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Standards for Labour Force Statistics

Latest release

Specifies ABS standards for the collection, processing, storage and dissemination of statistics on labour force variables

Reference period
2018

Summary

This product presents statistical standards for the five core labour force variables:

  • Labour force status
  • Status in employment
  • Hours worked
  • Full-time/part-time status
  • Duration of job search.
     

These variables are commonly used in a range of social and labour statistical collections. The standards are part of a series of statistical standards that the ABS is developing for the collection, processing and dissemination of variables in social, labour and demographic statistics.

This reference document describes the five core labour force variables and their associated conceptual issues and definitions. The standard for each variable includes the concept(s), definition(s), classification, coding structure, questionnaire modules and output categories used in ABS interviewer-based and self-enumerated collections.

These standards can be used by other government, academic and private sector organisations in their own statistical collections to improve the comparability of data.

Overview of the core labour force variables

Introduction

It is important for an economic and social understanding to be able to measure labour force characteristics of the population and changes which occur to those characteristics over time.

In the ABS the labour force characteristics of the population are measured and described through a group of variables. These core labour force variables are:

  • Labour force status
  • Status in employment
  • Hours worked
  • Full-time/part-time status
  • Duration of job search.
     

The core labour force variables, when cross-classified with other social, economic and demographic variables, can provide comprehensive data on a particular topic, issue or population group. The resulting information can be used for a range of purposes, including:

  • informed decision making and planning
  • policy formulation and monitoring
  • social and economic research and analysis, and
  • program provision and evaluation.
     

The core variables form a coherent set, which jointly provide a detailed description of the labour force.

Labour force questions are most commonly collected via household-based surveys. These surveys have strict time limits to minimise burden on householders and the cost of collecting the information, therefore the amount of content available for any one topic is limited. ABS Labour Force Survey (LFS) collects this information via specially trained interviewers using face-to-face and telephone interview collection methods, or by online self-enumeration. Labour force information is also collected in other household sample surveys, and in the Census of Population and Housing.

To accommodate the different levels of detail required, and the constraints of different collections, three conceptually comparable standard questionnaire modules have been developed.

  • The Labour Force Survey Questionnaire Module, which is used in the ABS LFS.
  • The Household Survey Questionnaire Module, a shorter version used in all other relevant ABS Household Surveys.
  • The Census of Population and Housing Questionnaire Module, which is best suited where labour force status is used as an explanatory variable (e.g. Census) or for use in administrative data collections.
     

A single question to establish labour force status can be used in administrative data collection, but is not considered a standard. For certain enumeration situations (e.g. remote Aboriginal and Torres Strait Islander Communities) a modified questionnaire format may also be used.

In all household-based surveys, Labour force status is the first of the core variables to be established when processing data on labour force activity. A derivation process is used to identify the Labour force status of each respondent. The derivation combines the responses to several questions according to a specified set of rules in order to correctly assign a classification code. Within the questionnaire module to establish Labour force status, the questions to determine Status in employment and Hours worked are also asked. Full-time/part-time status is derived from Hours worked. Additional questions have to be asked to determine Duration of job search.

The following table shows the variables contained in each of the three standard questionnaire modules, and the single question.

 Labour force statusFull-time/part-time statusHours workedStatus in employmentDuration of job search
Labour Force Survey Questionnaire ModuleYesYesBoth Actual and Usual HoursYesYes
Household Survey Questionnaire ModuleYesYesUsual HoursYesYes
Census of Population and Housing Questionnaire ModuleYesYesActual HoursYesNo
Single QuestionYesYesNoNoNo

The five core labour force variables have interdependencies and cannot be measured separately, for example:

  • Status in employment and Hours worked only apply to a person whose Labour Force Status is employed
  • Full-time/part-time status only applies to a person whose Labour force status is employed or unemployed (in respect of what type of work they are looking for), and
  • Duration of job search only applies to a person whose Labour force status is unemployed.
     

The development of standards for the individual core labour force variables and labour force questionnaire modules ensures comparable labour force data across a variety of ABS collections. This publication outlines the concept(s), definition(s), classifications, coding structure, questionnaire modules and output categories for each of the core labour force variables used in household-based collections conducted by the ABS.

The labour force framework

Introduction

The labour force is conceptually equivalent to the available supply of labour for economic production. It is a measure of the population undertaking economic activity, and the underlying concept of economic activity is consistent with that used in the Systems of National Accounts (see Australian System of National Accounts: Concepts, Sources and Methods).

The labour force framework classifies the in-scope population into three mutually exclusive categories at a given point in time: 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 persons contributing to, or willing to contribute to, the supply of labour at that time. The third category, not in the labour force, represents the balance of the in-scope population.

Labour force concepts and definitions used by the ABS align closely with the standards and guidelines outlined in the resolutions of International Conference of Labour Statisticians (ICLS) and the International Labour Organisation (ILO) manuals and guidelines.

The Australian labour force framework is detailed in Labour Statistics: Concepts, Sources and Methods.

International comparability

The conceptual framework

The labour force questionnaire modules

Collection methods

Labour force status

Introduction

Measuring the labour force characteristics of the population and the changes which occur over time are important from both an economic and social perspective. The ABS Labour Force Survey (LFS) and its associated supplementary surveys are the main and most important sources of information about the Australian labour force. This information is further supplemented by information obtained from the five yearly Census of Population and Housing, the various Special Social Surveys (SSSs), employer surveys, and administrative data.

Labour force status classifies the in-scope population into three mutually exclusive categories at a given point in time: 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 persons contributing to, or willing and able to contribute to, the supply of labour at that time and aligns with concepts in the System of National Accounts (SNA). The third category not in the labour force represents the balance of the in-scope population.

Definitions used by the ABS align closely with international standards and guidelines, as described in the section on International Comparability.

The name of the variable is Labour force status.

Underlying concepts

Collection methods

Classification and coding

Output

Status in employment

Introduction

Status in employment is a classification of employed persons according to the nature of their relationship with the enterprise in which they work.

The concepts and definitions relating to the measurement of Status in employment are detailed in the Labour Statistics: Concepts, Sources and Methods.

The standard term for the variable is Status in employment.

The term Status in employment is used in the international standard as outlined in the International Classification of Status in Employment (15th International Conference of Labour Statisticians, 1993).

The term employment status should be avoided as it is easily confused with the concept of Labour force status. The classification employment type has previously been used by the ABS but is now redundant as the groups identified within the employment type classification are now specified in Status in employment.

Status in employment is an attribute of the measurement unit job.

Underlying concepts

Collection methods

Classification and coding

Output

Appendix

Hours worked

Introduction

Measuring the levels and trends in hours worked for different groups of employed persons is important for monitoring working and living conditions, as well as analysing economic activity.

Information on hours worked also enables the classification of employed persons into full-time and part-time status. There are a number of different concepts of hours worked that are measured through ABS collections, which include actual hours, usual hours and hours paid for (both ordinary time hours and overtime hours). The ABS also produces a derived series of aggregate monthly hours worked.

This standard discusses the concepts related to hours worked as applied in the ABS Labour Force Survey (LFS) and other ABS collections. Definitions used by the ABS align closely with ILO's standards and guidelines, most notably the 18th ICLS Resolution on Working Time Arrangements (2008). In this resolution the concept of hours worked relates to the time when (paid) workers were at the disposal of an employer, that is, when the worker was available to receive work orders from an employer or person in authority, and covers all jobs. During such periods of availability, workers are expected to be ready to work if work is possible, requested or necessary. This general concept is meaningful for owner managers if it is taken to mean time when they are available to do their work, such as being at the disposal of clients, ready to receive purchase orders or available to make sales, etc. The ILO in its report 'Report II: Measurement of working time' for the 18th International Conference of Labour Statisticians, discusses the concepts and definitions in measuring hours of work. The report provides a comprehensive guide to producing statistics on hours of work, including other related measures.

There are three core variables, which directly measure the concept of hours worked:

  • Actual hours worked
  • Usual hours worked
  • Hours paid for.
     

In addition, derived measures of total hours of work over a month or quarter are increasingly important to provide a measure of the total volume of labour inputs to the economy, and how this is changing over time. As a result, there is a further measure of hours worked produced, aggregate monthly hours worked.

The three variables related to hours worked are all an attribute of the measurement unit person. However, for total hours, the hours worked can also be in reference to hours worked in a particular job.

Underlying concepts

Collection methods

Classification and coding

Output

Full-time part-time status

Introduction

Full-time/part-time status is widely used to categorise persons or jobs in terms of the number of hours worked. This status is of interest in understanding the nature of employment, particularly when cross-classified with socio-economic characteristics.

Full-time/part-time status is available from a number of ABS household surveys, including:

  • the monthly Labour Force Survey (LFS)
  • various labour-related supplementary topics
  • various Special Social Surveys, and
  • the Census of Population and Housing.
     

Full-time/part-time status is also used in some ABS business surveys, such as the Survey of Employee Earnings and Hours.

Most ABS household surveys, including the LFS, define full-time/part-time status of employed persons in terms of the hours actually and/or usually worked (in all jobs). In some cases, a subjective approach based on respondents' perception of their full-time or part-time status is used. This approach is most often used where information is sought about work that is not currently being undertaken, and where recall problems may be encountered using a more objective approach.

ABS business surveys classify employee jobs, rather than people, as full-time or part-time. Classification of employee jobs as full-time or part-time is based on the employer's perception of whether the person has been engaged on a full-time or part-time basis.

Underlying concepts

Collection methods

Classifications and coding

Output

Duration of Job Search

Introduction

The number of unemployed persons is an important social and economic indicator. The duration of job search, that is, the length of time unemployed persons have been looking for work or since they last worked (previously referred to as duration of unemployment), is also important from both an economic and social perspective. Long-term unemployment (where duration of job search is 52 weeks or more) is of particular social concern due to the consequences of being out of work for long periods, such as financial hardship and the loss of relevant skills. From an economic perspective, the longer people are unemployed the less likely they are going to be able to contribute to the economy.

Since 1960, the ABS Labour Force Survey has collected information about duration of unemployment for unemployed persons. The survey asks those who are currently unemployed about the length, in whole weeks, of the current period of looking for work and/or the time since their last job. The name of this item changed from Duration of unemployment to Duration of job search with the 2014 standards revision.

The definition of Duration of job search used by the ABS aligns closely with international standards (19th ICLS resolution (2013) concerning statistics of work, employment and labour underutilisation).

The name of the variable is Duration of job search.

Underlying concepts

Collection methods

Classification and coding

Output

Glossary

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Abbreviations

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Previous catalogue number

This release previously used catalogue number 1288.0.
 

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