1. Quarterly Labour Force Survey (QLFS)
Pali Lehohla
Statistician General
Statistics South Africa

2. Introduction Concerns raised about the LFS Reliability of data
Six monthly frequency
Lack of timeliness
Coverage
Evaluation and recommendations in June 2005
Decision to re-engineer the LFS Aug 2005
Re-engineering process supported by ILO and international consultants

3. Consultations International Labour Organisation – on going
SADC and East African Countries (Dec 2006)
Key stakeholders (Dec 2006, June 2008)
Other stakeholders (March 2006, June 2008)
Statistics Canada – on going

4. Large-scale field tests undertaken Field Test Objective
April 2006
(LP)
Test new core questionnaire and GPS
September 2006
(LP, GP, MP, EC)
Test revised core questionnaire, RTMS, limited test of GPS
September 2007
(All provinces)
Test new processing systems and new training methods
Oct – Dec 2007
Test continuous data collection over 3-month period

5. Background QLFS is a quarterly continuous household survey:
It measures the three components of the labour market
Employed
Unemployed
Not economically active
It also measures related aspects of the labour market
Industry
Occupation
Sector
Hours of work
Discouraged work-seekers and reasons for such etc.,
The unemployment rate is an important indicator of current economic activity (data collected through the QLFS)

6. How the QLFS was conducted
Representative sample of 30 000 dwelling units across the country was visited
Detailed information collected from over adults of working age (15–64 years)
Face-to-face interviews conducted for each household visited

7. Structure of the QLFS questionnaire

8. Structure of the QLFS questionnaire
Cover page
Fieldwork details to enable the tracking of questionnaires etc.,
Section 1
Socio-demographic questions about ALL household members.
Individual questionnaire for each of 6 respondents 15 yrs and older
Section 2: Determines which respondents are employed and which respondents are not employed.
Section 3: Determines which respondents are unemployed and which respondents are not economically active (inactive).
Section 4: Determines various aspects of the situation of employed persons only.
Persons engaged in non-market production activities are routed to the unemployment and not economically active questions in Section 3

9. Working age population (15-64yrs) Labour force /economically active
Key labour market concepts and definitions
Working age population (15-64yrs)
Employed
Work for pay, profit or family gain
Unemployed
Available to work & have taken active steps to look for work
Not economically active
Not available to work
Available to work but no active steps taken to look for work (incl discouraged work-seekers)
Labour force /economically active

10. Unemployed + Employed (the labour force)
How the unemployment rate is calculated
Unemployed
X 100
Unemployed + Employed (the labour force)

11. Key reporting changes
15-64 years instead of years for greater international comparability
Employment includes only market production activities
Non-market production activities in separate table
Discouraged work-seekers comprise only those whose reason for not seeking work was any of the following: lost hope of finding work; lacked relevant skills or qualifications; no work available in the area
Informal sector comprises:
Employers, own-account workers and persons working unpaid in their household business ( where the business is not registered for VAT or income tax)
Employees (not registered by their employers for income tax and working in enterprises of less than 5 employees)

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

13. Reasons for not trying to find work or start business last 4 weeks:
Discouraged work-seekers in the QLFS
Job search activities in the last 4 weeks No
Wanted to work the previous week
Yes
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
Availability to start work/business the previous week
Yes No
Discouraged
Other NEA

14. Results

15. Key labour market indicators, Q1:2008 & Q2:2008
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
(Thousand)
(Percent)
Population yrs
30 608
30 705 97
0,3
Labour Force
17 814
17 844 30
0,2
Employed
13 623
13 729
106
0,8
Formal sector (Non-agric)
9 342
9 415 73
Informal sector (Non-agric)
2 319
2 340 21
0,9
Agriculture
799
790 -9
-1,1
Private households
1 163
1 185 22
1,9
Unemployed
4 191
4 114
-77
-1,8
Not economically active
12 794
12 861 67
0,5
Discouraged
1 177
1 079
-98
-8,3
Other (NEA)
11 617
11 783
166
1,4
Quarterly changes: Employed up by 106 thousand (0,8%). Unemployed down by 77 thousand (1,8%), Discouraged down by 98 thousand (8,3%)

16. Key indicators by sex Jan-Mar 2008 Apr-Jun 2008 Qrt to Qrt change
(Thousand)
(Percent)
Employed
Male
7 629
7 696 67
0,9
Female
5 994
6 033 39
0,7
Total
13 623
13 729
106
0,8
Unemployed
1 982
1 910
-72
-3,6
2 209
2 204 -5
-0,2
4 191
4 114
-77
-1,8
Not economically active
4 957
5 015 58
1,2
7 837
7 846 9
0,1
12 794
12 861
0,5

17. Key labour market indicators, Q1:2008 & Q2:2008
Jan-Mar
Apr-Jun
Qrt to Qrt change
(Percent)
(Percentage points)
Unemployment rate
Men
20,6
19,9
-0,7
Women
26,9
26,8
-0,1
Average
23,5
23,1
-0,4
Employment/population ratio (Absorption)
52,4
52,6
0,2
37,4
37,5
0,1
44,5
44,7
Labour force participation rate
66,0
65,7
-0,3
51,1
51,2
58,2
58,1

18. (Market production activities only)
Employment
(Market production activities only)

19. Employment by industry
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
(Thousand)
(Percent)
% share
Agriculture
799
790 -9
-1,1
5,9
5,8
Mining
333
346 13
3,9
2,4
2,5
Manufacturing
1 988
1 968
-20
-1,0
14,6
14,3
Utilities 95 97 2
2,1
0,7
Construction
1 112
1 138 26
2,3
8,2
8,3
Trade
3 156
3 105
-51
-1,6
23,2
22,6
Transport
747
774 27
3,6
5,5
5,6
Finance
1 667
1 687 20
1,2
12,2
12,3
Services
2 564
2 635 71
2,8
18,8
19,2
Private hholds
1 163
1 185 22
1,9
8,5
8,6
Total
13 623
13 729
106
0,8
100,0
More than half the additional jobs (71 out of 106 thousand) in community and social services. Trade accounts for the highest number of jobs 3,1 million or 22,6% of total employment in Q2

20. Employment by occupation
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
(Thousand)
(Percent)
% share
Manager
955
993 38
4,0
7,0
7,2
Professional
744
789 45
6,0
5,5
5,7
Technician
1 435
1 454 19
1,3
10,5
10,6
Clerk
1 478
1 450
-28
-1,9
10,8
Sales & services
1 802
1 749
-53
-2,9
13,2
12,7
Skilled agric
124 95
-29
-23,4
0,9
0,7
Crafts
1 951
1 946 -5
-0,3
14,3
14,2
Plant operator
1 140
1 161 21
1,8
8,4
8,5
Elementary
3 062
3 137 75
2,4
22,5
22,8
Domestic worker
931
953 22
6,8
6,9
Total
13 623
13 729
106
0,8
100,0
Elementary jobs account for the largest share (3,1 mill or 22,8% of total employment in Q2). The increase in elementary jobs accounted for 75 out of 106 thousand additional jobs

21. Employment in the formal and informal sector
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
(Thousand)
(Percent)
Employed
13 623
13 729
106
0,8
Formal sector (Non-agric)
9 342
9 415 73
Informal sector (Non-agric)
2 319
2 340 21
0,9
Agriculture
799
790 -9
-1,1
Private households
1 163
1 185 22
1,9
Percent of total employed
68,6
17,0
5,9
5,8
8,5
8,6
Total
100,0
Quarterly employment gains of 106 thousand are largest in the formal sector (up 73 thousand or 0,8%). Informal sector is 17,0% of total employment:

22. Employment in the formal and informal sector, Q2:2008
Total
Thousand
% share
Mining
344 -
346
3,7
0,0
Utilities 96 97
1,0
Construction
809
329
1 138
8,6
14,1
Trade
2 026
1 079
3 105
21,5
46,1
Transport
558
217
774
5,9
9,3
Finance
1 522
165
1 687
16,2
7,1
Services
2 325
310
2 635
24,7
13,2
Private hholds
1 185
Agriculture
790
9 415
2 340
13 725
100,0
Trade is the most important industry accounting for 46,1% of employment in the informal sector

23. Unemployment

24. Unemployed by sex Jan-Mar 2008 Apr-Jun 2008 Qrt to Qrt change Thousand
Percent
Unemployed
Men
1 982
1 910
-72
-3,6
Women
2 209
2 204 -5
-0,2
Total
4 191
4 114
-77
-1,8
The quarterly fall in unemployment was largely among men

25. Long-term unemployed
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
Thousand
Percent
Unemployed
Long-term unemployment (1 yr or longer)
2 369
2 405 36
1,5
Short-term unemployment (less than 1 yr)
1 822
1 710
-112
-6,1
Total
4 191
4 114
-77
-1,8
Long-term unemployment(%) .
Proportion of the labour force[1]
13,3
13,5
0,2
Proportion of the unemployed
56,5
58,5
2,0
The quarterly decline in unemployment was due to a reduction in short-term unemployment (by 112 thousand or 6,1%). But persons in long-term unemployment account for over half of all unemployed persons (58,5% in Q2)

26. Unemployment rate by province (%)
The largest quarterly difference in the unemployment rate was in EC (down 3,3 percentage points)

27. Unemployment rate by population group (%), Q2:2008
African women have the highest unemployment rate (31,1%) relative to the other population groups

28. Not economically active

29. Characteristics of the not economically active
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
Percent
% share
Not economically active
(Thousand)
Student
5 514
5 670
156
2,8
43,1
44,1
Home-maker
2 392
2 496
104
4,3
18,7
19,4
Illness/disability
1 845
1 794
-51
-2,8
14,4
13,9
Too old/young
970
978 8
0,8
7,6
Discouraged
1 177
1 079
-98
-8,3
9,2
8,4
Other
896
845
-5,7
7,0
6,6
Total
12 794
12 861 67
0,5
100,0
Students account for the largest number of NEA 5,7mill in Q2 (44,1%). Discouraged work-seekers had the largest quarterly decline (98 thousand or 8,3%)

30. Non-market production activities

31. Involvement in non-market production activities
(activities for own final use)
Jan-Mar 2008
Apr-Jun 2008
Qrt to Qrt change
(Thousand)
(Percent)
Subsistence farming
1 658
1 324
-334
-20,1
Fetching water or collecting wood/dung
2 905
3 118
213
7,3
Produce other goods for household use
104 93
-11
-10,6
Construction or major repairs to own house etc.
206
237 31
15,0
Hunting or fishing for household use 18 19 1
5,6
Involvement in at least one activity
3 926
3 920 -6
-0,2
Unemployed
750
730
-20
-2,7
Not economically active
3 176
3 190 14
0,4
Fetching water or collecting wood/dung is the most important non-market activity followed by subsistence farming. The vast majority of persons in non-market activity were NEA

32. Historical revisions to LFS
Based on the overlap between LFS 17 (March ’08) and QLFS Q1:2008 (Jan-Mar)
(Detailed report published as a separate document)

33. Revised series shows higher employment than originally published
Key labour market indicators revised
Employment
Revised series shows higher employment than originally published

34. Revised series shows lower unemployment than originally published
Key labour market indicators revised (Percent)
Unemployment
Revised series shows lower unemployment than originally published

35. Key labour market indicators revised (Percent)
Not economically active
Revised series shows lower economic inactivity than originally published

36. Key labour market indicators revised
Unemployment rate
Revised series shows lower unemployment rates than originally published

37. Impossible to disentangle various elements
Various sources of the differences
Non-market activities excluded from employment in QLFS
Different sequences (persons in market not asked about non-market activities)
Different instruments (shorter core & less respondent fatigue)
Continuous vs point-in-time
Individual questionnaires within one book
Permanent staff in QLFS vs contract field-staff in LFS
Different population benchmarks
Impossible to disentangle various elements

38. Announcement
Additional aspects of the QLFS results to be introduced as follows:
Time-related underemployment – Sep 2008
Measures of underutilisation of labour – Sep 2008
Characteristics of the unemployed: - Oct 2008
New entrants
Job-losers
Job-leavers
Re-entrants
Informal employment – Oct 2008

39. Any questions?