Major Labor Force Indicators Pseudocode

Below is pseudocode to outline the process for using the CPS to calculate three major labor force indicators: the unemployment rate, the labor force participation rate, and the employment to population ratio. As a result of this process, users will also obtain the total unemployed, employed, not in the labor force, and population for the sample on a monthly basis.

Variables: PWSSWGT, PEMLR, HRMONTH, HRYEAR4

Population = sum(PWSSWGT) by HRMONTH and HRYEAR4

  If PEMLR is 1 or 2

                        Employed = sum(PWSSWGT) by HRMONTH and HRYEAR4    

If PEMLR is 3 or 4

                        Unemployed = sum(PWSSWGT) by HRMONTH and HRYEAR4

  If PEMLR is 5, 6, or 7

                        Not in the Labor Force = sum(PWSSWGT) by HRMONTH and HRYEAR4

            Unemployment Rate = Unemployed / (Employed + Unemployed)

            Labor Force Participation Rate = (Unemployed + Employed)/ Population

            Employed-to-Population Ratio = Employed/Population