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Measuring Labor Force Flows: A Special Conference Examines the Problems

Evidence accumulated in recent decades indicates that the American labor market is very dynamic, with millions of persons entering and leaving it each month. In addition, large flows are known to occur strictly within the labor force, as many workers move from employment to unemployment and vice versa. However, the volume of these flows-which are largely offsetting-cannot be determined from the data published monthly on the size of the labor force and its principal components . The statistics published monthly are "stock" measurements, which tell us only what "net" changes, if any, there have been in the levels of employment and unemployment, in the counts of persons outside the labor force, and in the various components of each of these groups . To determine how many persons are flowing back and forth among these groups each month-regardless of what happens to the size of the groups-one must dig deeper and turn to special data on "gross" flows . Unfortunately, these data have proven difficult to analyze and explain and have been little used . As a result, we know little about the exact size of the gross monthly changes which lie behind the ups and downs in our widely used labor force statistics .