Item 17: Employment data in national accounts ESTP course on National Accounts ESA 2010 Luxembourg, 15 May - 19 May 2017 Eurostat

Content Why are population and employment data important? National and domestic concept Definitions Measurement units ESA 2010 transmission of employment data Data sources (+ exercise) Other issues

1. Why are population and employment data important? Deeper economic analysis of other data E.g. used to calculate GDP aggregates per capita Labour productivity Unit labour costs Important: consistency with NA concepts Production boundary Domestic versus national concept

2. National and domestic concept (1) Employment in resident productive units by resident and non-resident persons Luxembourg 2016: 418.500 persons National concept All residents employed by both resident and non-resident producer units Luxembourg 2016: 249.800 persons

2. National and domestic concept (2) The domestic concept includes: Non-resident border workers Non-resident seasonal workers Armed forces, diplomatic staff, national scientific bases stationed outside economic territory Staff of fishing boats, other boats, aircraft etc operated by resident units

3. Definitions (1) Overview Population Not in labour Force Unemployed Employed Self-employed Employees

3. Definitions (2) Total population All persons, national or foreign, who are permanently settled in the economic territory of the country, even if temporarily absent. An annual average of head counts appropriate basis for estimating national accounts variables or for use as a denominator in comparisons.

3. Definitions (3) Economically active population All persons, who provide, or are available to provide, the supply of labour for productive activities falling in the production boundary of national accounts. It includes all persons who fulfil the requirements for inclusion in employment or in unemployment.

3. Definitions (4) Employment All persons engaged in productive activity that falls within the production boundary of the national accounts Measured in: Persons Hours worked Jobs (voluntary under ESA 2010) Full-time equivalents (not required under ESA 2010)

Employment shares in population (2015) 3. Definitions (6) Employment shares in population (2015)

3. Definitions (7) Employees v. self-employed persons Employees Persons who by agreement work for a resident institutional unit and receive a remuneration recorded as compensation of employees Includes: Persons with a contract of employment Civil servants, armed forces, conscripts Ministers of religion Owners of corporations and quasi-corporations in which they work Students, outworkers (paid by hour), persons employed by temporary employment agencies

3. Definitions (8) Employees v. self-employed persons (cont.) Persons who are the sole or joint owners of the unincorporated enterprises for which they work (excl. quasi-corporations). The compensation is mixed income. Includes: Unpaid family worker Outworker (paid by output) Workers working for own final consumption or own capital formation

Self-employment shares (2015) 3. Definitions (9) Self-employment shares (2015)

4. Measurement units (1) Total hours worked Hours actually worked Aggregate number of hours actually worked as an employee or self-employed person, when their output is within the production boundary. Hours actually worked = hours paid + hours worked, but not paid – hours paid, but not worked

4. Measurement units (2) Jobs Full-time equivalence Explicit or implicit contract between a person and a resident institutional unit to perform work in return for compensation for a defined period or until further notice. Full-time equivalence Number of full-time equivalent jobs, defined as total hours worked divided by the average annual number of hours worked in full-time jobs within the economic territory.

5. ESA 2010 transmission of employment data (1) Table 1: Main ANA and QNA aggregates T0110: Population and employment (national concept) Total employment, employees and self-employed In (1000) persons T0111: Employment by industry (domestic concept) In (1000) persons, hours worked and jobs (voluntary) A*10 NACE industry breakdowns Transmission delays QNA: T+60 days, ANA: T+2/9 months

5. ESA 2010 transmission of employment data (2) Table 3 – Employment NACE A*64 breakdowns In persons, hours worked and jobs (voluntary) NACE A*64 is voluntary for hours worked A*21: at t+9 months, A*64: at t+21 months Table 8 – Employment in sector accounts In persons and hours worked Voluntary except for general government (S13) ASA: T+9 months, QSA: all voluntary, t+85 days Tables 10 and T12 - Regional accounts (NUTS level 2 and 3) Employment in persons and hours, domestic concept T+12 for total and population, A*10: T+24 months

5. ESA 2010 transmission of employment data (3) Population and employment data in Eurobase http://ec.europa.eu/eurostat/data/database

6. Data sources (1) Labour Force Survey (LFS) Enterprise surveys Administrative information LFS - Conceptual differences with NA Residency Age boundary, collective households Conscripts, unpaid apprentices

6. Data sources (2) Sources by country 1 LFS as the only source EE, IE, LT, HU, PL 2 LFS as the main source (with replacement of some industries) BG, EL, LV, RO 3 Combination of sources for labour supply and demand (amongst others the LFS) 3.1 Predominantly labour supply sources FI, IT, SE, ES, HR, PT, SK 3.2 Mix of supply and demand sources DE, AT 3.3 Predominantly labour demand sources (business surveys, registers) DK, MT, CY, NL, UK 4 No use of the LFS results BE, FR, LU, CZ, SI

6. Data sources (3) From LFS to NA - domestic concept LFS employment - Residents working abroad + Non-residents working within the economic territory + Conscripts and military forces + Crews of ships, aircraft and floating platforms operated by resident units

From LFS to NA - domestic concept (cont.) 6. Data sources (4) From LFS to NA - domestic concept (cont.) + Staff of embassies and consulates abroad - Staff of foreign embassies and consulates and international organisations + Workers outside the age boundaries (persons below 15 years or older than 75) + People living in collective households (monks, nuns, students, prisoners, disabled) = National accounts employment - domestic concept

7. Other issues - productivity Labour productivity GDP per person GDP per hours worked Unit labour costs Warning if compensation of employees increases much faster than productivity Labour, capital, multifactor productivity Careful interpretation required

7. Other issues - latest developments Improved coverage, comparability EU aggregates for hours worked published since 2013 (before only euro area) Possible improvement in the medium term: Flash estimates at t+45 days for persons

7. Other issues – references to methodology ESA 2010 chapter 11: Population and labour inputs http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-02-13-269/EN/KS-02-13-269-EN.PDF SNA 2008 chapter 19 https://unstats.un.org/unsd/nationalaccount/docs/SNA2008.pdf Consistent with definitions of the International Labour Organisation (ILO) http://www.ilo.org/global/statistics-and-databases/standards-and-guidelines/lang--en/index.htm