Department of Labor and Regulation

Title - Labor Market Information Center

Current Employment Statistics (CES) Program

Important notice about the current production of nonfarm wage and salaried statistics

The production of state and metropolitan Current Employment Statistics (CES) (the program which produces nonfarm wage and salaried worker statistics) transitioned from state workforce agencies to the U.S. Bureau of Labor Statistics (BLS) beginning with preliminary estimates for March 2011. Concurrent with this transition, the BLS implemented several methodological changes to standardize the estimation approach across states. While these changes will reduce the potential for statistical bias in state and metropolitan area estimates, they may increase the month-to-month variability of the estimates. For more detailed information on the changes to procedures for producing CES estimates, visit the BLS website.

For technical notes regarding the CES methodology, please see the BLS Handbook of Methods.

Current Employment Statistics (CES) produced by the Labor Market Information Center

The CES (nonfarm wage and salaried) workers are an important economic measure of the number of jobs in nonfarm industries. As the title implies, agricultural industry workers are not included. In addition, nonfarm self-employed and unpaid workers are also excluded from the nonfarm wage and salaried worker counts. Nonfarm worker data refer to persons on establishment payrolls who receive pay for any part of the pay period which includes the 12th of the month. Persons are counted at their places of work rather than at their places of residence; those appearing on more than one payroll are counted on each payroll. Establishments are classified in an industry on the basis of their principal products or activities in accordance with the most recent North American Industry Classification System (NAICS) Manual.

There are two different procedures to estimate monthly nonfarm wage and salaried workers in South Dakota. First, the Bureau of Labor Statistics (BLS) produces the nonfarm wage and salaried worker estimates for the state and Metropolitan Statistical Areas (MSAs) as part of the national Current Employment Statistics (CES) program. The two MSAs in South Dakota are the Sioux Falls MSA and the Rapid City MSA.

The Labor Market Information Center (LMIC) is responsible for the production of nonfarm wage and salaried estimates for counties that are not part of the two MSAs (the CES sample is not large enough to make estimates for non-MSA county areas.)

There are two components to the non-MSA county worker estimates. The largest component of the county nonfarm wage and salaried worker estimates are the workers covered by unemployment insurance. Monthly covered worker numbers are collected on a quarterly basis by the Unemployment Insurance (UI) Division of the South Dakota Department of Labor and Regulation. The worker and payroll data from UI quarterly reports are tabulated as part of the national Quarterly Census of Employment and Wages (QCEW) program conducted by LMIC. Because of the time lag in employer reporting and data processing, the covered worker data lag the current nonfarm estimates by five to six months. So, economic models are used to estimate current month worker levels. As actual monthly covered worker data becomes available, the estimated numbers are replaced.

The second component of the county nonfarm wage and salaried numbers are the presumed not covered workers. The presumed not covered workers include small seasonal businesses, railroads, independent insurance agents, churches, schools operated by churches, elected officials, judges, work study students, etc. The total presumed not covered workers are not a large component of the nonfarm workers, but represent a large share of some nonfarm industries.

Each month, LMIC staff estimate the number of presumed not covered workers for each non-MSA county. Those numbers are added to the estimated covered worker totals to determine a nonfarm wage and salaried worker estimate for each non-MSA county. The non-MSA county and MSA estimates are forced to sum to the CES statewide nonfarm wage and salaried worker number.

Note: The presumed not covered workers data produced by the LMIC comes from several different sources, including monthly reports of state elected officials, elected and appointed board members and staff and judges; reports from institutions with work study students not reported as part of the CES sample; annual reports of city elected officials; and a presumed not covered survey to gather worker data on other businesses, including churches, schools operated by churches, etc.

Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184