Millenium Development Goals: Employment related Indicators Valentina Stoevska ILO Department of Statistics International Labour Office Department of Statistics

Summary MDG background Employment related MDG indicators Future work Definition, calculation, interpretation, Regional and global estimates Limitations (example on MDG 3.2) Future work

MDG Employment Indicators Background Following the 2005 World Summit, and the work of the Commission for Social Development as well as the Inter-Agency and Expert Group on MDG indicators, a new target has been included under MDG1 (Target 1b): Achieve full and productive employment and decent work for all, including for women and young people The new target is monitored using four new employment indicators, which are additional to the existing indicator under MDG3 on gender equality.

MDG employment related indicators MDG1 Eradicate extreme poverty and hunger, Target B Achieve full and productive employment and decent work for all, including for women and young people Employment-to-population ratios for persons aged 15+ and youth (15-24) by sex Proportion of employed people living below the poverty line Proportion of own-account and contributing family workers in total employment Labour productivity growth rate MDG3 Promote gender equality and empower women Share of women in wage employment in the non-agricultural sector

MDG Employment Indicators Background All five employment indicators (under MDG1b and MDG3) are explained in detail in the MDG Handbook to be launched soon. The Handbook includes definitions, data sources, calculations and analytical examples. Most of the information prepared for the Handbook is available at http://mdgs.un.org/unsd/mdg/Metadata.aspx The ILO Guide to the new Millennium Development Goals Employment Indicators is available at: http://www.ilo.org/public/english/employment/docu/index.htm The ILO Guide is currently being updated. International Labour Office Department of Statistics

MDG1.4: Growth rate of labour productivity Definition: Labour productivity represents the amount of output achieved per unit of labour input. Labour productivity growth rate is measured as the annual change in GDP per person employed. expressed as a percentage Formula: Source of data: labour force survey or other household survey/population census with data on employment, in combination with data from national accounts Interprétation Labour productivity can be used to assess the extent to which the economic environment allows for the creation of decent employment opportunities fair and equitable remuneration.

MDG1.4: Growth rate of labour productivity, 1999=100

Output per worker, 1991, 2001 and 2011 (thousands of constant 2005 PPP-adjusted dollars)

MDG 1.5: Employment-to-population ratio Definition: The employment-to-population ratio is defined as the proportion of a country’s working-age population that is employed. This indicator is expressed as a percentage. Method of Calculation The number of persons in employment is divided with the population for the corresponding sex and age group (either working-age or youth) and multiplied by 100. Formula: EMPPOP15+ = EMP15+/POP15+ EMPPOPYouth= EMP15+24/POP15+24 Source: Source of data: labour force survey or other household survey/population census with data on population and employment Disaggregation: - by sex and age group - by urban/rural residence

MDG 1.5: Employment-to-population ratio Interpretation The indicator provides information on the ability of an economy to provide employment for those who want to work. Trends in the ratio are monitored to inform policies aimed at increasing opportunities for decent work. There is no single ‘correct’ employment-to-population ratio, but national EPRs are typically between 50-75 per cent. The annual employment-to-population ratio and the ratio’s rate of change analysed in combination with economic growth rates can be used to determine the extent to which economic growth is pro-employment and pro-poor. Reviewing the indicator by sex (male versus female) and age (youth versus total) also provides a picture of the equality of employment opportunities across different population groups. International Labour Office Department of Statistics

MDG 1.5: Employment-to-population ratio International Labour Office Department of Statistics

MDG 1.5: Employment-to-population ratio, 2009 International Labour Office Department of Statistics

MDG 1.5: Employment-to-population ratio International Labour Office Department of Statistics

MDG 1.6: Proportion of employed people living below the poverty line Definition: The proportion of employed people living below the poverty line is defined as the proportion of the employed who live in a household whose members are estimated to be living below the poverty line.  Either the nationally-defined poverty line or the international poverty line of $1.25 purchasing power parity (PPP) per person per day may be used as threshold.  This indicator is expressed as a percentage of the total employment. Working poverty rate for persons aged 15+ Formule: Working poverty rate Source of data: household surveys with both employment and income & expenditure data; if data on employment and poverty come from different sources. An approximation may be used to arrive at the working poverty rate (WB poverty rate) Disaggregation: by age and sex by sector of employment, status in employment, educational levels, etc.

ILO formula for estimating working poor (according to the the international poverty line of $1.25 ) Simplified version: 1. Calculate the upper and lower bound for working poor: The upper bound = poverty rate * population15+ The lower bound= poverty rate * total employmnet 15+ 2. Calculate the no. of woorking poor : Woorking poor = (uppper bound + lower bound) / 2 3. Working poor rate= No. of woorking poor/ Total employment *100

MDG 1.6: Proportion of employed people living below the international poverty line of $1.25 purchasing power parity (PPP) per person per day

MDG 1.6: Proportion of employed people living below the international poverty line of $1.25 PPP per person per day International Labour Office Department of Statistics

MDG 1.7: Proportion of own-account and contributing family workers in total employment Approximation for vulnerable employment Based on status in employment Classification of status in employment distinguishes three categories of employment : employees Self-employed self-employment who have employees self-employment who do not have employees (own account workers) members of producer cooperatives contributing family workers Method of calculation: The sum of contributing family workers and own-account workers divided by total employment multiplied by 100. Source of data: labour force survey or other household survey/population census with data on employment

MDG 1.7: Proportion of own-account and contributing family workers in total employment, 1991- 2011

MDG 1.7: Proportion of own-account and contributing family workers in total employment, 2011

MDG 1.7: Proportion of own-account and contributing family workers in total employment

MDG 3.2: Share of women in wage employment in the non-agricultural sector Definition: the share of female workers in wage employment in the non-agricultural sector expressed as a percentage of total wage employment in that same sector. Method of computation The indicator is computed by dividing the total number of women in paid employment in the industrial and service sectors by the total number of people in paid employment in that same sector. Share of women in wage employment in the non-agricultural sector Sources: Population censuses, establishment censuses and surveys, LFS and other household surveys, administrative records of different type, and official estimates based on results from several of these sources. Interpretation the degree to which labour markets are open to women in industry and services sectors (affects equal employment opportunities for women) flexibility of the labour market and economy’s ability to adapt to changes over time the degree to which women are integrated into the monetary economy International Labour Office Department of Statistics

MDG 3.2: Share of women in wage employment in the non-agricultural sector International Labour Office Department of Statistics

MDG 3.2: Share of women in wage employment in the non-agricultural sector International Labour Office Department of Statistics

MDG 3.2. Limitations Measures the degree to which women have equal access to paid employment But critisized because: non-agricultural wage employment represents only a small portion of total employment, especially in the developing countries contribution of women to the national economy underestimated and misrepresented difficult to interpret, does not reveal that there are different types of non-agricultural wage employment Does not measure equality of: employment income, quality of employment, unpaid household work International Labour Office Department of Statistics

Complementary indicators to MDG 3.2 Employment in informal economy Wage differences Occupational segregation (http://laborsta.ilo.org - Segregat) Presence of children, and their impact of activity rate Working hours International Labour Office Department of Statistics

Share of women in agricultural employment, 2008 International Labour Office Department of Statistics

Share of women in managerial and all occupations (average for the period 2000-2008) International Labour Office Department of Statistics

Informal employment in and outside informal sector, by sex, as % of female/male non-agricultural employment Women Men

Distribution of total employment by status in employment, women, 2008 (Percentage) International Labour Office Department of Statistics

Share of employers in total employment, 2011 (Percentage) International Labour Office Department of Statistics

Future work The ILO will continue to work with countries and other partners to: (a) enhance the national statistical capacity of countries to produce the data needed for estimating the indicator; (b) develop national analytical capacity to produce good quality imputed country values for use by countries in their monitoring of the MDGs and other development programmes; (c) ensure that all data available at national level are collected in a way that will be of least burden to countries. (d) Cooperation by the countries much needed. International Labour Office Department of Statistics

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