End of financial year reporting
A greater variation in business reporting occurs around the end of the financial year, as businesses finalise their employee's earning information and the financial year is reset in payroll systems. This can result in a higher level of variation in payroll jobs and wages estimates and subsequent revisions during June and July.
Upcoming suspension of wages estimates
The variability in reporting around the end of financial year makes the production of high quality wages indexes difficult. To allow for more complete business reporting for July, wages estimates will be temporarily withdrawn in the next release. This follows the approach the ABS took in 2021. Wages estimates up to the week ending 13 August 2022 will be reinstated in the 8 September 2022 release.
Update of adjustment method
The ABS has reviewed and updated the aggregate adjustment method used to account for large organisation onboarding, resulting in higher than usual revisions across the time series. These revisions are greater in 2021 and 2022 and impact component indexes differently. The updated method reduces impacts on the underlying characteristics distributions, particularly after the onboarding event, and are a step toward the future release of levels.
The ABS recommends that analyses of previously published estimates be refreshed with updated data from this release.
Factors affecting interpretation
These estimates are not seasonally adjusted. Seasonality can affect the interpretation of change in payroll jobs and wages, particularly between sub-annual periods. While annual comparisons can assist in understanding underlying change, they are less useful when events such as public holidays or pandemic lockdowns don't occur in the same week in both years.
In addition, when comparing the change in payroll jobs and wages between any two periods, interpretation can be complicated by variations in their composition. Payroll job indexes are compiled from over 11 million jobs and variations in the types of jobs reported can result in compositional change (which is not quantified). For example, each payroll job in each week:
- is counted in the same way regardless of job status (full-time, part-time or casual), hence variations in demand for casual staff can influence week-on-week change.
- represents an individual in every paid job reported via STP, hence jobholders working multiple jobs are counted more than once. While multiple jobholders account for less than 10% of all payroll jobs, they can increase the rate of change seen week-to-week (in some industries) in circumstances where they are unable to work in any of their jobs (e.g. due to illness) and are not paid when absent.
Wages can be more heavily influenced by week-to-week change in composition, as the wages index reflects movements in aggregate wages and salaries paid (unlike the ABS Wage Price Index which presents changes in the price of labour unaffected by compositional shifts in the labour force, hours worked or employee characteristics). Variability in wages indexes in this release in any given week may be due to:
- changes in hours worked,
- the inclusion of cyclical payments such as bonuses, commissions or lump sum payment of leave loading,
- payment of penalty rates for public holidays (which may not fall on the same date each year), or
- the inclusion of irregular payments such as overtime, ad hoc or one-off payments relating to employee recognition or enterprise agreement sign-on.
Compositional change can also differ at the industry or state and territory level, particularly when there are localised labour market issues.
This release sees higher than usual revisions in March 2022, as the 16 week imputation retention threshold passes through this period. These revisions mostly reflect the removal of previously imputed records, with the receipt of more complete data. Users should exercise caution when referring to estimates around this period.
This release presents percentage change between the weeks ending 11 June 2022 and:
- 28 May 2022, for fortnight
- 14 May 2022, for month
- 12 June 2021, for year
This differs for employment size estimates which are month lagged.