Fred operates his own business, Fred would be counted as employed
a. in the household but not the establishment survey.
b. in neither the household nor the establishment survey.
c. in both the household and establishment surveys.
d. in the establishment but not the household survey.
The correct answer and explanation is:
The correct answer is a. in the household but not the establishment survey.
Fred, as a business owner, would be considered employed in the household survey but not in the establishment survey. Here’s why:
- Household Survey: This survey, which is conducted by the Bureau of Labor Statistics (BLS) as part of the Current Population Survey (CPS), focuses on individuals and their employment status. It asks about the employment status of people in households, including whether they are working for a wage, self-employed, or not working at all. Since Fred operates his own business, he would be considered self-employed, and therefore counted as employed in this survey.
- Establishment Survey: This survey, also known as the Current Employment Statistics (CES) survey, focuses on businesses and establishments, not individual people. It collects data on employment, hours, and earnings from a sample of employers across the country. Since Fred is self-employed and does not work for an employer or business that would be surveyed in the establishment survey, he is not counted in this survey. The establishment survey only captures data on people employed by companies or organizations, not those who own and operate their own businesses.
This distinction is important because the two surveys use different methods to collect data about the workforce. The household survey includes both wage and salary workers and the self-employed, while the establishment survey only includes people working for other businesses. So, Fred would appear in the household survey as employed but not in the establishment survey.