LABOUR FORCE
The labour force represents the key official measure of the total supply of labour available to the labour market during a given short reference period. It represents the labour available for the production of economic goods and services. Therefore, people in the labour force are also referred to as the 'currently economically active population'.
The Australian labour force framework classifies people into three mutually exclusive categories: employed; unemployed; and not in the labour force. The employed and unemployed categories together make up the labour force, which gives a measure of the number of people contributing to the used or unused supply of available labour. The third category (not in the labour force) represents the currently economically inactive population. This framework is illustrated in diagram 8.2. Further details about the Australian labour force framework, and the specific criteria for classifying people to these three basic categories, are available in
ABS Labour Statistics: Concepts, Sources and Methods (6102.0.55.001).
For the purpose of compiling Australian labour force statistics, the population is restricted to people in the civilian population aged 15 years and over. This practice is consistent with international guidelines for the collection of labour statistics.
8.2 Australian labour force framework(a)
Characteristics of the labour force
The size and composition of the labour force are constantly changing. Changes in the size of the labour force are caused by changes in labour force participation as well as changes in the size and composition of the adult population. Between June 2008 and June 2009 the labour force grew by 1.5%. During the same period the civilian population aged 15 years and over grew by 1.8%. The difference between these two growth rates reflects a decrease in the labour force participation rate over this period.
The labour force participation rate is one of the most important indicators for analysing the overall level of labour market activity. The participation rate is calculated by dividing the total number of people in the labour force by the total number of people in the civilian population aged 15 years and over. Analysis of participation rates, particularly by age, sex and family type, provides the basis for monitoring changes in the size and composition of the labour supply.
During the last two decades the overall labour force participation rate has increased slowly, rising from 62.6% in 1988-89 to 65.4% in 2008-09. This long-term rise in the labour force participation rate has been driven by an increase in the female participation rate. The female participation rate increased from 50.4% in 1988-89 to 58.7% in 2008-09. In contrast, the male participation rate decreased from 75.2% to 72.3% over the same period. Graph 8.3 provides male and female participation rates between 1988-89 and 2008-09, and shows the convergence of male and female participation rates over this period.
8.3 labour force participation rates(a)
Underlying these trends in male and female participation rates are varying movements in the age-specific participation rates. As shown in table 8.4, male and female participation rates were similar in the 15-19 year age group. Participation rates for men and women rose as young people moved from education and training to employment. For men, participation rates peaked in the 25-34 and 35-44 year age groups, while female participation rates peaked in the 45-54 year age group.
A comparison of age-specific participation rates for women shows that labour force participation rates have increased for all age groups except the 15-19 and 20-24 year age groups. While over the last 20 years there has been a considerable increase in the labour force participation of women in their peak child-bearing years (the 25-34 year age group), the largest gains have been in the participation of older women. During the last two decades, the participation rate of women aged 55-64 years increased by 28.1 percentage points and for women aged 45-54 years by 19.6 percentage points.
Participation rates for men declined between 1988-89 and 2008-09 for almost all age groups. The exceptions were for men aged 55-64 years (61.7% to 68.6%) and men aged 65 years and over (9.1% to 14.5%).
8.4 LABOUR FORCE PARTICIPATION RATES(a), By age |
|
 | MALES | FEMALES |
|
| |
|
| 1988-89 | 2008-09 | | 1988-89 | 2008-09 |
| Age group (years) | % | % | | % | % |
|
| 15-19 | 60.8 | 57.2 | | 58.9 | 58.9 |
| 20-24 | 90.0 | 84.6 | | 77.3 | 77.3 |
| 25-34 | 94.4 | 91.9 | | 63.4 | 74.0 |
| 35-44 | 94.1 | 91.3 | | 68.7 | 75.5 |
| 45-54 | 88.9 | 88.6 | | 58.1 | 77.7 |
| 55-64 | 61.7 | 68.6 | | 23.5 | 51.6 |
| 65 and over | 9.1 | 14.5 | | 2.3 | 5.6 |
| Total | 75.2 | 72.3 | | 50.4 | 58.7 |
|
| (a) Annual averages. |
| Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001). |
During the period 2004-05 to 2008-09, the total number of employed people grew by 9.8% to 10.8 million (table 8.5). This comprised an increase of 9.2% in the level of full-time employment and an increase of 11.5% in the level of part-time employment. Part-time employed people represent more than a quarter (29%) of all employed people. Women account for the majority of the part-time workforce (71% of all part-time workers).
The unemployment rate fell from 5.2% in 2004-05 to 5.0% in 2008-09. The unemployment rate for women was slightly higher than for men in 2008-09 (5.0% compared with 4.9%).
8.5 LABOUR FORCE STATUS(a) |
|
| Employed | Unemployed | | | | |
|
| |
| | | | |
| Full-time | Part-time | Total | | Full-time | Part-time | Total | Labour
force | Civilian
population | Unemploy-
ment rate | Participa-
tion rate |
| '000 | '000 | '000 | | '000 | '000 | '000 | '000 | '000 | % | % |
MALES |
|
| 2004-05 | 4 628.2 | 799.3 | 5 427.6 | | 229.2 | 59.4 | 288.7 | 5 716.2 | 7 965.0 | 5.0 | 71.8 |
| 2005-06 | 4 737.9 | 821.0 | 5 558.9 | | 225.3 | 60.1 | 285.4 | 5 844.3 | 8 101.0 | 4.9 | 72.1 |
| 2006-07 | 4 848.1 | 865.8 | 5 713.9 | | 201.4 | 53.8 | 255.1 | 5 969.1 | 8 244.2 | 4.3 | 72.4 |
| 2007-08 | 4 969.7 | 885.8 | 5 855.5 | | 183.7 | 55.7 | 239.5 | 6 095.0 | 8 393.8 | 3.9 | 72.6 |
| 2008-09 | 4 985.1 | 899.0 | 5 884.1 | | 241.5 | 61.3 | 302.7 | 6 186.9 | 8 553.4 | 4.9 | 72.3 |
FEMALES |
|
| 2004-05 | 2 415.7 | 1 984.7 | 4 400.3 | | 155.5 | 95.1 | 250.6 | 4 651.0 | 8 248.4 | 5.4 | 56.4 |
| 2005-06 | 2 482.0 | 2 071.3 | 4 553.3 | | 148.2 | 95.8 | 244.0 | 4 797.3 | 8 380.0 | 5.1 | 57.2 |
| 2006-07 | 2 598.8 | 2 093.4 | 4 692.2 | | 145.6 | 92.1 | 237.7 | 4 929.9 | 8 518.0 | 4.8 | 57.9 |
| 2007-08 | 2 678.8 | 2 144.9 | 4 823.7 | | 134.1 | 98.1 | 232.2 | 5 055.9 | 8 660.2 | 4.6 | 58.4 |
| 2008-09 | 2 705.6 | 2 203.8 | 4 909.4 | | 159.5 | 99.9 | 259.4 | 5 168.8 | 8 809.7 | 5.0 | 58.7 |
PERSONS |
|
| 2004-05 | 7 043.9 | 2 784.0 | 9 827.9 | | 384.7 | 154.5 | 539.3 | 10 367.2 | 16 213.3 | 5.2 | 63.9 |
| 2005-06 | 7 219.9 | 2 892.3 | 10 112.2 | | 373.5 | 155.9 | 529.4 | 10 641.7 | 16 481.0 | 5.0 | 64.6 |
| 2006-07 | 7 446.9 | 2 959.2 | 10 406.1 | | 347.0 | 145.9 | 492.9 | 10 899.0 | 16 762.2 | 4.5 | 65.0 |
| 2007-08 | 7 648.5 | 3 030.7 | 10 679.2 | | 317.8 | 153.8 | 471.7 | 11 150.9 | 17 054.0 | 4.2 | 65.4 |
| 2008-09 | 7 690.7 | 3 102.8 | 10 793.5 | | 401.0 | 161.2 | 562.2 | 11 355.7 | 17 363.2 | 5.0 | 65.4 |
|
| (a) Annual averages. |
| Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001). |
Labour force participation, employment and unemployment vary across states and territories, and across capital cities and regional areas. Table 8.6 shows labour force status by state/territory and capital city/balance of state for 2008-09.
In 2008-09, of the states and territories, Tasmania had the lowest participation rate (61.9%) while the Northern Territory had the highest participation rate (73.6%). The Australian Capital Territory had the lowest unemployment rate (2.9%) and New South Wales had the highest unemployment rate (5.7%).
All states had lower unemployment rates and higher participation rates in the capital cities than in the balance of states, except South Australia, where in Adelaide the unemployment rate was higher and the participation rate was lower than in the balance of South Australia.
8.6 LABOUR FORCE STATUS(a), By state and territory - 2008-09 |
|
| Employed full-time | Total employed | Unemployed | Labour
force | Civilian population aged 15 and over | Unemploy-
ment rate | Participation
rate |
| Capital city/balance of state | ’000 | ’000 | ’000 | ’000 | ’000 | % | % |
|
| Sydney | 1 635.4 | 2 221.9 | 131.6 | 2 353.5 | 3 567.1 | 5.6 | 66.0 |
| Balance of New South Wales | 805.1 | 1 174.4 | 72.2 | 1 246.6 | 2 092.1 | 5.8 | 59.6 |
| New South Wales | 2 440.5 | 3 396.3 | 203.8 | 3 600.1 | 5 659.2 | 5.7 | 63.6 |
| Melbourne | 1 414.3 | 1 994.5 | 106.1 | 2 100.6 | 3 197.4 | 5.0 | 65.7 |
| Balance of Victoria | 436.1 | 662.9 | 36.7 | 699.6 | 1 139.5 | 5.2 | 61.4 |
| Victoria | 1 850.4 | 2 657.4 | 142.8 | 2 800.2 | 4 336.9 | 5.1 | 64.6 |
| Brisbane | 750.4 | 1 024.3 | 42.0 | 1 066.3 | 1 533.6 | 3.9 | 69.5 |
| Balance of Queensland | 862.1 | 1 202.9 | 60.7 | 1 263.6 | 1 913.6 | 4.8 | 66.0 |
| Queensland | 1 612.5 | 2 227.2 | 102.7 | 2 329.9 | 3 447.2 | 4.4 | 67.6 |
| Adelaide | 392.3 | 574.2 | 35.9 | 610.1 | 969.7 | 5.9 | 62.9 |
| Balance of South Australia | 150.2 | 218.4 | 9.4 | 227.7 | 348.1 | 4.1 | 65.4 |
| South Australia | 542.6 | 792.5 | 45.3 | 837.8 | 1 317.7 | 5.4 | 63.6 |
| Perth | 633.7 | 881.9 | 33.9 | 915.8 | 1 310.3 | 3.7 | 69.9 |
| Balance of Western Australia | 207.9 | 287.6 | 11.9 | 299.5 | 446.9 | 4.0 | 67.0 |
| Western Australia | 841.6 | 1 169.5 | 45.8 | 1 215.4 | 1 757.2 | 3.8 | 69.2 |
| Hobart | 69.7 | 102.8 | 4.5 | 107.3 | 170.5 | 4.2 | 62.9 |
| Balance of Tasmania | 93.1 | 135.5 | 6.9 | 142.4 | 232.6 | 4.8 | 61.2 |
| Tasmania | 162.8 | 238.2 | 11.4 | 249.6 | 403.2 | 4.6 | 61.9 |
| Northern Territory | 93.1 | 116.6 | 4.4 | 121.0 | 164.3 | 3.7 | 73.6 |
| Australian Capital Territory | 147.2 | 195.7 | 5.9 | 201.6 | 277.5 | 2.9 | 72.7 |
| Australia | 7 690.7 | 10 793.5 | 562.2 | 11 355.7 | 17 363.2 | 5.0 | 65.4 |
|
| (a) Annual averages. |
| Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001). |
In 2008-09 there were 11.4 million people in the Australian labour force, of whom over a quarter (27%) were born overseas (table 8.7). The labour force participation rate of people born overseas was 61.5% compared with 68.9% for people born in Australia. This in part reflects the older age distribution of the overseas born population in Australia.
8.7 LABOUR FORCE STATUS(a), By country of birth - 2008-09 |
|
| | Employed full-time | Total employed | Unemployed | Labour force | Not in the
labour force | Unemploy-
ment rate | Participation rate |
| | '000 | '000 | '000 | '000 | '000 | % | % |
|
| Born in Australia | 5 601.1 | 7 918.1 | 390.9 | 8 309.0 | 3 751.4 | 4.7 | 68.9 |
| Born overseas | 2 088.3 | 2 873.4 | 170.8 | 3 044.2 | 1 904.5 | 5.6 | 61.5 |
| Oceania and Antarctica | 308.0 | 387.6 | 24.4 | 411.9 | 132.8 | 5.9 | 75.6 |
| North-west Europe | 603.5 | 839.0 | 29.8 | 868.8 | 555.4 | 3.4 | 61.0 |
| Southern and Eastern Europe | 239.4 | 323.1 | 13.0 | 336.1 | 459.1 | 3.9 | 42.3 |
| North Africa and the Middle East | 82.0 | 125.1 | 18.7 | 143.8 | 159.1 | 13.0 | 47.5 |
| South-east Asia | 290.2 | 384.9 | 26.2 | 411.1 | 202.7 | 6.4 | 67.0 |
| North-east Asia | 175.7 | 255.1 | 18.0 | 273.1 | 176.6 | 6.6 | 60.7 |
| Southern and Central Asia | 179.8 | 257.3 | 23.0 | 280.3 | 105.4 | 8.2 | 72.6 |
| Americas | 97.1 | 141.8 | 7.7 | 149.6 | 60.0 | 5.2 | 71.3 |
| Sub-Saharan Africa | 112.7 | 159.5 | 10.1 | 169.6 | 53.4 | 5.9 | 76.0 |
| Total(b) | 7 690.7 | 10 793.5 | 562.2 | 11 355.7 | 6 007.5 | 5.0 | 65.4 |
|
| (a) Annual averages. |
| (b) Includes persons in institutions and persons whose country of birth was not specified or was unable to be classified by the Standard Australian Classification of Countries (SACC), Australia (1269.0). |
| Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001). |
Table 8.8 provides an overview of the labour force status of people in 2008-09, according to the family relationship within the household. For partners in couple families with dependants present, husbands (or male partners) had a higher participation rate (93.7%) than wives (or female partners) (69.5%). Of the partners who were employed, a higher proportion of males were employed full-time (88%) than females (52%). For lone parents with dependants, the participation rate of male parents (81.0%) was higher than female parents (63.9%). On average, parents in a couple relationship with dependent children have a higher participation rate than those without dependent children (81.7% compared with 60.0%), mostly due to the younger ages of parents with dependants.
8.8 LABOUR FORCE STATUS(a), By relationship in household - 2008-09 |
|
| | | Employed full-time | Total employed | Unem-
ployed | Labour force | Not in the labour force | Civilian population aged 15 and over | Unemploy-
ment rate | Participation rate |
| | | ’000 | ’000 | ’000 | ’000 | ’000 | ’000 | % | % |
MALES |
|
| Family member | 4 184.7 | 4 922.4 | 235.5 | 5 157.8 | 1 717.9 | 6 875.7 | 4.6 | 75.0 |
| Husband or partner | 3 409.4 | 3 783.4 | 101.5 | 3 884.9 | 1 180.8 | 5 065.8 | 2.6 | 76.7 |
| | With dependants | 1 918.6 | 2 050.4 | 58.9 | 2 109.3 | 141.8 | 2 251.1 | 2.8 | 93.7 |
| | Without dependants | 1 490.7 | 1 733.0 | 42.7 | 1 775.6 | 1 039.0 | 2 814.6 | 2.4 | 63.1 |
| Lone parent | 100.8 | 119.2 | 7.6 | 126.8 | 48.3 | 175.2 | 6.0 | 72.4 |
| | With dependants | 64.0 | 77.3 | 5.6 | 83.0 | 19.5 | 102.5 | 6.8 | 81.0 |
| | Without dependants | 36.8 | 41.9 | 2.0 | 43.9 | 28.8 | 72.7 | 4.5 | 60.3 |
| Dependent student | 19.4 | 217.2 | 35.9 | 253.0 | 292.2 | 545.2 | 14.2 | 46.4 |
| Non-dependent child(b) | 558.6 | 678.8 | 76.6 | 755.4 | 135.6 | 890.9 | 10.1 | 84.8 |
| Other family person | 96.7 | 123.7 | 13.9 | 137.6 | 60.9 | 198.6 | 10.1 | 69.3 |
| Non-family member | 735.1 | 873.5 | 55.1 | 928.6 | 427.1 | 1 355.7 | 5.9 | 68.5 |
| Lone person | 452.2 | 518.1 | 32.1 | 550.1 | 331.9 | 882.1 | 5.8 | 62.4 |
| Not living alone | 282.9 | 355.5 | 23.0 | 378.5 | 95.2 | 473.7 | 6.1 | 79.9 |
| Relationship in household not determined | 65.3 | 88.2 | 12.2 | 100.4 | 221.6 | 322.0 | 12.1 | 31.2 |
| Total | 4 985.1 | 5 884.1 | 302.7 | 6 186.9 | 2 366.6 | 8 553.4 | 4.9 | 72.3 |
FEMALES |
|
| Family member | 2 214.7 | 4 202.6 | 219.6 | 4 422.2 | 2 635.6 | 7 057.8 | 5.0 | 62.7 |
| Wife or partner | 1 619.1 | 3 002.2 | 98.0 | 3 100.3 | 1 860.2 | 4 960.5 | 3.2 | 62.5 |
| | With dependants | 631.2 | 1 478.7 | 53.9 | 1 532.5 | 671.8 | 2 204.4 | 3.5 | 69.5 |
| | Without dependants | 987.9 | 1 523.6 | 44.2 | 1 567.7 | 1 188.4 | 2 756.1 | 2.8 | 56.9 |
| Lone parent | 208.5 | 397.4 | 40.5 | 437.8 | 320.9 | 758.7 | 9.2 | 57.7 |
| | With dependants | 144.5 | 302.2 | 36.1 | 338.2 | 191.3 | 529.6 | 10.7 | 63.9 |
| | Without dependants | 64.0 | 95.2 | 4.4 | 99.6 | 129.5 | 229.1 | 4.4 | 43.5 |
| Dependent student | 16.7 | 281.5 | 35.0 | 316.5 | 247.5 | 563.9 | 11.1 | 56.1 |
| Non-dependent child(b) | 303.1 | 421.1 | 36.8 | 457.9 | 84.5 | 542.4 | 8.0 | 84.4 |
| Other family person | 67.4 | 100.4 | 9.4 | 109.7 | 122.6 | 232.3 | 8.5 | 47.2 |
| Non-family member | 452.9 | 637.1 | 33.5 | 670.6 | 683.7 | 1 354.3 | 5.0 | 49.5 |
| Lone person | 298.2 | 407.9 | 18.2 | 426.2 | 603.4 | 1 029.6 | 4.3 | 41.4 |
| Not living alone | 154.7 | 229.2 | 15.3 | 244.5 | 80.3 | 324.8 | 6.2 | 75.3 |
| Relationship in household not determined | 37.9 | 69.6 | 6.3 | 76.0 | 321.6 | 397.6 | 8.3 | 19.1 |
| Total | 2 705.6 | 4 909.4 | 259.4 | 5 168.8 | 3 640.9 | 8 809.7 | 5.0 | 58.7 |
PERSONS |
|
| Family member | 6 399.4 | 9 124.9 | 455.1 | 9 580.0 | 4 353.5 | 13 933.5 | 4.8 | 68.8 |
| Husband, wife or partner | 5 028.4 | 6 785.6 | 199.6 | 6 985.2 | 3 041.0 | 10 026.2 | 2.9 | 69.7 |
| | With dependants | 2 549.8 | 3 529.1 | 112.7 | 3 641.8 | 813.7 | 4 455.5 | 3.1 | 81.7 |
| | Without dependants | 2 478.6 | 3 256.6 | 86.8 | 3 343.4 | 2 227.3 | 5 570.7 | 2.6 | 60.0 |
| Lone parent | 309.3 | 516.6 | 48.1 | 564.7 | 369.2 | 933.8 | 8.5 | 60.5 |
| | With dependants | 208.5 | 379.5 | 41.7 | 421.2 | 210.8 | 632.0 | 9.9 | 66.6 |
| | Without dependants | 100.8 | 137.1 | 6.4 | 143.5 | 158.3 | 301.8 | 4.4 | 47.5 |
| Dependent student | 36.1 | 498.7 | 70.8 | 569.5 | 539.7 | 1 109.2 | 12.4 | 51.3 |
| Non-dependent child(b) | 861.6 | 1 099.9 | 113.4 | 1 213.3 | 220.0 | 1 433.4 | 9.3 | 84.6 |
| Other family person | 164.0 | 224.1 | 23.3 | 247.4 | 183.5 | 430.9 | 9.4 | 57.4 |
| Non-family member | 1 188.0 | 1 510.7 | 88.6 | 1 599.3 | 1 110.8 | 2 710.1 | 5.5 | 59.0 |
| Lone person | 750.4 | 926.0 | 50.3 | 976.3 | 935.3 | 1 911.6 | 5.2 | 51.1 |
| Not living alone | 437.6 | 584.7 | 38.3 | 623.0 | 175.5 | 798.5 | 6.1 | 78.0 |
| Relationship in household not determined | 103.3 | 157.9 | 18.5 | 176.4 | 543.2 | 719.6 | 10.5 | 24.5 |
| Total | 7 690.7 | 10 793.5 | 562.2 | 11 355.7 | 6 007.5 | 17 363.2 | 5.0 | 65.4 |
|
| (a) Annual averages. |
| (b) Aged 15 years and over. |
| Source: ABS Labour Force, Australia, Detailed - Electronic Delivery (6291.0.55.001). |
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