Regional Course on SDGs Indicators: Measuring decent work
using microdata from labour force surveys
Defining and measuring key labour market indicators (employment andlabour underutilization)
Chiba (Japan)
30 September – 4 October 2019

&RQWHQWV19th ICLS and concept of workLabour force classification
Components of labour
underutilization
LU indicators

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Resolution concerning statistics ofWork, Employment & labour underutilization
 Adopted by 19th ICLS in October 2013
 Updates previous standards on “Statistics of theeconomically active population, employment,unemployment and underemployment” (13th ICLS,1982) Sets new framework for work and labour market
statistics
 Promotes progressive implementation
 Enables reconstruction of existing series
 Promotes greater international comparability
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3Work
1st 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
 Consistent with the scope of productive activities• Within the SNA General production boundary• Complete accounts (“national” and “satellite” accounts)

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4Work and the 2008 SNA
 Aligned with General production boundary (2008SNA)• Activity must result in production of goods or services (e.g.
stealing not included)• Activity must fulfill 3rd person criterion: i.e. it must be possible
for someone else to perform the activity on one’s behalf (e.g.
sleeping not included) Can be performed in any kind of economic unit
• Market units (i.e. for profit units, such as corporations, quasicorporations and household unincorporated marketenterprises)• Non-market units (i.e. government & non-profit institutions)• Households producing goods or services for own final use Irrespective of formal, informal nature or legality ofactivity

Enables coherence between work statistics and economic statistics

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Forms of work framework• People can be engaged in multiple types
of work activities at the same time
• E.g. Employed but also engaged in volunteer work
• Under previous framework you were employed or not employedilostat.ilo.org

6Forms of work : EmploymentWork(i.e. ALL activities to produce goods and services)
For own final use

For use by others (i.e. other units)(by households)

For remuneration (i.e. for pay or profit)

Own-useproduction
workServices

Goods

Employment(work for pay or profit)

Services

Goods

Without remuneration

Unpaidtrainee
work

Other work
activities(e.g. unpaidcompulsorywork)

Volunteer
work

SSGG

GS

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Employment in 19th ICLS Employment is work performed for others inexchange for pay or profit
 Includes many types of people• Self employed people• Casual workers• Employees• Contributing family workers• Assisting family members• Etc.
 Type of pay is generally monetary but canbe in kind
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8Forms of work: Own use production workWork(i.e. ALL activities to produce goods and services)
For own final use

For use by others (i.e. other units)(by households)

For remuneration (i.e. for pay or profit)

Own-useproduction
work
Goods

Services

Employment(work for pay or profit)

ServicesGoods

Without remuneration

Unpaidtraineework

Other workactivities(e.g. unpaidcompulsorywork)

Volunteerwork

SSGGGS

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Own-use production work in 19thICLS• Producers of goods for own final use•

All persons of working age who, during a shortreference period, performed any activity toproduce goods for own final use• Providers of services for own final use•

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All persons of working age who, during a shortreference period, performed any activity toprovide services for own final use

10Unpaid trainee work
 Unpaid trainee work• Activities to produce goods & services for others performed without
pay in order to acquire workplace experience or skills• Quite substantial in many countries• Some countries already have measurement practices through LFS• No guidance yet on measuring this11

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Volunteer work Volunteer work
• Non-compulsory activities performed without pay to produce goodsand services for others• Manual published by ILO
 Describes concepts, operational definitions
 Includes recommendations for measurement• Published before 19th ICLS Some changes, e.g. scope of volunteer work in the manualwas outside ‘household’, now it’s outside ‘family’ Further study and development needed to update guidance

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Labour force & labour
underutilization

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Labour force concept“Refers to the current supply of labour
for the production of goods and services
in exchange for pay or profit”
Para 11,Resol I. (19th ICLS, 2013)
Labour force = Employed + Unemployed• Now focuses on work transacted for pay or profit• When measured over a short reference period, it
provides snap-shot picture of labour market at a given
point in time
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Labour force status classification
 Classifies the population of working age (15+)• According to its relation to the labour market• In short reference period Based on• Activity principle What the person did• Priority rule
 Employment over other activity
 Employment over unemployment
 Unemployment over outside the labour force• 1-hour criterion
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Labour force status classification
Activity principle + priority rule + 1 hr. criterion

Working age population (a + b + c)
In short reference period,
Employment for 1+ hours
YN

NOT EMPLOYED(without work for pay/ profit)

With job for pay /profit, not at work NYSeeking work for pay/profit
NAvailableYY

a. EmployedNb. Unemployed
Labourforce+ b)
ILO Department ofStatistics
and(aITC-ILO
ILO Department of Statistics

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c. Outside the labour force
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Labour force as per the NEW standards...
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

ALL OTHERS > age, whether or not:-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)

Persons in employment(for pay / profit)

Unemployed(seeking + available
for work for pay/profit)

Outside thelabour force

Underutilized labour
ilostat.ilo.org(with unmet need for employment (for pay/profit)

17Labour underutilization“Refers to mismatches between labour
supply and demand, which translate into anunmet need for employment among thepopulation”
Para 40,Resol I. (19th ICLS, 2013)

 In reference to employment (work for pay orprofit) Focuses on issues of insufficient labour
absorption
 For monitoring labour markets
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Labour underutilization: Components
Working age population
Labour force
Employed(for pay/profit)

Outside the labour force
Unemployed

Time-related
underemployed

Potential
Labour Force-seeking, not available-available, not seeking

Others outside thelabour forceLabour underutilization(unmet need for employment)
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Labour underutilization – Changes
from previous standards
 Old standards referred to time related
underemployment but not the potential
labour force
 Unemployment rate was typically the only
underutilization indicator published andthe main focus of the standards
 New standards recognise the need toextend the range of indicators while
retaining unemployment
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Unemployment: Scope Indicator of current unused supply of labour Different from beneficiaries of unemployment
insurance Emphasis on monitoring labour markets• Captures persons without employment, putting pressure on labour market• Signals situations of potential match between available labour supply(people) and available demand (jobs)

 May be engaged in other activities, or receive
government benefits• Unemployed housewife, unemployed student, unemployed subsistence
farmer, unemployed pensioner

 Measured only through household surveys• Need to establish person’s job search and availability
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Time-related underemployment“Reflects a situation when the working time ofpersons in employment is insufficient in relation
to alternative employment situations they arewilling and available to engage”
Para 40. Resol. 1, (19th ICLS, 2013)
 Significant component of labour underutilization
 To be disseminated together with unemployment rate Does not capture other dimensions ofunderemployment due to skills mismatches or low
remuneration
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22Potential labour force
 Sub-group of persons outside the labour force
 With expressed interest in employment (desire towork) Relevant in contexts with• Limited labour market, job opportunities• Limited channels to seek employment
 Relevant for groups• With other responsibilities (women, students)• Environment limits their capacity to seek / be available for work
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Population outside labour force bylabour market attachment

2. Not seeking employment, but want andavailable to work
3. Not seeking, Not available but want
employment
4. Does not want employment

Labour market attachment

1. Seeking employment, but not available

Based on SAME questions used to identify the unemployedilostat.ilo.org

24LU1-LU4: Composite measuresof labour underutilization

LU425

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Indicators of labour underutilization
Four indicators: to assess the nature of LU throughout the businesscycle:

 LU1: Unemployment rate (SDG 8.5.2):[persons in unemployment / labour force] x 100

Note: extended LF =LF + potential labour force

 LU2: Combined rate of time-related underemployment and unemployment:[(persons in time-related underemployment + persons in unemployment) / labourforce] x 100

 LU3: Combined rate of unemployment and potential labour force: 3[(persons in unemployment + potential labour force) / (extended labour force)] x 100

 LU4: Composite measure of labour underutilization:[(persons in time-related underemployment + persons in unemployment +potential labour force) / (extended labour force)] x 100

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Discouraged workers

A particular group of interestPeople who want, are available but are notlooking because they don’t believe the work isavailable

•

Education related reasons (don’t think they are qualifiedenough)•Age related reasons (employers don’t want people theirage)•Geographic reasons (no jobs available in the area)

Measured by including a question on reasonsfor not seeking work27

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