By Michael Jeanfreau, Senior Economist
In today’s data-driven world, understanding local economic conditions is crucial. However, a significant challenge in workforce data analysis is the occasional lack of detail to address specific questions. Broad trends and patterns can be observed across large regions or groups, but zooming in on smaller areas or particular demographic segments remains difficult. For instance, while general employment trends in a state may be apparent, discerning the nuances of what happens in a small town or among a specific group of workers can be challenging. This gap in detail hampers the ability to tailor solutions or policies that meet the unique needs of these smaller or specific groups.
The Longitudinal Employer-Household Dynamics (LEHD) program, a partnership between state labor market information agencies and the U.S. Census Bureau addresses this issue by joining federal and state datasets into a comprehensive database. This information enables job seekers to pinpoint which industries are hiring and where, assisting them in targeting their job searches and training efforts more effectively. Small business owners can analyze trends in their specific sectors to make informed decisions about when to expand or invest in new areas.
Additionally, educators can use this data to adjust curricula to better align with market demands, ensuring students gain relevant skills that increase their employability. This detailed data serves as a useful tool for economic and career planning across the state.
The program underscores the power of partnership in understanding local labor markets. For residents of Utah, the LEHD program provides easy access to detailed and practical employment data.
How the QWI Explorer benefits Utahns
One of the most accessible tools available from these partnerships is the Quarterly Workforce Indicators (QWI) Explorer. This interactive tool allows users access to detailed quarterly statistics about employment gains, losses, and earnings by industry, age, and gender for more than 95% of U.S. jobs, including those in Utah.
Practical uses for the average user in Utah
For the average Utahn, this information can be a goldmine. Here are a few practical ways individuals might utilize the dataset:
- Job seekers: Understanding which industries are growing or shrinking can help those entering the job market or considering a career change make informed decisions, particularly before investing time in education and training.
- Small business owners: Local entrepreneurs can use the data to identify economic trends, understand the competitive landscape, and make strategic decisions about hiring and business growth.
- Students and educators: Educational institutions can align curricula with the skills most in demand in the job market, helping students prepare for the future.
- Local advocates and community planners: Data on employment trends can aid in community planning and advocacy, ensuring resources are directed where they are most needed.
Getting started with the QWI Explorer for Utah: Step-by-step guide
The QWI Explorer has many options available to select specific segments of data. The following section will be a tutorial of how to use the QWI Explorer to look at areas of interest in Utah. For this demonstration, selections will be made to examine job creation in Cache County in young manufacturing firms founded in the last three years. To get started, navigate to the QWI Explorer by clicking this link, navigating to the website via any web search engine, or the U.S. Census Bureau webpage. Additionally, links are available to the QWI Explorer and other related resources on the Department of Workforce Services’ website for economic data under the Related Labor Market Websites webpage.
When the QWI Explorer first opens, it shows a default graphical representation—a chart depicting employment trends over time. This graph gives an immediate visual summary of the selected data. As selections are made and filters applied, the graph will change. Follow the instructions through the selection screen to get the desired data (see screenshots below for visual reference).
Geography level: Clicking Geography Level enables a dropdown menu to select either the nation or a specific state. In this case, Utah is the area of interest.
Indicator: Directly below the geographic selection, there is an 'Indicator' drop-down menu. To look at job creation, select “FrmJbGn - Firm Job Gains: Counts (Job Creation).”
Filters/aggregations: The filter and aggregation area is where the majority of “zooming in” happens. Clicking on each of the filter links brings a pop-up that allows a check-box of multiple areas of interest and various levels of specificity.
Starting with Geography, set Geography Type to Counties and select Cache, UT.
Under NAICS Sectors, select “31-33 Manufacturing.”
In Firm Ownership, select “All Private Ownership.” Here, selections can also be made about firm age or size. For this exercise, select “0-1 Years” and “2-3 Years” under Firm Age. Do not make any selections for Firm Size.
While worker characteristics can be filtered, leave the filter as “None” for this exercise. This leaves a wide range of characteristics that can be viewed.
After these selections are made, QWI Explorer will appear as this.
The data now shows job creation in Cache County by privately owned manufacturing firms that are 0-3 years old. Workers are currently aggregated into age groups. This view can be altered to fit individual needs.X-axis selection: The timeline, or X-axis, of the chart can be adjusted to change what data is on the X-axis or to show different spans of time if a longer time period is preferable. For this exercise, extend the time selection to 2015 to get a picture before and after 2020.
Under the X-axis drop-down menu, click on “20 Quarters Selected.” This will bring up a selection screen.
Select available quarters back to 2015 by either selecting each quarter individually or simply clicking the checkmark next to a year to select the entire year.
Group by option: Next to the X-axis options, the 'Group' feature allows users to categorize data by demographics like age or gender, or by different industry sectors. This segmentation can highlight specific trends within the workforce. Change the group to education in the drop-down.
After making the above selections the QWI Explorer will look like this:
The data shows there are still jobs created in Cache County by privately owned manufacturing companies that are 0-3 years old, but new information appears for jobs created across time from 2015 to current available data by education attainment.
This data can be downloaded in .csv, PDF, or Excel format for whatever external use is desired by clicking “Get Data” under “Indicator.”
The Role of LEHD in Utah
The LEHD program leverages both federal and state administrative records to create a comprehensive database that offers insights into job creation, worker turnover, and employment trends across various sectors and demographics within each state. This data encompasses a wide array of demographic information including age, gender, and race/ethnicity of workers, allowing for detailed analysis of employment patterns among different groups.
Additionally, the LEHD program provides extensive details about firms, including firm size—ranging from small businesses to large corporations—and industry type, which is categorized according to the
North American Industry Classification System (NAICS). This enables users to identify and track economic and employment shifts within specific sectors, and how these shifts differ across firm sizes. Turnover rates can be cross-referenced with demographic data to provide a deeper understanding of employment stability and mobility among different worker groups.
LEHD data also includes detailed wage records, which provide an essential view of earnings trends across different industries and occupations. This aspect of the dataset allows for analysis of wage growth, wage disparities, and the overall economic status of different worker demographics. Furthermore, indicators of employment stability, such as the length of job tenure and the rate of full-time versus part-time employment, offer insights into the security and quality of jobs, which is crucial for understanding the health of the economy.
Data in the LEHD system lags between 9-12 months behind real-time, largely due to its use of Quarterly Census of Employment and Wages (QCEW) data and state-side unemployment insurance claims. Additionally, the federal database relies on voluntary cooperation by each state, and may encounter occasional additional lag due to procedural delays.
The scope of the data available makes it useful not only to government and commercial entities for planning and policymaking, but is also accessible to the public, offering a transparent view into the dynamics of the state’s economy. By providing such detailed insights, the LEHD program serves as a valuable resource for anyone interested in digging into the labor market.
Closing and caveats
By adjusting the demonstrated tools within the QWI Explorer, users can gain insights over a variety of different topics and areas.
Despite how helpful and specific the QWI Explorer is, there are pitfalls. Users should be aware of certain limitations that can affect the utility of the data. One significant challenge is the occasional unavailability of data for small areas. Due to confidentiality protections and the statistical reliability thresholds set by the U.S. Census Bureau, some data points for less populated areas or smaller demographic groups may be suppressed to prevent the identification of individuals. This can limit the detail of analysis for specific localities or sub-populations. Additionally, there is a natural lag in the data, as the collection, processing, and release of workforce statistics takes time. This delay means that the most current labor market changes are not immediately captured, which can be a drawback for users seeking up-to-the-minute data for decision-making. Thus, while the QWI Explorer provides detailed information, it's essential to recognize these constraints and consider them when interpreting the results. For more information on QWI data sources, time lags, and available variables, see:
Quarterly Workforce Indicators 101.
By mastering the QWI Explorer, individuals equip themselves with the knowledge to make informed decisions based on comprehensive labor market data. This tool is not only a gateway to understanding the current economic landscape, but also serves as a forecast tool that can predict future employment trends. Diving in and exploring today helps an individual utilize labor market information when making decisions for their career, business, or community initiative.