Overview of the 19th ICLS Resolution concerning statistics of work, employment and labour underutilization
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1 Overview of the 19th ICLS Resolution concerning statistics of work, employment and labour underutilization Tite Habiyakare, Senior Statistician, Regional Economic and Social Analysis Unit (RESA) ILO Regional Office for Asia and the Pacific Contents International standards setting in labour statistics Scope of new standards and concept of work statistics New concept of employment Labour force and labour underutilization ILO Department of Statistics 2 1
2 International standards setting in labour statistics ILO Department of Statistics 3 International Conference of Labour Statisticians (ICLS) Global standard-setting mechanism in labour statistics ILO hosts & acts as Secretariat Meets every 5 years (since 1923) Tripartite structure: Governments (NSO, MoL), Employers and Workers representatives Observers: International and regional organizations, NGOs ILO Department of Statistics 4 2
3 ICLS Resolutions & Guidelines: Main Topics Work, employment, labour underutilization Child labour Working time Employment-related income Informal sector employment Informal employment ISCO (occupations) ICSE (status in employment) Household income and expenditure statistics Consumer price indices Occupational injuries Strikes and lockouts Social security Collective agreements Labour costs Gender mainstreaming Dissemination practices ILO Department of Statistics 5 19 th ICLS Resolution: scope and concept of work statistics ILO Department of Statistics 6 3
4 Why the need for revision? 18 th ICLS and UNSC, 39 th session (2008) In response to calls to address limitations of unemployment statistics (2003 job crisis; 2008 financial crisis) Provide measures of labour underutilization, beyond unemployment Recognize and provide framework for measurement of all work, paid and unpaid Respond to emerging social and economic information needs (not just labour market dynamics, but also household livelihoods, beyond GDP indicators,...). ILO Department of Statistics 7 Illustration: Unemployment rate too limited to reflect labour market slacks ILO Department of Statistics 8 4
5 Concept of Work ( 6, 19 th ICLS Resol. I) 1 st international statistical definition Any activity performed by persons of any sex and age to produce goods or to provide services for use by others or for own use Irrespective of legality, context and person status Excludes Activities that do not satisfy the third person criterion Activities that do not produce goods or services (begging,...) Consistent with the scope of productive activities Within the SNA General production boundary Complete accounting ( national and satellite accounts) ILO Department of Statistics 9 Work and the 2008 SNA Activities Non-productive activities Self-care Sleeping Learning Own-recreation Begging Stealing Households producing for own final use Services Goods Productive activities Non-market units Government, Non-profit institutions Services Goods Market units Incorporated, unincorporated Services Previous activity scope for employment Goods General production boundary SNA production boundary New concept of Work == ALL productive activities ILO Department of Statistics 10 5
6 Forms of work & basic concepts Own-use production work Activities to produce goods & services mainly for own final use by household Employment work Activities to produce goods & services [for others in exchange] for pay or profit Unpaid trainee work Activities to produce goods & services for others performed without pay in order to acquire workplace experience or skills Volunteer work Non-compulsory activities performed without pay to produce goods and services for others Other work activities E.g. Compulsory activities performed without pay to produce goods & services for others ILO Department of Statistics 11 Persons in employment - Concept & main changes ILO Department of Statistics 12 6
7 Form of work: Employment Work (i.e. ALL activities to produce goods and services) For own final use (by households) For use by others (i.e. other units) For remuneration (i.e. for pay or profit) Without remuneration Own-use production work Employment (work for pay or profit) Unpaid trainee work Other work activities (e.g. unpaid compulsory work) Volunteer work Services Goods Services Goods S G S G G S ILO Department of Statistics 13 Two groups Persons in employment Operational definition (19 th ICLS Resol. I, 27-32) Persons of working age who, during a short reference period, (last seven days or one week, 19.a), were engaged in any activity to produce goods or provide services for pay or profit Employed, at work: Worked for pay or profit for at least 1 hour Employed, not at work: Worked already in the job, but not at work due to: Working time arrangement (shift work, flexitime) Temporary absence (expects to return within short period) ILO Department of Statistics 14 7
8 Labour force status classification Working age population (a + b + c) In short reference period, worked for pay / profit for 1+ hours Y N With job for pay / profit, not at work Y a. Employed N Labour force (a + b) b. Unemployed NOT EMPLOYED (without work for pay/ profit) Seeking work for pay/profit N ILO Department of Statistics 15 Y Available Y N c. Outside the labour force Above minimum age... : Employment & unemployment statistics as per previous standards... ALL who work for pay ALL who work for profit ALL who produce goods for own final use ALL who work for training ALL who volunteer for organizations Who volunteer to produce goods for households ALL OTHERS, whether or not: -Provide services for own final use -Volunteer providing services for households Not employed Seeking work AND / OR available for work Employed Unemployed Inactive ILO Department of Statistics 16 Yes Currently active pop. (employed + unemployed) No 8
9 Above minimum age... : Employment & Unemployment as per the NEW standards ALL OTHERS > age, whether or not: ALL who work for pay ALL who work for profit - Employers - Own account workers in market units - Contributing family workers - Members of market producer cooperatives Persons in employment (work for pay / profit) Labour force -Provide services for own final use -Volunteer providing services for households -Work unpaid for training -Produce goods for own final use -Volunteer through / for organizations Volunteer producing goods for households Not employed (for pay/profit) Seeking AND available for work for pay/profit Yes No Unemployed Outside the labour force Underutilized labour ILO Department of Statistics 17 (with unmet need for employment, for pay/profit) Employed In paid employment Self-employed in market units Employed Working Age Population (WAP) Producers of goods for own final use Volunteer workers Unpaid trainee workers Not employed Unemployed Outside labour force Unemployed Outside labour force th ICLS (1982) Employed % Unemployed % Labour force % Outside labour force % NEW 19th ICLS (2013) Change % % % % 9
10 Labour force and Labour underutilization ILO Department of Statistics 19 Labour Force: Main changes Terminology Labour force = Employed + Unemployed (for pay / profit) (without employment + seeking + available) Supply of labour in exchange for pay of profit (Para 11, 19 th ICLS Resolution) No longer economically / currently active population Outside labour force No longer economically inactive population No longer includes population below minimum age -ALL forms of work are productive & contribute to the economy -Persons outside labour force may be engaged in other forms of work -Children may be engaged in work, including in child labour (18 th ICLS) ILO Department of Statistics 20 10
11 Labour force & labour underutilization Working age population Labour force Employed Unemployed Outside the labour force Time-related underemployed Potential Labour Force - seeking, not available - available, not seeking Want employment but not seeking, not available Labour underutilization (unmet need for employment) Do not want employment 21 Labour underutilization: Scope Refers to mismatches between labour supply and demand, which translate into an unmet need for employment among the population Para 40, Resol I. (19 th ICLS, 2013) In reference to employment (work for pay or profit) Identifies groups among the employed & persons outside the labour force who share similarities with the unemployed Focuses on issues of insufficient labour absorption For broader labour market monitoring ILO Department of Statistics 22 11
12 NEW Measures of labour underutilization (LU1-LU4) LU4 23 Illustration: Persons by labour underutilization type (1,000s) Source: ILO calculations based on national data (circa 2011) 24 12
13 Illustration: Composite indicator (LU4) Source: ILO calculations based on national data (circa 2011) 25 Resources and Contact 19 th International Conference of labour statisticians ICLS Resolutions and Guidelines databases/standards-and-guidelines/ STATISTICS contact ILO Department of Statistics 26 13
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