the concepts of employment and unemployment as set out …...the concepts of employment and...
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14-5 December 2008
18th International Conference of Labour StatisticiansGeneva, 24 November-5 December 2008-11-20
Seminar: Employment and unemployment statistics
The concepts of employment and unemployment asset out by the 13th ICLS – Is there a need for revision?Some remarks from a European perspective
Nicola Massarelli – [email protected]
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218th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Outline of the presentation
� Questions
� General assessment of the ILO employment andunemployment concepts
� Assessment in the light of potential reasons for a revision
� Answers + way forward
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318th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Relevance
The degree to which statisticsmeet current and potentialuser needs
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418th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Questions on the ILO employment andunemployment concepts
� Are they are still adequate?
If not, is there a need for
� a revision?
� only for a fine-tuning?
� just for targeted supplementary indicators, leaving thepresent concepts unchanged?
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518th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Employment definitional criteria - overview
� Underlying paradigm: the macro-economic nationalaccounts paradigm– Concerning labour, it aims at measuring the input to GDP
and the corresponding factor income
� Link to national accounts– Link to the SNA production boundary– Extensive definition of employment,
i.e. the one-hour criterion
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618th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Employment definitional criteria – general assessment
� The direct link with national accounts ensuresconsistency of two of the most important reportingframeworks– The one-hour criterion is indispensable for a complete
coverage of even the smallest input of labour
� More on the one-hour criterion– Contributed to improve international comparability of labour
market statistics– Largely accepted across countries
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718th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Unemployment definitional criteria – overview
� The definition of unemployment moves within the sameparadigm as employment and is consistent with it– Mutually exclusive aggregates
� Unemployed:– Those not employed (by the 1 hour criterion)– With proven attachment to the labour market (active search &
current availability)
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818th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Unemployment definitional criteria –general assessment
ILO concept often perceived as too restrictive on both borders, withemployment and with inactivity
� The one hour criterion– It refers to an accepted comprehensive measurement
framework (SNA)– Any other threshold would be arbitrary and questionable– It ensures a consistent measurement of employment and
unemployment while keeping the link to NA
� Criteria to define attachment to the labour market– Persons without work who are not classified as unemployed
in the ILO sense can still be potential workers
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918th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Potential reasons for a revision
� Statistical needs of users have changed substantiallysince the 1980s
� The structure and functioning of labour markets havesignificantly changed since the 1980s
� Concepts pose serious measurement problems
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1018th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
The ILO framework & users needs
� Dual nature of the labour market: the place where theeconomic and the social spheres overlap
� The ILO framework reflects the economic view, while it’sless appropriate for social/behavioural analysis
Additional concepts or even a proper parallel framework– e.g. Main status, i.e. own perception of his/her labour
status
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1118th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
ESS initiative for a more comprehensive picture ofunmet labour supply
Dedicated Task Force (in 2009)
� Supplementing the existing concept with additional indicators
� Starting from the existing– Distinction between voluntary and involuntary small jobs– Under-employment– Labour reserve– Main status
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1218th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Main changes in European labour markets
� Growing importance of marginal employment
� Increasing labour mobility and dynamics
� New pathways to retirement
� Higher flexibility
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1318th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Challenges from these changes
� Borderline between employment and unemployment andbetween activity and inactivity much less clear-cut
� Being employed according to the ILO definition whilefeeling outside the labour market is more frequent than inthe past
� Increasing geographical mobility magnifies problems ofallocation of the workforce
� The static approach of the current framework haslimitations when the focus is on movements
Need for common approaches to capture the new phenomena, inparticular labour market dynamics (transitions, flows)
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1418th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Measurability issues– The one-hour-criterion– Questions on specific steps taken to find a paid employment and
on current availability
� The ESS way: principles for the formulation of questions on thelabour status for the EU-LFS– This enhances cross-country comparability– Still, their strict application does not prevent inaccurate
measurements
� Not a reason for revising the ILO concepts– Measurability issues arise for all statistical concepts– A lot of experience accumulated in measuring the ILO concepts
would be lost (should the core concepts be revised)
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1518th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Clarification and guidance on border cases
� Minor agricultural activities
� Borderline between working life and retirement
� Entitlement to social benefits increasingly conditioned toparticipation in a range of integration activities
� Unpaid traineeship
Their importance varies between countries/regions.However, a common view by the ILO Community on therelevant features would be helpful
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1618th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Answers and way forward from a Europeanperspective� Current employment and unemployment concepts are still
relevant, especially for economic analysis and the link with theSNA
� Need for supplementary indicators to shed light on theborderlines between employment/unemployment andunemployment/inactivity
� Need for appropriate concepts and a related framework for thesocial dimension of the labour market
� Need for common approaches to analyze increasingly dynamiclabour markets (transition statistics)
� Importance of good communication– of labour market statistics in general– of the ILO concepts in particular (background and purpose which
they are fit for)
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1718th ICLS. Seminar: Employment andunemployment statisticsGeneva, 4-5 December 2008
The concepts of employment and unemploymentas set out by the 13th ICLS – Is there a need for revision?
Some remarks from a European perspective
Thank you for your attention
Contacts