The ABS has developed a Rao-Yu area-level time series model to produce these estimates. The model uses direct (weighted) survey estimates from the LFS in combination with supplementary administrative data to separately model employment and unemployment. It draws on the strengths of more granular and frequently updated administrative data to provide a more stable and reliable series of estimates.
- The unemployment model relies primarily on a time series relationship with the JobSeeker and Youth Allowance recipients data from the Department of Social Services (DSS).
- The employment model relies primarily on a relationship with Single Touch Payroll (STP) data from the Australian Tax Office, although it also makes some use of the JobSeeker and Youth Allowance recipients data from DSS.
Estimates of persons not in the labour force (NILF) are derived as the residual of the SA4 population that is neither employed nor unemployed.
For more detailed information about the model, please see A Rao-Yu model for small area estimation of labour force statistics (October 2023) and Improving SA4 level estimates from the Labour Force Survey using administrative data models (June 2023).