6248.0.55.002 - Employment and Earnings, Public Sector, Australia, 2016-17
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 09/11/2017
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TECHNICAL NOTE - SAMPLING ERROR

RELIABILITY OF ESTIMATES

1 As the estimates from the Survey of Employment and Earnings are based on information related to a sample of public sector employers rather than a full enumeration, they are subject to sampling variability. That is, they may differ from the estimates that would have been produced if the information had been obtained from all public sector employers. This difference, called sampling error, should not be confused with inaccuracy that may occur because of imperfections in reporting by respondents or in processing by the ABS. Such inaccuracy is referred to as non-sampling error and may occur in any enumeration whether it be a full count or a sample. Efforts have been made to reduce non-sampling error by careful design of questionnaires, detailed checking of returns and quality control of processing.

2 The sampling error associated with any estimate can be estimated from the sample results. One measure of sampling error is given by the standard error which indicates the degree to which an estimate may vary from the value that would have been obtained from a full enumeration (the ‘true value’ ). There are about two chances in three that a sample estimate differs from the true value by less than one standard error, and about nineteen chances in twenty that the difference will be less than two standard errors.

3 An example of the use of standard error on levels is as follows. If the estimated number of employees was 1,400,000 with a standard error of 3,000, then there would be about two chances in three that a full enumeration would have given a figure in the range 1,397,000 to 1,403,000 and about nineteen chances in twenty that it would be in the range 1,394,000 to 1,406,000.

4 Another measure of the sampling error (for level estimates only) is the relative standard error (RSE), which is obtained by expressing the standard error as a percentage of the estimate to which it refers. Level estimates with an RSE between 25% and 50% are subject to sampling variability generally considered to be too high for most practical purposes and should be used with caution. Level estimates with an RSE of 50% or more are considered to be too unreliable for general use. Level estimates with an RSE of more than 25% are annotated in this publication.

5 The following table shows the standard errors for published estimates for states and territories and level of government for 2016-17.

 STANDARD ERRORS, Public sector employees and cash wages and salaries - States and territories Employees June 2017 Cash wages and salaries 2016-17 Commonwealth State Local Total Commonwealth State Local Total '000 '000 '000 '000 \$m \$m \$m \$m New South Wales 1.2 0.5 1.2 2.0 87.2 56.1 109.4 166.6 Victoria 0.6 2.5 1.2 2.7 59.8 125.7 64.9 160.9 Queensland 0.4 1.1 1.1 1.5 47.3 123.2 106.2 168.8 South Australia 0.2 0.2 0.4 0.6 16.7 17.1 20.4 37.3 Western Australia 0.1 0.5 0.5 0.7 14.0 52.9 37.2 71.5 Tasmania – np np – 3.1 np np 5.5 Northern Territory 0.1 0.2 – 0.2 5.7 6.5 1.2 10.3 Australian Capital Territory 0.8 np np 0.8 82.3 np np 88.0 Australia 1.6 2.7 2.2 3.9 147.9 180.7 178.7 314.8 – nil or rounded to zero (including null cells) np not available for publication but included in totals where applicable, unless otherwise indicated