Policy Group on Statistical Cooperation October 2014, Antalya Labour market statistics

Labour Force Survey(LFS)  Council Regulation 577/98 on LFS is the legal basis in EU  Based on 1982 international guidelines of the International Conference of Labour Statisticians and adopted by ILO, International Labour Organization, a UN body  Typical concepts are:  Labour force = economically active population 15+ years old  Employed person = employees, self-employed and family workers (worked minimum 1 hour for pay [cash or in kind] in the reference week, for profit or for family gain; or was temporarily absent from the job or the business during the reference week)  Unemployed = not employed; available for work within 2 weeks (or has found a job that starts within next 3 months); actively seeking work; years old (refined EU definition)  Economically inactive population (neither employed nor unemployed) 2

LFS characteristics Continuous survey providing quarterly and annual results (micro-data sets) Information relates to the situation during the course of the week (Monday to Sunday) = reference week Reference weeks uniformly spread over the whole year Interview normally takes place during the week following the reference week (max 4 weeks after) Scope of the survey: persons residing in private households on the economic territory of the Member State (complemented by persons living in collective households, if possible) Variables used to determine the labour status and underemployment must be obtained by interviews, other information may be obtained from alternative data sources, if information of equivalent quality Timeliness: Quarterly data : Q + 12 weeks Annual data : Y + 3 months Ad hoc module: Y + 3 months 3

LFS survey characteristics 1 Demographic background Labour status Labour status during the reference week Continuing receipt of wages and salary (added in 2003 revision of the regulation) Reasons for not having worked though having a job Search for employment for person without employment Type of employment sought Methods to find a job Availability to start work (and reasons, added in 2006) Employment characteristics of the main job Professional status Economic activity of local unit Occupation Supervisory responsibilities (added in 2003 revision of the regulation) Number of persons working at the local unit Country of place of work Region of place of work Year+month when the person started working in current employment involvement of public employment service in finding the current job (added in 2003) Permanency of the job (and reasons) Duration of temporary job or work contract of limited duration Full-time/part-time distinction (and reasons) Contract with a temporary work agency (added in 2003) Working at home 4

LFS survey characteristics 2 Hours worked Number of hours per week usually worked Number of hours actually worked Number of hours of overtime in the reference week (added in 2006) Main reasons for hours actually worked being different from person's usual hours Second job Existence of more than one job Professional status Economic activity of the local unit Number of hours actually worked Visible underemployment Wish to work usually more than the current number of hours Looking for another job and reasons for doing so (added in 2006) Type of employment sought Methods to find another job Reasons why the person is not seeking another job (added in 2006) Availability to start work Number of hours wished for Search for employment Type of employment sought Duration of search for employment Situation of person immediately before starting to seek employment Registration at public employment office and whether receiving benefits For person not seeking employment, willingness to work Reasons why person has not sought work Lack of care facilities (added in 2006) 5

LFS survey characteristics 3 Education and training for Participation in education or training during the previous four weeks Purpose Level Type Total length Total number of hours Highest successfully completed level of education or training Year when this highest level was successfully completed Non-tertiary vocational qualification obtained Previous work experience of person not in employment Situation one year before the survey Main labour status Income (changed in 2007 – wages from the main job) Technical items Year of survey, reference week, interview week, member state, region of household, degree of urbanisation, type of household, type of institution, etc. Additional heading – atypical working times Shift work Evening work Night work Saturday work Sunday work 6

LFS definition of unemployment In accordance with ILO definitions of 1982 Unemployed persons comprise persons aged who Did not work during the reference week, i.e. neither were at work (for one hour or more) nor had a job from which they were absent. Were currently available for work, i.e. were available for paid employment or self- employment before the end of the two weeks following the reference week Actively seeking work, i.e. had taken specific steps in the four week period ending with the reference week to seek paid employment or self-employment or who found a job to start later, i.e. within a period of at most three months Having been in contact with a public employment office / private agency to find work Applying directly to employers Asking among friends, relatives, unions etc. to find work Placing or answering job advertisements Studying job advertisements Taking a recruitment test or examination or being interviewed Looking for land, premises or equipment Applying for permits, licenses or financial resources Principles for formulation of the questions on the labour status 7

LFS - other features Ad-hoc modules may be added – to be drawn up each year The programme of ad-hoc modules shall define The subject The reference period The sample size The deadline for the transmission of results The Member States and regions to be covered Member States may make it compulsory to reply to the LFS survey Quarterly and annual quality reporting by the Member States (basis is defined in the regulation 577/98 but details are defined in the working group with the Member States Annual production of anonymised micro datasets for researchers 8

LFS ad-hoc modules  In EU there are annual ad hoc modules, each covering a special topic related to the labour market. 2007/2013: Accidents at work and work-related health problems 2008/2014: Labour market situation of migrants and their immediate descendants 2009: Entry of young people into the labour market 2010/2018: Reconciliation between work and family life 2011: Employment of disabled people 2012: Transition from work into retirement 2015: Work organisation and working time arrangements (not implemented, no financing available) 2016 – young people on the labour market 2017 – self-employment (planned) 9

LFSrecent changes in EU  New supplementary indicators were introduced by Eurostat in 2011 (these indicators have influenced the new ILO standards):  Underemployed part-time workers (part of the labour force) Underemployed part-time workers  persons aged working part-time who would like to work additional hours and are available to do so. Part-time work is recorded as self-reported by individuals  Jobless persons available to work but not seeking Jobless persons available to work but not seeking  persons aged neither employed nor unemployed who want to work, are available for work in the next 2 weeks but do not seek workemployedunemployed  Jobless persons seeking work but not immediately available (outside labour force - potential additional labour force) Jobless persons seeking work but not immediately available  persons actively seeking work during the last 4 weeks but not available for work in the next 2 weeks  3 other categories, e.g. Passive job search while waiting for results of a job interview.  These groups represent a form of unmet demand for employment 10

New ILO standards I  International Conference of Labour Statisticians (ICLS) adopted in 2013 a resolution aiming at setting new standards on:  Statistics of work and employment  Labour underutilization  Work is " 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 " Work includes employment – main purpose is to generate income in the form of wage, salary, profit or family gain, paid in cash or in kind Other forms of work not included in employment are production of goods and services for own final use, unpaid trainee work, volunteer work, unpaid work by prisoners and unpaid community service  Aligned to activities inside the SNA 2008 General production boundary  The ILO standards/guidelines are not mandatory 11

New ILO standards II  Labour underutilization  Time-related underemployment (part of labour force)  Usually work less than hours' threshold (available to work additional hours) – (slight difference from EU criterion)  Reduced economic activity due to shortage of raw materials, electrical or mechanical breakdown, or shortage of clients  Persons who seek to work additional hours  Potential labour force (not part of the labour force)  Seeking employment, but not available during a specified period (slight difference from EU criterion)  Not seeking employment (for some reason), but available for employment (potential jobseekers)  Not seeking employment and not available, but want employment (willing potential jobseekers)  Agriculture subsistence – if farmers work for own consumption and not for sale, they are not considered employed.  If such farmers are not employed, they may be unemployed  New ILO standards can thus reduce the labour force and increase the unemployment 12

LFS and modernisation of social stats in EU  Modernisation of social statistics in EU is being prepared  Revision of EU LFS is part of the modernisation  New ILO guidelines of 2013 likely to be part of the package (implementation date under discussion)  Starting point: DGINS Sep 2011, Wiesbaden memorandum  Framework Regulation on Integrated European Social Statistics (IESS), replacing LFS, SILC, AES, EHIS, ICT(hh)  Tentative adoption of IESS in 2017 or 2018  Tentative implementation of IESS in 2019 or 2020  Implementing acts with technical specifications for LFS etc. 13

CONCLUSIONS 14  New 2013 ILO standards for labour market statistics will be implemented in EU by the end of the decade.  Slight differences EU-ILO in criteria for labour underutilisation will probably remain and are reflected in slightly different indicator names  The effect of the new standard on the reported size of the labour market will be biggest in countries with a high proportion of agriculture, especially where there are many subsistence farmers.  On the other hand, the effect will likely be bigger in most enlargement countries than in most of the EU Member States.  Enlargement countries do not need to go ahead of EU in implementing the new ILO standards.

Thank you for your attention 15