Source and Accuracy Statement

Attachment K-UI Non-filer Source and Accuracy Statement.pdf

Current Population Survey Unemployment Insurance Non-Filer Supplement

Source and Accuracy Statement

OMB: 1220-0193

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Attachment 16
Source of the Data and Accuracy of the Estimates for the
May & September 2018 CPS Microdata File on
Unemployment Insurance Nonfilers
	
	
SOURCE	OF	THE	DATA	
	
The	data	in	this	microdata	file	are	from	the	May	and	September	2018	Current	Population	
Survey	(CPS).		The	U.S.	Census	Bureau	conducts	the	CPS	every	month,	although	this	file	has	
only	May	and	September	data.		The	May	and	September	surveys	use	two	sets	of	questions,	
the	basic	CPS	and	a	set	of	supplemental	questions.		The	CPS,	sponsored	jointly	by	the	
Census	Bureau	and	the	U.S.	Bureau	of	Labor	Statistics,	is	the	country’s	primary	source	of	
labor	force	statistics	for	the	civilian	noninstitutionalized	population.		The	Census	Bureau	
and	the	U.S.	Bureau	of	Labor	Statistics	also	jointly	sponsor	the	supplemental	questions	for	
May	and	September.		
	
Basic	CPS.		The	monthly	CPS	collects	primarily	labor	force	data	about	the	civilian	
noninstitutionalized	population	living	in	the	United	States.		The	institutionalized	
population,	which	is	excluded	from	the	population	universe,	is	composed	primarily	of	the	
population	in	correctional	institutions	and	nursing	homes	(98	percent	of	the	4.0	million	
institutionalized	people	in	Census	2010).		Starting	August	2017,	college	and	university	
dormitories	were	also	excluded	from	the	population	universe	because	the	majority	of	the	
residents	had	usual	residences	elsewhere.		Interviewers	ask	questions	concerning	labor	
force	participation	about	each	member	15	years	old	and	over	in	sample	households.		
Typically,	the	week	containing	the	nineteenth	of	the	month	is	the	interview	week.		The	
week	containing	the	twelfth	is	the	reference	week	(i.e.,	the	week	about	which	the	labor	
force	questions	are	asked).		
	
The	CPS	uses	a	multistage	probability	sample	based	on	the	results	of	the	decennial	census,	
with	coverage	in	all	50	states	and	the	District	of	Columbia.		The	sample	is	continually	
updated	to	account	for	new	residential	construction.		When	files	from	the	most	recent	
decennial	census	become	available,	the	Census	Bureau	gradually	introduces	a	new	sample	
design	for	the	CPS.			
	
Every	ten	years,	the	CPS	first	stage	sample	is	redesigned1	reflecting	changes	based	on	the	
most	recent	decennial	census.		In	the	first	stage	of	the	sampling	process,	primary	sampling	
units	(PSUs)2	were	selected	for	sample.			In	the	2010	sample	design,	the	United	States	was	
divided	into	1,987	PSUs.		These	PSUs	were	then	grouped	into	852	strata.		Within	each	
stratum,	a	single	PSU	was	chosen	for	the	sample,	with	its	probability	of	selection	
1		

2		

	

For	detailed	information	on	the	2010	sample	redesign,	please	see	Bureau	of	Labor	Statistics	(2014).	
The	PSUs	correspond	to	substate	areas	(i.e.,	counties	or	groups	of	counties)	that	are	geographically	
contiguous.			
	
	
	
	
	
	
	
16-1

proportional	to	its	population	as	of	the	most	recent	decennial	census.		In	the	case	of	
strata	consisting	of	only	one	PSU,	the	PSU	was	chosen	with	certainty.		
	
Approximately	72,000	and	71,000	housing	units	were	selected	for	sample	from	the	
sampling	frame	in	May	and	September,	respectively.		Based	on	eligibility	criteria,	eight	
percent	of	these	housing	units	were	sent	directly	to	computer‐assisted	telephone	
interviewing	(CATI)	in	May	and	ten	percent	in	September.		The	remaining	units	were	
assigned	to	interviewers	for	computer‐assisted	personal	interviewing	(CAPI).3		Of	all	
housing	units	in	sample,	about	60,000	were	determined	to	be	eligible	for	interview	in	each	
month	for	May	and	September.		Interviewers	obtained	interviews	at	about	51,000	of	these	
units	in	each	of	the	two	months.		Noninterviews	occur	when	the	occupants	are	not	found	at	
home	after	repeated	calls	or	are	unavailable	for	some	other	reason.	
	
May	and	September	2018	Supplement.		In	May	and	September	2018,	in	addition	to	the	
basic	CPS	questions,	interviewers	asked	supplementary	questions	about	Unemployment	
Insurance	to	civilian	noninstitutionalized	persons	age	16	or	older	who	were	unemployed,	
as	well	as	a	subset	of	those	classified	as	not	in	the	labor	force.		Of	the	persons	who	
completed	basic	CPS	interviews,	about	62,000	persons	were	eligible	to	be	interviewed	for	
the	supplement	in	May	and	September	combined.	Interviewers	obtained	about	57,000	
supplement	interviews	in	May	and	September	combined.	
	
Estimation	Procedure.		This	survey’s	estimation	procedure	adjusts	weighted	sample	
results	to	agree	with	independently	derived	population	controls	of	the	civilian	
noninstitutionalized	population	of	the	United	States,	each	state,	and	the	District	of	
Columbia.		These	population	controls4	are	prepared	by	the	Census	Bureau’s	Population	
Estimates	Program.	
	
The	population	controls	for	the	nation	are	distributed	by	demographic	characteristics	in	
two	ways:		
	
• Age,	sex,	and	race	(White	alone,	Black	alone,	and	all	other	groups	combined).	
• Age,	sex,	and	Hispanic	origin.			
	
The	population	controls	for	the	states	are	distributed	by	race	(Black	alone	and	all	other	
race	groups	combined),	age	(0‐15,	16‐44,	and	45	and	over),	and	sex.		
	
The	independent	estimates	by	age,	sex,	race,	and	Hispanic	origin,	and	for	states	by	selected	
age	groups	and	broad	race	categories,	are	developed	using	the	basic	demographic	
accounting	formula	whereby	the	population	from	the	2010	Census	data	is	updated	using	
3		

For	further	information	on	CATI	and	CAPI	and	the	eligibility	criteria,	please	see	U.S.	Census	Bureau	
(2006).	
4		
For	additional	information	on	population	controls,	including	details	on	the	demographic	characteristics	
used	and	net	international	components,	please	see	Chapter	10	and	Appendix	C	of	U.S.	Census	Bureau	
(2006).	
	
	
	
	
	
	
16-2

data	on	the	components	of	population	change	(births,	deaths,	and	net	international	
migration)	with	net	internal	migration	as	an	additional	component	in	the	state	population	
estimates.	
	
The	net	international	migration	component	of	the	population	estimates	includes:		
• Net	international	migration	of	the	foreign	born;	
• Net	migration	between	the	United	States	and	Puerto	Rico;		
• Net	migration	of	natives	to	and	from	the	United	States;	and	
• Net	movement	of	the	Armed	Forces	population	to	and	from	the	United	States.	
	
Because	the	latest	available	information	on	these	components	lags	the	survey	date,	it	is	
necessary	to	make	short‐term	projections	of	these	components	to	develop	the	estimate	for	
the	survey	date.	
	
ACCURACY	OF	THE	ESTIMATES	
A	sample	survey	estimate	has	two	types	of	error:	sampling	and	nonsampling.		The	accuracy	
of	an	estimate	depends	on	both	types	of	error.		The	nature	of	the	sampling	error	is	known	
given	the	survey	design;	the	full	extent	of	the	nonsampling	error	is	unknown.		
	
Sampling	Error.		Since	the	CPS	estimates	come	from	a	sample,	they	may	differ	from	figures	
from	an	enumeration	of	the	entire	population	using	the	same	questionnaires,	instructions,	
and	enumerators.		For	a	given	estimator,	the	difference	between	an	estimate	based	on	a	
sample	and	the	estimate	that	would	result	if	the	sample	were	to	include	the	entire	
population	is	known	as	sampling	error.		Standard	errors,	as	calculated	by	methods	
described	in	“Standard	Errors	and	Their	Use,”	are	primarily	measures	of	the	magnitude	of	
sampling	error.		However,	they	may	include	some	nonsampling	error.			
	
Nonsampling	Error.		For	a	given	estimator,	the	difference	between	the	estimate	that	
would	result	if	the	sample	were	to	include	the	entire	population	and	the	true	population	
value	being	estimated	is	known	as	nonsampling	error.		There	are	several	sources	of	
nonsampling	error	that	may	occur	during	the	development	or	execution	of	the	survey.		It	
can	occur	because	of	circumstances	created	by	the	interviewer,	the	respondent,	the	survey	
instrument,	or	the	way	the	data	are	collected	and	processed.		For	example,	errors	could	
occur	because:	
	
•			 The	interviewer	records	the	wrong	answer,	the	respondent	provides	incorrect	
information,	the	respondent	estimates	the	requested	information,	or	an	unclear	
survey	question	is	misunderstood	by	the	respondent	(measurement	error).	
•			 Some	individuals	who	should	have	been	included	in	the	survey	frame	were	
missed	(coverage	error).	
•			 Responses	are	not	collected	from	all	those	in	the	sample	or	the	respondent	is	
unwilling	to	provide	information	(nonresponse	error).	
•			 Values	are	estimated	imprecisely	for	missing	data	(imputation	error).	
 Forms	may	be	lost,	data	may	be	incorrectly	keyed,	coded,	or	recoded,	etc.	
(processing	error).	
16-3

	
To	minimize	these	errors,	the	Census	Bureau	applies	quality	control	procedures	during	all	
stages	of	the	production	process	including	the	design	of	the	survey,	the	wording	of	
questions,	the	review	of	the	work	of	interviewers	and	coders,	and	the	statistical	review	of	
reports.	
Two	types	of	nonsampling	error	that	can	be	examined	to	a	limited	extent	are	nonresponse	
and	undercoverage.	 	
	
Nonresponse.		The	effect	of	nonresponse	cannot	be	measured	directly,	but	one	indication	
of	its	potential	effect	is	the	nonresponse	rate.		For	the	2018	basic	CPS,	the	household‐level	
unweighted	nonresponse	rate	was	15.4	percent	in	May	and	14.9	in	September.		The	
person‐level	unweighted	nonresponse	rate	for	the	Unemployment	Insurance	supplement	
was	an	additional	5.4	percent	in	May	and	5.8	percent	in	September.	
	
Since	the	basic	CPS	nonresponse	rate	is	a	household‐level	rate	and	the	Unemployment	
Insurance	supplement	nonresponse	rate	is	a	person‐level	rate,	we	cannot	combine	these	
rates	to	derive	an	overall	nonresponse	rate.		Nonresponding	households	may	have	fewer	
persons	than	interviewed	ones,	so	combining	these	rates	may	lead	to	an	overestimate	of	
the	true	overall	nonresponse	rate	for	persons	for	the	Unemployment	Insurance	
supplement.	
	
Sufficient	Partial	Interview.		A	sufficient	partial	interview	is	an	incomplete	interview	in	
which	the	household	or	person	answered	enough	of	the	questionnaire	for	the	supplement	
sponsor	to	consider	the	interview	complete.		The	remaining	supplement	questions	may	
have	been	edited	or	imputed	to	fill	in	missing	values.		Insufficient	partial	interviews	are	
considered	to	be	nonrespondents.		Refer	to	the	supplement	overview	attachment	in	the	
technical	documentation	for	the	specific	questions	deemed	critical	by	the	sponsor	as	
necessary	to	be	answered	in	order	to	be	considered	a	sufficient	partial	interview.	
	
As	part	of	the	nonsampling	error	analysis,	the	item	response	rates,	item	refusal	rates,	and	
edits	are	reviewed.		For	the	Unemployment	Insurance	supplement,	the	item	refusal	rates	
range	from	0.05	percent	to	0.90	percent.		The	item	nonresponse	rates	range	from	2.14	
percent	to	22.28	percent.	
	
Coverage.		The	concept	of	coverage	in	the	survey	sampling	process	is	the	extent	to	which	
the	total	population	that	could	be	selected	for	sample	“covers”	the	survey’s	target	
population.		Missed	housing	units	and	missed	people	within	sample	households	create	
undercoverage	in	the	CPS.		Overall	CPS	undercoverage	for	May	and	September	2018	is	
estimated	to	be	about	11	percent	for	each	month.		CPS	coverage	varies	with	age,	sex,	and	
race.		Generally,	coverage	is	higher	for	females	than	for	males	and	higher	for	non‐Blacks		
than	for	Blacks.		This	differential	coverage	is	a	general	problem	for	most	household‐based	
surveys.	
	
The	CPS	weighting	procedure	partially	corrects	for	bias	from	undercoverage,	but	biases	
may	still	be	present	when	people	who	are	missed	by	the	survey	differ	from	those	
16-4

interviewed	in	ways	other	than	age,	race,	sex,	Hispanic	origin,	and	state	of	residence.		
How	this	weighting	procedure	affects	other	variables	in	the	survey	is	not	precisely	known.		
All	of	these	considerations	affect	comparisons	across	different	surveys	or	data	sources.			
	
A	common	measure	of	survey	coverage	is	the	coverage	ratio,	calculated	as	the	estimated	
population	before	poststratification	divided	by	the	independent	population	control.		Tables	
1	and	2	show	the	basic	CPS	coverage	ratios	by	age	and	sex	for	certain	race	and	Hispanic	
groups	for	May	2018	and	September	2018,	respectively.		The	CPS	coverage	ratios	can	
exhibit	some	variability	from	month	to	month.	
	
Table 1. Current Population Survey Coverage Ratios: September 2018
Total
Age	
group	
0‐15	
16‐19	
20‐24	
25‐34	
35‐44	
45‐54	
55‐64	
65+	
15+	
0+	

All	
people	
0.87	
0.86	
0.75	
0.82	
0.90	
0.90	
0.93	
0.97	
0.89	
0.89	

White only

Black only

Residual	raceA

HispanicB

Male	 Female	 Male	 Female	 Male	 Female	 Male	 Female	 Male	 Female	
0.88	
0.88	
0.74	
0.80	
0.87	
0.89	
0.92	
0.97	
0.88	
0.88	

0.86	
0.84	
0.77	
0.85	
0.93	
0.91	
0.94	
0.98	
0.90	
0.90	

0.92	
0.91	
0.79	
0.84	
0.90	
0.93	
0.95	
0.98	
0.91	
0.91	

0.91	
0.86	
0.79	
0.89	
0.96	
0.94	
0.97	
0.99	
0.94	
0.93	

0.70	
0.75	
0.55	
0.64	
0.72	
0.71	
0.77	
0.96	
0.73	
0.72	

0.67	
0.68	
0.71	
0.71	
0.80	
0.75	
0.81	
0.92	
0.78	
0.76	

0.84	
0.85	
0.66	
0.72	
0.80	
0.85	
0.81	
0.85	
0.79	
0.80	

0.83	
0.93	
0.68	
0.75	
0.84	
0.85	
0.81	
0.85	
0.81	
0.82	

0.79	
0.81	
0.69	
0.72	
0.78	
0.80	
0.88	
0.86	
0.78	
0.78	

0.82	
0.81	
0.75	
0.84	
0.89	
0.87	
0.89	
0.88	
0.85	
0.84	

Source:		U.S.	Census	Bureau,	Current	Population	Survey,	May	2018.	
A	
The	Residual	race	group	includes	cases	indicating	a	single	race	other	than	White	or	Black,	and	cases	
indicating	two	or	more	races.	
B		 Hispanics	may	be	any	race.			
Note:		For	a	more	detailed	discussion	on	the	use	of	parameters	for	race	and	ethnicity,	please	see	the	
“Generalized	Variance	Parameters”	section.	

	
Table 2. Current Population Survey Coverage Ratios: September 2018
Total
Age	
group	
0‐15	
16‐19	
20‐24	
25‐34	
35‐44	
45‐54	
55‐64	
65+	
15+	
0+	

All	
people	
0.88	
0.87	
0.77	
0.82	
0.90	
0.90	
0.92	
0.97	
0.89	
0.89	

White only

Black only

Residual	raceA

HispanicB

Male	 Female	 Male	 Female	 Male	 Female	 Male	 Female	 Male	 Female	
0.88	
0.90	
0.78	
0.80	
0.88	
0.89	
0.91	
0.97	
0.88	
0.88	

0.87	
0.84	
0.76	
0.85	
0.92	
0.91	
0.93	
0.97	
0.90	
0.90	

0.92	
0.94	
0.81	
0.84	
0.90	
0.93	
0.92	
0.98	
0.91	
0.91	

0.92	
0.88	
0.78	
0.89	
0.97	
0.94	
0.94	
0.99	
0.93	
0.93	

0.71	
0.75	
0.68	
0.58	
0.75	
0.74	
0.84	
0.93	
0.74	
0.73	

0.72	
0.71	
0.68	
0.70	
0.77	
0.80	
0.88	
0.95	
0.79	
0.78	

Source:		U.S.	Census	Bureau,	Current	Population	Survey,	September	2018.	
16-5

0.82	
0.83	
0.74	
0.79	
0.87	
0.82	
0.85	
0.85	
0.82	
0.82	

0.83	
0.75	
0.78	
0.80	
0.84	
0.87	
0.85	
0.82	
0.83	
0.82	

0.82	
0.93	
0.78	
0.72	
0.79	
0.80	
0.81	
0.87	
0.80	
0.80	

0.82	
0.83	
0.76	
0.83	
0.92	
0.86	
0.84	
0.86	
0.85	
0.84	

A	

The	Residual	race	group	includes	cases	indicating	a	single	race	other	than	White	or	Black,	and	cases	
indicating	two	or	more	races.	
B		 Hispanics	may	be	any	race.			
Note:		For	a	more	detailed	discussion	on	the	use	of	parameters	for	race	and	ethnicity,	please	see	the	
“Generalized	Variance	Parameters”	section.	

	
Comparability	of	Data.		Data	obtained	from	the	CPS	and	other	sources	are	not	entirely	
comparable.		This	results	from	differences	in	interviewer	training	and	experience	and	in	
differing	survey	processes.		This	is	an	example	of	nonsampling	variability	not	reflected	in	
the	standard	errors.		Therefore,	caution	should	be	used	when	comparing	results	from	
different	sources.	
	
Data	users	should	be	careful	when	comparing	the	data	from	this	microdata	file,	which	
reflects	2010	Census‐based	controls,	with	microdata	files	from	January	2003	through	
December	2011,	which	reflect	2000	Census‐based	controls.		Ideally,	the	same	population	
controls	should	be	used	when	comparing	any	estimates.		In	reality,	the	use	of	the	same	
population	controls	is	not	practical	when	comparing	trend	data	over	a	period	of	10	to	20	
years.		Thus,	when	it	is	necessary	to	combine	or	compare	data	based	on	different	controls	
or	different	designs,	data	users	should	be	aware	that	changes	in	weighting	controls	or	
weighting	procedures	can	create	small	differences	between	estimates.		See	the	discussion	
following	for	information	on	comparing	estimates	derived	from	different	controls	or	
different	sample	designs.			
	
Microdata	files	from	previous	years	reflect	the	latest	available	census‐based	controls.		
Although	the	most	recent	change	in	population	controls	had	relatively	little	impact	on	
summary	measures	such	as	averages,	medians,	and	percentage	distributions,	it	did	have	a	
significant	impact	on	levels.		For	example,	use	of	2010	Census‐based	controls	results	in	
about	a	0.2	percent	increase	from	the	2000	census‐based	controls	in	the	civilian	
noninstitutionalized	population	and	in	the	number	of	families	and	households.		Thus,	
estimates	of	levels	for	data	collected	in	2012	and	later	years	will	differ	from	those	for	
earlier	years	by	more	than	what	could	be	attributed	to	actual	changes	in	the	population.		
These	differences	could	be	disproportionately	greater	for	certain	population	subgroups	
than	for	the	total	population.			
	
Users	should	also	exercise	caution	because	of	changes	caused	by	the	phase‐in	of	the	Census	
2010	files	(see	“Basic	CPS”).5		During	this	time	period,	CPS	data	were	collected	from	sample	
designs	based	on	different	censuses.		Two	features	of	the	new	CPS	design	have	the	potential	
of	affecting	published	estimates:	(1)	the	temporary	disruption	of	the	rotation	pattern	from	
August	2014	through	June	2015	for	a	comparatively	small	portion	of	the	sample	and	(2)	
the	change	in	sample	areas.		Most	of	the	known	effect	on	estimates	during	and	after	the	
sample	redesign	will	be	the	result	of	changing	from	2000	to	2010	geographic	definitions.		
Research	has	shown	that	the	national‐level	estimates	of	the	metropolitan	and	
nonmetropolitan	populations	should	not	change	appreciably	because	of	the	new	sample	

5		

The	phase‐in	process	using	the	2010	Census	files	began	April	2014.	
16-6

design.		However,	users	should	still	exercise	caution	when	comparing	metropolitan	
and	nonmetropolitan	estimates	across	years	with	a	design	change,	especially	at	the	state	
level.	
	
Caution	should	also	be	used	when	comparing	Hispanic	estimates	over	time.		No	
independent	population	control	totals	for	people	of	Hispanic	origin	were	used	before	1985.			
	
A	Nonsampling	Error	Warning.		Since	the	full	extent	of	the	nonsampling	error	is	
unknown,	one	should	be	particularly	careful	when	interpreting	results	based	on	small	
differences	between	estimates.		The	Census	Bureau	recommends	that	data	users	
incorporate	information	about	nonsampling	errors	into	their	analyses,	as	nonsampling	
error	could	impact	the	conclusions	drawn	from	the	results.		Caution	should	also	be	used	
when	interpreting	results	based	on	a	relatively	small	number	of	cases.		Summary	measures	
(such	as	medians	and	percentage	distributions)	probably	do	not	reveal	useful	information	
when	computed	on	a	subpopulation	smaller	than	75,000.			
	
For	additional	information	on	nonsampling	error,	including	the	possible	impact	on	CPS		
data,	when	known,	refer	to	U.S.	Census	Bureau	(2006)	and	Brooks	&	Bailar	(1978).	
	
Standard	Errors	and	Their	Use.		The	sample	estimate	and	its	standard	error	enable	one	
to	construct	a	confidence	interval.		A	confidence	interval	is	a	range	about	a	given	estimate	
that	has	a	specified	probability	of	containing	the	average	result	of	all	possible	samples.		For	
example,	if	all	possible	samples	were	surveyed	under	essentially	the	same	general	
conditions	and	using	the	same	sample	design,	and	if	an	estimate	and	its	standard	error	
were	calculated	from	each	sample,	then	approximately	90	percent	of	the	intervals	from	
1.645	standard	errors	below	the	estimate	to	1.645	standard	errors	above	the	estimate	
would	include	the	average	result	of	all	possible	samples.	
	
A	particular	confidence	interval	may	or	may	not	contain	the	average	estimate	derived	from	
all	possible	samples,	but	one	can	say	with	specified	confidence	that	the	interval	includes	
the	average	estimate	calculated	from	all	possible	samples.	
	
Standard	errors	may	also	be	used	to	perform	hypothesis	testing,	a	procedure	for	
distinguishing	between	population	parameters	using	sample	estimates.		The	most	common	
type	of	hypothesis	is	that	the	population	parameters	are	different.		An	example	of	this	
would	be	comparing	the	percentage	of	men	who	were	part‐time	workers	to	the	percentage	
of	women	who	were	part‐time	workers.			
	
Tests	may	be	performed	at	various	levels	of	significance.		A	significance	level	is	the	
probability	of	concluding	that	the	characteristics	are	different	when,	in	fact,	they	are	the	
same.		For	example,	to	conclude	that	two	characteristics	are	different	at	the	0.10	level	of	
significance,	the	absolute	value	of	the	estimated	difference	between	characteristics	must	be	
greater	than	or	equal	to	1.645	times	the	standard	error	of	the	difference.	
	
16-7

The	Census	Bureau	uses	90‐percent	confidence	intervals	and	0.10	levels	of	significance	
to	determine	statistical	validity.		Consult	standard	statistical	textbooks	for	alternative	
criteria.	
	
Estimating	Standard	Errors.		The	Census	Bureau	uses	replication	methods	to	estimate	the	
standard	errors	of	CPS	estimates.		These	methods	primarily	measure	the	magnitude	of	
sampling	error.		However,	they	do	measure	some	effects	of	nonsampling	error	as	well.		
They	do	not	measure	systematic	biases	in	the	data	associated	with	nonsampling	error.		Bias	
is	the	average	over	all	possible	samples	of	the	differences	between	the	sample	estimates	
and	the	true	value.			
	
There	are	two	ways	to	calculate	standard	errors	for	the	CPS	microdata	file	on	
Unemployment	Insurance.		They	are:		
	
• Direct	estimates	created	from	replicate	weighting	methods;	
• Generalized	variance	estimates	created	from	generalized	variance	function	
parameters	a	and	b.	
	
While	replicate	weighting	methods	provide	the	most	accurate	variance	estimates,	this	
approach	requires	more	computing	resources	and	more	expertise	on	the	part	of	the	user.		
The	Generalized	Variance	Function	(GVF)	parameters	provide	a	method	of	balancing	
accuracy	with	resource	usage	as	well	as	a	smoothing	effect	on	standard	error	estimates	
across	time.		For	more	information	on	calculating	direct	estimates,	see	U.S.	Census	Bureau	
(2009).		For	more	information	on	GVF	estimates,	refer	to	the	“Generalized	Variance	
Parameters”	section.	
	
Generalized	Variance	Parameters.		While	it	is	possible	to	compute	and	present	an	
estimate	of	the	standard	error	based	on	the	survey	data	for	each	estimate	in	a	report,	there	
are	a	number	of	reasons	why	this	is	not	done.		A	presentation	of	the	individual	standard	
errors	would	be	of	limited	use,	since	one	could	not	possibly	predict	all	of	the	combinations	
of	results	that	may	be	of	interest	to	data	users.		Additionally,	data	users	have	access	to	CPS	
microdata	files,	and	it	is	impossible	to	compute	in	advance	the	standard	error	for	every	
estimate	one	might	obtain	from	those	data	sets.		Moreover,	variance	estimates	are	based	on	
sample	data	and	have	variances	of	their	own.		Therefore,	some	methods	of	stabilizing	these	
estimates	of	variance,	for	example,	by	generalizing	or	averaging	over	time,	may	be	used	to	
improve	their	reliability.			
	
Experience	has	shown	that	certain	groups	of	estimates	have	similar	relationships	between	
their	variances	and	expected	values.		Modeling	or	generalizing	may	provide	more	stable	
variance	estimates	by	taking	advantage	of	these	similarities.		The	GVF	is	a	simple	model	
that	expresses	the	variance	as	a	function	of	the	expected	value	of	the	survey	estimate.		The	
parameters	of	the	GVF	are	estimated	using	direct	replicate	variances.		These	GVF	
parameters	provide	a	relatively	easy	method	to	obtain	approximate	standard	errors	for	
numerous	characteristics.			
	
16-8

In	this	source	and	accuracy	statement,	Tables	4	through	6	provide	illustrations	for	
calculating	standard	errors.		Table	7	provides	the	GVF	parameters	for	labor	force	
estimates,	and	Table	8	provides	GVF	parameters	for	characteristics	from	the	May	and	
September	2018	supplement.	
	
The	basic	CPS	questionnaire	records	the	race	and	ethnicity	of	each	respondent.		With	
respect	to	race,	a	respondent	can	be	White,	Black,	Asian,	American	Indian	and	Alaskan	
Native	(AIAN),	Native	Hawaiian	and	Other	Pacific	Islander	(NHOPI),	or	combinations	of	two	
or	more	of	the	preceding.		A	respondent’s	ethnicity	can	be	Hispanic	or	non‐Hispanic,	
regardless	of	race.	
	
The	GVF	parameters	to	use	in	computing	standard	errors	are	dependent	upon	the	
race/ethnicity	group	of	interest.		The	following	table	summarizes	the	relationship	between	
the	race/ethnicity	group	of	interest	and	the	GVF	parameters	to	use	in	standard	error	
calculations.	
	
Table 3. Estimation Groups of Interest and Generalized Variance Parameters
Generalized variance parameters to
use in standard error calculations

Race/ethnicity group of interest
Total	population	

Total	or	White	

White	alone,	White	alone	or	in	combination	(AOIC),	or	
White	non‐Hispanic	population	

Total	or	White	

Black	alone,	Black	AOIC,	or	Black	non‐Hispanic	population	

Black	

Asian	alone,	Asian	AOIC,	or	Asian	non‐Hispanic	population	

Asian,	American	Indian	and	Alaska	
Native	(AIAN),	Native	Hawaiian	and	
Other	Pacific	Islander	(NHOPI)	

AIAN	alone,	AIAN	AOIC,	or	AIAN	non‐Hispanic	population	

Asian,	AIAN,	NHOPI	

NHOPI	alone,	NHOPI	AOIC,	or	NHOPI	non‐Hispanic	
population	

Asian,	AIAN,	NHOPI	

Populations	from	other	race	groups	

Asian,	AIAN,	NHOPI	

HispanicA	population	

HispanicA	

Two	or	more	racesB	–	employment/unemployment	and	
educational	attainment	characteristics	
Two	or	more	racesB	–	all	other	characteristics	

Black	
Asian,	AIAN,	NHOPI	

Source:	U.S.	Census	Bureau,	Current	Population	Survey,	internal	data	files.		
A	
Hispanics	may	be	any	race.	
B
Two	or	more	races	refers	to	the	group	of	cases	self‐classified	as	having	two	or	more	races.			

	
When	calculating	standard	errors	for	an	estimate	of	interest	from	cross‐tabulations	
involving	different	characteristics,	use	the	set	of	GVF	parameters	for	the	characteristic	that	
will	give	the	largest	standard	error.		If	the	estimate	of	interest	is	strictly	from	basic	CPS	
data,	the	GVF	parameters	will	come	from	the	CPS	GVF	table	(Table	7).		If	the	estimate	is	
using	Unemployment	Insurance	supplement	data,	the	GVF	parameters	will	come	from	the	
16-9

Unemployment	Insurance	supplement	GVF	table	(Table	8).		Do	not	use	the	
Unemployment	Insurance	Public	Use	File	for	basic	CPS	estimates	of	the	CPS	labor	force;	
only	use	it	to	analyze	the	supplement	data.	The	basic	CPS	weights	were	not	adjusted	for	
this	2‐month	file.	
	
Standard	Errors	of	Estimated	Numbers.		The	approximate	standard	error,	 ,	of	an	
estimated	number	from	this	microdata	file	can	be	obtained	by	using	the	formula:	
	
	
	
(1)	
√
	
Here	x	is	the	size	of	the	estimate,	and	a	and	b	are	the	parameters	in	Table	7	or	8	associated	
with	the	particular	type	of	characteristic.	
	
Illustration	1	
Suppose	there	were	3,510,000	unemployed	persons	aged	16	to	24	in	the	civilian	labor	
force.		Use	the	appropriate	parameters	from	Table	7	and	Formula	(1)	to	get		
	
Table 4. Illustration of Standard Errors of Estimated Numbers
Number of unemployed persons aged 16 to 24
3,510,000
In the civilian labor force (x)
a‐parameter		(a)	
‐0.000017	
b‐parameter		(b)	
3,244	
Standard	error		
106,000	
90‐percent	confidence	interval	
3,336,000	to	3,684,000	
Source:		U.S.	Census	Bureau,	Current	Population	Survey,	Unemployment	Insurance,	May	and	September	2018.	

	
The	standard	error	is	calculated	as	
	
0.000017

3,510,000
3,244 3,510,000,	
	
which,	rounded	to	the	nearest	thousand,	is	106,000.			The	90‐percent	confidence	interval	is	
calculated	as	3,510,000	±	1.645	×	106,000.	
	
A	conclusion	that	the	average	estimate	derived	from	all	possible	samples	lies	within	a	
range	computed	in	this	way	would	be	correct	for	roughly	90	percent	of	all	possible	
samples.	
	
Standard	Errors	of	Estimated	Percentages.		The	reliability	of	an	estimated	percentage,	
computed	using	sample	data	for	both	numerator	and	denominator,	depends	on	both	the	
size	of	the	percentage	and	its	base.		Estimated	percentages	are	relatively	more	reliable	than	
the	corresponding	estimates	of	the	numerators	of	the	percentages,	particularly	if	the	
percentages	are	50	percent	or	more.		When	the	numerator	and	denominator	of	the	
percentage	are	in	different	categories,	use	the	parameter	from	Table	7	or	8	as	indicated	by	
the	numerator.			
	
16-10

The	approximate	standard	error,	
using	the	formula:	
	
	

,

,	of	an	estimated	percentage	can	be	obtained	by	

100

,

		

(2)	

	
Here	y	is	the	total	number	of	people,	families,	households,	or	unrelated	individuals	in	the	
base	or	denominator	of	the	percentage,	p	is	the	percentage	100*x/y	(0	≤	p	≤	100),	and	b	is	
the	parameter	in	Table	7	or	8	associated	with	the	characteristic	in	the	numerator	of	the	
percentage.	
	
Illustration	2	
Suppose	that	of	the	3,510,000	unemployed	persons	aged	16	to	24,	1.2	percent	were	
compensated	with	unemployment	insurance.		Use	the	appropriate	parameter	from	Table	8	
and	Formula	(2)	to	get	
	
Table	5.	Illustration	of	Standard	Errors	of	Estimated	Percentages	
Percentage	of	unemployed	persons	aged	16	to	24	
1.2	
compensated	with	unemployment	insurance	(p)	
Base	(y)	
3,510,000	
b‐parameter	(b)	
2,068	
Standard	error		
0.26	
90‐percent	confidence	interval	
0.8	to	1.6	
Source:		U.S.	Census	Bureau,	Current	Population	Survey,	Unemployment	Insurance,	May	and	September	2018.	

	
The	standard	error	is	calculated	as	
	
,

2,068
3,510,000

1.2

100.0

1.2

0.26	

	
The	90‐percent	confidence	interval	for	the	estimated	percentage	of	unemployed	persons	
aged	16	to	24	compensated	with	unemployment	insurance	is	from	0.8	to	1.6	percent	(i.e.,	
1.2	±	1.645	×	0.26).	
	
Standard	Errors	of	Estimated	Differences.		The	standard	error	of	the	difference	between	
two	sample	estimates	is	approximately	equal	to	
	
	

	

(3)	

where	 	and	 	are	the	standard	errors	of	the	estimates,	 	and	 .		The	estimates	can	be	
numbers,	percentages,	ratios,	etc.		This	will	result	in	accurate	estimates	of	the	standard	
error	of	the	same	characteristic	in	two	different	areas	or	for	the	difference	between	
separate	and	uncorrelated	characteristics	in	the	same	area.		However,	if	there	is	a	high	
16-11

positive	(negative)	correlation	between	the	two	characteristics,	the	formula	will	
overestimate	(underestimate)	the	true	standard	error.	
	
Illustration	3	
Suppose	that	of	the	3,510,000	unemployed	persons	aged	16	to	24,	1.2	percent	were	
compensated	with	unemployment	insurance,	and	of	the	8,012,000	unemployed	persons	
aged	25	and	older,	9.7	percent	were	compensated.		Use	the	appropriate	parameters	from	
Table	8	and	Formulas	(2)	and	(3)	to	get	
	
Table 6. Illustration of Standard Errors of Estimated Differences
Aged 16 to 24 (x1) Aged 25 and older (x2)
Percentage	of	unemployed	who	
1.2	
9.7	
were	compensated	(p)	
Base	(y)	
3,510,000	
8,012,000	
b‐parameter	(b)	
2,068	
1,963	
Standard	error	
0.26	
0.46	
90‐percent	confidence		
0.8	to	1.6	
8.9	to	10.5	
					interval	

Difference
8.5	
‐	
‐	
0.53	
7.6	to	9.4	

Source:		U.S.	Census	Bureau,	Current	Population	Survey,	Unemployment	Insurance,	May	and	September	2018.	

	
The	standard	error	of	the	difference	is	calculated	as	
	
0.26
0.46
0.53	
	
The	90‐percent	confidence	interval	around	the	difference	is	calculated	as	8.5	±	1.645	×	
0.53.		Since	this	interval	does	not	include	zero,	we	can	conclude	with	90‐percent	confidence	
that	the	percentage	of	unemployed	persons	between	16	and	24	years	of	age	receiving	
unemployment	compensation	is	less	than	the	percentage	of	unemployed	persons	aged	25	
years	and	older	receiving	unemployment	compensation.	
	
Standard	Errors	of	Quarterly	or	Yearly	Averages.		For	information	on	calculating	
standard	errors	for	labor	force	data	from	the	CPS	which	involve	quarterly	or	yearly	
averages,	please	see	Bureau	of	Labor	Statistics	(2006).	
	
Technical	Assistance.		If	you	require	assistance	or	additional	information,	please	contact	
the	Demographic	Statistical	Methods	Division	via	e‐mail	at	
dsmd.source.and.accuracy@census.gov.	
	
	
	

16-12

Table 7. Parameters for Computation of Standard Errors for Labor Force Characteristics:
May and September 2018
Characteristic
a
b
	
	
	
Total	or	White	
	
	
				Civilian	labor	force,	employed	
‐0.000013	
2,481	
				Unemployed	
‐0.000017	
3,244	
				Not	in	labor	force	
‐0.000013	
2,432	
	
	
	
				Civilian	labor	force,	employed,	not	in	labor	force,	and	unemployed	
	
	
												Men	
‐0.000031	
2,947	
												Women	
‐0.000028	
2,788	
												Both	sexes,	16	to	19	years	
‐0.000261	
3,244	
						
	
	
Black		
	
	
				Civilian	labor	force,	employed,	not	in	labor	force,	and	unemployed	
	
	
												Total	
‐0.000117	
3,601	
												Men	
‐0.000249	
3,465	
												Women	
‐0.000191	
3,191	
												Both	sexes,	16	to	19	years	
‐0.001425	
3,601	
	
	
	
Asian,	American	Indian	and	Alaska	Native	(AIAN),	Native	
	
	
Hawaiian	and	Other	Pacific	Islander	(NHOPI)	
				Civilian	labor	force,	employed,	not	in	labor	force,	and	unemployed	
	
	
												Total	
‐0.000245	
3,311	
												Men	
‐0.000537	
3,397	
												Women	
‐0.000399	
2,874	
												Both	sexes,	16	to	19	years	
‐0.004078	
3,311	
	
	
	
Hispanic,	may	be	of	any	race		
	
	
				Civilian	labor	force,	employed,	not	in	labor	force,	and	unemployed	
	
	
												Total	
‐0.000087	
3,316	
												Men	
‐0.000172	
3,276	
												Women	
‐0.000158	
3,001	
												Both	sexes,	16	to	19	years	
‐0.000909	
3,316	
	
	
	
Source:		U.S.	Census	Bureau,	Internal	Current	Population	Survey	data	files	for	the	2010	Design.	
Notes:	 	 These	parameters	are	to	be	applied	to	basic	CPS	monthly	labor	force	estimates.		The	Total	or	White,	
Black,	and	Asian,	AIAN,	NHOPI	parameters	are	to	be	used	for	both	alone	and	in	combination	race	
group	estimates.		For	nonmetropolitan	characteristics,	multiply	the	a‐	and	b‐parameters	by	1.5.		If	the	
characteristic	of	interest	is	total	state	population,	not	subtotaled	by	race	or	ethnicity,	the	a‐	and	b‐
parameters	are	zero.		For	foreign‐born	and	noncitizen	characteristics	for	Total	and	White,	the	a‐	and	
b‐parameters	should	be	multiplied	by	1.3.		No	adjustment	is	necessary	for	foreign‐born	and	
noncitizen	characteristics	for	Black,	Hispanic,	and	Asian,	AIAN,	NHOPI	parameters.		For	the	groups	
self‐classified	as	having	two	or	more	races,	use	the	Asian,	AIAN,	NHOPI	parameters	for	all	
employment	characteristics.		

	
	
	
16-13

										Table	8. Parameters	for	Computation	of	Standard	Errors	for	Unemployment	Insurance	
Characteristics:		May	and	September	2018	
Total	or	White	
Black	
Asian,	AIAN,	NHOPIA
HispanicB	
a	
b	
a	
b	
a	
b	
a	
b	
					Did	not	apply	for	Unemployment	Insurance		
					All	Adults	
‐0.000006	 1,937	 ‐0.000029	 2,229	 ‐0.000055	 1,845	 ‐0.000037	 2,186	
					Sex	
								Male	
‐0.000012	 1,937	 ‐0.000065	 2,338	 ‐0.000113	 1,826	 ‐0.000082	 2,445	
								Female	
‐0.000012	 1,933	 ‐0.000054	 2,157	 ‐0.000116	 2,007	 ‐0.000072	 2,136	
					Age	
								16	to	24	
‐0.000049	 2,078	 ‐0.000209	 2,446	 ‐0.000336	 1,843	 ‐0.000152	 2,282	
								25	to	44	
‐0.000024	 2,038	 ‐0.000106	 2,323	 ‐0.000172	 1,718	 ‐0.000133	 2,363	
								Over	45	
‐0.000013	 1,742	 ‐0.000079	 2,030	 ‐0.000190	 1,997	 ‐0.000128	 2,101	
					Duration	of	Unemployment,	in	weeks	
								0	to	2	
‐0.000006	 1,808	 ‐0.000029	 2,218	 ‐0.000055	 1,829	 ‐0.000036	 2,164	
								3	to	4	
‐0.000006	 1,959	 ‐0.000029	 2,218	 ‐0.000052	 1,743	 ‐0.000037	 2,216	
								5	to	10	
‐0.000006	 2,061	 ‐0.000034	 2,620	 ‐0.000060	 1,990	 ‐0.000041	 2,432	
								11	to	26	
‐0.000006	 1,968	 ‐0.000031	 2,396	 ‐0.000047	 1,581	 ‐0.000037	 2,192	
								27	or	more	
‐0.000006	 1,783	 ‐0.000024	 1,840	 ‐0.000052	 1,744	 ‐0.000035	 2,079	
					Applied	for	Unemployment	Insurance		
					All	Adults	
‐0.000006	 1,899	 ‐0.000030	 2,248	 ‐0.000046	 1,552	 ‐0.000037	 2,200	
					Sex	
								Male	
‐0.000012	 1,820	 ‐0.000062	 2,245	 ‐0.000109	 1,766	 ‐0.000077	 2,299	
								Female	
‐0.000011	 1,844	 ‐0.000054	 2,169	 ‐0.000086	 1,489	 ‐0.000070	 2,093	
					Age	
								16	to	24	
‐0.000047	 2,022	 ‐0.000188	 2,205	 ‐0.000294	 1,612	 ‐0.000145	 2,171	
								25	to	44	
‐0.000023	 1,937	 ‐0.000108	 2,366	 ‐0.000174	 1,740	 ‐0.000126	 2,249	
								Over	45	
‐0.000013	 1,789	 ‐0.000077	 1,972	 ‐0.000152	 1,601	 ‐0.000144	 2,368	
					Duration	of	Unemployment,	in	weeks	
								0	to	2	
‐0.000006	 1,863	 ‐0.000029	 2,204	 ‐0.000045	 1,490	 ‐0.000031	 1,868	
								3	to	4	
‐0.000006	 1,904	 ‐0.000029	 2,204	 ‐0.000045	 1,519	 ‐0.000039	 2,332	
								5	to	10	
‐0.000006	 1,896	 ‐0.000029	 2,204	 ‐0.000048	 1,608	 ‐0.000037	 2,188	
								11	to	26	
‐0.000006	 1,835	 ‐0.000029	 2,192	 ‐0.000048	 1,589	 ‐0.000035	 2,120	
								27	or	more	
‐0.000006	 1,921	 ‐0.000029	 2,186	 ‐0.000046	 1,536	 ‐0.000036	 2,168	
					Received	Unemployed	Insurance	
					All	Adults	
‐0.000006	 1,904	 ‐0.000028	 2,153	 ‐0.000047	 1,584	 ‐0.000036	 2,132	
					Sex	
								Male	
‐0.000012	 1,904	 ‐0.000064	 2,325	 ‐0.000110	 1,772	 ‐0.000078	 2,335	
								Female	
‐0.000011	 1,813	 ‐0.000054	 2,176	 ‐0.000089	 1,526	 ‐0.000069	 2,055	
					Age		
								16	to	24	
‐0.000049	 2,068	 ‐0.000305	 3,583	 ‐0.000303	 1,663	 ‐0.000133	 1,989	
								25	to	44	
‐0.000023	 1,963	 ‐0.000104	 2,290	 ‐0.000168	 1,679	 ‐0.000126	 2,238	
								Over	45	
‐0.000014	 1,830	 ‐0.000076	 1,958	 ‐0.000158	 1,663	 ‐0.000137	 2,244	
					Duration	of	Unemployment,	in	weeks	
								0	to	2	
‐0.000005	 1,738	 ‐0.000024	 1,827	 ‐0.000045	 1,513	 ‐0.000035	 2,113	
								3	to	4	
‐0.000006	 2,023	 ‐0.000028	 2,092	 ‐0.000053	 1,513	 ‐0.000035	 2,113	
								5	to	10	
‐0.000006	 1,832	 ‐0.000025	 1,876	 ‐0.000045	 1,783	 ‐0.000033	 1,965	
								11	to	26	
‐0.000006	 1,819	 ‐0.000028	 2,165	 ‐0.000047	 1,567	 ‐0.000036	 2,128	
								27	or	more	
‐0.000006	 1,933	 ‐0.000028	 2,125	 ‐0.000045	 1,513	 ‐0.000037	 2,184	
Source:		U.S.	Census	Bureau,	Current	Population	Survey,	Internal	data	from	the	Unemployment	Insurance,	May	and	
September	2018.	
					Characteristics	

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A	

AIAN	is	American	Indian	and	Alaska	Native,	and	NHOPI	is	Native	Hawaiian	and	Other	Pacific	Islander.	
Hispanics	may	be	any	race.			
Notes:	 These	parameters	are	to	be	applied	to	the	Unemployment	Insurance	data.		The	Total	or	White,	Black,	
and	Asian,	AIAN,	NHOPI	parameters	are	to	be	used	for	both	alone	and	in	combination	race	group	estimates.	For	
nonmetropolitan	characteristics,	multiply	the	a‐	and	b‐parameters	by	1.5.		If	the	characteristic	of	interest	is	total	
state	population,	not	subtotaled	by	race	or	ethnicity,	the	a‐	and	b‐parameters	are	zero.		For	foreign‐born	and	
noncitizen	characteristics	for	Total	and	White,	the	a‐	and	b‐parameters	should	be	multiplied	by	1.3.		No	
adjustment	is	necessary	for	foreign‐born	and	noncitizen	characteristics	for	Black,	Asian,	AIAN,	NHOPI,	and	
Hispanic	parameters.		For	the	group	self‐classified	as	having	two	or	more	races,	use	the	Asian,	AIAN,	NHOPI	
parameters	for	all	characteristics	except	employment,	unemployment,	and	educational	attainment,	in	which	case	
use	Black	parameters.		For	a	more	detailed	discussion	on	the	use	of	parameters	for	race	and	ethnicity,	please	see	
the	“Generalized	Variance	Parameters”	section.	

B	

	
	

16-15

REFERENCES	
	
Brooks,	C.A.,	&	Bailar,	B.A.		1978.		Statistical	Policy	Working	Paper	3	‐	An	Error	Profile:	
Employment	as	Measured	by	the	Current	Population	Survey.		Subcommittee	on	
Nonsampling	Errors,	Federal	Committee	on	Statistical	Methodology,	U.S.	
Department	of	Commerce,	Washington,	DC.		
https://s3.amazonaws.com/sitesusa/wp‐
content/uploads/sites/242/2014/04/spwp3.pdf	
	
Bureau	of	Labor	Statistics,	February	2006,	“Household	Data	(“A”	tables,	monthly;	“D”	
tables,	quarterly).”		https://www.bls.gov/cps/eetech_methods.pdf	
	
Bureau	of	Labor	Statistics,	April	2014,	“Redesign	of	the	Sample	for	the	Current	Population	
Survey.”		http://www.bls.gov/cps/sample_redesign_2014.pdf	
	
U.S.	Census	Bureau.		2006.		Current	Population	Survey:		Design	and	Methodology.		Technical	
Paper	66.		Washington,	DC:		Government	Printing	Office.	
https://www.census.gov/prod/2006pubs/tp‐66.pdf	
	
U.S.	Census	Bureau.		July	15,	2009.		“Estimating	ASEC	Variances	with	Replicate	Weights	Part	
I:		Instructions	for	Using	the	ASEC	Public	Use	Replicate	Weight	File	to	Create	ASEC	
Variance	Estimates.”		
http://usa.ipums.org/usa/resources/repwt/Use_of_the_Public_Use_Replicate_Weig
ht_File_final_PR.doc.	
	
	
All	online	references	accessed	August	12,	2019.
	
	
	
	

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File Typeapplication/pdf
File TitleMay and September 2018 Unemployment Insurance Nonfilers Supplement
SubjectTechnical Documentation
AuthorU.S. Census Bureau
File Modified2021-04-12
File Created2021-04-12

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