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dwithheld to avoid disclosing figures for individual companies.

swithheld because the estimate did not meet publication standards, either on the basis of associated standard error of estimate or on the basis of consistency review. Estimates for particular size class intervals which are not published in this table and which can be derived by subtraction generally have sampling errors in excess of 30 percent.

?The 1950 "average employment" is based on reported employment totals for the pay roll periods ended nearest the 15th of March, May, August, and November. For 1947, an average based on the mid-month employment for 12 months was used.

2The percentage standard errors shown in this colum indicate the differences that can be expected between the estimates and comparable complete canvass totals because of sampling fluctuations. The estimates will differ from the complete totals by less than: (i) The percentage shown: approximately 2 times out of 3; ( 11) Twice the percentage shown: approximately 19 times out of 20. (111) Three times the percentage shown: almost always. The following estimates are based on reports from all establishments known to be in the appropriate employment size classification:

(a) All estimates in columns E and F (except those footnoted in Column E)
(b) Estimates in Columns A through D having the symbol "_" in the standard error colum

(except those estimates which were withheld and replaced by the footnote symbol "g").
The coverage in those cases is complete, by design, in terms of the historical data used in selecting the sample. It is
possible, however, that additional establishments exist in some of these size classes because of changes in establish
size since 1947, but no such units occurred in the sample.

3The number of establishments classified as engaged primarily in manufacturing activities and in production at some time during 1950 is estimated at 247,300. (This estimate has a standard error of 2 percent.) Major industry group components of this estimate appear in the body of the table. In comparing these operating manufacturing establishment figures with establishment totals appearing in the joint Census-BOASI publication, "County Business Patterns," however, it should be clearly noted that the categories of establishments shown below are excluded from these annual survey estimates, but are included in the "County Business Patterns" publication. (In addition, there are differences between the two series inherent in the sampling variations associated with the annual survey establishment estimates.)

(a) Establishments classified as central administrative offices or auxiliary units of manu

facturing concerns (approximately 2,500 establishments having some 313,000 employees,

based on 1949 OASI program data, the latest available at the time of this publication).
(b) Establishments which were in liquidation, inactive, idle, or stand-by status during 1950

(estimated at approximately 11,000 establishments having about 82,000 employees). These
totals are distributed by ma Jor Industry group approximately as 70110W8 :

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Major Industry Group Number of



Major Industry Group

Number of establishments



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Group 31....
Group 32....
Group 33.....
Group 34......
Group 35.
Group 36.....
Group 37.
Group 39.....
All other groups.

Group 20... Group 22. Group 23. Group 24 Group 25.... Group 27. Group 28..

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200 2,600

400 600 500 300

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4,400 5,200 1,400 8,100 4,000 1,400 2,000 6,300 4,800


2,600 20,900 1,500 3,900 2,800 2,300

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(When these two categories of establishments are added to the operating establishment
totals, the total number of manufacturing establishments in 1950 is estimated at

approximately 261,000.)
(c) Establishments tentatively classified as manufacturing by BOASI but classified as non-

manufacturing by the Census Bureau, based on the 1950 Annual Survey reports received
from a sample of such establishments (estimated to consistof approximately 5,000

establishments). "These estimates are subject to sampling variation. The standard errors are 1 percent for "Number of establishments;" 1 percent for "All employees;" and 1 percent for "value added."

Sthis figure for operating manufacturing establishments does not dnclude employees separately reported at central administrative offices and auxiliary establishments. Including such employment, total manufacturing employment for the United States in 1950 is estimated at 14,683 thousand.

value added is derived by subtracting from the total value of products the cost of materials, supplies, containers, fuel, purchased electric energy and contract work.

?Trends in Census production figures and Bureau of Labor Statistics employment data suggest that the noted estimates are understated in the Annual Survey for 1950, but by amounts which are less than the standard errors of the estimates. The sample design for the 1951 Annual Survey of Manufactures is being revised in order to take better account of the sizeable fluctuations in the operations of individual firms in the apparel industries and to reduce the sampling errors of the estimates for those industries.

8The figures for Major Group 24 are not strictly comparable between 1947 and 1950 since the logging industry (Industry 2411) was excluded from the 1947 Census of Manufactures, but was included in the 1950 Annual Survey of Manufactures. The number of employees In Industry 2411 is estimated at between 30 and 20 thousand for 1950.

'Industry 2421 estimates for 1950 are not comparable with 1947 data. In 1947, sawmills that produced less than 200,000 board feet of lumber were: 'required to report only their lumber production and lumber stocks. In 1950, however, all report items covered by the annual survey were collected and tabulated for establishments in this group that engaged 1 or more employees. It is estimated that such mills (producing less than 200,000 board feet and having 1 or more employees) account for approximately 5 percent of total employment in Industry 2421. It is the inclusion of these mills in the survey that accounts for the bulk of the apparent increase between 1947 and 1950 in the number of establishments for Major Industry Group

10 These estimates are subject to sampling variation. The standard errors are 3 percent for "Number of establishments," 3 percent for "All employees," and 2 percent for "Value added."

11 These estimates are subject to sampling variation. The standard errors are 10 percent for "Number of establishments," percent for "All employees," and 7 percent for malue added." 12These estimates are subject to sampling variation. The standard errors are i percent for "Number of establishments,"

11 percent for "All employees," and 1 percent for "Value added."

13 Includes privately owned and/or operated establishments classified in Industry Group 19, "Ordnance and accessories." (Government owned and operated establishments are excluded from the annual survey.)

14 Includes data for Shingle Mills (Industry 2423).

15 These estimates are subject to sampling variation. The standard errors are 30 percent for "Number of establishments," 20 percent for "All employees," and 15 percent for "alue added."

16 The 1950 data for Industries 3811 (Scientific Instruments), 3821 (Mechanical Measuring Instruments) and 3831 (Optical Instruments) are not strictly comparable with data shown for 1947. This is due to an error in 1947 in the industry classification assigned to two plants. The effect of this change is small for industries 3811 and 3821, but it represents an addition of approximately 25 percent to the totals of Industry 3831.


991826 (--12-13

Detailed Description of Sample Design

Slightly different procedures were used in sampling independent and multi-unit companies, and the Census and the two BOASI lists. Special procedures also were used for sawmills. Each of these categories was treated as a distinct subuniverse and sampled separately.

that the 100 percent cutoff was set at 50 or even 20 employees, while for a few industry groups all establishments were selected, For industry groups where the scale was reduced, the rates used were 20 percent for the 100-249 employee class, 10 percent for the 50-99 employee class, etc.; a new sampling rate of 0.5 percent being introduced for the 1-4 employee establishments in those industry groups. Sampling in the printing and publishing industries was further reduced, the scale starting with 10 percent for the 100-249 class, and ending with 0.2 percent for the smallest size class,

As mentioned in the main text, all multiunit companies that reported aggregate employment of 1,000 or more, or any establishment of 250 or more employees, and all independent establishments that reported 250 or more employees in the 1947 Census were included with certainty for both 1949 and 1950. Smaller proportions of the medium and small companies were chosen, at rates which varied according to industry group and size for 1949, and according to individual industry and size for 1950. The 1950 sample was developed mainly by altering the first year's sample as necessary to take account of the change in emphasis from industry group to individual industry controls.

Residual differences between the original alloca tion and the final expected sample size for independents were partly offset by minor changes which were introduced in the scale of rates for multi-unit companies. Such changes were made for only about one-third of the groups. This adjusted scale defined the sampling rates applicable to the individual establishments of each multi-unit company in terms of their 1947 industry group and employment. The highest of those sampling rates was then assigned to the entire company.

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New companies that began operations after 1947 were sorted into sample classes in the same manner as the independents included in the 1947 Census. All such new companies that reported initial employment of 100 or more, however, were selected. Similarly, all 100 or more employee establishments from the BOASI supplementary 1947 file were included in the sample. Multi-unit companies from this file were sampled in the same manner multi-unit companies in the Census lists. The balance of this sub-universe was sampled at a rate of 1 percent, without regard to industry.


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Western Sawmills were sampled in the same general manner, using 1947 Census lists and BOASI lists. In the East, all sawmills producing 3 million board feet or more of lumber in 1947 plus all new mills with 30 or more employees were included. A 10 percent sample of the Eastern mills producing less than 3 million but I million or more board feet of lumber in 1947 also was selected. Other Eastern mills were represented by a sample of area segments. Each segment consisted of a minor civil division or a set of adjacent minor civil divisions that included approximately 10 small sawmills in 1947. The sampling rate in this case was one-thirteenth.

Where the basic rates led to about the sample number allocated to the industry group, they were used without change. Where heavier sampling was required, the rates were shifted to 100 percent for the 100-249 employee class, 50 percent for the 50-99 employee class, etc. In some cases more extreme shifts were required so

Random systematic sampling was used throughout. Within each list the companies were assigned to sample classes according to their sampling rates. Independents were arrayed by


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