6220.0 - Persons Not in the Labour Force, Australia, September 2013 Quality Declaration 
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 26/03/2014  Final
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Key changes made to Persons Not in the Labour Force Survey include:

REVISION OF POPULATION BENCHMARKS

From January 2014 Labour Force Estimates have been compiled using population benchmarks based on the 2011 Census of Population and Housing. However, the estimates in this publication were compiled using the April 2013 revision to the population benchmarks based on the 2006 Census of Population and Housing.

Changes to the LFS population benchmarks impact primarily on the magnitude of the Labour Force Estimates (i.e. employment and unemployment) that are directly related to the underlying size of the population. For more details on population benchmarks, see the Explanatory Notes in Labour Force, Australia (cat. no. 6202.0), and for details about revisions made, see the article in the April 2013 issue of Labour Force, Australia (cat. no. 6202.0) and the article in the November 2012 issue of Labour Force, Australia (cat. no. 6202.0). These revisions have not been applied to previous Persons Not in the Labour Force Surveys.


CHANGES IN THE SCOPE OF THE SURVEY

Persons Not in the Labour Force Surveys conducted up to and including September 1987 included all people aged 15 years and over. From September 1988 to September 2004, the survey excluded all people aged 70 years and over.

The scope of the Persons Not in the Labour Force Survey was expanded in September 2005 to include all people aged 15 years and over. This change resulted in about 1.6 million extra people coming within the scope of this survey. Users need to exercise care when comparing the estimates prior to 2005 with subsequent years. Direct comparisons should only be made where the populations are the same.

From 2009, the survey included people in very remote areas of Australia except for people living in Aboriginal and Torres Strait Islander communities in very remote parts of Australia.

CHANGE IN THE CLASSIFICATION OF PEOPLE 'PERMANENTLY NOT INTENDING TO WORK'

From September 2007, people who specified that they were 'permanently not intending to work' were asked questions about wanting to work and looking for work. However previously, between 2001 and 2006 this group were not asked further questions about looking for work and wanting to work in Persons Not in the Labour Force survey.

Between 2001 and 2006 people who reported in the LFS that they were 'permanently not intending to work' were not asked questions about wanting to work and looking for work in the Persons Not in the Labour Force Survey. As such, these people were classified as 'Did not want to work'. It is likely, however, that if they had been asked these questions, then some of these people may have been classified differently and may have been included in one of the 'wanted to work' categories. From September 2007, people who specified that they were 'permanently not intending to work' were asked questions about wanting to work and looking for work.


COMPARABILITY WITH PREVIOUS SURVEYS

Persons Not in the Labour Force Surveys conducted up to and including September 1987 included all people aged 15 years and over. From September 1988 to September 2004, the survey excluded all people aged 70 years and over.

The scope of the Persons Not in the Labour Force Survey was expanded in September 2005 to include all people aged 15 years and over. This change resulted in about 1.6 million extra people coming within the scope of this survey. Users need to exercise caution when comparing the estimates prior to 2005 with subsequent years. Direct comparisons should only be made where the same age ranges are applied.

From September 2006, estimates of the number of people not in the labour force because they were caring for children include people whose youngest child was aged 12 years and under. Previously questions relating to the care of children were only asked of people with children aged 11 years and under. This change was made to ensure consistency with other ABS surveys. Users need to exercise care when comparing the estimates in Table 9 of the publication with publications prior to September 2006.

Following a review of the Persons Not in the Labour Force Survey, a number of changes were implemented in the 2007 cycle. Users need to exercise caution when comparing estimates from 2007 with previous years' data. The changes are documented in the following paragraphs.

Between September 2001 and September 2006, people who reported in the LFS that they were 'Permanently not intending to work' were not asked questions about wanting to work and looking for work in the Persons Not in the Labour Force Survey. As such, these people were classified as 'Did not want to work'. It is likely, however, that if they had been asked these questions, then some of these people may have been classified differently and may have been included in one of the 'Wanted to work' categories. From September 2007, people who specified that they were 'Permanently not intending to work' were asked questions about wanting to work and looking for work. As a result of this change, there has been a break in time series.

Prior to September 2007, the data items, 'All reasons for not actively looking for work', 'Main reason for not actively looking for work' and 'Main reason not available to start work within four weeks' included the category 'Own ill health, physical disability or pregnancy'. From September 2007, this category has been split into three separate categories: 'Own short-term illness or injury', 'Own long-term health condition or disability' and 'Pregnancy'.

Prior to September 2007, the data items, 'Reason for ceasing last job' and 'Main activity when not in the labour force' included the categories 'Own ill-health or injury' and 'Own disability or handicap'. From September 2007, these categories were renamed to ensure they were consistent with those in other data items and have been collected as 'Own short-term illness or injury' and 'Own long-term health condition or disability' respectively. While the way interviewers were instructed to code the responses to the relevant categories did not conceptually change, the renaming has caused a break in time series.

From September 2007, a new data item, 'All reasons not available to start work within four weeks', has been collected in addition to 'Main reason not available to start work within four weeks'.

Prior to September 2008, the data item 'Main activity when not in the labour force' included the category 'Home duties or caring for children'. From September 2008, this category has been split into two separate categories, 'Home duties' and 'Caring for children'. Care should be taken in interpreting the data in these categories because some people with young children indicated that 'Home duties' was their main activity when not in the labour force, rather than 'Caring for children'.

From September 2009, a new response category, 'Believes ill-health or disability discourages employers' has been included in the data items 'Main reason not actively looking for work' and 'All reasons not actively looking for work'. This category is not presented in this publication, however, is available on request.

From September 2009, 'Believes ill-health or disability discourages employers' together with 'No jobs in suitable hours' are now included with other responses to derive the population group 'Discouraged job seekers'. Prior to September 2009, 'No jobs in suitable hours' was included in the category 'Other'. As a result of this change, there is a break in time series and users need to exercise care when comparing estimates from 2009 with previous years' data. The table presented in the publication compares categories affected by the changes in 2008 and 2009.

From September 2009, the method used to determine whether a respondent prefers full-time or part-time work has changed. In 2009, respondents were asked the number of hours they would prefer to work, whereas in previous years, they were asked whether they would prefer to work full-time or part-time. A new data item 'Preferred number of hours' is also now available. Both data items apply only to people who intend to enter the labour force in the next 12 months. As a result of this change, there is a break in time series and users need to exercise care when comparing the estimates in Table 5 of the publication with publications prior to September 2009.

    From December 2012, the ABS is progressively introducing online data collection to the LFS. For September 2013, online data collection was offered to 56% of the Labour Force Sample. Of the households responding to the Persons Not in the Labour Force Survey, approximately 11% submitted their data online. For more information see the article in the April 2013 issue of Labour Force, Australia (cat. no. 6202.0).
      The September 2013 Persons Not in the Labour Force Survey is based on the 2011 Census of Population and Housing based sample, progressively introduced to the LFS from May 2013. For more information see the article in the May 2013 issue of Labour Force, Australia (cat. no. 6202.0).