Monday, April 23, 2012

A Tale of the Business Cycle, Education, and Hiring - Trendlines article

The Census Bureau’s Local Employment Dynamics (LED) data has opened even the eyes of experienced labor market economists like me to the “churn” of people and jobs in the labor market. Recently, the LED program has added even more demographic detail to the data series, providing a wealth of economic information about what occurs in the labor market on a local level.

Always interested in the relationship between educational attainment and the labor market, I decided to examine new hires by educational level over the past decade. Because this information could be subject to misinterpretation, let me clearly lay out the scope and nature of the data.
  • This data covers only individuals 25 years and older. Due to young people’s propensity to change employment, these hires represent only about 60 percent of total hires.
  • A worker’s personal education attainment determines the educational category, not the job requirements. For example a person with a PhD might be hired as a cashier.
  • To simplify analysis, I used the share of hires with a bachelor’s degree or higher as a percentage of total hires. Because of the seasonal nature of the data, I also used a four-quarter moving average to explore trends.

To read more, see the entire article here.

To check out the data tool for LED in Utah, see here.

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