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 in Appendix A titled "Poverty Thresholds in 1982, by Size of Family and Number of RelatedChildren Under 18 Years (Dollars)," for appropriate base thresholds. See the table "The 2011 Poverty Factors" in Appendix A 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 2011 and reporting a total family income of $14,000 for the last 12 months (July 2010 to June 2011). The base year (1982) threshold for such a family is $7,765, while the average of the 12 inflation factors is 2.24574 Multiplying $7,765 by 2.24574 determines the appropriate poverty threshold for this family type, which is $17,438 Comparing the family's 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 family's income.

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.

Derivation of the Current Poverty Measure - 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 USDA's 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.

Beginning in 2006, the population in group quarters (GQ) is included in the ACS. The part of the group quarters population in the poverty universe (for example, people living in group homes or those living in agriculture workers' dormitories) is many times more likely to be in poverty than people living in households. Direct comparisons of the data would likely result in erroneous conclusions about changes in the poverty status of all people in the poverty universe.

Because of differences in survey methodology (questionnaire design, method of data collection, sample size, etc.), the poverty rate estimates obtained from American Community Survey data may differ from those reported in the Current Population Survey, Annual Social and Economic Supplement, and those reported in Census 2000. Please refer to
(http://www.census.gov/hhes/www/poverty/about/datasources/description.html) for more details.

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.

Sex has been asked of all persons living in a household since the 1996 ACS Test phase. When group quarters were included in the survey universe in 2006, sex was asked of all person in group quarters as well.
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

Beginning in 2006, the population in group quarters (GQ) was 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 a given geographic area. 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 (www.census.gov/acs). 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.

Sex is generally comparable across different data sources and data years.
However, data users should still be aware of methodological differences that may exist between different data sources if they are comparing American Community Survey sex data to other data sources, such as Population Estimates or Decennial Census data. For example, the American Community Survey data are that of a respondent-based survey and subject to various quality measures, such as sampling and nonsampling error, response rates and item allocation. This differs in design and methodology from other data sources, such as Population Estimates, which is not a survey and involves computational methodology to derive intercensal estimates of the population. While ACS estimates are controlled to Population Estimates for sex at the nation, state and county levels of geography as part of the ACS weighting procedure, variation may exist in the sex structure of a population at lower levels of geography when comparing different time periods or comparing across time due to the absence of controls below the county geography level. For more information on American Community Survey data accuracy and weighting procedures, please see www.census.gov/acs.

It should also be noted that although the American Community Survey (ACS) produces population, demographic and housing unit estimates, it is the Census Bureau's Population Estimates Program that produces and disseminates the official estimates of the population for the nation, states, counties, cities and towns and estimates of housing units for states and counties .

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 actively 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. The 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.

Worked Last Week (Question 29): 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 35a): 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 (Q35b) was added to determine the temporary/permanent layoff distinction.
Temporarily Absent (Question 35b): Starting in 2008, the temporarily absent question included a revised list of examples of work absences.

Recalled to Work (Question 35c): 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.

Looking for Work (Question 36): Starting in 2008, the actively looking for work question was modified to emphasize 'active' job-searching activities.
Available to Work (Question 37): 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.

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 decrease because 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" on the ACS website (www.census.gov/acs).

Along with the 2008 ACS release, the Census Bureau produced a research note comparing 2007 and 2008 ACS employment estimates to 2007 and 2008 Current Population Survey (CPS)/Local Area Unemployment Statistics (LAUS) estimates. The research note shows that the changes to the employment status series of questions in the 2008 ACS will make ACS labor force data more consistent with benchmark data from the CPS and LAUS program. For more information, see "Changes to the American Community Survey between 2007 and 2008 and the Effects on the Estimates of Employment and Unemployment" (http://www.census.gov/hhes/www/laborfor/researchnote092209.html).

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.