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CHAPTER 3. EMPLOYMENT

INTRODUCTION

3.1 The labour force framework discussed in Chapter 2 categorises the population into three mutually exclusive groups: employed; unemployed; and not in the labour force. This chapter discusses the concept of employment, and contrasts estimates of employment produced from the Labour Force Survey with those collected in other labour statistics series. The concepts of unemployment and not in the labour force are discussed in subsequent chapters.

CONCEPTS AND INTERNATIONAL GUIDELINES

3.2 Thirteenth International Conference of Labour Statisticians (ICLS) 1982 is based on the principle that a person must have been engaged in some economic activity (work) over a short reference period. The concept of economic activity, discussed in Chapter 2, is linked to the concept of production as defined by the SNA. Any activity falling within the System of National Accounts (SNA) production boundary is considered as work for the purposes of measuring employment. Employment is defined broadly in the international guidelines as all persons engaged in some work during the reference period, as well as some persons temporarily absent from work.

3.3 According to the international guidelines, employed persons comprise those above the age specified for measuring the economically active population, in paid employment or self-employment, during a specified reference period. Paid employment includes persons who performed some work for wages or salary, in cash or in kind, and persons temporarily absent from a paid employment job but who retained a formal attachment to that job. Self-employment includes persons who performed some work for profit or family gain, in cash or in kind, and those with an enterprise but temporarily not at work during the specified reference period for some specific reason.

3.4 The notion of 'some work' is interpreted as work for at least one hour. This approach ensures consistency between measures of employment and measures of production of goods and services, as all work (however little) contributing to national production is included in measures of employment.

3.5 The international definition of employment specifies criteria for determining 'temporary absence from work'. Different criteria are used for absences from paid employment and self-employment. Persons absent from paid employment are considered employed provided they retain formal attachment to a job or business. Formal attachment occurs when one or more of the following criteria are met:

• the continued receipt of wage or salary during the absence from work;
• an assurance of a return to work following the end of the absence from work, or an agreement as to the date of return (or at least a reasonable expectation of a return to work); and
• a short duration of absence from the job (which, wherever relevant, may be the duration for which workers can receive compensation benefits without obligation to accept other jobs).

• 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 be returning to their job; or
• were employers or own-account workers, who had a job, business or farm, but were not at work.

• short periods of absence (less than four weeks to the end of the reference week);
• long periods of absence (four weeks or more to the end of the reference week) and receipt of wages or salary for some or all of the four week period to the end of the reference week, such as persons on paid leave;
• any period of absence and away from work as a standard work or shift arrangement;
• any period of absence and on strike or locked out;
• any period of absence and continued receipt of workers' compensation payments and expected to return to work for the current employer.

• short periods of absence are consistent with the third criterion specified in the international definition: a short duration of absence from the job (which, wherever relevant, may be the duration for which workers can receive compensation benefits without obligation to accept other jobs) - that is, the duration of absence should be short to be considered temporary (note that the international definition does not make recommendations on the duration of temporary absences);
• the receipt of pay, during long periods of absence, or as workers' compensation, is consistent with the first criterion specified in the international definition, continued receipt of wage or salary during the absence from work;
• assurance of a return to work following the end of an absence from work, or an agreement as to the date of return (or at least a reasonable expectation of a return to work), is tested in the case of absence on workers' compensation. However, for employees away from work as a standard work or shift arrangement, and for employees on strike or locked out, it is assumed that an assurance of a return to work or an agreement as to the date of return exists.

• most Special Social Surveys use the reduced questionnaire module for personal interviews. Employment in this module is defined as all (in scope) persons who worked for one hour or more during the reference week for pay, profit, commission, or payment-in-kind, or without pay in a family business; or who had a job but were not at work; and
• the Census of Population and Housing uses the self-enumerated questionnaire module. Employment in this module is defined as all persons aged 15 years and over who, during the reference week, worked for payment or profit or as unpaid workers in a family business, or who had a job from which they were on leave or otherwise temporarily absent.

• they are in paid employment and have formal job attachment; or
• they are employers or own account workers.

• jobs involving paid employment that do not appear on business payrolls (from which information on employment is sourced within businesses), such as jobs that are paid in kind only, and jobs from which occupants are absent without pay (for a lengthy period); and
• jobs involving paid employment in businesses that have limited coverage on the ABS Business Register (from which the samples for most ABS business surveys are drawn), such as private households engaging staff.

• the Labour Force Survey;
• the Census of Population and Housing; and
• Special Social Surveys.

• the Survey of Employment and Earnings (Public Sector only);
• the Economic Activity Survey (predominantly Private Sector); and
• from time to time, business surveys targeted to particular industries or sectors.