Appendix C:
Concepts and definitions

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The concepts and definitions used in the Labour Force Survey (LFS) and the Survey of Older Workers are provided below:

Labour Force Survey Concepts and Definitions:

Labour Force Status:

Designates the status of the respondent vis-à-vis the labour market: a member of the non-institutional population 15 years of age and over is either employed, unemployed or not in the labour force.

Employment:

Employed persons are those who, during the reference week:

1. did any work¹ at all at a job or business; or
2. 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).

Unemployment:

Unemployed persons are those who, during the reference week:

1. Were on temporary layoff during the reference week with the expectation of recall and were available for work; or
2. Were without work, had actively looked for work in the past four weeks, and were available for work²
3. Had a new job to start within four weeks from the reference week, and were available for work.

Not in the Labour Force:

Persons not in the labour force are those who, during the reference week, were unwilling or unable to offer or supply labour services under conditions existing in their labour markets, that is, they were neither employed nor unemployed.

Industry and Occupation:

The Labour Force Survey provides information about the occupation and industry attachment of employed and unemployed persons, and of persons not in the labour force who have held a job in the past 12 months. Since 1997, these statistics have based on the North American Industry Classification System (NAICS) and the Standard Occupational Classification (SOC-91). Prior to 1997, the 1980 Standard Industrial Classification and the 1980 Standard Occupational Classification were used.

Reference Week:

The entire calendar week (from Sunday to Saturday) is covered by the Labour Force Survey each month. It is usually the week containing the 15th day of the month. The interviews are conducted during the following week, called the Survey Week, and the labour force status determined is that of the reference week.

Full-time Employment:

Full-time employment consists of persons who usually work 30 hours or more per week at their main or only job.

Part-time Employment:

Part-time employment consists of persons who usually work less than 30 hours per week at their main or only job.

Survey of Older Workers Concepts and Definitions:

Account – A financial record of receipts and disbursements, income and expenditures, credit and debits.

Annuity – A financial management approach to providing regular payments from a principle (lump sum) while still accumulating interest on the principle.

Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) – These plans are contributory earnings related social insurance programs that ensure a measure of income protection to contributors and their families against loss of income due to retirement, disability or death. The CPP operates in all provinces and territories except Quebec, where the similar QPP is in effect. The CPP can be collected as early as age 60.
Career Jobs – Jobs held for 8 years or longer on a full-time basis.

Class of Worker – Indicates whether a person is an employee (that is, working for a wage or salary, a commission, or payment in kind); self-employed on a farm, in a business, or in a professional practice (either incorporated or unincorporated, with or without paid help).

Full-time Worker – Are those workers who reported working 30 hours or more per week during most of the weeks that they were employed.

Household – Any person or group of persons living in a private dwelling. It may consist of one person living alone, or a group of people who are not related but share the same dwelling, or it may be a family.

Layoff – The act of suspending or dismissing a worker through no fault of the worker.

Occupational Pension Plan – A pension plan generated by a company, or organization for the benefit of its employee. In "contributory" plans both the employer and the employee contribute to a fund which grows free of tax during the saving period. In "non-contributory" plans, only the employer contributes.

Old Age Security (OAS) and Guaranteed Income Supplement ( GIS ) – The OAS is a taxable monthly payment to people age 65 and older based on years of residency in Canada. The GIS is a non-taxable benefit paid to lower-income OAS recipients. Both benefits are income tested and can be clawed back as income increases.

Older Worker – For the purposes of the Survey of Older Workers, an individual must be between 50 to 75 years of age and active in the labour market, or have been working in the previous 24 months.

Other Private Savings and Investments – Any savings (in an account or otherwise) or investments (e.g., stocks, bonds, and mutual funds) that a respondent has and will use as income.

Part-time Worker – Are workers who worked less than 30 hours per week. (In the case of people who had more than one job during the same week, the hours spent at all jobs were combined).

Registered Retirement Income Fund (RRIF) – A RRIF is for individuals, established at a financial institution, and registered under the Income Tax Act to provide a streamed income in retirement while still collecting interest on the principle. They typically function like an annuity. RRIFs are set up by directly transferring monies from Registered Retirement Savings Plans or lump sum payments from Registered Pension Plans. Amounts withdrawn from RRIFs are taxable. A minimum amount must be withdrawn each year, beginning in the year after the RRIF is established.

Registered Pension Plan ( RPP ) – A RPP is sponsored by an employer or union and is usually funded through both employee and employer contributions. RPPs must satisfy certain conditions and be registered for the purposes of the federal Income Tax Act. Contributions to RPPs are tax deductible, the investment income in them is deferred, and payments from them are taxable.

Registered Retirement Savings Plan (RRSP) – RRSPs provide retirement income based on previously accumulated contributions and interest accrued on those contributions. RRSPs are purchased either by the individual or spouse. Employment status is not a factor that is relevant for the purchase of RRSPs. Contributions to an RRSP are tax-deductible, and the investment income is tax-deferred. RRSPs can be cashed in at anytime and are taxed accordingly. You can make contributions up to and including your 71^st year. You must convert an RRSP to a RRIF (registered retirement income fund) before the end of the year in which you become 71 years of age.

Retired – In the context of this survey, refers to a person who is aged 50 and older, has left their main job or employer, and receives 50% ore more of his or her total income from retirement like sources. It is possible to retire and then return to the workforce in another capacity.

Reverse Mortgage – A reverse mortgage allows the homeowner to access equity in their home while still living in the home.

Superannuation – A pension or payment to a person retiring from full-time work on reaching the age of retirement. The term also refers to the accumulated contributions by employers and employees to a superannuation fund.

Veteran's Pension – The Pension Act provides pension awards to those suffering from disabilities related to military service, either during peace or war time. The pension award is based on the extent of the disability, as verified by a medical examination, and paid in accordance with set out in the Act.

When a disability pensioner dies, the spouse/common-law partner may receive, for a period of one year, the same pension amount being paid to the pensioner at the time of death. After the one year, a survivor will receive a survivor's pension. Surviving children may be eligible for orphan benefits following a pensioner's death. Surviving spouses/surviving common-law partners who remarry will continue to receive survivor benefits.

Workers Compensation – Workers Compensation programs protect employees from the financial hardships associated with work-related injuries and occupational diseases.

Workplace Pension – A pension plan generated by a company, or organization for the benefit of its employees. In 'contributory' plans both the employer and the employee contribute to a fund which grows free of tax during the savings period. In "non-contributory" plans only the employer contributes. While there are a variety of workplace pensions they are typically defined contribution or defined benefit.

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Notes:

1. Work includes any work for pay or profit, 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. Such activities may include keeping books, selling products, waiting on tables, and so on. Tasks such as housework or maintenance of the home are not considered unpaid family work.
2. Persons are regarded as available for work if they:
   1. Reported that they could have worked in the reference week if a suitable job had been offered; of if the reason they could not take a job was of a temporary nature such as: because of own illness or disability, personal or family responsibilities, because they already have a job to start in the near future, or because of vacation (prior to 1997, those on vacation were not considered available).; or
   2. Were full-time students seeking part-time work who also met condition i) above. Full-time students currently attending school and looking for full-time work are not considered to be available for work during the reference week.