Status of work on the International Classification of Status in Employment David Hunter ILO Department of Statistics Meeting of the Expert Group on International Statistical Classifications New York, 13-5 May 2013

International Classification of Status in Employment (ICSE-93) Adopted at the Fifteenth ICLS in 1993 Allows identification of: –Employees (paid employment jobs) –Self-employed (income depends solely on profits) Employers Own-account workers Members of producers’ cooperatives Contributing family workers A critical variable to understand structure and functioning of labour market 2

Main uses of statistics classified by status in employment Analysis of the nature of the economic risk and authority that the employed population experiences at work; Strength of attachment of the employed population to the employer and to the job, as a potential indicator of precarious employment situations. The production of statistics on the socio-economic status of persons and households; Studying the relationship between economic cycles and employment in higher risk, less secure, or precarious working situations Extent to which persons who lose jobs in paid employment engage in various forms of self employment –Contributing family workers as hidden unemployed The impact of self-employment and entrepreneurialism on employment and economic growth –consequences for government policies related to economic development and job creation. The provision of data as an input national accounts ILO Department of Statistics 3

Optional groups that may be separately identified according to ICSE-93 Owner-managers of incorporated enterprises; Employees with fixed-term contracts; Workers in casual, short term and seasonal employment; Outworkers ‘Contractors’; Workers engaged by labour hire companies Work gang members Franchisees Sharecroppers Communal resource workers Subsistence workers …. as sub-categories of the five groups listed above, or as groups that cut across two or more of the substantive groups ILO Department of Statistics 4

Revision of ICSE th ICLS identified a number of topics as priorities for the future methodological work of the ILO in labour statistics: –changing structure of the labour force, including a revision of the International Classification of Status in Employment (ICSE-93) –possible revision of the current international standards on statistics of the economically active population Revision of ICSE-93 cannot be finalized prior to 19 th ICLS Resolution concerning statistics of work and the labour force ILO Department of Statistics 5

Process for revision of ICSE-93 Release discussion paper in advance of the 19 th ICLS –Summary of known problems with and range of national practices –Identification of possible modifications to ICSE-93, and/or new standard classifications and variables –Options for the revision of ICSE-93 will reflect possible outcomes from resolution on labour force and work statistics Guidance from ILO Working Group for the Advancement of Employment and Unemployment Statistics Discussion on revising ICSE-93 during the 19 th ICLS –to seek guidance on the proposed options and how to progress work rapidly –within the context of the new revised standards for labour force and work statistics –possibly seeking a mandate for ILO to develop a revision of ICSE to be adopted by a Tripartite Meeting of Experts ILO Department of Statistics 6

ICSE-93 – issues and problems Proposals for revision of ICSE are considering the following issues: –Scope of the classification –Fixed-term, casual, short term and seasonal employment –Apprentices, trainees and interns –Blurring of the boundary between self-employment and employees –Owner-managers of incorporated enterprises –‘Contractors’ –The treatment of contributing family workers –Members of producers’ cooperatives –Domestic workers  Paper on updating ICSE to be discussed at 19 th ICLS in 2013 ILO Department of Statistics 7

ICSE – possible options for revision Definitively include contractors and/or owner managers of incorporated enterprises – EITHER as self-employed – OR as employees in paid employment While providing sufficient detail for SNA purposes OR - Abandon the dichotomy between self-employment and paid employment Under any of the above scenarios –Create additional categories at second or third level for Regular, short-term/casual/seasonal employment Apprentices, trainees and interns Domestic employees Deal with other issues as separate variables ILO Department of Statistics 8

Option 1: Include contractors and/or owner managers of incorporated enterprises as self-employed Self-employed –Employer In own incorporated enterprise In own unincorporated enterprise –Own account worker In own incorporated enterprise In unincorporated enterprise Independent contractor (in a third party enterprise) Contributing family worker Employee –Regular employee –Casual, short-term or seasonal employee –Apprentice, trainee or intern –Domestic employee ILO Department of Statistics 9

Option 2: Include contractors and/or owner managers of incorporated enterprises as employees Self-employed –Employer in unincorporated enterprise –Own account worker in own unincorporated enterprise –Contributing family worker Employees –In own incorporated enterprise With employees Without employees –Regular employee –Casual, short-term or seasonal employee –Apprentice, trainee or intern –Independent contractor (employed in a third party enterprise) ILO Department of Statistics 10

Option 3: Abandon dichotomy between paid employment and self-employment Employer –In own incorporated enterprise –In own unincorporated enterprise Own account worker –In own incorporated enterprise –In own unincorporated enterprise Independent contractor Contributing family worker Employee –Regular employee –Casual, short-term or seasonal employee –Apprentice, trainee or intern –Domestic employee ILO Department of Statistics 11

Option 4: Proposal inspired by analysis of current national practices Employees –Permanent employee –Temporary employee Fixed-term Seasonal Casual On-call Apprentice, trainee or intern –Workers on oral agreement –Domestic employee Self-employed –With employees In incorporated enterprise in unincorporated enterprise –Without employees In incorporated enterprise in unincorporated enterprise – Contractors Others forms of employment –Contributing family worker –Member of producers’ cooperatives –Other forms of employment not elsewhere classified ILO Department of Statistics 12

Possible points for discussion Reaction to proposed options? What is the appropriate degree of involvement of the Expert Group? ILO Department of Statistics 13