Barriers and Incentives to Labour Force Participation, Australia methodology

1 Since the estimates in this publication are based on information obtained from occupants of a sample of dwellings, they are subject to sampling variability. That is, they may differ from those estimates that would have been produced if all dwellings had been included in the survey. One measure of the likely difference is given by the standard error (SE), which indicates the extent to which an estimate might have varied by chance because only a sample of dwellings was included. There are about two chances in three (67%) that a sample estimate will differ by less than one SE from the number that would have been obtained if all dwellings had been included, and about 19 chances in 20 (95%) that the difference will be less than two SEs.

2 Another measure of the likely difference is the relative standard error (RSE), which is obtained by expressing the SE as a percentage of the estimate.

RSE% = (SE/estimate ) x 100

3 RSEs for Barriers and Incentives to Labour Force Participation estimates have been calculated using the Jackknife method of variance estimation. This process involves the calculation of 30 'replicate' estimates based on 30 different sub-samples of the original sample. The variability of estimates obtained from these sub-samples is used to estimate the sample variability surrounding the main estimate.

4 The Excel spreadsheets in the Data downloads section contain all the tables produced for this release and the calculated RSEs for each of the estimates. The RSEs for estimates other than medians have been calculated using the Jackknife method, and RSEs for the medians have been calculated using the Woodruff method.

5 In the tables in this publication, only estimates (numbers, percentages, means and medians) with RSEs less than 25% are considered sufficiently reliable for most purposes. However, estimates with larger RSEs have been included. Estimates with an RSE in the range 25% to 50% should be used with caution while estimates with RSEs greater than 50% are considered too unreliable for general use. All cells in the Excel spreadsheets with RSEs greater than 25% contain a comment indicating the size of the RSE. These cells can be identified by a red indicator in the corner of the cell. The comment appears when the mouse pointer hovers over the cell.

6 RSEs are routinely presented as the measure of sampling error in this publication and related products. SEs can be calculated using the estimates (counts or means) and the corresponding RSEs.

7 An example of the calculation of the SE from an RSE follows. Datacube 1 shows that the estimated number of males who were unemployed was 300,800, and the RSE for this estimate was 6.6%. The SE is:

SE of estimate

= (RSE / 100) x estimate

= 0.066 x 300,800

= 19,900 (rounded to the nearest 100)

8 Therefore, there are about two chances in three that the value that would have been produced if all dwellings had been included in the survey would fall within the range 261,000 to 340,600 and about 19 chances in 20 that the value would fall within the range 68,800 to 93,200. This example is illustrated in the following diagram.

19 The estimates of means and sums of continuous variables are subject to sampling variability and random adjustment. As for population estimates, the variability due to sampling and random adjustment is combined into the calculated Standard Error, and the Relative Standard Error is reported. The component of variability arising from sampling is calculated using the Jackknife method.

20 The estimates of quantiles such as medians, quartiles, quintiles and deciles are subject to sampling variability and random adjustment. As for population estimates, the variability due to sampling and random adjustment is combined into the calculated Standard Error, and the Relative Standard Error is reported. The component of variability arising from sampling is calculated using the Woodruff method. This is also true for Equal Distribution Quantiles.

The ABS has a range of data available on request from the Barriers and Incentives to Labour Force Participation topic. This section lists the populations which are used in the publication. Full details of the data items are available on the ABS website in an Excel spreadsheet, under the Data downloads section (B&I and R&RI 2016–17 Data Items List).

The population(s) for a particular data item refers to the persons in the survey to whom the data relates. Where alternative output categories are available for the same data item, these are shown and the data item name is followed by a bracketed numeral (e.g. Country of birth (2)).

Note: The populations for this topic are numbered from 1–15A. Populations 16–24A relate to the Retirement and Retirement Intentions topic (cat. no. 6238.0) alongside which this survey was run.

For more information about ABS data available on request, contact National Information and Referral Service in Canberra on 1300 135 070 or via email to client.services@abs.gov.au or contact Labour Markets Analytics Section by email to labour.statistics@abs.gov.au

All persons aged 18 years and over

Employed persons

Unemployed persons (end note 1)

Persons not in the labour force

Persons not in the labour force who wanted a paid job

Persons who were not in the labour force, wanted a paid job but were not available to start within four weeks

Persons who were not in the labour force, wanted a paid job, were available to start within four weeks, but were not actively looking for a job

Persons who were not in the labour force, wanted a paid job, were available to start within four weeks, and were actively looking for a job

Persons who were not in the labour force and did not want a paid job or did not know

Persons aged 18–75 years, who were not in the labour force, excluding those permanently unable to work and permanently retired from the labour force

Persons who usually worked 0–34 hours per week in all jobs

Persons who usually work 0–34 hours, and preferred to work more hours

Persons who usually work 0–34 hours, preferred to work more hours, but were not available to start within four weeks

Persons who usually work 0–34 hours, preferred to work more hours, were available to start within four weeks, but were not looking for work with more hours

Persons who usually work 0–34 hours, preferred to work more hours, were available to start within four weeks, and were looking for work with more hours

Persons who usually work 0–34 hours, and did not prefer to work more hours

Persons aged 18–75 years, who usually work 0–34 hours per week in all jobs

1. There are no unemployed persons aged over 75 years.

Actively looking for work includes:

• written, telephoned or applied to an employer for work;
• had an interview with an employer for work;
• answered an advertisement for a job;
• checked or registered with a Job Services Australia provider or any other employment agency;
• taken steps to purchase or start your own business;
• advertised or tendered for work; and
• contacted friends or relatives in order to obtain work.
   

Refers to persons who were available to start work with more hours either in the reference week, or in the four weeks subsequent to the interview.

Employed persons who usually worked 0–34 hours per week in all jobs and were available to start work with more hours in the reference week or within four weeks.

Persons who were undertaking study for a trade certificate, diploma, degree or any other educational qualification at the time of the survey.

Persons who said 'no' or 'don't know' when asked 'would you prefer to work more hours than you usually work?'.

Persons who were not classified as employed or unemployed who answered 'no' or 'don't know' when asked if they would like a paid job.

Length of time worked in current main job/last job.

Persons who, during the reference week:

• worked for one hour or more for pay, profit, commission or payment in kind in a job or business, or on a farm (comprising employees, employers and own account workers); or
• worked for one hour or more without pay in a family business or on a farm (i.e. contributing family workers); or
• were employees who had a job but were not at work and were:
  • away from work for less than four weeks up to the end of the reference week; or
  • away from work for more than four weeks up to the end of the reference week and received pay for some or all of the four week period to the end of the reference week; or
  • away from work as a standard work or shift arrangement; or
  • on strike or locked out; or
  • on workers' compensation and expected to return to their job; or
• were employers or own account workers who had a job, business or farm, but were not at work.
   

Persons who work for a public or private employer and receive remuneration in wages, salary, a retainer fee from their employer while working on a commission basis, tips, piece rates, or payment in kind, or persons who operate their own incorporated enterprise with or without hiring employees.

Employees who were entitled to either paid sick leave or paid holiday leave (or both).

Employees who were not entitled to, or did not know whether they were entitled to, paid sick and paid holiday leave.

Two or more persons, one of whom is at least 15 years of age, who are related by blood, marriage (registered or de facto), adoption, step or fostering; and who are usually resident in the same household. The basis of a family is formed by identifying the presence of a couple relationship, lone parent-child relationship or other blood relationship. Some households will, therefore, contain more than one family.

Employed persons who usually work 35 hours or more a week (in all jobs).

Persons who were not employed during the reference week, were waiting to start a job within four weeks from the end of the reference week, and could have started in the reference week if the job had been available then.

Persons who are not in the labour force or are unemployed and have previously worked for two weeks or more.

Persons who are not in the labour force or are unemployed, who have previously worked for two weeks or more, less than 20 years ago.

An industry relates to a group of businesses or organisations that perform similar sets of activities in terms of the production of goods and services. In this publication, industry is classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 Revision 2.0 (cat. no. 1292.0).

The civilian population can be split into two mutually exclusive groups: the labour force (employed and unemployed persons) and persons not in the labour force.

Refers to last job less than 20 years ago.

Non-school qualifications are awarded for educational attainments other than those of pre-primary, primary or secondary education. They include qualifications at the Postgraduate Degree level, Masters Degree level, Graduate Diploma and Graduate Certificate level, Bachelor Degree level, Advanced Diploma and Diploma level, and Certificates I, II, III and IV levels and not further defined. Non-school qualifications may be attained concurrently with school qualifications.

Refers to persons who indicated that they had done something in the last four weeks to obtain more hours of work.

The job in which most hours were usually worked.

Persons who are either unemployed or not in the labour force.

An occupation relates to a collection of jobs that are sufficiently similar in their title and tasks, skill level and skill specialisation which are grouped together for the purposes of classification. In this publication, occupation is classified according to ANZSCO - Australian and New Zealand Standard Classification of Occupations, 2013, Version 1.2 (cat. no. 1220.0).

Persons who work in their own incorporated enterprise, that is, a business entity which is registered as a separate legal entity to its members or owners (may also be known as a limited liability company).

An owner manager of an incorporated enterprise may or may not hire one or more employees in addition to themselves and/or other owners of that business. See Status in employment for more information.

A person who operates his or her own unincorporated enterprise or engages independently in a profession or trade.

An owner manager of an unincorporated enterprise may or may not hire one or more employees in addition to themselves and/or other owners of that business. See Status in employment for more information.

Employed persons who usually worked less than 35 hours a week (in all jobs).

Persons who were classified as being in the labour force, that is, either employed or unemployed.

Persons who were not classified as employed or unemployed.

Employed persons who usually work 0–34 hours each week and would prefer to work more hours than they usually work.

The week preceding the week in which the interview was conducted.

The relationship of persons who live in the same household.

Status of employment is determined by an employed person's position in relation to their job, and is usually in respect to a person's main job if they hold more than one job.

Employed persons are classified according to the reported relationship between the person and the enterprise for which they work, together with the legal status of the enterprise where this can be established. The groups include:

• Employees
• Owner manager of incorporated enterprise (OMIEs) with employees;
• Owner manager of incorporated enterprise (OMIEs) without employees;
• Owner manager of unincorporated enterprise (OMUEs) with employees;
• Owner manager of unincorporated enterprise (OMUEs) without employees; and
• Contributing family workers.
   

The elapsed time since ceasing last job.

Persons who were not employed during the reference week, and:

• had actively looked for full-time or part-time work at any time in the four weeks up to the end of the reference week and;
• were available for work in the reference week; or
• were waiting to start a new job within four weeks from the end of the reference week and could have started in the reference week if the job had been available then.
   

Includes caring for own children or other persons children including grandchildren. Also includes caring for elderly or someone with long-term illness or disability or undertaking unpaid voluntary work. Respondents were asked whether they had undertaken any of these activities in the last four weeks.

The hours usually worked per week by an employed person.

Persons who are not in the labour force and would like a paid job of any kind. Includes persons who said 'depends'.

See 'Preferred to work more hours'.

For information on the institutional environment of the Australian Bureau of Statistics (ABS), including the legislative obligations of the ABS, financing and governance arrangements, and mechanisms for scrutiny of ABS operations, please see ABS Institutional Environment.

The Barriers and Incentives to Labour Force Participation survey provides data on persons aged 18 years and over who are either not employed or work less than 35 hours. The Barriers and Incentives to Labour Force Participation topic is designed to bring various aspects of factors which influence labour force participation into one data source for comparison. The survey provides information on the potential labour force and what is preventing these persons finding or taking up (more) work.

Full details of the data items are available on the ABS website in an Excel spreadsheet, under the Data downloads section (B&I and R&RI 2016–17 Data Items List).

The Barriers and Incentives to Labour Force Participation survey is collected biennially, and was first conducted in 2004–05. The most recent Barriers and Incentives to Labour Force Participation survey was conducted throughout Australia during the 2016–17 financial year. It was a component of the 2016–17 Multipurpose Household Survey (MPHS), collected as a supplement to the Australian Bureau of Statistics (ABS) Labour Force Survey (LFS).

The initial sample for the MPHS 2016–17 consisted of approximately 26,000 private households. Of the 15,400 private households that remained in the survey after sample loss (e.g. households with LFS non-response, no residents in scope for the LFS, vacant or derelict dwellings and dwellings under construction), approximately 72% responded to the MPHS. The number of completed interviews obtained from these private households (after taking into account scope, coverage and subsampling exclusions) was 6,200 for the Barriers and Incentives to Labour Force Participation survey.

Estimates from the survey are subject to sampling and non-sampling errors.

The MPHS was designed primarily to provide estimates at the Australia level. Broad estimates are available for states and territories, though users should exercise caution when using estimates at this level because of the presence of high sampling errors.

To minimise the risk of identifying individuals in aggregate statistics, a technique is used to randomly adjust cell values. This technique is called perturbation. Perturbation involves small random adjustment of the statistics and is considered the most satisfactory technique for avoiding the release of information that could identify individual survey respondents while maximising the range of information that can be released. These adjustments have a negligible impact on the underlying pattern of the statistics. After perturbation, a given published cell will be consistent across all tables. However, adding up cell values to derive a total will not necessarily give the same result as published totals.

For the 2012–13 survey, questions were included on Previous full-time job details and Main source of current personal income. These were excluded from the 2014–15 survey.

For the 2014–15 survey, enhancements were made to the Previous job payment arrangements question, adding the response category of 'Unpaid trainee/work placement'. Enhancements were also made to survey questions on why not looking for work or more hours, trouble finding work or more hours and wanting more hours. The response categories of 'No need/satisfied with current arrangements/retired (for now)' and 'Visa requirements' were added to these questions.

For the 2016–17 survey, enhancements were made to Previous job module, a new question asking "Did you have employees in the business" was added.

The statistics presented in this survey have been benchmarked to the Estimated Resident Population for December 2016, independently produced according to the scope of the survey. This ensures that the survey estimates conform to person benchmarks by state, section of state, age and sex. The statistics have been further benchmarked to labour force survey estimates averaged over the 12 month MPHS reference period. This ensures that survey estimates are also consistent with the estimated in-scope population by state, section of state, sex, age and labour force status.

The Barriers and Incentives to Labour Force Participation publication contains detailed Explanatory Notes, Technical Notes and a Glossary that provide information on the terminology, classifications and other technical aspects associated with these statistics.

The estimates are based on information collected over the financial year. Therefore, seasonally adjusted and trend estimates are not produced and seasonal weighting is not undertaken.

Further commentary is often available through articles and data published in other ABS products, including:

Australian Labour Market Statistics (cat. no. 6105.0).

Australian Social Trends (cat. no. 4102.0).

Labour Statistics: Concepts, Sources and Methods (cat. no. 6102.0.55.001).

For the 2016–17 release, tables and associated RSEs are available in spreadsheet form on the ABS website.

Barriers and Incentives to Labour Force Participation, Australia (cat. no. 6239.0) is released electronically via the ABS website as Datacubes in spreadsheet format. Additional data may be available on request (subject to data quality). Note that detailed data can be subject to high relative standard errors. Full details of data items for this survey are available from the Data downloads section in Datacube: B&I and R&RI 2016-17 Data items list.

For users who wish to undertake a more detailed analysis of the data, the survey microdata will be released through the TableBuilder product. For more details, refer to the TableBuilder information, Microdata, Barriers and Incentives to Labour Force Participation, Australia (cat. no. 6238.0.55.001). For more information see About TableBuilder.

For more information about ABS data available on request, contact National Information and Referral Service in Canberra on 1300 135 070 or via email to client.services@abs.gov.au or contact Labour Markets Analytics Section by email to labour.statistics@abs.gov.au