Barriers and Incentives to Labour Force Participation, Australia methodology

Non-sampling error may occur in any collection, whether it is based on a sample or a full count such as a census. Sources of non-sampling error include non-response, errors in reporting by respondents or recording of answers by interviewers and errors in coding and processing data. Every effort is made to reduce non-sampling error by careful design and testing of questionnaires, training and supervision of interviewers, and extensive editing and quality control procedures at all stages of data processing.

Standard errors can be calculated using the estimates (counts or percentages) and the corresponding RSEs. Since the RSE is obtained by expressing the standard error as a percentage of the estimate, recalculating the standard error is obtained by multiplying the estimate by the RSE. 

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

Employed people 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 in the four weeks subsequent to the interview.

A "barrier to participation" is based on collating all of the reasons why people are not participating in the labour force or not working more hours and include:

• Reasons why not wanting to work or work more hours.
• Reasons why not available to work or work more hours.
• Reasons why not looking for work or more hours.
• Difficulties finding work or more hours.
• Reasons why left or lost last job.

For example, when childcare is regarded as a barrier to participation, it could be because caring for children was reported as a reason why not wanting to work, or a reason why not available for work, or a reason why not looking for work, etc. 

People who were born overseas in countries other than Main-English Speaking Countries (MESC).

People who responded that caring for children was a barrier to participation.

People who responded that caring for ill, disabled or elderly was a barrier to participation.

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

People who responded that their cultural background, language difficulties or visa requirements were a barrier to participation.

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

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

People with disability are those who reported that they have a limitation, restriction or impairment, which has lasted, or is likely to last, for at least six months and restricts everyday activities. This includes:

• loss of sight (not corrected by glasses or contact lenses).
• loss of hearing where communication is restricted, or an aid to assist with, or substitute for, hearing is used.
• speech difficulties.
• shortness of breath or breathing difficulties causing restriction.
• chronic or recurrent pain or discomfort causing restriction.
• blackouts, seizures, or loss of consciousness.
• difficulty learning or understanding.
• incomplete use of arms or fingers.
• difficulty gripping or holding things.
• incomplete use of feet or legs.
• nervous or emotional condition causing restriction.
• restriction in physical activities or in doing physical work.
• physical impairment for which aids, help or supervision is required.
• mental health condition requiring help or supervision.
• memory problems or periods of confusion causing restriction.
• social or behavioural difficulties causing restriction.
• long-term effects of head injury, stroke or other acquired brain injury causing restriction.
• receiving treatment or medication for any other long-term conditions or ailments and still being restricted.
• any other long-term conditions resulting in a restriction.

Whether a person has disability has been derived from a subset of questions from the ABS Short Disability Module. These questions are not designed to estimate prevalence but rather allow for the broad comparison of the characteristics of people with and without disability.

Length of time worked in current main job or last job if not employed.

All people aged 15 years and over 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
  • 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
  • away from work as a standard work or shift arrangement
  • on strike or locked out
  • on workers' compensation and expected to return to their job; or
• were owner managers who had a job, business or farm, but were not at work.

An employed person who does not operate their own incorporated or unincorporated enterprise. An employee works for a public or private employer and receives remuneration in wages, salary, on a commission basis with a retainer, tips, piece-rates, or payment in kind.

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 people, 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 people who usually work 35 hours or more a week in all jobs.

People 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.

People who usually resided in the Greater Capital City regions of each State and Territory (ASGS 2016).

People who were waiting to start a job already obtained. Also includes people who had a job but, up to the end of the reference week, had been away from work without pay for four weeks or longer and had not been actively looking for work.

People who are not in the labour force or are unemployed and have previously worked in the last 20 years

People who had a Bachelor degree or higher, or last worked in a Skill level 1 occupation. This group of people is derived using either educational attainment or employment history, depending on which skill level is greater.

People who responded that a short-term illness, injury, long-term illness or disability was a barrier to participation.

An industry is a group of businesses or organisations that undertake similar economic activities to produce goods and/or services. In this publication, industry refers to ANZSIC Division as 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 people) and not in the labour force.

Refers to the last job worked within the last 20 years.

A person's level of highest non-school qualification is the highest qualification a person has attained in any area of formal study other than school study. It is categorised according to the Australian Standard Classification of Education (ASCED), 2001 (cat. no. 1272.0) Level of education classification.

Looked for work with more hours at some time during the four weeks up to the end of the reference week.

Lone parents or guardians of children aged 14 years and under.

People with long-term health conditions are anyone who reported one or more of the following conditions:

• Arthritis or osteoporosis
• Asthma
• Cancer
• Diabetes
• Heart disease
• Mental health condition
• Long-term injury
• Other long-term condition

People who had last worked 12 months or more ago, includes both unemployed people and people not in the labour force

People who had no non-school qualification or a qualification no higher than Certificate Level II, and who last worked in a Skill Level 5 occupation, had never worked before or last worked 20 years or more ago. This group of people is derived using a combination of educational attainment and employment history.

The job in which most hours were usually worked.

People who responded that problems with access to transport or lack of jobs in locality or line of work was a barrier to participation.

People who responded that they were satisfied with their current working arrangements and hours, had no need to work, or were retired from full-time work (for now) when asked why they were not participating or looking for more hours.

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

An occupation is 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 refers to Major Group and Sub-Major Group as defined by ANZSCO - Australian and New Zealand Standard Classification of Occupations, 2013, Version 1.2 (cat. no. 1220.0).

People 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 (also known as a limited liability company). These people are sometimes classified as employees. They can work alone or in a business with employees.

People who operate their own unincorporated enterprise, that is, a business entity in which the owner and the business are legally inseparable, so that the owner is liable for any business debts that are incurred. Includes those engaged independently in a trade or profession. They can work alone or in a business with employees.

Parents or guardians of children aged 14 years and under, from opposite or same sex couples and lone parent families.

Parents or guardians of children aged 5 years and under, from opposite or same sex couples and lone parent families.

Employed people who usually work less than 35 hours a week (in all jobs).

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

People who were not classified as employed or unemployed.

Employed people who usually work less than 35 hours a week and would prefer to work more hours than they usually work.

People who responded that pregnancy, maternity or paternity leave or caring for a child aged under 2 years was a barrier to participation.

People who were born overseas in countries other than Main-English Speaking Countries (MESC) and arrived in Australia less than 5 years ago.

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

People who usually resided outside of the Greater capital city regions of each State and Territory (ASGS 2016).

The relationship of people who live in the same household.

A person is classified as 'retired' in the Barriers and Incentives to Labour Force Participation survey using a simplified definition that is based on a people who are not in the labour force, did not want a paid job and when asked for all reasons for not wanting to work, chose "Permanently retired, will not work full-time again" as one of the reasons. 

This differs from the more complete definition of retired used in the Retirement and Retirement Intentions survey, which is based on a series of questions that defines the retired population as "People who had previously worked and had retired from work or looking for work, and did not intend to look for, or take up, work in the future."

Classifies employed persons according to the following categories on the basis of their current job:

• Employees
  • with paid leave entitlements
  • without paid leave entitlements
• Owner managers with employees (employer)
  • Owner manager of incorporated enterprise with employees
  • Owner manager of unincorporated enterprise with employees
• Owner managers without employees (own account worker)
  • Owner manager of incorporated enterprise without employees
  • Owner manager of unincorporated enterprise without employees
• Contributing family workers.

People who responded that studying or training was a barrier to participation.

The elapsed time since ceasing last job.

People 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.

People who responded (or whose response had been recorded by proxy from the responsible adult responding on behalf of the household) that they were "permanently unable to work" when answering the LFS question "Did you do any work at all in a job, business or farm (last week)?"

People who had been classified as "permanently unable to work" from the LFS questionnaire can be randomly selected for personal interview in the B&I survey, and were given the opportunity to respond to the question "Would you like a paid job?" Those who respond that they would like a paid job were included in the population "PNILF who wanted a paid job."

Includes caring for own children or other people's children, including grandchildren. Also includes caring for the elderly or someone with a 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.

People who are either 'Unpaid carers of children aged 0-12 years' or 'Unpaid carers for ill, disabled or elderly' (or both).

People who responded that caring for ill, disabled or elderly person was a barrier to participation and all people who cared for ill, disabled or elderly person in the last four weeks (unpaid work).

People who responded that caring for children was a barrier to participation and all people who cared for children in the last four weeks (unpaid work).

Usual hours of work refers to a typical period rather than the hours worked in a specified reference period. The concept of usual hours applies both to people at work and to people temporarily absent from work, and is defined as the hours worked during a typical week or day. Actual hours worked (for a specific reference period) may differ from usual hours worked due to illness, vacation, strike, overtime work, a change of job, or similar reasons. It is possible for a person to usually not work any hours in a typical week (usually work 0 hours) but be classified as employed based on the hours worked during the specific reference period.

People who are not in the labour force and would like a paid job of any kind. Includes people who answered 'Maybe/it depends'.

See 'Preferred to work more hours'.

• Estimates were benchmarked to a 12 month average of population estimates from the Labour Force Survey (as at December 2019). Estimates from previous surveys were also re-benchmarked using 12 month averages from the same LFS population series (as at December 2019) to improve coherence and consistency in the timeseries.

• Enhancements were made to the Previous job module, a new question asking "Did you have employees in the business" was added.

• Questions on Previous full-time job details and Main source of current personal income were excluded from 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.

• Part-time workers in scope for the survey were increased to include all part-time workers who usually worked less than 35 hours. In prior surveys, part-time workers is scope for the survey were restricted to only those who usually worked 15 hours or less.