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1435 WEDNESDAY, 19 NOVEMBER 2008<br />

1436<br />

QUESTIONS<br />

For written reply:<br />

Definition <strong>of</strong> ‘‘employed’’<br />

1726. Pr<strong>of</strong> B TUROK (ANC) asked the<br />

Minister <strong>of</strong> Finance:<br />

(1) What is the basis for the definition <strong>of</strong><br />

the term ‘‘employed’’, used in the<br />

Quarterly Labour Force Survey for<br />

28 August 2008 issued by Statistics<br />

SA, which refers to ‘‘persons aged<br />

15-64 years who, during the reference<br />

week, did any work for at least<br />

one hour’’;<br />

(2) whether the government’s employment<br />

figures include such persons;<br />

if not, what is the position in this<br />

regard; if so,<br />

(3) whether this gives an accurate figure<br />

for the employment levels in our<br />

economy; if not, what is the position<br />

in this regard; if so, what are the<br />

relevant details? NW2507E<br />

The MINISTER OF FINANCE:<br />

(1) To decide on who is employed, the<br />

International Labour Organisation (ILO)<br />

recommends that the activities within the<br />

production boundary <strong>of</strong> the United Nations<br />

Systems <strong>of</strong> National Accounts be<br />

used. This system defines what activities<br />

are considered as economic. Anybody<br />

involved in these economic activities<br />

during the reference period is considered<br />

employed. The activities are defined below<br />

and elaborated through examples.<br />

These activities include market and<br />

Table 1<br />

nonmarket activities. Market activities<br />

include production <strong>of</strong> goods and services<br />

supplied to other units intended<br />

for sale, barter, in-kind pay on the<br />

market. Nonmarket activities include<br />

mostly production <strong>of</strong> goods and services<br />

for own final use, eg subsistence<br />

farming, collecting wood or water for<br />

own final consumption. However for<br />

nonmarket activities to be included as<br />

employment they must make a significant<br />

contribution to household consumption.<br />

In the old Labour Force Survey (LFS)<br />

both market activities and some nonmarket<br />

activities were considered employment.<br />

In the New Quarterly Labour<br />

Force Survey only market activities are<br />

considered to be employment. Nonmarket<br />

activities are not considered as<br />

employment in the new LFS because it<br />

was difficult to decide on what criteria<br />

would be used to establish if nonmarket<br />

activities made a significant contribution<br />

to household consumption.<br />

On temporary absence, in the old LFS<br />

as long as people had a job or even an<br />

economic activity to return they would<br />

be classified as employed and in the<br />

new LFS it is only people who indicate<br />

that they have market activities that<br />

they will definitely go back to (excluding<br />

working unpaid in a household<br />

business) who are considered as employed.<br />

Below is a table on how the employment<br />

question was asked in the old LFS<br />

and how it is asked in the new QLFS.<br />

LFS QLFS<br />

2.1 In the last seven days, did you do any <strong>of</strong> the<br />

following activities, even for only one hour?<br />

2.4 In the last week,

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