In determining the poverty status of families and unrelated individuals, the Census Bureau uses thresholds (income cutoffs) arranged in a two-dimensional matrix. The matrix consists of family size (from one person to nine or more people) cross-classified by presence and number of family members under 18 years old (from no children present to eight or more children present). Unrelated individuals and two-person families are further differentiated by age of reference person (RP) (under 65 years old and 65 years old and over).

To determine a person's poverty status, one compares the person's total family income in the last 12 months with the poverty threshold appropriate for that person's family size and composition (see example below). If the total income of that person's family is less than the threshold appropriate for that family, then the person is considered "below the poverty level,"together with every member of his or her family. If a person is not living with anyone related by birth, marriage, or adoption, then the person's own income is compared with his or her poverty threshold. The total number of people below the poverty level is the sum of people in families and the number of unrelated individuals with incomes in the last 12 months below the poverty threshold.

Since ACS is a continuous survey, people respond throughout the year. Because the income questions specify a period covering the last 12 months, the appropriate poverty thresholds are determined by multiplying the base-year poverty thresholds (1982) by the average of the monthly inflation factors for the 12 months preceding the data collection. See the table below titled "Poverty Thresholds in 1982," by "Size of Family and Number of Related Children Under 18 Years (Dollars)," for appropriate base thresholds. See the table "The 2008 Poverty Factors" for the appropriate adjustment based on interview month.

For example, consider a family of three with one child under 18 years of age, interviewed in July 2008 and reporting a total family income of $14,000 for the last 12 months (July 2007 to June 2008). The base year (1982) threshold for such a family is $7,765, while the average of the 12 inflation factors is 2.19359. Multiplying $7,765 by 2.19359 determines the appropriate poverty threshold for this family type, which is $17,033. Comparing the familys income of $14,000 with the poverty threshold shows that the family and all people in the family are considered to have been in poverty. The only difference for determining poverty status for unrelated individuals is that the person's individual total income is compared with the threshold rather than the familys income.

For example, consider a family of three with one child under 18 years of age, interviewed in July 2008 and reporting a total family income of $14,000 for the last 12 months (July 2007 to June 2008). The base year (1982) threshold for such a family is $7,765, while the average of the 12 inflation factors is 2.19359. Multiplying $7,765 by 2.19359 determines the appropriate poverty threshold for this family type, which is $17,033. Comparing the familys income of $14,000 with the poverty threshold shows that the family and all people in the family are considered to have been in poverty. The only difference for determining poverty status for unrelated individuals is that the person's individual total income is compared with the threshold rather than the familys income.
The 2008 Poverty Factors:

Interview Month	Poverty Factors
January	2.14841
February	2.15589
March	2.16297
April	2.17003
May	2.17705
June	2.18455
July	2.19359
August	2.20366
September	2.21330
October	2.22219
November	2.22879
December	2.23073

Poverty Thresholds in 1982, by Size of Family and Number of Related Children Under 18 Years Old (Dollars)

Size of family unit	Related children under 18 years
	None	One	Two	Three	Four	Five	Six	Seven	Eight or more
One person (unrelated individual)
Under 65 years	5,019
65 years and over	4,626
Two persons
Householder under 65 years	6,459	6,649
Householder 65 years and over	5,831	6,624
Three persons	7,546	7,765	7,772
Four persons	9,950	10,112	9,783	9,817
Five persons	11,999	12,173	11,801	11,512	11,336
Six persons	13,801	13,855	13,570	13,296	12,890	12,649
Seven persons	15,879	15,979	15,637	15,399	14,955	14,437	13,869
Eight persons or more	17,760	17,917	17,594	17,312	16,911	16,403	15,872	15,738
Nine persons or more	21,364	21,468	21,183	20,943	20,549	20,008	19,517	19,397	18,649

Poverty status was determined for all people except institutionalized people, people in military group quarters, people in college dormitories, and unrelated individuals under 15 years old. These groups were excluded from the numerator and denominator when calculating poverty rates.

For various reasons, the official poverty definition does not satisfy all the needs of data users. Therefore, some of the data reflect the number of people below different percentages of the poverty thresholds. These specified poverty levels are obtained by multiplying the official thresholds by the appropriate factor. Using the previous example cited (a family of three with one related child under 18 years responding in July 2008), the dollar value of 125 percent of the poverty threshold was $ 21,291 ($ 17,033x 1.25).

Income deficit represents the difference between the total income in the last 12 months of families and unrelated individuals below the poverty level and their respective poverty thresholds. In computing the income deficit, families reporting a net income loss are assigned zero dollars and for such cases the deficit is equal to the poverty threshold. This measure provides an estimate of the amount, which would be required to raise the incomes of all poor families and unrelated individuals to their respective poverty thresholds. The income deficit is thus a measure of the degree of the impoverishment of a family or unrelated individual. However, please use caution when comparing the average deficits of families with different characteristics. Apparent differences in average income deficits may, to some extent, be a function of differences in family size.

Aggregate income deficit refers only to those families or unrelated individuals who are classified as below the poverty level. It is defined as the group (e.g., type of family) sum total of differences between the appropriate threshold and total family income or total personal income. Aggregate income deficit is subject to rounding, which means that all cells in a matrix are rounded to the nearest hundred dollars. (For more information, see "Aggregate" under "Derived Measures.")

Mean income deficit represents the amount obtained by dividing the total income deficit for a group below the poverty level by the number of families (or unrelated individuals) in that group. (The aggregate used to calculate mean income deficit is rounded. For more information, see "Aggregate Income Deficit.") As mentioned above, please use caution when comparing mean income deficits of families with different characteristics, as apparent differences may, to some extent, be a function of differences in family size. Mean income deficit is rounded to the nearest whole dollar. (For more information on means, see "Derived Measures.")

When the original poverty definition was developed in 1964 by the Social Security Administration (SSA), it focused on family food consumption. The U.S. Department of Agriculture (USDA) used its data about the nutritional needs of children and adults to construct food plans for families. Within each food plan, dollar amounts varied according to the total number of people in the family and the family's composition, that is, the number of children within each family. The cheapest of these plans, the Economy Food Plan, was designed to address the dietary needs of families on an austere budget.

Since the USDAs 1955 Food Consumption Survey showed that families of three or more people across all income levels spent roughly one-third of their income on food, the SSA multiplied the cost of the Economy Food Plan by three to obtain dollar figures for total family income. These dollar figures, with some adjustments, later became the official poverty thresholds. Since the Economy Food Plan budgets varied by family size and composition, so too did the poverty thresholds. For two-person families, the thresholds were adjusted by slightly higher factors because those households had higher fixed costs. Thresholds for unrelated individuals were calculated as a fixed proportion of the corresponding thresholds for two-person families. The poverty thresholds are revised annually to allow for changes in the cost of living as reflected in the Consumer Price Index for All Urban Consumers (CPI-U). The poverty thresholds are the same for all parts of the country; they are not adjusted for regional, state, or local variations in the cost of living .

Since poverty is defined at the family level and not the household level, the poverty status of the household is determined by the poverty status of the householder. Households are classified as poor when the total income of the householder's family in the last 12 months is below the appropriate poverty threshold. (For nonfamily householders, their own income is compared with the appropriate threshold.) The income of people living in the household who are unrelated to the householder is not considered when determining the poverty status of a household, nor does their presence affect the family size in determining the appropriate threshold. The poverty thresholds vary depending upon three criteria: size of family, number of children, and, for one- and two- person families, age of the householder.

The sex ratio represents the balance between the male and female populations. Ratios above 100 indicate a larger male population, and ratios below 100 indicate a larger female population. This measure is derived by dividing the total number of males by the total number of females and then multiplying by 100. It is rounded to the nearest tenth.

Beginning in 2006, the population in group quarters (GQ) is included in the ACS. Some types of GQ populations have sex distributions that are very different from the household population. The inclusion of the GQ population could therefore have a noticeable impact on the sex distribution. This is particularly true for areas with a substantial GQ population.

The Census Bureau tested the changes introduced to the 2008 version of the sex question in the 2007 ACS Grid-Sequential Test (http://www.census.gov/acs/www/Downloads/ACS-MP-09_Grid-Sequential_Test_Final_Report.pdf).

The results of this testing show that the changes may introduce an inconsistency in the data produced for this question as observed from the years 2007 to 2008

Beginning in 2008, the layout of the sex question response categories was changed to a horizontal side-by-side layout from a vertically stacked layout on the mail paper ACS questionnaire.

This category includes all civilians 16 years old and over who either (1) were "at work," that is, those who did any work at all during the reference week as paid employees, worked in their own business or profession, worked on their own farm, or worked 15 hours or more as unpaid workers on a family farm or in a family business; or (2) were "with a job but not at work," that is, those who did not work during the reference week but had jobs or businesses from which they were temporarily absent due to illness, bad weather, industrial dispute, vacation, or other personal reasons. Excluded from the employed are people whose only activity consisted of work around the house or unpaid volunteer work for religious, charitable, and similar organizations; also excluded are all institutionalized people and people on active duty in the United States Armed Forces.

This term is defined exactly the same as the term "employed" above.

All civilians 16 years old and over are classified as unemployed if they (1) were neither "at work" nor "with a job but not at work" during the reference week, and(2)were looking for work during the last 4 weeks, and (3) were available to start a job. Also included as unemployed are civilians who did not work at all during the reference week, were waiting to be called back to a job from which they had been laid off, and were available for work except for temporary illness. Examples of job seeking activities are:

• Registering at a public or private employment office
• Meeting with prospective employers
• Investigating possibilities for starting a professional practice or opening a business
• Placing or answering advertisements
• Writing letters of application
• Being on a union or professional register

Consists of people classified as employed or unemployed in accordance with the criteria described above.

The unemployment rate represents the number of unemployed people as a percentage of the civilian labor force. For example, if the civilian labor force equals 100 people and 7 people are unemployed, then the unemployment rate would be 7 percent.

All people classified in the civilian labor force plus members of the U.S. Armed Forces (people on active duty with the United States Army, Air Force, Navy, Marine Corps, or Coast Guard).

The labor force participation rate represents the proportion of the population that is in the labor force. For example, if there are 100 people in the population 16 years and over, and 64 of them are in the labor force, then the labor force participation rate for the population 16 years and over would be 64 percent.

All people 16 years old and over who are not classified as members of the labor force. This category consists mainly of students, homemakers, retired workers, seasonal workers interviewed in an off season who were not looking for work, institutionalized people, and people doing only incidental unpaid family work (less than 15 hours during the reference week).

This term appears in connection with several subjects: employment status, journey-to-work questions, class of worker, weeks worked in the past 12 months, and number of workers in family in the past 12 months. Its meaning varies and, therefore, should be determined in each case by referring to the definition of the subject in which it appears. When used in the concepts "workers in family" and "full-time, year-round workers," the term "worker" relates to the meaning of work defined for the "work experience" subject.

The data may understate the number of employed people because people who have irregular, casual, or unstructured jobs sometimes report themselves as not working. The number of employed people "at work" is probably overstated in the data (and conversely, the number of employed "with a job, but not at work" is understated) since some people on vacation or sick leave erroneously reported themselves as working. This problem has no effect on the total number of employed people. The reference week for the employment data is not the same for all people. Since people can change their employment status from one week to another, the lack of a uniform reference week may mean that the employment data do not reflect the reality of the employment situation of any given week. (For more information, see the discussion under "Reference Week.")

Beginning in 2006, the population in group quarters (GQ) is included in the ACS. Some types of GQ populations have employment status distributions that are different from the household population. All institutionalized people are placed in the "not in labor force category." The inclusion of the GQ population could therefore have a noticeable impact on the employment status distribution. This is particularly true for areas with a substantial GQ population. For example, in areas having a large state prison population, the employment rate would be expected to decreasebecause the base of the percentage, which now includes the population in correctional institutions, is larger.

The Census Bureau tested the changes introduced to the 2008 version of the employment status questions in the 2006 ACS Content Test. The results of this testing show that the changes may introduce an inconsistency in the data produced for these questions as observed from the years 2007 to 2008, see "2006 ACS Content Test Evaluation Report Covering Employment Status" (http://www.census.gov/acs/www/AdvMeth/content_test/P6a_Employment_Status.pdf).

Since employment data from the American Community Survey are obtained from respondents in households, they differ from statistics based on reports from individual business establishments, farm enterprises, and certain government programs. People employed at more than one job are counted only once in the American Community Survey and are classified according to the job at which they worked the greatest number of hours during the reference week. In statistics based on reports from business and farm establishments, people who work for more than one establishment may be counted more than once. Moreover, some tabulations may exclude private household workers, unpaid family workers, and self-employed people, but may include workers less than 16 years of age. An additional difference in the data arises from the fact that people who had a job but were not at work are included with the employed in the American Community Survey statistics, whereas many of these people are likely to be excluded from employment figures based on establishment payroll reports. Furthermore, the employment status data in tabulations include people on the basis of place of residence regardless of where they work, whereas establishment data report people at their place of work regardless of where they live. This latter consideration is particularly significant when comparing data for workers who commute between areas.

For several reasons, the unemployment figures of the Census Bureau are not comparable with published figures on unemployment compensation claims. For example, figures on unemployment compensation claims exclude people who have exhausted their benefit rights, new workers who have not earned rights to unemployment insurance, and people losing jobs not covered by unemployment insurance systems (including some workers in agriculture, domestic services, and religious organizations, and self-employed and unpaid family workers). In addition, the qualifications for drawing unemployment compensation differ from
the definition of unemployment used by the Census Bureau. People working only a few hours during the week and people with a job but not at work are sometimes eligible for unemployment compensation but are classified as "Employed" in the American Community Survey. Differences in the geographical distribution of unemployment data arise because the place where claims are filed may not necessarily be the same as the place of residence of the unemployed worker.
For guidance on differences in employment and unemployment estimates from different sources, go to http://www.census.gov/hhes/www/laborfor/laborguidance082504.html

- Question/Concept History -
Worked Last Week (Question 28):
From 1999-2007, an italicized instruction was added to the question to help respondents determine what to count as work. Starting in 2008, the instruction was removed and the question was separated into two parts in an effort to give respondents - particularly people with irregular kinds of work arrangements - two opportunities to grasp and respond to the correct intent of the question.
On Layoff (Question 34a):
Starting in 1999, the "Yes, on temporary layoff from most recent job" and "Yes, permanently laid off from most recent job" response categories were condensed into a single "Yes" category. An additional question (Q34b) was added to determine the temporary/permanent layoff distinction.
Temporarily Absent (Question 34b):
Starting in 2008, the temporarily absent question included a revised list of examples of work absences.
Recalled to Work (Question 34c):
This question was added in the 1999 American Community Survey to determine if a respondent who reported being on layoff from a job had been informed that he or she would be recalled to work within 6 months or been given a date to return to work.
Available to Work (Question 36):
Starting in 1999, the "Yes, if a job had been offered" and "Yes, if recalled from layoff" response categories were condensed into one category, "Yes, could have gone to work." Starting in 2008, the actively looking for work question was modified to emphasize 'active' job-searching activities.