The extended measures of underutilisation offer an alternative view of the labour market to the official labour force status used in the monthly Labour Force release. Certain criteria of the official measures are relaxed to include more potential underutilised labour, as follows:
As already mentioned above, the extended measure of Underemployment (also referred to as Expanded Underemployment) includes all people who:
- had their hours reduced (e.g. they were stood down or their employer had insufficient work for them); or
- had a preference to work more hours than they usually work.
In contrast, the headline underemployment estimates include two groups: part-time employed who would prefer, and are available for, more hours than they usually work, plus full-time employed who worked part-time hours for economic reasons.
The extended measure of unemployment includes:
- People who were actively looking for work and were available to start within four weeks.
- People who were waiting to start or return to work already obtained, and were available to start within four weeks.
- People who were wanting and available to work within four weeks, but were not actively looking because they were discouraged job seekers.
In contrast, the official measures of unemployment only include people who were available to start work in the week before interview (the reference week) and does not include discouraged job seekers.
The extended measure of underutilisation is the sum of the extended measure or underemployment and the extended measure of unemployment.
Extended Labour Force
The extended measure of the size of the labour force includes:
- All people employed in the week before interview.
- All people covered by the extended measure of unemployment (i.e. people available within four weeks or discouraged job seekers).
- All people who were away from work or waiting to start or return to a job, but were not classified as employed or in the extended measure of unemployment (i.e. people with job attachment, but not available to start within four weeks).
In contrast, the official measures of the labour force do not include those in the extended measure of unemployment or those with job attachment not classified as employed or unemployed.
Extended Underemployment rate
The extended underemployment rate is the extended underemployed as a proportion of the extended labour force.
Extended Unemployment rate
The extended unemployment rate is the extended unemployed as a proportion of the extended labour force.
Extended Underutilisation rate
The extended underutilisation rate is the extended underutilised as a proportion of the extended labour force.