County; City/Town |
| Timing of Data | Monthly release, typically the 3rd Friday of the following month. Subject to annual benchmarking process. |
Additional Details
- LAUS estimates for various geographies take different inputs into account including the Current Population Survey (CPS), Current Employment Statistics (CES), local unemployment insurance systems, and the American Community Survey (ACS)
- Estimates are considered key indicators of local economic conditions, used by:
- Federal program eligibility determinations and resource allocations
- Planning and budget in local/state government
- Assessing and comparing labor market development and status by private industry/researchers/media/etc
- PROS: Recent data available; time series | CONS: Smaller sample size; seasonally adjusted data is unavailable at the local level
LAUS Definitions
The labor force is made up of employed people and unemployed people.
Unemployed people include anyone not currently employed but actively seeking and available for work, regardless of whether they are receiving unemployment insurance benefits. Includes people entering and re-entering the labor force.
The Labor Force Participation Rate (LFPR) is calculated by dividing the number of people in the labor force by the total working age population (civilian, non-institutionalized population 16+).
The Unemployment Rate is calculated by dividing the number of unemployed people by the total labor force.
Additional Resources
Occupational Employment and Wage Statistics (OEWS) Data
“The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for nearly 800 occupations.” (Bureau of Labor Statistics)
| Occupational Employment and Wage Statistics (OEWS) At-A-Glance | |
|---|---|
| Units of Analysis and Source | Estimates employment (number of jobs) and wages for occupations. Source is survey collection of UI covered establishments over several survey panels |
| Available Geographies | State-wide; New England City and Town Areas (NECTA) (transitioning to MSAs); Workforce Development Area (WDA) |
| Timing of Data | Annual publication of data (usually April). Two panels of survey collection (May-November and November-May). |
Additional Details
- Occupation and wage data is requested from 3,500 employer every three years, all establishments with a UI tax account including local governments and non-profits
- Does NOT include gig workers, military, private households, religious establishments
- Several month process includes verifying contacts; collecting data via phone/email/web, reviewing, inputting, and revising data; and re-contacting non-responsive establishments
- Participation is not currently mandatory in Massachusetts
- Data is published in a way that protects identifiable information of respondents
- PROS: Important source of wage data; large sample size; lower error ranges | CONS: Publication lag; not a time series
Additional Resources
Quarterly Census of Employment and Wages (QCEW) Data
“The Quarterly Census of Employment and Wages (QCEW) program publishes a quarterly count of employment and wages reported by employers covering more than 95% of U.S. jobs at the county, state, and national levels by industry.” (Bureau of Labor Statistics).
| Quarterly Census of Employment and Wages (QCEW) At-A-Glance | |
|---|---|
| Units of Analysis and Source | Estimates employment (number of jobs), wages, and number of establishments by industry. Census of all establishments subject to Unemployment Insurance tax in Massachusetts |
| Available Geographies | State-wide, New England City and Town Areas (NECTA) (transitioning to MSAs), Workforce Development Area (WDA), County, City/Town |
| Timing of Data | Quarterly data with delay. Annual reports also released. |
Additional Details
- Excludes unincorporated self-employed, certain farm and domestic workers, proprietors, and railroad workers covered by the railroad UI program
- Also excludes members of the armed forces, federal, state, and local elected officials
- Data is published in a way that protects identifiable information of respondents
- QCEW data is used to benchmark CES and LAUS data and is used by the Bureau of Economic Analysis (BEA) base for developing the wage and salary component of personal income
- Also used by the Employment and Training Administration (ETA) for the employment security program
- PROS: High quality and quantity of data; consistent history; used to benchmark | CONS: Publication lag; not designed to be used for time series analysis
Additional Resources
What is benchmarking?
At the start of each year, Current Employment Statistics (CES) and Local Area Unemployment Statistics (LAUS) data series go through a benchmarking process. Benchmarking takes into consideration data inputs, historical updates, late tax filings, and other figures that call for revision (Bureau of Labor Statistics). Visit the BLS Website for more information about benchmarking.
Current Employment Statistics (CES) publishes preliminary and revised estimates each month and revised annual estimates at the beginning of each year. Visit the BLS website for more information about CES benchmarking.
Local Area Unemployment Statistics (LAUS) publishes annual revisions at the beginning of each year. Visit the BLS Website for more information about LAUS benchmarking.