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Background

Industry Profiler uses LEED data. Official quarterly statistics produced from LEED measure labour market dynamics and provide an insight into the operation of New Zealand's labour market.

Data sources

The LEED dataset is created by linking a longitudinal employer series from Statistics NZ's Business Frame to a longitudinal series of employer monthly schedule (EMS) payroll data from Inland Revenue. The Inland Revenue dataset is collected for the purpose of administering New Zealand’s taxation system. The Business Frame is a regularly maintained list of all businesses and organisations with a turnover greater than $30,000 engaged in the production of goods and services in New Zealand.

The base data received from LEED is of high quality, but cleaning, transformation, and integration processes are required before robust official statistics can be produced. This is necessary because these datasets are collected for different purposes and are not primarily designed for the production of statistics. There is a very small amount of error present in the base data or arising from LEED processes. This is negligible at aggregate levels, but can affect statistics for small categories. A direct measure of the error is not available, but some caution should be exercised in interpreting statistics based on relatively small numbers of people.

Population

LEED covers all individuals (‘employees’) who receive income from which tax is deducted at source. These payments are made by organisations that are registered with Inland Revenue. Note that the data from LEED includes social assistance payments, such as paid parental leave, student allowances, benefits, pensions, and Accident Compensation Corporation payments, although these are excluded from the quarterly measures. For confidentiality purposes, some individuals are withheld from the data provided to Statistics NZ by Inland Revenue. In LEED, the employer is the geographical unit or physical location of the business rather than the administrative reporting unit. For example, a nationwide retail chain may have one Inland Revenue reporting unit covering all of its retail branches. In LEED, each branch is considered to be a distinct employer.

The fundamental basis of the LEED quarterly measures is ‘jobs’. A job is defined as a unique employer-employee pair present on an EMS in the reference quarter. For inclusion in the LEED quarterly statistics the job must:

• relate to a person 15 years of age and over
• have PAYE tax deducted at source
• be in relation to ‘paid employment’ rather than a social assistance payment
• have a valid IRD identifier.

It should be noted that a small number of working proprietors, partners, or other self-employed individuals choose to pay their income tax at source and have not been separated from the 'true' jobs.

Industry outputs

NZSIOC06 (New Zealand Standard Industrial Output Categories) are based on ANZSIC 2006 (or Australian and New Zealand Standard Industrial Classification 2006). Industry outputs from LEED are based on the industry code assigned to business locations.

Excluded from data in business toolbox are businesses in public administration (ANZSIC 2006 2-digit code O75), defence (O76), and not elsewhere classified

Included in the data in business toolbox are enterprises with an employee count of less than 20. The count is based on employment on the 15th of the middle month of the reference quarter.

Business type

The business types included in the Business Toolbox are:

• individual proprietorship
• partnership
• registered limited liability company (non co-op).

Institutional sector classifications

The Business Toolbox data includes businesses with the following institutional sector classifications:

1111 Private corporate producer enterprises

1121 Private non-corporate producer enterprises

2291 Private other depository organisations nec

2311 Private other financial organisations except insurance and pension funds

2411 Private insurance and pension funds

Definitions of measures

Reference quarter and reference date

The calendar year is divided into four quarters, each with three months. The latest quarter is the ‘reference quarter’. The ‘reference date’ is the 15th of the middle month of the reference quarter.

Mean earnings

Mean earnings represent quarterly earnings, are inclusive of tax, and include payments reported as lump sums to Inland Revenue.

Movements in mean earnings statistics are influenced not only by changes in employees' remuneration, such as changes in wage rates, salaries, and hours worked, but also by changes in the composition of the paid workforce from period to period. Compositional changes include variations in relative numbers of males and females, full- and part-time employment, and employment in different industries or within industries.

Total filled jobs

This is the number of jobs (defined as an employer-employee match) on the 15th of the middle month of the reference quarter. It is often used as an indicator of economic activity.

Full-quarter jobs

‘Full-quarter jobs' are jobs that exist continuously over the reference quarter. This measure can be used to identify industries that have the highest or lowest mean earnings.

Continuing jobs

Continuing jobs are those that were full quarter in the reference quarter and previous quarters.

New hires

New hires are jobs that were full quarter in the reference quarter and began sometime in the previous quarter, but were not present in the four previous quarters. New hires must not have been employed with the same employer in the 12 months prior to the job start date. As a result, seasonal staff and employees who have been rehired within this time period are excluded from new hires. This measure could be used to compare earnings of new hires with existing employees.

Worker turnover rate

The worker turnover rate is a measure of workforce stability, and reflects change at a worker level. The worker turnover rate is calculated using the counts of accessions and separations, which are defined using the reference date concept. Accessions are the number of employees who have joined employers since the previous reference date, and separations are the number of employees who have left employers since the previous reference date. Other workers may join and leave during the reference quarter but not be present at either reference date. These workers are not included in the counts of accessions or separations and are therefore excluded from the worker turnover rate. The worker turnover rate is calculated at the geographic unit level, not the enterprise level. This means that employees who transfer between geographic units within an enterprise will be counted as accessions and separations.

Rounding and confidentiality

All figures have been rounded.

Job counts are rounded using graduated random rounding, ie 0-19: random rounding to base 3; 20-99: base 5; 100+ : base 10

Mean earnings are rounded to base 10. Additionally all mean earnings in an output category containing less than 25 jobs are suppressed for quality reasons and to preserve confidentiality of earnings data (denoted by an 'S').