Transcript Slide 1

Measuring Decent Work
through labour force surveys
Elisa M. Benes
Household Surveys Unit
ILO Department of Statistics
Email: [email protected]
Workshop on Challenges and Strategies in
Improving Labour Statistics in Africa
Bamako, Mali (22-24 November 2010)
ILO Department of Statistics
Contents
• Labour force surveys relevance & topic coverage
• Decent work indicators measurable through household
surveys
• Informal employment
• Labour underutilization
• Periodicity of data & labour force survey arrangements
• Current ILO activities
ILO Department of Statistics
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LFS relevance & topic coverage
PEOPLE
HOUSEHOLDS
•Age/Sex
•Marital status
•Education
•Size/Composition
•Income/benefits
•Location
Current activity status (in the reference week) of working age population
EMPLOYED (all jobs)
•Branch of economic activity
•Occupation
•Institutional sector
•Status in employment
•Contract characteristics
•Informal employment
•Informal sector employment
•Working time (usual & actual hours)
•Time-related underemployment &
other inadequate employment
•Income from employment
•Employment-related benefits
•Social dialogue
ILO Department of Statistics
UNEMPLOYED
NOT IN LF
•Search methods
•Duration
•Qualifications
•Previous work exp.
•Characteristics of last job
•Receipt benefits
•Reasons
•Desire to work
•Availability
•Job search
•Qualifications
•Previous work exp.
•Characteristics of last job
•Receipt benefits
Best source of information about the
Economically Active Population
-One single source for Working Age Population (WAP)
-All types of workers, jobs, branches of economic activity
-Flexible, detailed probing permits precise measurement
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Decent work indicators
measurable through household surveys
• More than half of the Decent Work indicators have as main
source a household survey (Labour Force Surveys, Labour
Force module, or child labour survey)
– Main indicators: 12 out of 18 indicators
– Additional & future indicators: 16 out of 29 indicators
• Household surveys are also an important source of
contextual indicators
– 5 out of 11 indicators
ILO Department of Statistics
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Decent work indicators
measurable through Labour Force Surveys
Main indicators
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Employment-to-population ratio
Unemployment rate
Youth not in education & not in
employment
Informal employment
Low pay rate
Excessive hours
Child labour*
% employed in precarious work
Occupational segregation by sex
Female share of employment in ISCO
groups 11 & 12
% pop. 65+ benefiting from a pension
Union density rate
Additional/future indicators
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ILO Department of Statistics
Labour force participation rate
Youth unemployment rate
Unemployment by level of education
Employment by status in employment
% Own account workers & contributing
family workers in total employment
% wage employment in non-agricultural
employment
Labour underutilization
Employees with recent job training
Usual hours worked (hour bands)
Rate of time-related underemployment
Number/wages of casual/daily workers
Gender wage gap
Share of population covered by (basic)
health care provision
Share of EAP contributing to a pension
scheme
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Decent work indicators
measurable through Labour Force Surveys
Main indicators
•
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Employment-to-population ratio
Unemployment rate
Youth not in educ. & not in employment
Informal employment
Low pay rate
Excessive hours
Child labour*
% employed in precarious work
Occupational segregation by sex
Female share of employment in ISCO
groups 11 & 12
% pop. 65+ benefiting from a pension
Union density rate
Additional/future indicators
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Most indicators are already a
ILO Department of Statistics
Labour force participation rate
Youth unemployment rate
Unemployment by level of education
Employment by status in employment
% Own account workers & contributing
family workers in total employment
% wage employment in non-agricultural
employment
Labour underutilization
Employees with recent job training
Usual hours worked (hour bands)
Rate of time-related underemployment
Number/wages of casual/daily workers
Gender wage gap
Share of population covered by (basic)
health care provision
Share of EAP contributing to a pension
core
part of LFS
scheme
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Decent work indicators
measurable through Labour Force Surveys
Measurement based on
• Standards adopted by the International Conference of Labour
Statisticians (ICLS)
• Countries’ best practices in measurement through labour force surveys
Few in developmental stage
• Measurement of income from employment through household surveys
• Indicator(s) of labour underutilization
• Measurement of indicators on stability and security at work, …
ILO Department of Statistics
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Relevance of LFS statistics
Employment
Stability & security
Informal employment
Voice & representation
Informal sector employment
ILO Department of Statistics
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Relevance of LFS statistics
Low pay
GPG
Excessive hrs.
Time –Related
Underemployment
ILO Department of Statistics
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unemployment
Relevance of
LFS statistics
ILO Department of Statistics
Labour market
attachment
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Relevance of
LFS statistics
ILO Department of Statistics
Characteristics of
unemployed &
labour market
attachment
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Informal employment
Informal employment as % of total employment
ILO Department of Statistics
Informal employment
• Adopted by 17th International Conference of Labour
Statisticians (2003)
• To complement informal sector employment as a related
but different concept
– Informal sector employment: enterprise-based concept
– Informal employment: job-based concept
• Refer to different aspects of the informalization of
employment
• Important to measure in a coherent & consistent manner
with informal sector employment
• Important to keep separate for analysis & policy purposes
ILO Department of Statistics
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Definition of informal employment
17th ICLS (2003)
Informal employment refers to
Total number of informal jobs, whether carried out in formal sector
enterprises, informal sector enterprises, or households (paid domestic
workers, production for own-consumption), during a given reference
period
Key elements
– Job-based concept (focus on characteristics of the job)
– Includes all jobs (main & secondary jobs)
– Includes jobs in all types of production units
– Includes workers in all status in employment
– Includes all branches of economic activity (agriculture & non-agricult)
ILO Department of Statistics
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Relation between informal sector
employment & informal employment
Production units
Informal sector enterprises
Other units of production
(formal sector enterprises & households)
Informal jobs
Formal jobs
A
B
C
D
Informal employment
Informal sector employment
Informal employment outside of the informal sector
Employment in the informal economy
ILO Department of Statistics
A+C
A+B
C
A+B+C
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Relation between informal sector
employment & informal employment
Informal
employment
Informal sector
employment
Formal jobs in
IS enterprises
Informal jobs
outside of
IS enterprises
ILO Department of Statistics
TOTAL EMPLOYMENT
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Who has an informal job? (1)
• Criteria to determine the formal / informal nature of jobs
depends on status in employment
Employees
– Have informal jobs if their employment relationship is, in
law or in practice, not subject to national labour legislation,
income taxation, social protection or entitlement to certain
employment benefits (advance notice of dismissal,
severance pay, paid annual or sick leave, etc.)
Note: Definition covers (i) de jure informal jobs
and (ii) de facto informal jobs.
ILO Department of Statistics
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Measurement of informal jobs
of employees in LFS
Operational criteria to identify employees in informal jobs:
• Lack of contributions to social security system by employer
• Lack of entitlement to paid annual leave
• Lack of entitlement to paid sick leave
Note, it is not sufficient to use:
• Lack of written employment contract
• Casual/temporary nature of work
ILO Department of Statistics
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Who has an informal job? (2)
Self-employed
• Employers, own-account workers & members of producers’ coop.
– Formal/informal nature of job depends on characteristics of enterprise
– Have informal jobs if their enterprises are part of the informal sector
• Contributing family members
– Employment usually not subject to labour legislation, no contractual relationship
– All have informal jobs regardless of whether the enterprise is formal or informal
• Engaged in production for own final use by household
– Employment not subject to labour legislation
– All have informal jobs
ILO Department of Statistics
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Measurement of informal jobs
of self-employed in LFS
Informal employment of self employed
• Employers’, own account workers, members of producers
cooperatives
– Requires identification of the enterprise or cooperative as belonging to the
informal sector
• Contributing family members
– Question on status in employment
• Engaged in production for own final use by their household
– Question on branch of economic activity (industry)
– ISIC, Rev. 3/3.1/4 permits identification (9810)
ILO Department of Statistics
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Figure 1 .
Inform al Em ploym ent and Em ploym e nt in the Inform al Sector in T en
Se lected C ountries, lates t year available a/
(P ercen t o f t ot al n o n -a g ricultu ra l em p lo ym en t) b /
90
80
70
60
50
40
30
20
10
0
In fo rm al em p lo ym en t
Em p lo y m en t in th e in form al secto r
Sour ce: ILO . In Brazil, estim ates based on offic ial da ta from various sources. In Colom bia, E cuador, Mali, M exico, Panam a, Peru
and South A frica: ILO estim ate s com puted from la bour force survey m icro data. In M oldova and Turke y, labour force surve y da ta .
a/ In Brazil, 20 03 data. In M ali, South A frica, M oldova a nd T urke y, 2 0 04 data. In Colom bia, E cuador, Me xic o, Panam a and Pe ru, 20 07 data.
b/ In Brazil, M ali, M oldova, South A frica and Turkey, estim ates a re provided as a perce nt of total non-a gricultural em ploym ent. In all
othe r countr ies, data ar e provided as a pe rcent of total e m ploym e nt in urban area s.
International Labour Office
Department of Statistics
Labour underutilization
ILO Department of Statistics
Labour underutilization
• Intended uses
– To supplement the unemployment rate and be reported
along with it
– Broad measure of the employment problem that:
• better reflects people’s perception of “unemployment”
• i.e. captures key economic AND social dimensions of
“unemployment”
• Proposed scope
– Key mismatches between labour supply and demand
– Undervalued labour
ILO Department of Statistics
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Labour underutilization
• Key characteristics
– Fully consistent with labour force framework
– Builds on existing related concepts
– Readily measurable with data from labour force surveys
– Single composite indicator
– Can be broken down into its components for deeper
analysis and policy-making
ILO Department of Statistics
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Envisioned use of the indicator
(18th ICLS, room document 13, page 28)
ILO Department of Statistics
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Labour force as a continuum
From…
Employed
Unemployed
Not economically active
Economically active population
(Labour force)
ILO Department of Statistics
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Labour force as a continuum
To…
Employed
Unemployed
Not economically active
Labour underutilization
ILO Department of Statistics
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Labour
underutilization
Components of labour underutilization
ILO Department of Statistics
a. Labour slack
Insufficient volume of work
b. Skills
underutilization
Inadequate match between
education and occupation
c. Low earnings
Low remuneration of work
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Components of
labour underutilization (1)
a. Labour slack
Insufficient volume of work
• Unemployed
• Time-related underemployed
• Discouraged jobseekers
• Other inactive persons marginally
attached to the LF
Labour slack among
economically active
persons
Labour slack among
economically
inactive persons
Requires development of a classification of persons not in the
labour force (based on desire to work, availability & job search)
ILO Department of Statistics
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Components of
labour underutilization (2)
b. Skills
underutilization
Inadequate match between
education and occupation
• Persons employed in jobs with skills requirements below
educational attainment
Measurement based on level of educational attainment
(ISCED 1997) and 1 digit occupational classification
(ISCO-08) applied to main job only
ILO Department of Statistics
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Components of
labour underutilization (3)
c. Low earnings
Low remuneration of work
• Full-time employed with low monthly earnings
• Less than full-time employed with low hourly earnings
• Overly employed with low earnings
ILO Department of Statistics
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Labour underutilization within
labour force framework
Working age population
Economically active
Employed
Other
employed
Unemployed
Discouraged
Time-related
underemployed
Other inactive,
available
Employed,
Skills underutilized
Employed,
low pay
ILO Department of Statistics
Not economically active
Other
inactive,
not available
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Labour underutilization (LU):
Calculation approach
• As a single composite measure
LU= labour slack + low earnings + skills underutilization
• Rate of labour underutilization
Rate of LU=(LU / working age population or extended labour force )*100
• Components treated as mutually exclusive (priority criteria):
– 1st step: Labour slack
– 2nd step: Low earnings
– 3rd step: Skills underutilization
• Components can also be calculated as overlapping and
reported separately
ILO Department of Statistics
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Examples: Unemployment rate &
labour underutilization rate
Country
Tanzania, Rep. of (2005/06)
Mexico (2007 Q2)
Moldova, Rep. of (2007)
Philippines (2003 Q4)
Panama (2007 Aug)
Turkey (2007)
Bosnia & Herzegovina (2006)
ILO Department of Statistics
Labour
Unemployment
underutilization
rate (%)
rate (%)
3.3
51.9
3.4
30.2
5.0
46.3
5.4
40.8
5.7
45.1
9.3
29.9
27.0
56.0
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Periodicity of data &
LFS arrangements & strategies
ILO Department of Statistics
National programme for LF statistics:
13TH ICLS Resolution I, para. 2.
Long-term needs (for structural in depth-analysis and as benchmark data)
– Comprehensive data on the economically active population
– In-depth statistics on relation between employment, income & other
social and economic characteristics
– Data on particular topics (children, youth, women)
– At minimum every 10 years
Short-term needs (for current purposes, compiled frequently & recurrent basis)
– To encompass statistics of the economically active population and its
components for monitoring of trends and seasonal variations
– At minimum once a year (& twice to account for seasonal variations)
ILO Department of Statistics
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Labour force survey programme for current
& long-term data needs
For long-term labour force statistics programme
– Occasional survey (e.g. one-off multipurpose survey)
– Regular survey (e.g. inter-censal stand-alone or multipurpose
survey)
For current labour force statistics programme
– Annual survey with periodic data collection for annual pointestimates
Depending on
resources & capacity
– Continuous survey system with sample rotation for monthly/
quarterly/ annual average estimates
ILO Department of Statistics
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Some strategies to improve
Labour force statistics programme
• Objective: To build a regular labour force survey programme to
provide for current & long-term data needs
• Strategy: Progressive development & implementation
1 One-off multipurpose survey with labour force module
Annual urban labour force survey or short labour force module in
2 multipurpose survey & 5-yearly (inter-censal) national LFS
3 Annual LFS with periodic data collection in high & low seasons
Annual LFS with continuous data collection for
4 monthly/quarterly/annual estimates
ILO Department of Statistics
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Annual labour force surveys
• Periodic data collection
– once a year, two, four or twelve times a year
– point in time estimates
• Continuous data collection
– every week or fortnight
– annual, quarterly, monthly averages
Annual labour force surveys with
continuous data collection
Advantages:
– Seasonal variations over time are captured and period effects eliminated
– Estimates reflect the average situation during a month, quarter or year
– Flexibility in periodicity of data dissemination (depending on sample design)
– No longer need to use concepts based on long reference periods (e.g. usual
activity, annual income), which are prone to recall errors
– Improved timeliness in dissemination due to continuous data entry & processing
– Smaller dedicated field interviewers teams = better quality & lower staff turnover
Activities of the ILO:
Work in progress
• Labour force surveys & decent work indicators
– Model labour force surveys materials based on standards & best
practices
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Building-block approach
Model labour force survey section & question sequences flow charts
Question elements (text, response options, skips, instructions)
Topic-specific flow charts
Explanatory notes
Definition sheets for derived variables
Indicator requirement sheets
– Developmental work to pilot test question sequences
ILO Department of Statistics
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Activities of the ILO:
Work in progress
• Manual on Surveys of Informal Employment & Informal Sector
– 11th Meeting of the Delhi Group (Geneva, January 2010)
– Main draft available at (under 11th Meeting):
http://mospi.nic.in/Mospi_New/site/DelhiGroup.aspx
– Publication: forthcoming in 2011
Activities of the ILO:
Work in progress
• Labour underutilization
– 2008: 18th ICLS Resolution concerning the development of
measures of labour underutilization
– 2009: Technical Workshop on measures of labour underutilization
– 2010: Working Group for the Advancement of Employment &
Unemployment Statistics
• Objective: To propose draft recommendations for possible
adoption by the 19th ICLS in 2013
ILO Department of Statistics
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Working Group for the Advancement of
Employment & Unemployment Statistics
Current membership
Africa
Mali
Mauritius
Morocco
South Africa
Tunisia
Uganda
Zimbabwe
Americas
Brazil
Colombia
Mexico
Peru
USA
Asia & Pacific
India
Japan
Kazakhstan
New Zealand
Philippines
Sri Lanka
Thailand
West Bank &
Gaza Strip
Europe
Denmark
France
Germany
Ireland
Italy
Moldova
Norway
Spain
Switzerland
Turkey
+5 representatives from Afristat, Eurostat, OECD
ILO Department of Statistics
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Merci / Thank you
ILO Department of Statistics