What is the difference between the Current Population Survey and the establishment survey? What are the major drawbacks for each of these measures of unemployment?

Question

What will be an ideal response?

Answer 1

The Current Population Survey, also called the household survey, calculates the unemployment rate by considering those people who worked during the week before the survey or were temporarily away from their jobs as employed, and those people who did not work during the week before the survey but were available for work and actively looking as unemployed. Drawbacks to the Current Population survey include distinguishing between unemployed workers and those not in the labor force, such as discouraged workers, and counting part-time workers as employed even if those workers would prefer full-time jobs. The establishment survey, also called the payroll survey, samples business establishments to gather information on the number of people employed and on a company payroll. Drawbacks to the establishment survey include not gathering data on self-employed persons, failing to count some persons who are employed at newly opened businesses, and not providing any information on unemployment.