Impact of the discussions at the 19th International Conference of Labour Statisticians (ICLS) on ISCO/CIUO

19th ICLS topics relevant to ISCO Resolution concerning statistics of work, employment and labour underutilization Update of the international standards for statistics of the economically active population, employment, unemployment and underemployment Comprehensive framework for statistics of work Moves the boundary between employment and other forms of work, with consequences for the content and/or scope a number of international classifications including ISCO, ICSE and ICATUS. Set of measures of labour underutilization in addition to the unemployment rate Case for a revision or update of ISCO Revision of International Classification of Status in Employment

19th ICLS Resolution 1 Key features of the resolution concerning statistics of work, employment and labour underutilization include: The introduction of a reference concept work and an associated conceptual framework for forms of work; Operational definitions and guidelines for each form of work and for measures of labour underutilization; A set of indicators for monitoring labour market performance including three new headline indicators of labour underutilization, in addition to the unemployment rate.

Impact on classificatrions Elements that have a particular impact on international classifications reference concept of work, definitions of each form of work, refinement of the definition of the statistical unit job, which is the unit classified by ISCO and ICSE.

Work/El trabajo 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. Todas las actividades realizadas por personas de cualquier sexo y edad con el fin de producir bienes o prestar servicios para el consumo de terceros o para uso final propio. The concept of work is aligned with the General production boundary as defined in the System of National Accounts 2008 (2008 SNA). Five mutually exclusive forms of work are identified for separate measurement, distinguished on the basis of: the intended destination of the production (for own final use; or for use by others, i.e. other economic units) the nature of the transaction (i.e. monetary or non-monetary transactions, and transfers),

Forms of work Own-use production work Employment work Trabajo de producción para el autoconsumo la producción de bienes y servicios para uso final propio; Trabajo en la ocupación el trabajo realizado para terceros a cambio de remuneración o beneficios; Trabajo en formación no remunerado el trabajo realizado para terceros, sin remuneración, para adquirir experiencia o competencias en el lugar de trabajo; Trabajo voluntario el trabajo sin remuneración y no obligatorio realizado para terceros; Otras actividades productivas Own-use production work production of goods and services for own final use Employment work work performed for others in exchange for pay or profit Unpaid trainee work work performed for others without pay to acquire workplace experience or skills; Volunteer work non-compulsory work performed for others without pay; Other work activities

5 Forms of Work to be measured separately (i.e. ALL activities to produce goods and services) For own final use (by households) Own-use production work For use by others (i.e. other units) For remuneration (i.e. for pay or profit) Employment (work for pay or profit) Without remuneration Unpaid trainee work Other work activities (e.g. unpaid compulsory work) Volunteer work S G Services Goods S G S G G S ILO Department of Statistics

“Work” and the System of National Accounts (SNA) Activities Productive activities Market units Incorporated, unincorporated Goods Services Non-market units Government, Non-profit institutions Households producing for own final use Non-productive activities Sleeping Learning Own-recreation Begging Stealing Included Previous activity scope for “employment” New concept of “Work” == productive activities SNA production boundary General production boundary ILO Department of Statistics

19th ICLS Definition of job Puesto de trabajo o actividad productiva el conjunto de tareas y obligaciones desempeñado por una persona, o que se prevé que una persona desempeñe, para una sola unidad económica la noción de puesto de trabajo se utiliza en relación con el trabajo en la ocupación esta unidad estadística, cuando se refiere al trabajo de producción para el autoconsumo, al trabajo en formación no remunerado y al trabajo voluntario, se denomina actividad productiva Job or work activity: a set of tasks and duties performed, or meant to be performed, by one person for a single economic unit the term ‘job’ is used in reference to employment. This statistical unit, when relating to own-use production work, unpaid trainee work, and volunteer work is referred to as work activity

ISCO-08 concepts and the 19th ICLS standards Job a set of tasks and duties performed, or meant to be performed, by one person for a single economic unit Occupation a set of jobs or work activities whose main tasks and duties are characterised by a high degree of similarity Employment work performed for others in exchange for pay or profit Empleo/Puesto de trabajo un conjunto de funciones y tareas desempeñadas por una persona o que se prevé que ésta desempeñe, para una única unidad económica Ocupación un conjunto de empleos/puestos de trabajo o actvidades productivas cuyas principales funciones y tareas se caracterizan por un alto grado de similitud el trabajo realizado para terceros a cambio de remuneración o beneficios

Case for a revision or update of ISCO-08 Governing authority should consider at least every five years, a review outlining the case for a revision, an update or no change to international reference classifications UN Expert Group on International Statistical Classifications Comments and suggestions from experts are reflected in ICLS Room Document 1 Short paper circulated during 2013 to selected experts in occupation classification outlining known issues the revision and the update The Expert Group envisages two possible types of change to international classifications:

Revision versus Update Revision implies major changes that entail one or more of : Renumbering all or a substantial portion of the classification structure Restructuring and regrouping a substantial portion of the classification; New concepts for defining groups at one or more levels of the classification hierarchy Update implies more limited changes: Addition or removal of a category at the most detailed level of the classification within the existing structure Realignment of the content of categories an occupation moves from one unit group to another Multiple categories added or removed from the most detailed level basic structure remains substantially unchanged

Issues that could only be addressed in a full review Problems with the application of skill level as a classification criterion Breadth of Skill level 2 Boundary between Skill Levels 2 and 3 Internationally harmonized method for the measurement of skills mismatch is a high priority indicator of labour underutilization analysis of problems of supply and demand of skilled labour skills shortages Inherently difficult task Any work to review or update ISCO-08, would need to consider these issues Usefulness of ISCO for the measurement of skill mismatch

Mapping of ISCO-08 major groups to skill levels

Breadth of Skill Level 2 Distinction between occupations that require completion of extensive vocational education and training, and those that require a short period of training plus basic literacy and numeracy is not made systematically Occupations that vary significantly in skill level but are similar in skill specialization, are frequently grouped together Limits the usefulness of the classification for analysis and measurement of skill level requirements skill mismatch income as a return to education educational planning socio-economic status.

Boundary between Skill Levels 2 and 3 Problems with the boundary in skill level between more skilled technical occupations classified at Skill Level 2, and occupations at Skill Level 3 included in Major Group 3, Technicians and Associate Professionals Technological changes are leading to higher knowledge and skill requirements some of the more technical occupations in Major Group 7, Craft and Related Trades Workers vehicle and aircraft maintenance electrical, electronics and telecommunications installation and maintenance Distinction between a technician and a repairer or mechanic is no longer clear cut

Options to address problems with skill level as a classification criterion Some clerical occupations, sales assistants, accessory installers and most plant and machine operators and drivers move to Skill Level 1 Major group 8 at Skill Level 1: more skilled occupations to Major group 7 Move boundary between Skill levels 1 and 2 up Each unit group in Major Groups 4, 5, 6, 7 and 8 is associated with a single skill level These major groups each include occupations at two skill levels Current major and minor group structure can be retained 5 skill levels at unit group level - splitting Skill level 2 Data on skill level can be compiled from aggregate statistics More radical change to major group structure Mainly affects Major Groups 4 and 5 5 skill levels mainly at major group level More highly skilled occupations within the current Skill Level 2 are classified at the new Skill Level 3. Some occupations move from Major Groups 7 and 4 to Major Group 3 Could be combined with any of the above approaches Move boundary between Skill Levels 2 and 3

Issues that could be addressed in a minor update: health occupations Further breakdown for specialist medical practitioners, for example General paediatricians Obstetricians and gynaecologists Psychiatrists Medical group of specialists Surgical group of specialists Other specialists not elsewhere classified Oral and maxillofacial surgeons Medical technologists Radiographers and Radiological technologists (new!) Occupational therapists (new !)

Issues that could be addressed in a minor update: other occupations Hospitality and retail managers Operators of small hospitality establishments Company secretaries and corporate governance specialists Information and communications technology specialists Additional unit groups for supervisory occupations especially in the services sector Subsistence Farmers, Fishers, Hunters and Gatherers Removal of a sub-major group! Home improvements installers Vehicle accessory fitters Trades Assistants Armed Forces

Arguments for and against a short term update Some experts and stakeholders believe a short-term update should be a priority Keeps ISCO up-to-date and relevant in a rapidly changing world of work More useful and acceptable in client-oriented applications Classification is more easily accepted and likely to be used by professional associations that are dissatisfied with current categories Small incremental changes may soften breaks in time-series introduced by a major revision Others believe that an update would be premature at this stage Many countries are in the process of implementing ISCO-08 in national statistics Need for a more thorough evaluation of the classification before any changes are made Structural problems not addressed Implementation costs in national statistical and administrative systems Impact on international comparability of data for the same reference period, since all countries would not implement the updated version at the same time Opportunity cost for ILO

19th ICLS Conclusions on revision of ISCO No strong consensus on the need for a short-term update Concern about the timing of a deeper revision in relation to the 2020 round of censuses. Starting the preparatory work for a revision of ISCO-08 only after the 20th ICLS might mean that few countries would be able to implement the new classification until the 2030 round. It was suggested that a useful approach might be for the ILO to establish a technical group and/or a knowledge-sharing platform to reflect the lessons learned in the implementation of ISCO-08 in order to identify common issues and document the improvements needed. A more thoroughly considered set of options for revision could then be developed in advance of the 20th ICLS.