Millennium Development Goals Employment Indicators Astana October 2009 Theo Sparreboom Employment Trends International Labour Organization Geneva, Switzerland Employment Trends www.ilo.org/trends.
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Millennium Development Goals Employment Indicators Astana October 2009 Theo Sparreboom Employment Trends International Labour Organization Geneva, Switzerland Employment Trends www.ilo.org/trends MDG Employment Indicators Overview Background Employment indicators Global and regional estimates and trends Monitoring national labour markets Employment Trends www.ilo.org/trends MDG Employment Indicators Background Following the 2005 World Summit, and the work of the Commission for Social Development as well as the InterAgency and Expert Group on MDG indicators, a new target has been included under MDG1 (Target 1b): Achieve full and productive employment and decent work for all, including for women and young people The new target is monitored using four new employment indicators, which are additional to the existing indicator under MDG3 on gender equality. Employment Trends www.ilo.org/trends MDG Employment Indicators Background • All five employment indicators (under MDG1b and MDG3) are explained in detail in the Guide to the new Millennium Development Goals Employment Indicators, which is available at: http://www.ilo.org/public/english/employment/docu/index.htm • The Guide includes definitions, data sources, calculations and analytical examples. • The Guide also includes the full set of Decent Work Indicators, which allows for comprehensive monitoring of decent work. Employment Trends www.ilo.org/trends MDG Employment Indicators MDG1 Eradicate extreme poverty and hunger, Target B (‘decent work’) Employment-to-population ratios for persons aged 15+ and youth (15-24) by sex Vulnerable employment rate by sex Working poverty rate Labour productivity growth rate MDG3 Promote gender equality and empower women Share of women in wage employment in the non-agricultural sector Employment Trends www.ilo.org/trends MDG1B indicators Employment-to-population ratio Employment-to-population ratios for persons aged 15+ and youth (15-24) by sex The EPR measures the proportion of a country’s working age population that is employed EPR= Total employment/working age population * 100% Source of data: labour force survey or other household survey/population census with data on population and employment Employment Trends www.ilo.org/trends MDG1B indicators Employment-to-population ratio There is no single ‘correct’ employment-to-population ratio, but national EPRs are typically between 50-75 per cent Careful analysis of EPRs can be used to identify labour market issues such as low incomes, inadequate social security or gender imbalances. Analysis should cover comparisons of EPRs between labour market groups defined by sex or age, international comparisons, comparisons over time, etc. Analysis of labour market issues often necessitates investigation of additional indicators, e.g. vulnerable employment rates, unemployment rates, or enrolment rates in education. Employment Trends www.ilo.org/trends MDG1B indicators Employment-to-population ratio Employment-to-population ratio, selected regions, 1991-2008 62.0 61.0 60.0 59.0 58.0 (%) 57.0 56.0 55.0 54.0 53.0 52.0 51.0 50.0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 World Central & South Eastern Europe (non-EU) & CIS Developed Economies & European Union Source: ILO, Trends Econometric Models, July 2009 Employment Trends www.ilo.org/trends MDG1B indicators Employment-to-population ratio Employment-to-population ratio, CSEE & CIS, 1991-2008, by sex 70.0 65.0 (%) 60.0 55.0 50.0 45.0 40.0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Both sexes Male Female Source: ILO, Trends Econometric Models, July 2009 Source: ILO, Trends Econometric Models, July 2009 Employment Trends www.ilo.org/trends MDG1B indicators Vulnerable employment rate Vulnerable employment rate for persons aged 15+ by sex The vulnerable employment rate is a measure of the more vulnerable statuses of employment, namely own account workers and contributing family workers Vulnerable employment rate = (number of own-account workers + number of contributing family workers)/total employment * 100% The rate is typically related to level of GDP per capita Source of data: labour force survey or other household surveys with data on status in employment Employment Trends www.ilo.org/trends R ep M ubl ad ic ag of as (2 0 Et car 06 Ba hio (2 ) ng pi 00 la a ( 5) d 2 Pa esh 006 ki (2 ) Vi sta 00 5 et n (2 ) N 0 In a do m 07 ne (2 ) Ira si 00 n, a 4 Is la P Eg (20 ) m hi yp 0 7 ic lip t R pin (20 ) ep e ub s 06) lic (20 o 07 Br f (2 ) a 00 Tu zil ( 7) r 2 Th key 006 R ) ai us la (20 si n 0 an M d 8 Fe ex (20 ) de ico 07 ra (2 ) M tion 007 al ay (2 ) s 00 Po ia ( 7) la 20 nd 07 ) Ita (20 0 Fr ly ( 8) an 20 c 0 Ja e (2 8) pa 00 n 8 (2 ) 00 7) d te ni ,U ia za n Ta n % MDG1B indicators Vulnerable employment rate Vulnerable employment rate, selected countries ranked by GDP per capita 100.0 80.0 60.0 40.0 20.0 0.0 Employment Trends Source: ILO, Key Indicators of the Labour Market, 5th ed., 2007 www.ilo.org/trends MDG1B indicators Vulnerable employment rate Global vulnerable employment rate, 1997-2007 Global vulnerable employment Global vulnerable employment as share of total employment 54.0 53.0 1,500,000 52.0 1,450,000 51.0 1,400,000 50.0 1,350,000 49.0 1,300,000 Share of vulnerable employment (%) Vulnerable employment (millions) 1,550,000 48.0 1997 1999 2001 2003 2005 2007 Source: ILO, Trends Econometric Models, July 2009 Employment Trends www.ilo.org/trends MDG1B indicators Working poverty rate Working poverty rate for persons aged 15+ The working poor are defined as employed persons living in a household whose members are estimated to be below the nationally-defined poverty line Working poverty rate = working poor/total employment* 100% Source of data: household surveys with both employment and income & expenditure data; if data on employment and poverty come from different sources, an approximation may be used to arrive at the working poverty rate (see the Guide to the new Millennium Development Goals Employment Indicators) Employment Trends www.ilo.org/trends MDG1B indicators Working poverty rate Working poverty US$ 1.25, by region, 1997 and 2007 1997 2007 60.0 50.0 % 40.0 30.0 20.0 10.0 0.0 Central & South Eastern Europe (non-EU) & CIS East Asia South East Asia & the Pacific South Asia Latin America & the Caribbean Middle East North Africa SubSaharan Africa Source: ILO, Trends Econometric Models, July 2009 Employment Trends www.ilo.org/trends MDG1B indicators Growth rate of labour productivity Labour productivity represents the amount of output achieved per unit of labour input Labour productivity = GDP [measured at constant market prices in national currency]/ total employment Labour productivity growth rate is measured as the annual change in GDP per person employed Labour productivity can be used to assess to which extent the economic environment allows for the creation of decent employment opportunities Source of data: labour force survey or other household survey/population census with data on employment, in combination with data from national accounts Employment Trends www.ilo.org/trends MDG1B indicators Growth rate of labour productivity Productivity level, constant 2005 PPP$ Productivity growth rate, 2000-2008 8.5 7.8 67,500 7.5 60,000 6.5 52,500 5.5 45,000 5.1 4.9 37,500 4.5 30,000 3.5 3.3 22,500 2.5 2.4 15,000 Productivity growth rate (%) Productivity level (constant 2005 PPP US$) 75,000 2.1 1.8 1.5 1.4 1.3 7,500 1.1 0 0.5 World Developed Central & East Asia South East South Asia Latin Middle East Economies South Asia & the America & & Eastern Pacific the European Europe Caribbean Union (non-EU) & CIS North Africa SubSaharan Africa Source: ILO, Trends Econometric Models, July 2009 Employment Trends www.ilo.org/trends MDG Employment Indicators Global & regional estimates and trends • More detailed analysis is provided in Global Employment Trends reports and updates, which include additional indicators, available at: http://www.ilo.org/trends • Global Employment Trends reports and updates are based on country information, in particular information from labour force surveys stored in international repositories (ILO, OECD, etc.) • In addition, (benchmark) data on population (UN), labour force (ILO), GDP (IMF and World Bank), and poverty (World Bank) is used. Employment Trends www.ilo.org/trends MDG Employment Indicators Global & regional estimates and trends • The series of Global Employment Trends uses econometric models to address the issue of missing values at the country level • The main purpose of the models is to generate regional estimates in the absence of a complete set of country data on employment, unemployment and working poverty • The models are also used to generate short term projections (scenarios) at the regional and global level, based on a set of specific assumptions Employment Trends www.ilo.org/trends Global & regional estimates and trends Labour market scenarios for 2009 Global employment-to-population rate, 2000- 2009 4,000 62.0 Scenario 1 Employment Scenario 2 Employment Scenario 3 Employment 3,500 61.5 Scenario 1 Employment rate Scenario 2 Employment rate 3,000 61.0 2,500 60.5 60.3 2,000 60.0 1,500 59.9 59.7 59.5 59.3 1,000 59.0 500 58.5 0 58.0 2000 2001 Employment Trends 2002 2003 2004 2005 2006 2007 2008 Employment -to-population ratio (%) Employment (millions) Scenario 3 Employment rate 2009 www.ilo.org/trends Global & regional estimates and trends Labour market scenarios for 2009 Employment-to-population rate in CSEE&CIS, 2000- 2009 190 53.5 Scenario 1 Employment Scenario 2 Employment Scenario 3 Employment 170 Scenario 1 Employment rate 53 53.0 Scenario 2 Employment rate 150 52.5 52.3 130 52.2 52 110 51.6 Employment-to-population ratio (%) Employment (millions) Scenario 3 Employment rate 51.5 90 70 51 2000 2001 Employment Trends 2002 2003 2004 2005 2006 2007 2008 2009 www.ilo.org/trends Global & regional estimates and trends Labour market scenarios for 2009 Unemployment rate in CSEE&CIS, 2000- 2009 26 12.5 Scenario 3 Unemployment Scenario 2 Unemployment 12.0 Scenario 1 Unemployment 22 Scenario 1 Unemployment rate 11.5 11.5 Scenario 2 Unemployment rate 18 11.0 10.5 14 10.5 10.3 10.0 10 Unemployment rate (%) Unemployment (millions) Scenario 3 Unemployment rate 9.5 9.0 6 9.0 8.5 2 8.0 2000 2001 Employment Trends 2002 2003 2004 2005 2006 2007 2008 2009 www.ilo.org/trends Global & regional estimates and trends Labour market scenarios for 2009 Vulnerable employment rate in CSEE&CIS, 2000- 2009 50.0 30.0 Scenario 3 Vulnerable employment Scenario 2 Vulnerable employment 28.0 Scenario 1 Vulnerable employment 45.0 Scenario 1 Vulnerable employment rate Scenario 2 Vulnerable employment rate 40.0 25.5 26.0 Scenario 3 Vulnerable employment rate Vulnerable employment (millions) 22.0 21.3 30.0 20.0 25.0 19.2 18.0 17.0 20.0 16.0 15.0 Vulnerable employment rate (%) 24.0 35.0 14.0 10.0 12.0 5.0 10.0 2000 2001 Employment Trends 2002 2003 2004 2005 2006 2007 2008 2009 www.ilo.org/trends MDG Employment Indicators Monitoring national labour markets • Key Indicators of the Labour Market, 6th edition, contains a broader set of employment indicators, with an analysis of recent trends for each indicator. • Indicators on the volume of employment, including labour force participation and employment-to-population rates, hours of work, underemployment, part-time employment • Employment by status and sector • Educational attainment • Wage and earning indices • Labour productivity • The KILM also includes a section with country examples of analysis of the MDG employment indicators, and their linkages with other indicators. Employment Trends www.ilo.org/trends MDG Employment Indicators Monitoring national labour markets KILM 2009 Chapter 1c. MDG Employment Indicators – Analysis of five MDG employment indicators for Ukraine: • Regional comparisons • Linkages between indicators (e.g. productivity, wages and poverty) • Many possibilities for additional disaggregations (e.g. by geographical area, age, sex, etc.) • Scope for deeper analysis using other employment indicators (e.g. employment by sector) and other indicators (set of decent work indicators, e.g. wage developments, poverty) Employment Trends www.ilo.org/trends Thank you! Employment Trends www.ilo.org/trends