FEWO Committee Report

LABOUR FORCE SURVEY

DEFINITIONS

Labour Force Survey

The Labour Force Survey (LFS) is a household survey carried out monthly by Statistics Canada. Since its inception in 1945, the objectives of the LFS have been to divide the working-age population into three mutually exclusive classifications—employed, unemployed, and not in the labour force—and to provide descriptive and explanatory data on each of these categories.[1]

The survey incorporates questions permitting analyses of various issues, such as reasons for part-time employment, multiple job-holding and absence from work. It also provides monthly information on the wages and union status of employees, as well as the number of employees at their workplace and the temporary or permanent nature of their job.[2]

Labour Force Status

Persons who are supplying services in the reference period, regardless of the quantity supplied, are classified as employed while those who provide evidence that they are offering their labour services to the market (again regardless of quantity) are classified as unemployed. The remainder of the population, those neither currently supplying nor offering their labour services, are referred to as persons not in the labour force (see Figure 1).[3]

According to this classification process, a woman in her late 50s who is pursuing training or an education would be considered ‘not in the labour force.’

Employment and Unemployment

The concepts and definitions of employment and unemployment adopted by the survey are based on those endorsed by the International Labour Organisation (ILO).[4]

Employment: Employed persons are those who, during the reference week:

(a) Did any work at all at a job or business, that is, paid work in the context of an employer-employee relationship, or self-employment. It also includes

unpaid family work, which is defined as unpaid work contributing directly to the operation of a farm, business or professional practice owned and operated by a related member of the same household; or

(b) Had a job but were not at work due to factors such as own illness or disability, personal or family responsibilities, vacation, labour dispute or other reasons (excluding persons on layoff, between casual jobs, and those with a job to start at a future date).[5]

Unemployment: Unemployed persons are those who, during reference week:

(a) Were on temporary layoff during the reference week with an expectation of recall and were available for work, or

(b) Were without work, had actively looked for work in the past four weeks, and were available for work, or

(c) Had a new job to start within four weeks from reference week, and were available for work.[6]

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Classifying Part-time Work

The classification of respondents as voluntary and involuntary part-time workers is derived from questions that ask respondents whether they want to work more or less than 30 hours at a (single) job or business. Based on the reasons that the respondents provide, they are classified as voluntary and involuntary part-time workers.

Voluntary part-timers are classified as such because they want to work less than 30 hours a week. Reasons include:

-          own illness

-          personal or family responsibilities

-          going to school

-          personal preference

-          other.

Part-time workers are classified as voluntary when they want to work 30 or more hours per week but cannot because of the following reasons:

-          own illness

-          personal or family responsibilities

-          going to school.

Respondents who want to work 30 or more hours per week but cannot because of ‘business conditions’ and because they ‘could not find work with 30 hours or more’ are then asked if they searched for full-time employment in the past four weeks. Those who did not search for full-time employment in the last four weeks are considered to be voluntary part-time workers.

Only those who searched for full-time employment in the last four weeks are considered to be involuntary part-time workers.

The involuntary part-time rate is calculated by dividing those whose response is “business conditions” or “could not find work with 30 or more hours” by the total number of persons working part-time at their main or only job.[7]

Reasons for Working Part-Time

In the questionnaire, the respondent is asked the following question:

Q. 159: “What is the main reason for not wanting to work 30 or more hours per week?”[8]

The respondent’s answer is coded according to the following categories:[9]

1 Own illness or disability

2 Caring for own children

3 Caring for elder relative (60 years of age or older)

4 Other personal or family responsibilities

5 Going to school

6 Personal preference

7 Other—Specify

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This respondent would be considered a voluntary part-time worker since she does not want to work more than 30 hours a week.

In the questionnaire the respondent is asked the following question:

Q. 160: “What is the main reason for working less than 30 hours per week?”[10]

The respondent’s answer is coded according to the following categories: [11]

1 Own illness or disability

2 Caring for own children

3 Caring for elder relative (60 years of age or older)

4 Other personal or family responsibilities

5 Going to school

6 Business conditions

7 Could not find work with 30 or more hours per week

8 Other - Specify

If the person answers ‘6’ or ‘7’, this person is then asked if she has searched for full-time employment in the last four weeks. If she answers ‘No’, she would be considered a voluntary part-timer. If she answers ‘Yes’, she would then be considered an involuntary part-timer.

The following diagram illustrates the classification process that takes place in the Labour Force Survey to determine employment, unemployment and not in the labour force.

Figure 1: Labour Force Classification