International Labour Office Department of Statistics Millenium Development Goals: Employment related...

International Labour OfficeDepartment of Statistics

Millenium Development Goals: Employment related Indicators

Valentina StoevskaILO Department of Statistics

Summary

• MDG background• Employment related MDG indicators

– Definition, calculation, interpretation,– Regional and global estimates– Limitations (example on MDG 3.2)

• Future work

MDG Employment IndicatorsBackground

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.


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.

100typroductivilabour

typroductivilabour - typroductivilabour

1-Nyear

1-Nyear Nyear rategrowth ty productiviLabour

Nyear

Nyear

e

currency) nationalin pricesmarket constant at (measuredGDP

mploymnetty productiviLabour

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

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

13

64

40

23

21

14

14

10

9

6

6

8

57

35

21

18

6

7

7

5

5

5

6

48

30

20

17

3

10

6

4

5

5

0 10 20 30 40 50 60 70

Developing regions

Developed regions

Western Asia

Latin America & theCaribbean

Northern Africa

Eastern Asia

Caucasus & Central Asia

South-Eastern Asia

Southern Asia

Oceania

Sub-Saharan Africa

1991

2001

2011*

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


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.


MDG 1.5: Employment-to-population ratio, 2009


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.

employment Total

linepoverty below living persons Employed

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

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1999

2009

MDG 1.6: Proportion of employed people living below the international poverty line of $1.25 PPP per person per

day


467 453 437 432 419 419 415 406 398 397 392 392

223212

193 191171

111 9988 81 74 67 64

0

200

400

600

800

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Mill

ions

0

5

10

15

20

25

30

35

Percentage

Working poor, Eastern AsiaWorking poverty rate, Eastern AsiaWorking poverty rate, World excluding Eastern AsiaWorking poverty rate, World

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


100*sector alagricultur-nonin employment paidin people of No. Total

sector alagriculturnon in employment paidin women No.of



Country Value Last yearEgypt 18.1 2009Bahrain 10.0 2010Iraq 12.1 2008Jordan 15.7 2008Kuwait 23.2 1998Lebanon 14.2 1995Libyan Arab Jamahiriya 15.8 2001Morocco 20.8 2008Occupied Palestinian Territory 17.2 2010Oman 21.9 2008Qatar 12.1 2010Saudi Arabia 16.0 2009Sudan 20.1 1992Syrian Arab Republic 15.3 2009United Arab Emirates 20.1 2008Yemen, Rep. Of 6.2 2007

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


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


Share of women in agricultural employment, 2008


Share of women in managerial and all occupations (average for the period 2000-

2008)


4945

36

45

39 39

45

2420 20

37

32 3229

26

21

16

10 9 9

0

10

20

30

40

50

60

CIS Developed LatinAmerica &

theCaribbean

Sub-Saharan

Africa

South-Eastern Asia

Oceania Eastern Asia WesternAsia

NorthernAfrica

SouthernAsia

All occupations Senior officials and managers

Informal employment in and outside informal sector, by sex,

as % of female/male non-agricultural employmentWomen Men

Distribution of total employment by status in employment, women, 2008 (Percentage)


65

61

40

55

34

15

16

16

3

2

2

2

1

2

1

0

24

17

35

18

30

43

37

19

7

20

24

25

35

39

46

64

0% 20% 40% 60% 80% 100%

Latin America & the Caribbean

Western Asia

Eastern Asia

Northern Africa

South-eastern Asia

Sub-Saharan Africa

Southern Asia

Oceania

Wage and salaried w orkers Employers Ow n-account w orkers Contributing family w orkers

Share of employers in total employment, 2011 (Percentage)


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.


Questions

?


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