Appendix 2: Business Demography Modelled Employment Measures
Introduction
To assist users with the change from the previously published FTE to the EC series, an unofficial transitionary modelled FTE series has been produced. The series is available from 2000, and provides modelled full-time employee, part-time employee and full-time equivalent employee estimates derived from the EC data. Data are available at the ANZSIC industry division and regional council level. The series is not being released as official statistics because of data limitations.
Methodology
The model derives a full-time employee and part-time employee estimate from the EC data. This is applied at the geographic unit level. The ratio of full-time employees to part-time employees is calculated using Business Demography data from 2003 (base period), and adjusting it for industry-based movements in Statistics New Zealand's Quarterly Employment Survey (QES). The model is further supplemented using the full-time employees to part-time employees ratio for geographic units which are in the current QES sample. Ratios for units which did not exist in Business Demography 2003 or the current QES sample are derived by applying industry ratios from the QES.
Aggregates are then calculated by adding the results of the full-time employee and part-time employee estimates. The modelled full-time equivalent employee estimate is calculated by the total number of modelled full-time employees plus half the number of modelled part-time employees.
Data Limitations
Relevancy
Approximately half of the overall result derived from the model (based on modelled FTEs for the 2004 year) is influenced by the proportion of full-time and part-time employees from Business Demography 2003 (base period). As time passes, the significance of the data sourced from Business Demography 2003 will decline, because of the dynamic nature of the dataset. For instance, 21 percent of total enterprises in 2004 were births, while 13 percent of enterprises from the previous period were deaths in 2004. Births in the dataset receive a full-time and part-time employee ratio based on an industry-based ratio from the QES. The QES is also used to provide a ratio for units in the current QES sample. The relevancy of this model as a standalone measure will decline over time.
Access
The model has been evaluated at the ANZSIC division by regional council level. In general this is the level at which the data will be made available. Lower-level breakdowns will be considered case-by-case, depending on data quality and confidentiality considerations.
Working Proprietors
As outlined above, the EC from which the modelled employment estimates are derived includes only working proprietors who pay themselves a salary or wage. The previously published FTE series includes working proprietors, so the series are not directly comparable.
Coverage
Business Demography statistics are limited to those enterprises whose data is maintained on Statistics New Zealand's business frame.
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