1. Labour Statistics Malerato Mosiane Labour Statistics Division Statistics South Africa Seminar on Developing a programme for the implementation of the 2008 SNA and supporting statistics 17-19 October 2012 Pretoria, South Africa 1

2. Outline Sources of labour market information QLFS – How the LFS evolved – From LFS to QLFS – Activities of Labour Statistics section – Why conduct the QLFS – How QLFS is conducted – Labour Force Framework and definitions QLFS and QES 2

3. Household-based surveys October Household Survey (OHS) annually 1995-1999 Labour Force Survey (LFS) – in Mar, Sep each year since 2000 Income and Expenditure Survey 1995, 2000, 2005/6, 2010/11 General Household Survey (GHS) – in July each year since 2002 Community Survey – February 2007 Quarterly Labour Force Survey (QLFS) - Jan 2008 Establishment surveys Survey of Employment and Earnings (SEE discontinued) Quarterly Employment Statistics (QES) Population Census (whole country), 1996, 2001, 2011 Sources of labour market information

4. QLFS 4

5. Supplements added in March & September each year Expanded Public Works Programmes (EPWP) since Sep ’ 05 Agriculture since Mar ’ 01 Volunteer work since Sep ’ 01 Supplements added in September each year Migrant workers since Sep ’ 02 (except Sep ’ 06) Supplements added intermittently Survey of Employers and the Self-employed (SESE) - Mar ’ 01, Sep ’ 05 Child Labour - some questions included in LFS Mar ’ 05 Deaths – once off in Mar ’ 02 (subsequently moved to GHS). LFS questionnaire developed in 1999 How the LFS evolved Child Labour stand-alone survey in 1999 5

6. Re-engineering of LFS Concerns raised about LFS – Coverage – Frequency – Timeliness – Analysis LFS re-engineered based on recommendations by IMF consultants in June 2005 Recommendations reviewed by consultants to Stats SA and senior management Decision taken to re-engineer the LFS 6

7. Implications of LFS re-engineering From bi-annual to quarterly collection –Continuous quarterly data collection and processing –Appointment of permanent field and data processing staff Publish results shortly after quarter end Detailed analysis Etc Establishment of Labour Statistics Division 7

8. Activities of Labour Statistics unit 8

9. Activities of Labour Statistics Unit Quarterly Labour Force Survey (QLFS): – Household survey Supplements to the QLFS – Survey of the employers and the self-employed (SESE) (2009): Conducted every 4 years Sub-sample of the QLFS Provide information on the characteristics of micro- and small businesses in South Africa that are not registered for VAT. – Volunteer Activities Survey (VAS) (2010): Conducted every 4 years Sub-sample of the QLFS Collects data on the volunteer activities of individuals aged 15 years and older. 9

10. Activities of Labour Statistics Unit Supplements to the QLFS – Survey of Activities of Young People (SAYP) (2010) Conducted every 5 years Sub-sample of QLFS Collects data activities of children 7-17 years Time use survey (2010): – Conducted every 5 years – Aims to provide information the activities that individuals in South Africa spend their time on. 10

11. Why QLFS is conducted 11

12. Why conduct the QLFS The Quarterly Labour Force Survey (QLFS) is the principal vehicle for providing current labour market information QLFS is used to provide the quarter-to-quarter changes in the labour market indicators. These include: – Employment (Both in the formal and informal sector) – Descriptors of employment - e.g. Industry, occupation, atypical employment indicators (hours of work, contract and other benefits) – Unemployment, duration of unemployment – Inactivity. – Market vs Non-Market activities. 12

13. How QLFS is conducted 13

14. Sample of 3080 PSUs –Approximately 32 000 dwelling units –The sample for the redesigned Labour Force Survey is based on a stratified two-stage design with probability proportional to size (PPS) sampling of primary sampling units (PSUs) in the first stage, and sampling of dwelling units (DUs) with systematic sampling in the second stage –The sample is designed to report at National, Provincial and metro level. Currently the reports are at national and provincial levels. –Rotating sample – each dwelling unit in the sample for four quarters and then rotated out (75% sample overlap quarter-to- quarter) How QLFS is conducted 14

15. Distribution of the Master Sample by province A total of 3 080 PSUs in the Master Sample 15

16. Conducting the QLFS Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Collect data Q1Collect data Q2Collect data Q3Collect data Q4 Results Q4:Core Results Q3:Core Results Q2:Core Results Q1:Core Report each year on additional aspects of: Employment Unemployment & not economically active Annual report in September of following year using all information Supplementary reports as required 16

17. Face-to-face interviews – continuously –0110 methodology Week 1 - publicity and set up appointments Week 2 and 3 – conduct interviews Week 4 - wrap up and master sample update Continuous data processing – scanning Weighting Data analysis Report writing Publish results 4-6 weeks after quarter end Other processes 17

18. Labour Force conceptual framework and Definitions 18

19. Because employment statistics has to be consistent with production statistics the System of National Accounts (SNA) is followed to determine who is economically active (i.e. employed or unemployed) A person is counted as economically active if and only if he/she contributes or is available to contribute to the production of goods and services falling within the SNA production boundaries Labour force conceptual framework 19

20. Economic activities (production of goods & services) Activities Market production  Production of goods and services for sale  Production of other goods and services such as government activities Non-market production Production of agricultural and other products for own consumption/use  Growing mealies, fruits, vegetables  Hunting animals and birds, catching fish  Fetching wood, water, dung  Collecting thatching materials Processing of agricultural and other products for own consumption/use  Making butter, cheese, beer  Slaughtering livestock,  Making furniture  Weaving baskets and mats  Tailoring  Making clay pots Production of fixed assets for own use  Construction of own dwellings, farm buildings  Clearing land for cultivation  Major repair work Non-economic activities  House work  Minor repairs System of National Accounts (SNA 1993) 20

21. Individuals have to be classified into three mutually exclusive and exhaustive categories following Labour Force Framework hierarchy: →Employed → Unemployed → Inactive / not in the labour force Classification 21

22. Employed persons are those who during the reference week: Did work for a wage, salary, commission or any payment in kind (including paid domestic work), even if it was for only one hour; or Ran any kind of business, big or small, on their own or with one or more partners, even if it was for only one hour; or Helped without being paid in a household business, even if it was for only one hour; or Were temporarily absent from their jobs or businesses but were definitely returning to them. Employed (Market production only) 22

23. Employed Employers; Own- account; Working unpaid in hhold business Registered for VAT or Income tax No Informal sector Employees Income tax deducted by employer No Size of establishment less than 5 employees Yes Deriving informal sector in the QLFS 23

24. Persons above 15 years who during the reference week were: “without work” – not in paid employment or self-employment “available for work” – were available for paid work or self-employment during the reference week “have taken active steps” in the four weeks preceding the interview to seek paid employment or self-employment Unemployed – official definition 24

25. Unemployed – Expanded definition Job search criterion is relaxed The unemployed are persons above 15 years who during the reference week were: “without work” – not in paid employment or self- employment “available for work” – were available for paid work or self-employment during the reference week 25

26. Inactivity is also an important indicator. The inactive are mainly: Students Housewives Retired Disabled Discouraged work-seekers Inactive 26

27. Among people who did not look for work: Job search activities in the last 4 weeks Reasons for not trying to find work or start business last 4 weeks: No jobs available in the area Unable to find work requiring his/her skills Lost hope of finding any kind of work No Discouraged Wanted to work the previous week Availability to start work/business the previous week Yes NoYes Other NEA Discouraged work-seekers in the QLFS NEA 27

28. Main indicators Unemployment rateUnemployment x 100 Labour force Absorption Rate Employed x 100 Working age (15-64 yrs) Labour Force Participation Rate Labour force x 100 Working age (15-64 yrs) 28

29. Response rate as a quality indicator set to above 80%. −The most recent release (qrt2:2012) reported 92,6% at national level −The lowest response rate was in GP at 82,9% −This was followed by WC at 86,4% −The rest of other provinces reported response rates of above 93,0% Quality measures 29

30. Precision as a quality measure was set to be less than 5% at national level and less than 10% at provincial level for employment. This is measured by Coefficient of variation (CV) Quality measures CVs for employment estimates by province WC1,6 EC2,7 NC3,4 FS2,0 KZN1,7 NW2,7 GP1,2 MP2,3 LP3,8 RSA0,7 None is above 5% even at provincial level 30

31. QLFS and QES

32. Difference between QLFS and QES QLFSQES Coverage  Private households including worker’s hostel  Target population is civilian non- institutionalised aged 15 and older.  Formal, informal, Agriculture and employment in Private hh  VAT registered business (pay roll)  Employees only.  Formal non- agricultural sector Frequency  Quarterly sample survey of 30 000 dwellings (sampling unit is dwelling and unit of observation is the household)  Quarterly sample survey of 20 000 non-agric formal enterprises Reference Period  A week prior to the interviews  Collection is in the middle two weeks of each month of the quarter  Pay roll on the last day of the quarter

33. Difference between QLFS and QES QLFSQES Definitions Formal Sector Non-agric  Employers and own account worker whose businesses are registered for tax (income tax or VAT)  Employees whose employers deduct income tax from their salaries  Employees whose employer does not deduct income tax but work for establishment with more than 5 employees Formal Sector-non agric  VAT registration SIC  All industries  Agriculture and Private households excluded

34. Difference between QLFS and QES QLFSQES Employment concept  Estimates of employed persons  Estimates of jobs which are paid i.e those on a payroll of a firm Employment definition difference  Includes employers, own-account workers, unpaid family workers, persons employed in agriculture, private hh and workers absent without pay  Formal non- agricultural employment in businesses registered for VAT.

35. Comparison between the QES and QLFS Trend in formal sector employment between the QES and QLFS are similar, but levels of employment higher in QLFS.

36. Thank you 36

37. Sampling Frame Census 2001 enumeration areas (EAs - 80 787) On average an EA consists of 150-200 dwellings However, over a period some EAs grow and others shrink so listing maintenance is used to update the frame The QLFS sample 37

38. Sampling Frame In preparation of the sampling frame small EAs (25-99 Dus) are combined with adjacent EA of the same type to form Primary Sampling Unit (PSUs) and very big EAs are split into a number of PSUs. This process generated 52 939 PSUs in the entire country. From the 52 000 PSUs, a sample of 3080 PSUs was selected for the QLFS The sample 38

39. Sampling Frame This sample size was determined based on the required level of precision of employment ratio at national and provincial level Measures of precision are determined by the magnitude of the Coefficient of variation (CV) This was set to be at least less than 5% at the national level and less than 10% at the provincial level The sample 39

40. After selecting the 3080 PSU. The listing process follows Each and every dwelling within the boundaries of each PSU is listed and numbered The list is used to select a systematic sample of between 10 and 12 dwellings to be interviewed Each DU is visited 4 times and then rotated out to avoid respondent fatigue There is a 75% sample overlap quarter-to- quarter to minimize sampling variability The sample 40

41. After the data collection and editing phases of the survey are completed; Sampling weights are constructed so that the responses could be properly expanded to represent the entire population. This is a result of calculations involving the following factors Original selection probabilities Base weight adjustment which include non-response adjustment and PSU adjustment Benchmarking to a known population counts produced by the Statistics SA demography division Data Weighting 41