The Business Birth/Death Model

Issues in Labor Statistics: How the Business Birth/Death Model Improves Payroll Employment Estimates (PDF. Source: Bureau of Labor Statistics

The Current Employment Statistics (CES) program annually "adjusts its sample-based estimates of industry employment for the previous year to universe employment counts derived primarily from the Quarterly Census of Employment and Wages (QCEW)... Accurate CES employment estimates are made possible in part by the use of the “birth/death” model, an adjustment developed by BLS to account for the net employment change stemming from business births and deaths that cannot be captured in real-time by the CES sample."