international standards concerning labour market concepts and definitions farhad mehran economic...
TRANSCRIPT
International standardsInternational standardsconcerningconcerning
labour market concepts and labour market concepts and definitionsdefinitions
Farhad MehranFarhad MehranEconomic Development Board (LMRA project)Economic Development Board (LMRA project)
Bahrain, 9 May 2006Bahrain, 9 May 2006
22
Three lectures on labour market dataThree lectures on labour market data
Labour market concepts and definitions: Labour market concepts and definitions: ILO international standards (9 May 2006)ILO international standards (9 May 2006)
Sources of labour market data: A national Sources of labour market data: A national statistical programme (June 2006)statistical programme (June 2006)
Combining data from different sources: Combining data from different sources: Principles of labour accounting (July 2006)Principles of labour accounting (July 2006)
33
Labour market concepts and Labour market concepts and definitionsdefinitions
ILO international standards (5’)ILO international standards (5’)Employment, unemployment (20’)Employment, unemployment (20’)Underemployment, inadequate Underemployment, inadequate employment (10’)employment (10’)Status in employment (5’)Status in employment (5’)Wages (15’)Wages (15’)Hours of work (10’)Hours of work (10’)Private/Public sectors (10’)Private/Public sectors (10’)Informal/Formal sectors (5’)Informal/Formal sectors (5’)GDP and Labour market (5’)GDP and Labour market (5’)Labour productivity (5’)Labour productivity (5’)
BibliographyBibliography Index Index
Slide 4Slide 4 p. 1p. 1Slides 5-20Slides 5-20 pp. 2-5pp. 2-5Slides 21-28Slides 21-28 pp. 6-7pp. 6-7
Slides 29-36Slides 29-36 pp. 8-9pp. 8-9Slides 37-44Slides 37-44 pp. 10-11pp. 10-11Slides 45-52Slides 45-52 pp. 12-13pp. 12-13Slides 53-56Slides 53-56 p. 14p. 14Slides 57-64Slides 57-64 pp. 15-16pp. 15-16Slides 65-66Slides 65-66 p. 17p. 17Slides 67-68Slides 67-68 p. 17p. 17
Slides 69-70Slides 69-70 p. 18p. 18 Slides 71-72Slides 71-72 p. 18p. 18
44
International labour statisticsInternational labour statistics
Scope of labour statisticsScope of labour statistics– Economically active population, employment, unemployment, Economically active population, employment, unemployment,
underemploymentunderemployment– Income from employment, wage rates, earnings, labour costIncome from employment, wage rates, earnings, labour cost– Normal hours of work, usual hours of work, actual hours worked, and Normal hours of work, usual hours of work, actual hours worked, and
hours paid for hours paid for – Informal sector employment, and informal employment Informal sector employment, and informal employment – OccupationsOccupations– Status in employmentStatus in employment– Occupational injuries and diseasesOccupational injuries and diseases– Labour disputes (& child labour, forced labour, decent work) Labour disputes (& child labour, forced labour, decent work)
International standardsInternational standards– ILO Convention 160 & ILO Recommendation 170 ILO Convention 160 & ILO Recommendation 170 – ICLS ResolutionsICLS Resolutions– ILO Manuals on concepts and methodsILO Manuals on concepts and methods
http://www.ilo.org/public/english/bureau/stat/standards/index.htmhttp://www.ilo.org/public/english/bureau/stat/standards/index.htm
55
Person
Job
Establishment
Enterprise
Main tasksand duties
Main goodsand services
produced
Nature oflegal entity
Occupationalcategory
ISCO-1988
Branch of economic activity
ISIC Rev 3
Institutionalsector
SNA 1993
Status inemploymentICSE 1993
Worker-em
ployer relationship
Activity duringreference period
Economicallyactive population
ICLS 1982
Elements of the statistical system
Wages,Hours of work
Labour cost,Productivity
66
Usuallyactive
population
Currently activepopulation
(labour force)
Long reference period (e.g. one year)
Economically active population
Short reference period (e.g. one week)
1 ILO, Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, Thirteenth International Conference of Labour Statisticians, Geneva, October 1982.
2 Hussmanns, R., Mehran, F., and Verma, V., Surveys of Economically Active Population, Employment, Unemployment and Underemployment: An ILO Manual on Concepts and Methods, ILO, Geneva 1990. (Translated in Arabic, Persian, Portuguese, Russian, and Spanish.)
Definition: All persons of either sex who furnish the supply of labour for the production of economic goods and services as defined by the UN systems of national accounts and balances during a specified time-reference period. 1,2
77
Pop15+
Labour force
Employed Unemployed
Inactive
Conceptual frameworkICLS 1982
of which Underemployed
88
Definition of employmentDefinition of employment
Employed
Paid employment
Self-employment
At workWith a job
but not at work At workWith an
enterprisebut not work
99
Definition of “at work”Definition of “at work”
AT WORK = Performed some work for AT WORK = Performed some work for wage or salary, or profit or family gain, in wage or salary, or profit or family gain, in cash or in kind during the reference period cash or in kind during the reference period
WORK = Engagement in economic activityWORK = Engagement in economic activity
SOME WORK = Work for at least one SOME WORK = Work for at least one hour during the reference periodhour during the reference period
1010
Definition of “economic activity” Definition of “economic activity” SNA production boundarySNA production boundary
Production ofgoods and services
Goods Services
For marketFor own finalconsumption
For marketFor own finalconsumption
CollectingFire woods
Carrying waterat long distances
1111
Definition of “Absence from work”Definition of “Absence from work”
Persons with a job but not at work = in paid Persons with a job but not at work = in paid employment if employment if formal job attachmentformal job attachment
Continued receipt of wage or salaryContinued receipt of wage or salary
Assurance of return to workAssurance of return to work
Limited elapsed duration of absenceLimited elapsed duration of absence
Persons with an enterprise but not at work Persons with an enterprise but not at work = in self employment if= in self employment if
Continued existence of enterpriseContinued existence of enterprise
Specific reason for absenceSpecific reason for absence
1212
Treatment of particular groupsTreatment of particular groups
Students, homemakers, pensioners Students, homemakers, pensioners engaged in economic activityengaged in economic activity
Contributing family workers (unpaid family Contributing family workers (unpaid family workers)workers)
Producers for own and household Producers for own and household consumptionconsumption
Apprentices and traineesApprentices and trainees
Members of the armed forcesMembers of the armed forces
Standard definition of Standard definition of unemploymentunemployment
Without work during reference Without work during reference weekweek Currently available for workCurrently available for work Actively seeking work in recent Actively seeking work in recent periodperiod Two exceptionsTwo exceptions Future startsFuture starts Lay-offsLay-offs
Reference periodsReference periods
Interview date
Basic reference
period
Job search period
(Last four weeks)
Availability period
(Last week + 2 weeks)
Last week
1515
Active steps to seek workActive steps to seek work
Registration at public or private employment Registration at public or private employment exchange (for the purpose of obtaining a job offer)exchange (for the purpose of obtaining a job offer)Application to employersApplication to employersChecking at worksites, farms, factory gates, Checking at worksites, farms, factory gates, market or other assembly placesmarket or other assembly placesSeeking assistance of friends or relativesSeeking assistance of friends or relativesLooking for land, building, machinery or Looking for land, building, machinery or equipment to establish own enterpriseequipment to establish own enterpriseArranging for financial resourcesArranging for financial resourcesApplying for permits and licenses, etc. Applying for permits and licenses, etc.
1616
Reasons for not seeking workReasons for not seeking work
Illness, disability, pregnancyIllness, disability, pregnancyChild care, family responsibilitiesChild care, family responsibilitiesSchool or other trainingSchool or other trainingAlready found work to start laterAlready found work to start laterAwaiting recall to former jobAwaiting recall to former jobAwaiting replies from employers, results of competitionsAwaiting replies from employers, results of competitionsAwaiting busy seasonAwaiting busy seasonBelieving no suitable work available (in area or relevant to one’s skills)Believing no suitable work available (in area or relevant to one’s skills)Lacking employers’ requirements (qualifications, experience, age, etc.)Lacking employers’ requirements (qualifications, experience, age, etc.)Could not find suitable workCould not find suitable workDo not know how or where to seek workDo not know how or where to seek workNot yet started to seek workNot yet started to seek workOther reasons (bad weather, holidays, awaiting national service call, near Other reasons (bad weather, holidays, awaiting national service call, near retirement age, etc.) retirement age, etc.)
1717
Extended definition of Extended definition of unemploymentunemployment
Partial relaxation of “seeking work” Partial relaxation of “seeking work” criterioncriterion
Persons temporarily laid off without formal Persons temporarily laid off without formal job attachmentjob attachment
Discouraged workersDiscouraged workers
Seasonal workers awaiting busy seasonSeasonal workers awaiting busy season
1818
MoL/BCSRMoL/BCSRLabour force Labour force
surveysurvey December 2004 December 2004
Bahraini non-institutionalpopulation (432’400)
Non-institutional population 15+ Non-institutional population <15
Worked last week Not worked last week
With a job or enterprisebut not at work last week
Do not want towork or disable
Other reason for not working
Seeking work last four weeksNot seeking worklast four weeks
Available for workwithin two weeks
Not available for workwithin two weeks
1’800
18’100
157’600
27’000
26’000
130’600
1’000
139’700292’700
115’200
177’500
Employed117’000
Unemployed26’000
Inactive149’700
1919
Methods of job-search of unemployed BahrainisMethods of job-search of unemployed Bahrainis
Survey jobseekersSurvey jobseekers 26’00026’000 search effort =search effort =1.71.7- Ministry of LabourMinistry of Labour 12’90012’90011 11’77811’77833 MoLMoL20032003
- CSBCSB 3’300 3’30022 2’862 2’8624 4 CBSCBS
- Employment services Employment services 3’500 3’500- Newspaper adsNewspaper ads 10’50010’500- InternetInternet 1’000 1’000- Friends & relativesFriends & relatives 8’700 8’700- Starting own businessStarting own business 300 300- OtherOther 4’200 4’200 Total=Total=44’40044’400
1 10’600; 2 2’800 among core jobseekers.
3 Indicators of the Labour Market 2003-2004, (in Arabic) by Isma Al-Khalifa, Sana Maci, Anwar Al-Khunaisi, Ministry of Labour, Kingdom of Bahrain, May 2005.
4 Civil Service Bureau, Kingdom of Bahrain, Annual Report 2004, p. 13.
2020
Reservation wage of unemployed BahrainisReservation wage of unemployed Bahrainis
Reservation wage:Each worker has a specific wage rate that induces him or her to perform paid market work. A worker seeking work employment will accept jobs paying above his or her reservation wage, and reject those paying less.
Beyond unemploymentBeyond unemployment
Unemployment and its haloUnemployment and its halo
UnderemploymentUnderemployment Over-employmentOver-employment Soft-employmentSoft-employment Other issues:Other issues:
– Child labourChild labour– Full-time employment of women with low age childrenFull-time employment of women with low age children– Old age without pensionOld age without pension
2222
Underemployment and inadequate Underemployment and inadequate employment situationsemployment situations11
Characteristic of “employment”Characteristic of “employment”Based primarily on “current capacities and Based primarily on “current capacities and work situations of worker”work situations of worker”(not potential capacities and desires for (not potential capacities and desires for work)work)Judged against “alternative employment Judged against “alternative employment situation in which worker is willing and situation in which worker is willing and available to engage” available to engage”
1 ILO, Resolution concerning the measurement of underemployment and inadequate employment
situations, Sixteenth International Conference of Labour Statisticians, Geneva, October 1998.
2323
Time-related underemploymentTime-related underemployment
Willing to work additional hoursWilling to work additional hoursAvailable to work additional hoursAvailable to work additional hoursWorked less than a threshold relating to Worked less than a threshold relating to working timeworking time
Two particular groupsTwo particular groups::
Persons who usually work part-time schedules and want to work Persons who usually work part-time schedules and want to work additional hoursadditional hoursPersons who during the reference period worked less than their Persons who during the reference period worked less than their normal hours of worknormal hours of work
Definition:
2424
Inadequate employment situationsInadequate employment situations
Skill-related inadequate employmentSkill-related inadequate employmentwanting or seeking to change their current work situation in order to use wanting or seeking to change their current work situation in order to use their current occupational skills more fully, and were available to do so their current occupational skills more fully, and were available to do so
Income-related inadequate employmentIncome-related inadequate employmentwanting or seeking to change their current work situation in order to wanting or seeking to change their current work situation in order to increase income limited as result of low levels of organisation of work or increase income limited as result of low levels of organisation of work or productivity, insufficient tools or equipment and training or deficient productivity, insufficient tools or equipment and training or deficient infrastructure, and were available to do so infrastructure, and were available to do so
Inadequate employment related to excessive Inadequate employment related to excessive hourshourswanting or seeking to work less hours either in the same job or in another wanting or seeking to work less hours either in the same job or in another job, with a corresponding reduction of incomejob, with a corresponding reduction of income
2525
Other forms of inadequate Other forms of inadequate employment situationsemployment situations
Wanting to change current work situation or to make Wanting to change current work situation or to make changes to work activities and/or environmentchanges to work activities and/or environmentFor following reasons:For following reasons:– Excessive hours of workExcessive hours of work– Precarious jobPrecarious job– Inadequate tools, equipment or training for assigned tasksInadequate tools, equipment or training for assigned tasks– Inadequate social servicesInadequate social services– Travel to work difficultiesTravel to work difficulties– Variable, arbitrary or inconvenient work schedulesVariable, arbitrary or inconvenient work schedules– Recurring work stoppages because of delivery failures of raw Recurring work stoppages because of delivery failures of raw
material or energymaterial or energy– Prolonged non-payment of wagesProlonged non-payment of wages– Long overdue payments from customers Long overdue payments from customers
2626
Underemployment and inadequate employment situationsUnderemployment and inadequate employment situations
Employed Bahrainis (117’000)
Seeking another job Not seeking another job
Reason
Low income
Inadequate use of qualification
Short hours of work
Long hours of work
Other reason
Income-related inadequate employment
Skill-related inadequate employment
Time-related underemployment
Over-employment
1’300
100
1’300
24’500
82’600
34’400
7’200
2929
Status in employmentStatus in employment11
EmployeesEmployees
EmployersEmployers
Own-account workersOwn-account workers
Members of producers’ cooperativesMembers of producers’ cooperatives
Contributing family workersContributing family workers
Workers not classifiable by statusWorkers not classifiable by status
1 ILO, International Classification of Status in Employment, Fifteenth International Conference of Labour Statisticians, Geneva, 1993.
Classification:
3030
EmployeesEmployees
Working in “paid employment job”Working in “paid employment job”– Holding explicit (written or oral) or implicit employment Holding explicit (written or oral) or implicit employment
contractcontract– Remuneration not directly dependent upon the Remuneration not directly dependent upon the
revenue of the unit for which they workrevenue of the unit for which they work
Remuneration:Remuneration:– Wages and salariesWages and salaries– Commission from salesCommission from sales– Piece-ratesPiece-rates– BonusesBonuses– In-kind payments such as food, housing or training In-kind payments such as food, housing or training
Definition:
3131
EmployersEmployers
Working on own-account or with one or a few Working on own-account or with one or a few partnerspartners
In “self employment job”: Remuneration is In “self employment job”: Remuneration is directly dependent on the profits (or potential for directly dependent on the profits (or potential for profits) derived from the goods and services profits) derived from the goods and services produced or for own consumptionproduced or for own consumption
Engaging one or more “employees,” on a Engaging one or more “employees,” on a continuous basis, determined by national continuous basis, determined by national circumstances circumstances
Definition:
3232
Own-account workersOwn-account workers
Working on own-account or with one or a Working on own-account or with one or a few partnersfew partners
In “self employment jobIn “self employment job
Not engaging any “employees,” on a Not engaging any “employees,” on a continuous basis, during the reference continuous basis, during the reference period period
Definition:
3333
Members of producers Members of producers cooperativescooperatives
Working in a cooperative producing goods Working in a cooperative producing goods and servicesand services
In “self employment job”In “self employment job”
Engaging or not any “employee” on a Engaging or not any “employee” on a continuous basis continuous basis
Definition:
3434
Contributing family workersContributing family workers
Working in a market-oriented Working in a market-oriented establishment operated by a household establishment operated by a household member, who cannot be regarded as member, who cannot be regarded as partnerpartner
In “self employment job”In “self employment job”
Engaging or not any “employee” on a Engaging or not any “employee” on a continuous basis continuous basis
Definition:
3636Source: http://laborsta.ilo.org
Proportion of employees in total employment:
International comparison
95.3
%
92.4
%
88.1
%
86.5
%
76.2
%
72.9
%
57.9
%
50.8
%
49.5
%
0%
20%
40%
60%
80%
100%
3737
System of Wages StatisticsSystem of Wages Statistics
Wages as price of labour:Wages as price of labour:
Wages as income to worker:Wages as income to worker:
Wages as cost to employer:Wages as cost to employer:
Income from employmentIncome from employment33
Wage rateWage rate11
EarningsEarnings11
Labour costLabour cost22
1 Twelve International Conference of Labour Statisticians, Geneva, October 1973. 2 Eleventh
International Conference of Labour Statisticians, Geneva, October 1966. 3 Sixteenth International
Conference of Labour Statisticians, Geneva, October 1998.
3838
Wage rateWage rate
Basic wagesBasic wages Cost-of-living allowancesCost-of-living allowances Other guaranteed and regularly paid allowancesOther guaranteed and regularly paid allowances
ExcludesExcludes: Overtime payments, Bonuses and : Overtime payments, Bonuses and gratuities, Family allowances, Other social security gratuities, Family allowances, Other social security payments by employers, Payments in kind, payments by employers, Payments in kind, supplementary to normal wage ratessupplementary to normal wage rates
Definition: Rate of pay per period of time or per unit of production for an employee on a given job.
Includes:
3939
EarningsEarnings
Direct wages and salaries Direct wages and salaries Remuneration for time not worked Remuneration for time not worked Bonuses and gratuities Bonuses and gratuities Payments in kindPayments in kind
ExcludesExcludes: Employers’ contributions to social security: Employers’ contributions to social security
and pension schemes, severance and termination payand pension schemes, severance and termination pay..
Definition: Remuneration in cash or in kind paid to employees, as a rule at regular intervals, for time worked or work done together with remuneration for time not worked such as annual vacation and other paid leave or holidays.
4040
Labour costLabour cost
EarningsEarnings
++
Employers’ social security expenditureEmployers’ social security expenditure
Cost of vocational trainingCost of vocational training
Cost of welfare servicesCost of welfare services
Taxes regarded as labour costTaxes regarded as labour cost
Other (transport, clothing, recruitment)Other (transport, clothing, recruitment)
Definition: Labour cost is the cost incurred by the employer in the employment of labour.
4141
Three types of labour costThree types of labour cost
Basic labour cost:Basic labour cost:
Hourly labour cost:Hourly labour cost:
Unit labour cost:Unit labour cost:
Labour cost per Labour cost per workerworker
Labour cost per hourLabour cost per hour
Labour cost per unit Labour cost per unit of outputof output
Labour cost index: The labour cost index measures the change in labourcost during a given period adjusted for employment shifts among occupations and branches of economic activity in that period.
4242
Employment-related incomeEmployment-related income
Income related to paid employmentIncome related to paid employmentEarningsEarningsProfit-related payProfit-related payEmployment-related social security benefits received directly from Employment-related social security benefits received directly from employer, or from social security or compulsory insurance schemes or the employer, or from social security or compulsory insurance schemes or the State State
Income related to self-employmentIncome related to self-employmentGross profit (or share of profit)Gross profit (or share of profit)Remuneration received by owner-manager of corporations and quasi-Remuneration received by owner-manager of corporations and quasi-corporationscorporationsEmployment-related social security benefits receivedEmployment-related social security benefits received
ExcludesExcludes: Income derived from property income, annuities, gifts, etc. and: Income derived from property income, annuities, gifts, etc. and allowances paid by social security schemes or the State without regard toallowances paid by social security schemes or the State without regard to employment statusemployment status
Definition: Payments, in cash, in kind or in services, which are received by individuals, for themselves or in respect of their family members, as a result of their current or former involvement in paid or self-employment jobs.
4343
Jordan 1997Jordan 1997
Economic Economic activityactivity
Isic Isic Rev 3Rev 3
EarningsEarnings Labour Labour cost *cost * RatioRatio
Dinars/MonthDinars/Month Dinars/YearDinars/Year
TextileTextile 1717 151.8151.8 19801980 1.091.09
Office Office machinerymachinery
3030 196.7196.7 30093009 1.271.27
TV, radio, etcTV, radio, etc 3232 193.5193.5 20502050 1.651.65
* Compensation of employees
4545
Hours of workHours of work11
Normal hours of workNormal hours of work
Actual hours workedActual hours worked
Usual hours of workUsual hours of work
Hours paid forHours paid for
1 Tenth International Conference of Labour Statisticians, Geneva, October 1962.
4646
Normal hours of workNormal hours of work
Hours of work fixed by or in pursuance ofHours of work fixed by or in pursuance of– laws and regulationslaws and regulations– collective agreementscollective agreements– arbitral awardsarbitral awards
(If not fixed as above) Hours of work in excess of (If not fixed as above) Hours of work in excess of which which – remuneration is at overtime rate, orremuneration is at overtime rate, or– forms an exception to the rules or customs of the forms an exception to the rules or customs of the
establishment relating to the class of workers establishment relating to the class of workers concerned concerned
Definition:
4747
Actual hours workedActual hours worked
Hours worked during normal hours of workHours worked during normal hours of work
Overtime workOvertime work
Time spent at the place of work onTime spent at the place of work on– preparation of workpreparation of work– waiting or standing bywaiting or standing by– short rest periods including tea or coffee short rest periods including tea or coffee
breaks breaks
Definition:
4848
Hours paid forHours paid for
Hours actually workedHours actually worked
Hours paid for but not workedHours paid for but not worked– Paid annual leavePaid annual leave– Paid public holidaysPaid public holidays– Paid sick leavePaid sick leave– Paid meal breaksPaid meal breaks– Time spent travelling between home and Time spent travelling between home and
workplace workplace
Definition:
4949
Usual hours of workUsual hours of work
Hours worked in an activity during a typical Hours worked in an activity during a typical weekweek
Modal value of hours actually worked per Modal value of hours actually worked per week over a long periodweek over a long period
Definition:
Calculation:
5050
Hours worked:International comparison
38.9 42.9 43.449.3
34.1 31.9
0
10
20
30
40
50
60
Italy2003
Bahrain2004
USA2004
Turkey2004
USA2004
Canada2004
Actual hours worked
Hours paid for
Source: http://laborsta.ilo.org.
5353
Institutional units
Household Legal or social entity
Government unit
Corporation
Non-profit institution
Company
Partnership
Cooperative
Proprietorship
Other legal forms
Household unincorporatedmarket enterprise
Household enterpriseproducing for own final use
Other types of household
http://unstats.un.org/unsd/sna1993/toctop.asp
Definition of an institutional unit:
An economic entity that is capable, in its own right, of owning assets, incurring liabilities and engaging in economic activities and in transactions with other entities.
5454
Institutional units by sectorInstitutional units by sector
Institutional Institutional unitsunits
SectorsSectors
Non-Non-financial financial corporatiocorporations sectorns sector
Financial Financial corporations corporations sectorsector
General General governgovernment ment sectorsector
NPINPI
servingserving
hslds hslds sectorsector
House-House-holdhold
sectorsector
CorporationsCorporations11 xx xxGovernment Government unitsunits
xx
Non-profit Non-profit institutionsinstitutions
xx xx xx xx
HouseholdsHouseholds xx
1 Including all quasi-corporations, whether owned by households, government units or non-resident institutional units.
5555
Public – Private sector boundariesPublic – Private sector boundaries11
Total economy
Public sector Private sector
Non-marketsector
Market sector
Generalgovernment
Publiccorporations
Public non-financial corporations
Public financial corporations
“controlled + mainly financed”
“economically significant prices”
1 United Nations, “Government/Public Sector/Private Sector Delineation Issues,” Task Force on Harmonisation of Public Sector Accounting, Fourth meeting of the Advisory Expert Group on National Accounts, 30 January – 8 February 2006, Frankfurt, SNA/M1.06/17.
Ability to determine the entity’s general corporate policy, by appointing directors, if necessary
Prices that have a significant influence on the amounts the producers are willing to supply and on the amounts the purchasers wish to buy
5656
Public sector employment in Public sector employment in Bahrain, 2004Bahrain, 2004
Sub-sectorSub-sector Total Total employedemployed
Bahraini Bahraini employedemployed
Government services and public Government services and public administrationadministration
83’80083’800 49’30049’300
Public non-financial Public non-financial corporationscorporations
13’10013’100 9’1009’100
Public financial corporationsPublic financial corporations 700700 600 600
Other (education and health?)Other (education and health?) -- --
Total Total (32%/49% of total employment)(32%/49% of total employment) 97’60097’600 59’00059’000Source: Ministry of Labour, Bahrain Centre for Studies and Research, Labour Force Survey, December 2004.
5858
InformalInformal
Informal sector Informal sector 11
- Economic units with informal features - Economic units with informal features
Informal employment Informal employment 22
- Jobs with informal features- Jobs with informal features
1 ILO, Resolution on the measurement of employment in the informal sector, Fifteenth International Conference of Labour Statisticians, Geneva, January 1993.
2 ILO, Guidelines on statistics of informal employment, Seventeenth International Conference of Labour Statisticians, Geneva, November 2003.
5959
Informal sector enterprisesInformal sector enterprises
Subset of household enterprisesSubset of household enterprises (SNA(SNA unincorporated enterprises owned by unincorporated enterprises owned by
households)households)
Informal own-account enterprisesInformal own-account enterprises– Either all own-account enterprisesEither all own-account enterprises– Or, only those that are not registered under specific forms of national Or, only those that are not registered under specific forms of national
legislationlegislation
Enterprises of informal employersEnterprises of informal employers– Small in terms of employmentSmall in terms of employment– Not registered (in the same sense as for informal own-account Not registered (in the same sense as for informal own-account
enterprises)enterprises)– Non-registration of its employeesNon-registration of its employees
6060
Householdsector
EmployersOwn-account
workersEmployees
Recipients ofproperty and
transfer incomes
Recipients ofproperty income
Recipients ofpensions
Recipients of other transfer
incomes
Enterprisesof informalemployers
Informal own-accountenterprises
Informalsector
6161
Informal employmentInformal employment
Combination of following criteria: Combination of following criteria:
Written or oral contractWritten or oral contract
Paid annual leavePaid annual leave
Paid sick leavePaid sick leave
Employer’s contribution to social security Employer’s contribution to social security schemesschemes
6262
Employment in the Informal Economy(Brazil, percentages, 1999)
Informal employment
Formal employment
Informal sector A(33.1%)
B(4.7%)
Other sectors C(27.4%)
D(34.8%)
Employment in the informal sector: A + B (37.8%)Informal employment: A + C (60.5%)Informal employment outside the informal sector: C (27.4%)Employment in the informal economy: A + B + C (65.2%)
6565
GDP and the Labour MarketGDP and the Labour Market
11 PopulationPopulation
22 Population Population 15+15+
2/12/1 Proportion of population Proportion of population aged15 years and overaged15 years and over
33 Labour forceLabour force 3/23/2 Labour force participation rateLabour force participation rate
44 EmployedEmployed 4/34/3 1-Unemployment rate1-Unemployment rate
55 Hours workedHours worked 5/45/4 Average hours workedAverage hours worked
66 GDPGDP 6/56/5 Labour productivityLabour productivity
6/16/1 GDP per capitaGDP per capita
6767
Labour productivityLabour productivity
Amount of output per unit of labourAmount of output per unit of labour
Value-added based measure:Value-added based measure:Quantity index of value addedQuantity index of value added
Quantity index of labour inputQuantity index of labour input
Output based measure:Output based measure:Quantity index of gross outputQuantity index of gross output
Quantity index of labour inputQuantity index of labour input
6868
Labour market trends inBahrain and the World
Bahrain 2001
Bahrain 2001
Bahrain 2001
Bahrain 2004
Bahrain 2004
Bahrain 2004
World 2001
World 2001
World 2001
World 2004
World 2004
World 2004
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentage pop 15+ LFPR Employment rate
Labour productivity per hour
Bahrain2001
Bahrain2004
Non-oilmarketsector2001
Non-oilmarketsector2004
World2001
World2004
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Labour productivity (BD per hour)
BD per hour
6969
BibliographyBibliographyhttp://www.ilo.org/public/english/bureau/stat/standards/index.htmhttp://www.ilo.org/public/english/bureau/stat/standards/index.htmhttp://laborsta.ilo.orghttp://unstats.un.org/unsd/sna1993/toctop.asphttp://web.worldbank.orgILO, Resolution concerning statistics of hours of work, Tenth International Conference of Labour Statisticians, Geneva, October 1962.ILO, Resolution concerning statistics of labour cost, Eleventh International Conference of Labour Statisticians, Geneva, October 1966.ILO, Resolution concerning an integrated system of wages statistics, Twelve International Conference of Labour Statisticians, Geneva, October 1973.ILO, Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, Thirteenth International Conference of Labour Statisticians, Geneva, October 1982.ILO, International Classification of Status in Employment, Fifteenth International Conference of Labour Statisticians, Geneva, 1993.ILO, Resolution concerning of statistics of employment in the informal sector, Fifteenth International Conference of Labour Statisticians, Geneva, January 1993.ILO, Resolution concerning the measurement of employment-related income, Sixteenth International Conference of Labour Statisticians, Geneva, October 1998. ILO, Resolution concerning the measurement of underemployment and inadequate employment situations, Sixteenth International Conference of Labour Statisticians, Geneva, October 1998.
7070
Bibliography (cont’d)Bibliography (cont’d)
ILO, Guidelines on statistics of informal employment, Seventeenth International Conference of Labour Statisticians, Geneva, November 2003.ILO, Hussmanns, R., Mehran, F., and Verma, V., Surveys of Economically Active Population, Employment, Unemployment and Underemployment: An ILO Manual on Concepts and Methods, ILO, Geneva 1990. (Translated in Arabic, Persian, Portuguese, Russian, and Spanish.) Kingdom of Bahrain, Ministry of Labour, and Bahrain Centre for Studies & Research, Labour Force Survey, December 2004, SPSS data file. Kingdom of Bahrain, Central Informatics Organisation, Census of Population, Housing, Buildings, and Establishments – 2001, Part two The Demographic, Social, Economic Characteristics of the Population, Housing, Buildings and Establishments, December 2004.Kingdom of Bahrain, Civil Service Bureau, Annual Report 2004, p. 13.Kingdom of Bahrain, Ministry of Labour, Indicators of the Labour Market 2003-2004, (in Arabic) by Isma Al-Khalifa, Sana Maci, Anwar Al-Khunaisi, Ministry of Labour, May 2005.United Nations, “Government/Public Sector/Private Sector Delineation Issues,” Task Force on Harmonisation of Public Sector Accounting, Fourth meeting of the Advisory Expert Group on National Accounts, 30 January – 8 February 2006, Frankfurt, SNA/M1.06/17.
7171
IndexIndexEconomically active populationEconomically active populationCurrently active populationCurrently active populationUsually active populationUsually active populationLabour forceLabour forceLabour force participation rateLabour force participation rateEconomic activityEconomic activityProduction boundaryProduction boundaryWorkWorkEmploymentEmploymentEmployment-population ratioEmployment-population ratioSeeking workSeeking workAvailability for workAvailability for workUnemploymentUnemploymentUnemployment rateUnemployment rateSeasonal workerSeasonal workerDiscouraged workerDiscouraged workerUnderemploymentUnderemploymentTime-related underemploymentTime-related underemploymentInadequate employmentInadequate employment
Skill-related inadequate Skill-related inadequate employmentemploymentIncome-related inadequate Income-related inadequate employmentemploymentOver employmentOver employmentJobJobOccupationOccupationBranch of economic activityBranch of economic activityAbsence from workAbsence from workFormal job attachmentFormal job attachmentPaid employment jobPaid employment jobSelf-employment jobSelf-employment jobStatus in employmentStatus in employmentEmployeeEmployeeEmployerEmployerOwn-account workerOwn-account workerUnpaid family worker (Contributing Unpaid family worker (Contributing family worker)family worker)Member of producer’s cooperativeMember of producer’s cooperative
7272
Index (cont’d)Index (cont’d)Establishment Establishment Institutional unitInstitutional unitEnterpriseEnterpriseCorporationCorporationQuasi-corporationQuasi-corporationGovernment unitGovernment unitNon-profit institutionNon-profit institutionPublic sectorPublic sectorPrivate sectorPrivate sectorMarket sectorMarket sectorNon-market sectorNon-market sectorHousehold sectorHousehold sectorInformal sectorInformal sectorInformal employmentInformal employmentInformal economyInformal economyHidden economyHidden economyUnrecorded activitiesUnrecorded activities
WagesWagesWage rateWage rateEarningsEarningsLabour costLabour costLabour cost indexLabour cost indexUnit labour costUnit labour costHourly labour costHourly labour costEmployment-related incomeEmployment-related incomeHours of workHours of workNormal hours of workNormal hours of workActual hours workedActual hours workedUsual hours of workUsual hours of workHours paid forHours paid forGDPGDPGoodsGoodsServicesServicesValue addedValue addedLabour productivity Labour productivity
7373
QuestionnaireQuestionnaire
3. Which topics have been the most 3. Which topics have been the most clearly described?clearly described?
a.a. ________________________________________________b.b. ________________________________________________c.c. ________________________________________________
4. Which topics, in your view, require 4. Which topics, in your view, require further clarification?further clarification?
a. _________________________a. _________________________b. _________________________b. _________________________c. _________________________c. _________________________
5. Were the numerical examples 5. Were the numerical examples appropriate for comparing Bahrain appropriate for comparing Bahrain in relation to other countries?in relation to other countries?
a.a. Yes, explain ______________Yes, explain ______________b.b. No, explain ______________No, explain ______________
1.1. Among the topics discussed in the Among the topics discussed in the lecture, which do you think are lecture, which do you think are more relevant for the analysis of more relevant for the analysis of the labour market in Bahrain?the labour market in Bahrain?
a.a. __________________________________________________b.b. __________________________________________________c.c. __________________________________________________
2. Are there any other topics not 2. Are there any other topics not discussed in the lecture that you discussed in the lecture that you think should be included in relation think should be included in relation to the analysis of the labour to the analysis of the labour market in Bahrain?market in Bahrain?
a.a. __________________________________________________b.b. __________________________________________________c.c. _________________________ _________________________