Monday, November 9, 2015

Utah's Agricultural Employment – The Census of Agriculture Gives a More Complete Picture

Farming, (or more generally, agriculture) is obviously an important part of the economy, so why is that when you hear employment statistics reported in the news, you typically hear them reported as “nonfarm” employment?

“Nonfarm payroll employment” is terminology from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW), and the term is slightly misleading. There is, in fact, some data on agricultural employment in the QCEW data that's typically reported in the news, it’s just not complete. 

QCEW employment data are based on administrative records from employers who pay into the state’s Unemployment Insurance (UI) program, so workers not covered under UI laws are not captured. Agricultural employers are generally exempt from the requirements for UI coverage, so the data are simply not comprehensive enough to calculate reliable estimates. Furthermore, many agricultural operations are sole-proprietorships that are also exempt from UI coverage (whether in agriculture or not), so those individuals are not recorded either.

All of this comes down to the fact that the typical “nonfarm” employment statistics you hear about in the news, on average, do not include roughly 90 percent of Utah’s agricultural employment. In 2012, QCEW reported fewer than 5,000 employees in “Covered Agriculture,” for the whole state, which represented less than one half of one percent of Utah’s total employment.

Fortunately, the Census of Agriculture, conducted by the U.S. Department of Agriculture once every five years, gives a revealing picture of the agricultural sector. The most recent data, covering 2012, were released last May. The Agricultural Census surveys all of those UI-exempt farms that the QCEW misses and found that there were actually about 47,000 jobs in agriculture in 2012 — more than 3.5 percent of Utah’s total employment.

For information on agricultural employment in your region click on the relevant tab/s at the top of the blog. In addition to the employment data, each regional blog contains an "Agricultural Profile" displaying information on farms, land use, agricultural production, and other characteristics.

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