1288.0 - Standards for Labour Force Statistics, 1996

ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 13/11/1996

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Contents >> Hours Worked >> Underlying concepts

UNDERLYING CONCEPTS

NAME OF VARIABLE

2. There are two core variables which measure the concept of hours worked:

Usual hours of work

Actual hours of work

DEFINITION OF VARIABLE

Nominal definition

Usual hours of work

3. Usual hours of work refers to a typical period, rather than to a specified reference period. The concept of usual hours applies both to persons at work and to persons temporarily absent from work, and is defined as the hours worked during a typical week or day. In the Labour Force Survey, usual hours of work refers to hours usually worked in all jobs for multiple job holders.

4. Measures of usual hours of work are available from: the Labour Force Survey; the Underemployed Workers Survey (cat. no. 6265.0), a Labour Force supplementary survey; and from various Special Supplementary Surveys, including the Survey of Employment Arrangements and Superannuation. Measures of usual hours of work are not available from ABS business surveys.

Actual hours worked

5. 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. Actual hours of work refers to time spent at work during a specified reference week and includes:

hours actually worked during normal periods of work;

time spent in addition to hours worked during normal periods of work (including overtime); and

time corresponding to short rest periods.

Excluded are:

hours paid for but not worked such as paid annual leave, public holidays or paid sick leave;

meal breaks; and

time spent on travel to and from work.

6. Actual hours worked usually includes hours worked in all jobs for multiple job holders. However, the Labour Force Survey also collects a separate measure of hours actually worked in the main job for multiple job holders.

7. ABS measures of actual hours of work are consistent with international guidelines, except for time spent travelling to and from work by the self-employed, which is sometimes included in household surveys.

8. Measures of actual hours of work are available from a number of ABS household surveys: the Labour Force Survey; various labour-related supplementary topics to the Labour Force; various Special Supplementary Surveys, including the Survey of Employment Arrangements and Superannuation, and the Survey of Employment and Unemployment Patterns; and the Census of Population and Housing. Measures of actual hours of work are not available from ABS business surveys.

9. The variable hours worked is an attribute of the counting unit 'person'.

Operational definition

10. Hours actually worked is measured by counting the total number of complete hours actually worked (including any paid or unpaid overtime less any time off) in the week preceding the survey in all jobs held by a person. Hours actually worked in main job is also collected for multiple job holders. In the Labour Force Survey, hours actually worked in the reference week are only asked of those who had a job and were at work in the reference week.

11. Hours usually worked is measured by counting the total number of complete hours usually worked (including any regular paid or unpaid overtime) per week. Usual hours worked is collected for all employed persons. For persons who had a job but were not at work during the reference week, only usual hours worked are collected.

COMPARISON BETWEEN THE LABOUR FORCE SURVEY AND OTHER HOUSEHOLD SURVEYS

12. The shortened version (see the minimum set in The Labour Force Framework - Collection methods) includes only one question related to hours worked due to constraints on the length of the module and sequencing instructions. Hours usually worked each week is asked of those who had a job in the reference week, regardless of whether they were at work or away in the reference week. The 'minimum set' is mainly used in Special Supplementary Surveys and other Social and Labour collections. These collections are interested in hours worked data as a classificatory variable with the primary focus of analysis being on socio-economic well-being.

13. Actual hours worked, as measured by the maximum question set is better suited for measurement of economic activity and analysis of income/earnings as a return to labour.