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

2. 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

3. 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

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

5. 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

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

7. 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.

8. 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.

9. 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)

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

11. 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

12. 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

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

14. 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

15. 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.

16. 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

17. 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

18. 5. ESA 2010 transmission of employment data (3)
Population and employment data in Eurobase

19. 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

20. 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

21. 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

22. 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

23. 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

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

25. 7. Other issues – references to methodology
ESA 2010 chapter 11: Population and labour inputs
SNA 2008 chapter 19
Consistent with definitions of the International Labour Organisation (ILO)