Table 13: LEED measures, by sex and industry (based on ANZSIC06)
<< NZ.Stat
Open all groups and itemsClose all groups and itemsSend link via emailPrintOpen in stand alone windowClose this window
Click to expand Source
Click to collapse Source
Click to expand Contact person/organisation
Click to collapse Contact person/organisation
Click to expand Database Specific
Click to collapse Database Specific
Click to expand Abstract
Click to collapse Abstract

Background

Official quarterly statistics produced from the Linked Employer-Employee Data (LEED) measure labour market dynamics. These provide an insight into the operation of New Zealand's labour market and its relationship to business performance. Statistics New Zealand releases other official labour market statistics which show changes in employment at an aggregate level. New statistics from LEED, such as job and worker flows, help explain what causes these aggregate movements and are therefore useful for explaining changes in the labour market.

Data sources

LEED integrates existing longitudinal employer and employee data. The dataset is constructed from monthly administrative data for individuals drawn from the Inland Revenue's taxation system and business data from Statistics NZ's Business Frame (BF).

Statistics NZ undertakes the data integration. The Inland Revenue data is collected for administering New Zealand’s taxation system. It is extracted from employer monthly schedules (EMS) and contains details of earnings, tax type and tax deducted for each employee. It does not contain any information relating to the number of hours worked for those earnings.

The BF is a regularly maintained list of all economically significant businesses and organisations (greater than $30,000 turnover) engaged in the production of goods and services in New Zealand. Its main use is to select businesses for participation in Statistics NZ’s surveys. Information derived from the BF includes:

  • industry
  • sector (private or public)
  • the number of geographical units (physical locations)
  • the count of employees at each geographical unit
  • the ownership structure of the business.
Historically, the BF was based and updated from annual survey questionnaires. Since 2002, the coverage of the BF has been extended to include more businesses, and its employment information has been maintained using monthly tax data.

While the BF represents a rich source of information on businesses and their structures, a number of practical limitations remain which impact on its use in the LEED system. Examples include:

  • possible time delays in adding new businesses to the BF and recording businesses that have ceased trading
  • the BF practice of transferring geographical units between businesses at the time of legal changes in ownership rather than at the time the initial administrative unit ceases to file an EMS.
The base data received is, overall, 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. Integration processes are required to merge the two sources as the datasets are constructed differently. One of these processes allocates jobs from an IRD number to geographical units or physical locations associated with that employer.

This situation differs from measures based on Statistics NZ surveys. These surveys are specifically designed to collect the data required and the information requested is targeted to the desired measures.

Privacy/Confidentiality

Statistics NZ and the Inland Revenue have an agreement that governs the transfer of tax data for statistical purposes. This process is done under section 81(4)(d) of the Tax Administration Act 1994. The Inland Revenue data is encrypted prior to transmission and decrypted upon arrival into Statistics NZ. Unique identifiers (IRD numbers) are individually encrypted and names and addresses removed from the Statistics NZ processing and analytical environment. The 'raw' data from Inland Revenue is stored on a separate server from the 'cleaned' (unidentified) data and both these servers are separate from those used for the rest of the organisation. All servers and backup tapes are held under Statistics NZ's highest level of physical security. Access to the data is strictly limited and controlled.

LEED consists of unit record data that is used to produce official statistics and support statistical research. Any information released is in the form of summary statistics or statistical research. No information is released from the data that would allow for the identification of any individual or business. The categories for data release are established so that each cell in a table complies with Statistics NZ confidentiality rules.

To reiterate LEED is only used for statistical purposes. The data is not available for operational or administrative purposes. In keeping with this policy, Inland Revenue provides data to Statistics NZ but Statistics NZ does not provide data back to IRD. Any amendments made by Statistics NZ to the Inland Revenue data during processing are for statistical purposes and are not fed back to Inland Revenue.

Population

LEED effectively covers all individuals ("employees") who receive income from which tax is deducted at source. These payments are made by organisations (“employers“) who are registered with Inland Revenue. Note that LEED includes social assistance payments such as paid parental leave, student allowances, benefits, pensions and ACC payments. For confidentiality purposes, some individuals are withheld from the data provided to Statistics NZ by Inland Revenue.

An 'employer' is any taxpayer entity in the reference period that pays earnings to individuals from which PAYE tax is deducted. In the LEED statistics, the employer is the geographical unit or physical location of the business rather than the administrative reporting unit associated with the employer IRD number. 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 in LEED 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, choose to pay their income tax at source and have not been separated from the 'true' jobs.

Time series

The first release of statistics from LEED in February 2006 provided a back series of data from the December 2004 quarter to June 1999. Some caution should be taken in interpreting this back series, as it was produced using historical information with reduced ability to correct for inaccuracies in the source data. For quarterly releases, LEED statistics are published about four quarters after the reference quarter, and are provisional for two quarters. That is, they will be revised for an additional two quarters. The statistics are final six quarters after the reference quarter.

Missing values in tables

Cells with missing values are represented by a dash. For quarters prior to September 2000, there are two types of missing values.

  • For the June 1999 quarter, there is no backdata to calculate mean/median earnings for continuing jobs, mean/median earnings for new hires, mean/median earnings ratios, and worker turnover rates. Null data is the reason for missing values for these measures in this quarter. Missing values for other measures are due to data suppressed for confidentiality reasons.
  • From September 1999 to June 2000 (inclusive), there is less than a year's worth of data to calculate mean/median earnings for new hires, and mean/median earnings ratios. This has resulted in null data, and in turn, missing values. Missing values for other measures are due to suppressed data.
For quarters from September 2000 (inclusive), missing values for all measures are due to suppressed data.

Industry

Industry output categories based on ANZSIC96 or ANZSIC06 are available. LEED quarterly statistics uses five sets of independent industry output categories. Concordances mapping ANZSIC to the LEED quarterly industry output categories are available on request.1-way tables - There are three industry categories

Level 1 - The highest level - based on ANZSIC divisional level.

Level 2 - Based on 2-digit ANZSIC. Some are aggregations of 2-digit ANZSIC.

Level 3 - The most detailed level available for publication. Based on 3-digit ANZSIC. Some are aggregations of 3-digit ANZSIC.

2 and 3-way tables

Only one industry classification is available for each type of table. These are based on ANZSIC divisional level. Some are aggregations of ANZSIC at the divisional level.

Table 13: LEED measures, by sex and industry (based on ANZSIC06)Abstract

<h3>Background</h3><p>Official quarterly statistics produced from the Linked Employer-Employee Data (LEED) measure labour market dynamics. These provide an insight into the operation of New Zealand's labour market and its relationship to business performance. Statistics New Zealand releases other official labour market statistics which show changes in employment at an aggregate level. New statistics from LEED, such as job and worker flows, help explain what causes these aggregate movements and are therefore useful for explaining changes in the labour market.</p><h3>Data sources</h3><p>LEED integrates existing longitudinal employer and employee data. The dataset is constructed from monthly administrative data for individuals drawn from the Inland Revenue's taxation system and business data from Statistics NZ's Business Frame (BF).</p><p>Statistics NZ undertakes the data integration. The Inland Revenue data is collected for administering New Zealand’s taxation system. It is extracted from employer monthly schedules (EMS) and contains details of earnings, tax type and tax deducted for each employee. It does not contain any information relating to the number of hours worked for those earnings.</p><p>The BF is a regularly maintained list of all economically significant businesses and organisations (greater than $30,000 turnover) engaged in the production of goods and services in New Zealand. Its main use is to select businesses for participation in Statistics NZ’s surveys. Information derived from the BF includes:<ul><li>industry</li><li>sector (private or public)</li><li>the number of geographical units (physical locations)</li><li>the count of employees at each geographical unit</li><li>the ownership structure of the business.</li></ul>Historically, the BF was based and updated from annual survey questionnaires. Since 2002, the coverage of the BF has been extended to include more businesses, and its employment information has been maintained using monthly tax data.</p><p>While the BF represents a rich source of information on businesses and their structures, a number of practical limitations remain which impact on its use in the LEED system. Examples include:<ul><li>possible time delays in adding new businesses to the BF and recording businesses that have ceased trading</li><li>the BF practice of transferring geographical units between businesses at the time of legal changes in ownership rather than at the time the initial administrative unit ceases to file an EMS.</li></ul>The base data received is, overall, 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. Integration processes are required to merge the two sources as the datasets are constructed differently. One of these processes allocates jobs from an IRD number to geographical units or physical locations associated with that employer.</p><p>This situation differs from measures based on Statistics NZ surveys. These surveys are specifically designed to collect the data required and the information requested is targeted to the desired measures.</p><h3>Privacy/Confidentiality</h3><p>Statistics NZ and the Inland Revenue have an agreement that governs the transfer of tax data for statistical purposes. This process is done under section 81(4)(d) of the Tax Administration Act 1994. The Inland Revenue data is encrypted prior to transmission and decrypted upon arrival into Statistics NZ. Unique identifiers (IRD numbers) are individually encrypted and names and addresses removed from the Statistics NZ processing and analytical environment. The 'raw' data from Inland Revenue is stored on a separate server from the 'cleaned' (unidentified) data and both these servers are separate from those used for the rest of the organisation. All servers and backup tapes are held under Statistics NZ's highest level of physical security. Access to the data is strictly limited and controlled.</p><p>LEED consists of unit record data that is used to produce official statistics and support statistical research. Any information released is in the form of summary statistics or statistical research. No information is released from the data that would allow for the identification of any individual or business. The categories for data release are established so that each cell in a table complies with Statistics NZ confidentiality rules.</p><p>To reiterate LEED is only used for statistical purposes. The data is not available for operational or administrative purposes. In keeping with this policy, Inland Revenue provides data to Statistics NZ but Statistics NZ does not provide data back to IRD. Any amendments made by Statistics NZ to the Inland Revenue data during processing are for statistical purposes and are not fed back to Inland Revenue.</p><h3>Population</h3><p>LEED effectively covers all individuals ("employees") who receive income from which tax is deducted at source. These payments are made by organisations (“employers“) who are registered with Inland Revenue. Note that LEED includes social assistance payments such as paid parental leave, student allowances, benefits, pensions and ACC payments. For confidentiality purposes, some individuals are withheld from the data provided to Statistics NZ by Inland Revenue.</p><p>An 'employer' is any taxpayer entity in the reference period that pays earnings to individuals from which PAYE tax is deducted. In the LEED statistics, the employer is the geographical unit or physical location of the business rather than the administrative reporting unit associated with the employer IRD number. 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.</p><p>The fundamental basis of the LEED quarterly measures is 'jobs'. A job in LEED is defined as a unique employer-employee pair present on an EMS in the reference quarter.</p><p>For inclusion in the LEED quarterly statistics the job must:<ul><li>Relate to a person 15 years of age and over</li><li>Have PAYE tax deducted at source</li><li>Be in relation to "paid employment" rather than a social assistance payment</li><li>Have a valid IRD identifier.</li></ul>It should be noted that a small number of working proprietors, partners, or other self-employed, choose to pay their income tax at source and have not been separated from the 'true' jobs.</p><h3>Time series</h3><p>The first release of statistics from LEED in February 2006 provided a back series of data from the December 2004 quarter to June 1999. Some caution should be taken in interpreting this back series, as it was produced using historical information with reduced ability to correct for inaccuracies in the source data. For quarterly releases, LEED statistics are published about four quarters after the reference quarter, and are provisional for two quarters. That is, they will be revised for an additional two quarters. The statistics are final six quarters after the reference quarter.</p><h3>Missing values in tables</h3><p>Cells with missing values are represented by a dash. For quarters prior to September 2000, there are two types of missing values.<ul><li>For the June 1999 quarter, there is no backdata to calculate mean/median earnings for continuing jobs, mean/median earnings for new hires, mean/median earnings ratios, and worker turnover rates. Null data is the reason for missing values for these measures in this quarter. Missing values for other measures are due to data suppressed for confidentiality reasons.</li><li>From September 1999 to June 2000 (inclusive), there is less than a year's worth of data to calculate mean/median earnings for new hires, and mean/median earnings ratios. This has resulted in null data, and in turn, missing values. Missing values for other measures are due to suppressed data.</li></ul>For quarters from September 2000 (inclusive), missing values for all measures are due to suppressed data.</p><h3>Industry</h3><p>Industry output categories based on ANZSIC96 or ANZSIC06 are available. LEED quarterly statistics uses five sets of independent industry output categories. Concordances mapping ANZSIC to the LEED quarterly industry output categories are available on request.1-way tables - There are three industry categories<br></p><p>Level 1 - The highest level - based on ANZSIC divisional level.<br></p><p>Level 2 - Based on 2-digit ANZSIC. Some are aggregations of 2-digit ANZSIC.<br></p><p>Level 3 - The most detailed level available for publication. Based on 3-digit ANZSIC. Some are aggregations of 3-digit ANZSIC.</p><p>2 and 3-way tables<br></p><p>Only one industry classification is available for each type of table. These are based on ANZSIC divisional level. Some are aggregations of ANZSIC at the divisional level.</p>

Contact person/organisation

<a href="http://www.stats.govt.nz">Statistics New Zealand</a>