Participation, Job Search and Mobility, Australia

Flooding in Townsville in February 2019 resulted in a major disruption to the operation of the Labour Force Survey (LFS) and the accompanying Participation, Job Search and Mobility Survey (PJSM). As a result, there was a very low sample of responding households in the region in February.

Given the severity of these disruptions, which affected almost the entire region, and to ensure that this loss of sample did not affect data for Australia and Queensland, the ABS imputed sample for Townsville for February 2019. The imputation drew upon previous information that had been collected from people in Townsville.

During 2018, the ABS estimated that employed persons in Townsville accounted for around 1 per cent of all employed persons in Australia, around 4 per cent of employed persons in Queensland, and around 9 per cent of employed persons in the regions in Queensland outside of Brisbane.

It is also important to note that there were also a range of bushfires across Australia over the period that resulted in minor disruption to data collection activities. These did not result in any notable impacts to LFS or PJSM data.

The ABS has been keeping an eye on underemployment since the very earliest Labour Force Surveys in the 1960s. The following table from Chapter 29 - Employment and Unemployment (p. 1192) of the Year Book, Australia, 1967 (cat. no. 1301.0) shows measures of underemployment for the six state capital cities for the period November 1962 to November 1966.

The term underemployed was not yet used, but the category "Lack of work" closely resembles how we measure underemployment today.

• In November 1962, only 17.7% of the labour force in the capital cities worked part-time hours, compared to 37.4% in February 2019.

• 1.1% of the labour force in the state capital cities were underemployed in November 1962 (5.9% of those who worked part-time hours). In February 2019, 7.9% of the labour force in the capital cities was underemployed (21.2% of those who worked part-time hours).

• The unemployment rate of the state capital cities in November 1962 was 1.6%. Combined with the 1.1% underemployment rate, underutilisation was 2.7% in 1962. Underutilisation of the capital cities in February 2019 was 13.0% (with a 5.1% unemployment rate).
   

For more information on these on any other labour statistics, contact the ABS Labour Statistics branch via labour.statistics@abs.gov.au.

In May 1985, the ABS ran its first survey dedicated to exploring the conditions of underemployment - the Underemployed Workers Survey (UEW). This article presents excerpts from the Summary of Findings of the first publication (cat. no. 6265.0), published on 6th March 1986. A digitised copy of the publication is available here.

The summary data presented is also compared against the latest data from the 2019 Participation, Job Search and Mobility (PJSM) Survey.

In May 1985 there were 6,632,300 employed persons aged 15 and over (55.6 per cent of the civilian population in this age group). Of these, most were fully employed (96.6 per cent) and 3.4 per cent (226,700) were underemployed.

199,600 (88.0 per cent) of these underemployed workers were part-time workers who indicated that they would prefer to work more hours. The remaining 27,100 persons were full-time workers who did not work full-time hours in the reference week due to economic reasons.

22.9 per cent of part-time employed males were underemployed, compared with 14.9 per cent of part-time employed females. For both males and females, 0.5 per cent of full-time employed workers were underemployed.

1. For the definition of fully employed. See Explanatory Notes paragraph 8 on the Methodology page (excerpt below).
2. Underemployed part-time workers who had been looking for work with more hours at some time in the four weeks up to the end of the survey week and were available to start such work within four weeks.

(Source of data: Table 2, May 1985)

NOTE: Fully employed workers are defined as those persons who are voluntarily working part-time, or who worked full-time hours in the reference week, or who are full-time workers who did not work full-time hours in the reference week for non-economic reasons. It should be noted that persons who are normally underemployed but who worked full-time hours in the reference week are classified as fully employed.

Today, under the current definition, fully employed workers also include part-time workers who prefer more hours, but were unavailable to work any extra hours. These are not included in the data from 1985 and are instead included amongst the underemployed, unless otherwise noted.

In February 2019, there were 12.7 million employed persons. This was 63.3% of the population, up from 55.6% in 1985. Of these:

• 91.4% were fully employed, down from 96.6% in 1985
• 8.6% (1.1 million) were underemployed, up from 3.4% in 1985
   

92.4% of the underemployed were part-time workers who preferred and were available to work more hours, up from 88.0% in 1985.

• 31.4% of part-time males were underemployed, up from 22.9% in 1985
• 22.9% of part-time females were underemployed, up from 14.9% in 1985
   

The remaining underemployed (7.6%) were full-time workers who involuntarily worked part-time hours because they was not enough work or were stood down by their employer.

• 1.1% of full-time males were underemployed, up from 0.5% in 1985
• 0.7% of full-time females were underemployed, up from 0.5%
   

1. Underemployed part-time workers who had been looking for work with more hours at some time in the four weeks up to the end of the survey week and were available to start such work within four weeks.

(Source of data: Tables 2 & 3, Feb 2019)

While most underemployed workers were females (66.0 per cent), most unemployed persons were males (59.5 per cent). Approximately 35 per cent of underemployed workers were aged 15 to 24, while about 45 per cent of unemployed persons were in this age group. About 25 per cent of both underemployed workers and unemployed persons were aged 25 to 34. The remaining 40 per cent of underemployed workers and 30 per cent of unemployed persons were in the older age group of 35 and over.

116,600 or 51.4 per cent of underemployed workers were husbands or wives, of whom 75,100 had children aged 0 to 14 present, while 219,500 or 36.1 per cent of unemployed persons were husbands or wives, of whom 147,800 had children aged 0 to 14 present. 23.1 per cent of underemployed workers were children of family heads, compared with 33.3 per cent of unemployed persons.

The underemployment and unemployment rates were 3.1 per cent and 8.4 per cent respectively, yielding an underutilisation rate of 11.5 per cent.

• The underemployment rate was 8.2% in 2019 which was higher than the 3.1% in 1985
• The unemployment rate was 5.3% in 2019 which was lower than the 8.4% in 1985
• The underutilisation rate was 13.5% in 2019 which was higher than the 11.5% in 1985
   

• Most underemployed were female (59.0%)
   
• 34% were aged 15 to 24
• 21% were aged 25 to 34
• 45% were aged 35 and over
   
• 44.1% were husbands, wives or partners
• 21.2% were partners with children under 15
• 30.6% were working age children living with parents
   

• Most unemployed were male (52.8%)
   
• 37% were aged 15 to 24
• 20% were aged 25 to 34
• 43% were aged 35 and over
   
• 33.0% were husbands, wives or partners
• 16.5% were partners with children under 15
• 36.5% were working age children living with parents
   

Underemployed part-time workers who had been looking for work with more hours and were available to start such work within four weeks had, on average, been underemployed for 36.1 weeks. Underemployed full-time workers had experienced an average duration of 12.6 weeks.

These two groups combined had an average duration of current period of underemployment of 30.7 weeks, which was lower than the average duration of current period of unemployment (50.2 weeks). The average duration of underemployment for males (31.9 weeks) was only slightly higher than that for females (29.9 weeks). However, males had experienced a much higher average duration of unemployment (57.2 weeks) than females (39.9 weeks).

Persons with post-school qualifications had been underemployed for an average of 35.6 weeks compared with persons without post-school qualifications, who had been underemployed for an average of 28.2 weeks.

NOTE: Duration of current period of underemployment is the period from the time the person became underemployed to the end of the survey week. Average (mean) duration is obtained by dividing the aggregate number of weeks a group has been underemployed by the number of persons in that group. Median duration is that which divides underemployed persons into two equal groups, one comprising persons whose duration of underemployment is above the median and the other, persons whose duration is below it.

The duration of current period of underemployment was measured differently in 1985 to 2019. In 1985, respondents were asked to recall the number of weeks they had been both working less than 35 hours and looking for more work. In 2019, respondents were asked to recall the number of weeks they had been both working less than 35 hours and wanting to work more hours.

Average duration of underemployment was 86.5 weeks in 2019, higher than the 30.7 weeks in 1985.

• Average duration of part-time underemployment was 56 weeks higher in 2019 compared to 1985, while the average duration of full-time underemployment was just 0.6 weeks higher.
• Average duration of underemployment rose for both males and females between 1985 and 2019. Males rose from 31.9 weeks to 77.3 weeks, and females rose from 29.9 weeks to 92.9 weeks.
• Average duration of underemployment for those with a post-school qualification was 88.6 weeks, higher than the 35.6 weeks in 1985. For those without a post-school qualification, average duration of underemployment was 83.5 weeks, higher than the 28.2 weeks in 1985

Average duration of unemployment was 45.9 weeks in 2019, lower than the 50.2 weeks in 1985.

• The average duration of male unemployment fell nearly 10 weeks between 1985 and 2019, while the reverse is true for female average duration of unemployment, which rose 4 weeks over that time.
   

Median duration of underemployment was 30 weeks in 2019, higher than the 12 weeks in 1985.

• Median duration of part-time underemployment was 22 weeks higher in 2019 compared to 1985, while the median duration of full-time underemployment was just 1 week higher.

• Median duration of underemployment rose for both males and females between 1985 and 2019. Males rose from 8 weeks to 26 weeks, and females rose from 13 weeks to 34 weeks.

• Median duration of underemployment for those with a post-school qualification was 32 weeks, higher than the 14 weeks in 1985. For those without a post-school qualification, the median duration of underemployment was 30 weeks, higher than the 12 weeks in 1985.

Median duration of unemployment was 10 weeks in 2019, lower than the 22 weeks in 1985.

• The median duration of male unemployment fell 15 weeks between 1985 and 2019. Median duration of unemployment for females also fell by 8 weeks over the same period.
   

Industries accounting for the most underemployed workers were Wholesale and Retail Trade (24.3 per cent), Community Services (21.4 per cent) and Recreation, Personal and Other Services (17. 7 per cent). These same three industries also had high proportions of their workers underemployed, 9.1 per cent in Recreation, Personal and Other Services and slightly over 4 per cent in both Community Services and Wholesale and Retail Trade. In the Manufacturing sector, 1.4 per cent of workers were underemployed, representing 7.2 per cent of all underemployed persons.

Industries with the most underemployed workers:

• Recreation, Personal and Other Services (28.7%), which is up from 24.3% in 1985
• Community Services (23.9%), which is up from 21.4% in 1985
• Wholesale and Retail Trade (22.6%), which is down from 24.3% in 1985
   

Industries with the highest proportion of underemployment:

• Recreation, Personal and Other Services (17.6%), which is up from 9.1% in 1985
• Wholesale and Retail Trade (12.8%), which is up from 4.2% in 1985
• Community Services (8.6%), which is up from 4.3% in 1985
   

3.0% of all underemployed workers were in Manufacturing, which is down from 7.2% in 1985.

3.8% of workers in Manufacturing were underemployed, which is up from 1.4% in 1985.

Industries with the most underemployed workers:

• Retail Trade (20.7%), up from 17.2% in 1985
• Accommodation and Food Services (15.8%), up from 12.6% in 1985
• Health Care and Social Assistance (13.8%), up from 9.4% in 1985
   

Industries with the highest proportion of underemployment:

• Accommodation and Food Services (19.2%), up from 8.7% in 1985
• Retail Trade (17.4.%), up from 5.5% in 1985
• Arts and Recreation Services (16.3%), up from 7.5% in 1985
   

2.9% of all underemployed workers were in Manufacturing, down from 6.8% in 1985.

3.8% of workers in Manufacturing were underemployed, up from 1.4% in 1985.

Of those underemployed part-time workers who had been looking for work with more hours and were available to start such work within four weeks, 35,500 (39.1 per cent) usually worked from 1 to 10 hours, 34,400 (37.9 percent) usually worked from 11 to 20 hours and the remaining 21,000 (23.1 per cent) usually worked from 21 to 34 hours.

Of those who usually worked from 1 to 10 hours, 43.7 per cent reported that they would prefer to work 30 or more extra hours, while only 11.8 per cent preferred less than 10 extra hours.

55.8 per cent of those persons who usually worked from 11 to 20 hours would like to work 20 to 29 extra hours, while a further 29.9 per cent of these persons would like to work 10 to 19 extra hours.

The majority of persons who usually worked from 21 to 34 hours reported that they would prefer 10 to 19 extra hours (72.4 per cent), while a further 23.8 per cent preferred less than 10 extra hours.

Underemployed part-time workers who had been looking for work with more hours and were available to start such work within four weeks reported that they would prefer to work an average of 20 extra hours. The total quantum of underemployment for these persons was 1,785,500 hours per week.

NOTE: Quantum of underemployment is the sum of the preferred number of extra hours reported. It measures the number of potential hours of work lost due to underemployment.

It is known today as a Volume measure of underemployment.

The average number of extra hours that part-time underemployed workers were looking for was 15 more hours per week (median of 13 hours). This is less than the average of 20 extra hours sought in 1985.

The total volume of additional hours preferred was 7,503,000 hours per week.

In 2019, the usual hours of part-time workers looking for more work were greater than in 1985:

• 29.0% usually worked 10 or fewer hours, less than the 39.1% in 1985
• 37.8% usually worked from 11 to 20 hours, about the same as in 1985
• 33.3% usually worked from 21 to 34 hours, more than the 23.1% in 1985
   

Of those who usually worked 10 or fewer hours:

• 26.3% wanted an extra 30 or more hours, less than the 43.7% in 1985
• 21.5% wanted less than 10 extra hours, more than the 11.8% in 1985

Of those who usually worked from 11 to 20 hours:

• 37.6% wanted an extra 20 to 29 hours, less than the 55.8% in 1985
• 37.1% wanted an extra 10 to 19 hours, more than the 29.9% in 1985
   

Of those who usually worked from 21 to 34 hours:

• 58.4% wanted an extra 10 to 19 hours, less than the 72.4% in 1985
• 39.7% wanted less than 10 extra hours, more than the 23.8% in 1985.
   

25,200 (27.8 per cent) underemployed part-time workers who had been looking for work with more hours and were available to start such work within four weeks reported that they would prefer to work more part-time hours. This comprised 19,100 who would like to work a total of less than 30 hours and 6,100 who would like to work from 30 to 34 hours.

The remaining 65,600 (72.2 per cent) persons would prefer to work full-time hours, comprising 23,800 persons who would like to work a total of from 35 to 39 hours and 41,800 persons who would like to work 40 hours or over.

42.6% of part-time workers looking for more work preferred to work more part-time hours, more than the 27.8% in 1985:

• 65.9% preferred less than 30 hours, less than the 76% in 1985
• 34.1% preferred 30 to 34 hours, more than the 24% in 1985

57.4% preferred to work full-time, less than the 72.2% in 1985:

• 53.5% preferred to work 35 to 39 hours, more than the 38% in 1985
• 46.5% preferred to work 40 hours or more, less than the 62% in 1985
   

The publication Underemployed Workers, Australia (cat. no. 6265.0) has digitised back issues dating back to September 1996, which can be found here.

The remaining issues from before 1996 have now been digitised and were recently made available on the ABS website.

• Unemployment, Underemployment and Related Statistics, Australia, February 1978 to February 1980 (cat. no. 6236.0)
• Employment, Underemployment and Unemployment, Australia, 1966-1983 (cat. no. 6246.0)
• Underemployed Workers, Australia, May 1985 (cat. no. 6265.0)
• Underemployed Workers, Australia, May 1988 (cat. no. 6265.0)
• Underemployed Workers, Australia, May 1991 (cat. no. 6265.0)
• Underemployed Workers, Australia, September 1994 (cat. no. 6265.0.40.001)
• Underemployed Workers, Australia, September 1995 (cat. no. 6265.0.40.001)
• Underemployed Workers, Australia, September 2000 (cat. no. 6265.0) - Revised Oct 2002
   

For more information on these on any other labour statistics, contact the ABS Labour Statistics branch via labour.statistics@abs.gov.au.

From 2018, the estimates in this publication are now rebenchmarked every year to reflect the most recently available release of Estimated Resident Population (ERP) data.

Estimates have been revised to incorporate the latest benchmarks and all estimates, including 2019, are comparable with estimates published in the March 2019 issue of Labour Force, Australia (cat. no. 6202.0).

Revised tables for 2015 to 2018 have been published in this issue (contained in Historical .zip files) and supersede the tables published in previous issues of this publication.

To reduce the impact of seasonal and irregular effects on total employment and unemployment, the estimates have been adjusted by factors based on trend Labour Force Survey (LFS) estimates (as published in March 2019).

For example, the unemployment estimates collected in February have a typical seasonal pattern of higher estimates. The factors applied result in a decrease to the total number of unemployed to match trend LFS estimates.

From this issue, underemployed estimates have also been adjusted by trend factors, also based on the monthly LFS estimates published in March 2019. Revisions using the underemployed trend adjustment have been completed back to 2015, Data from years prior to 2015 will be revised and published at a later date.

For more information refer to the Methodology page.

Participation, Job Search and Mobility 2019 microdata will be available today (8th July 2019) via TableBuilder (cat. no. 6226.0.00.001). For the first time, five years of data will be available, from 2015 to 2019.

For more information see About TableBuilder.

The Australian and New Zealand Standard Classification of Occupations (ANZSCO) is a skill-based classification used to classify all occupations and jobs in the Australian and New Zealand labour markets. In line with the ANZSCO, occupation data have been grouped by skill level alongside the standard major occupation groups, providing an alternative view on the nature of work. Under this classification every occupation is assigned a skill level from 1 (high-skilled) to 5 (low-skilled) based on the range and complexity of the particular set of tasks performed in that job.

Data relating in changes of skill level between the current and previous job are also available, and can be explored to greater detail in TableBuilder.

After a review of the industry and occupation data collected in PJSM since 2015, improvements have been made to the coding of responses relating to the occupation and industry of last job, the job last February, and changes in occupation while working for the same employer.

Subsequently, revisions have been made to industry and occupation estimates. Revised tables for 2015 to 2018 have been published in this issue and supersede the tables published in previous issues of this publication.

During the quality assurance of the publication Labour Force Status and Other Characteristics of Families (cat. no. 6224.0.55.001), the ABS identified an issue with some family coding, which affected a range of key family estimates - particularly during the period 2015 to 2018.

For this reason, estimates relating to Relationship in Household have been removed from this issue of PJSM. All family related items have also been removed from TableBuilder.

Revised data for the 2015-2019 period will be published in the next release of PJSM in 2020.

29/10/2019 - Replaced expired links to documents on ABS ShareFile with updated links to documents on ABS website.