Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour...

56
CHAPT€R 2 Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION AND MAIN FINDINGS igh and persistent unemployment consti- tutes a major problem in many OECD coun- H tries. Unemployment rates are high in many countries, have only slowly declined in this recovery and are often well above those recorded in the late 1970s. Policy makers carefully track changes in the unemployment rate because of the traditional focus on a full-employment objective. Indeed, the unemployment rate is regarded as the key indicator of labour market performance. However, it does not cap- ture all types of labour market slack. For example, measured unemployment is not intended to account for slack that might exist within employment or outside the labour force. Two distinct groups fall into these categories: involuntary part- time workers and discouraged workers. Although examined in previous Employment Outlooks [OECD (1987); OECD (1990); OECD (1993)j, this chapter will extend the analysis to consider more countries and over a longer time period. Central issues to be dis- cussed include the adequacy of the current defini- tions of these two groups, their distribution by age and sex, how their numbers vary over the business cycle and the basis on which these groups might be considered additional slack in the labour market as has traditionally been assumed in many complemen- tary measures to unemployment, including those developed by the Bureau of Labor Statistics in the United States. Section B outlines measurement issues with respect to unemployment and underemployment. Section C turns to an analysis of discouraged workers and Section D to involuntary part-time workers. Section E draws the analysis together and presents supplementary measures of labour market slack. Section F presents some concluding remarks. Main findings In terms of numbers, involuntary part-time work is a more important element of labour market slack than discouragement. In OECD countries in 1993. there were about 15 million of the former compared with about 4 million of the latter. This relative differ- ence holds for most countries with the exception of Japan where discouragement is more important. As a per cent of the labour force, these supplementary measures (discouraged and involuntary part-time workers) indicate another 2 to 9 percentage points above that measured by the unemployment rate in most countries. As noted below, however, the analy- sis in this chapter throws doubt on whether all dis- couraged workers should be considered as additional slack in the labour market, although traditionally they are. But including some or all of them would not change country rankings given the rather small num- ber of discouraged workers in most countries. The most important element of labour market slack remains unemployment in virtually all countries. Although a longer time series to draw tighter conclusions would be preferable, it does not appear that there has been a trend rise since the early 1980s in these other forms of labour market slack i.e. dis- couraged and involuntary part-time workers com- bined. In fact, in Japan and the United States, their numbers were lower in 1993 (as a per cent of the labour force) compared with the early 1980s. In most other countries, relative stability prevailed over the 1980s, although they did pick up in the recent downturn and only time will tell if they decline in the subsequent recovery. The analysis in Section C - which examines the characteristics of discouraged workers - however, sheds some doubt on whether all discouraged work- ers should be considered as part of and a supplemen- tary measure of additional slack. Strikingly similar to the conclusions reached in the 1987 Employment Outlook, which questioned the existing concept and measurement of discouragement, this analysis, cover- ing a larger number of countries finds: first, most discouraged workers have been jobless for a long period of time (over 3 years in most countries) and this is consistent across countries and over time. Sec- ond, in a number of European countries there is little cyclical movement in their numbers. Third, labour force flow data for Australia, Norway and the United States show that most of those counted as discour- aged at time “t” were still out of the labour force one- quarter to one year later, the majority of whom were

Transcript of Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour...

Page 1: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

CHAPT€R 2

Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers

A. INTRODUCTION AND MAIN FINDINGS

igh and persistent unemployment consti- tutes a major problem in many OECD coun- H tries. Unemployment rates are high in many

countries, have only slowly declined in this recovery and are often well above those recorded in the late 1970s. Policy makers carefully track changes in the unemployment rate because of the traditional focus on a full-employment objective. Indeed, the unemployment rate is regarded as the key indicator of labour market performance. However, it does not cap- ture all types of labour market slack.

For example, measured unemployment is not intended to account for slack that might exist within employment or outside the labour force. Two distinct groups fall into these categories: involuntary part- time workers and discouraged workers. Although examined in previous Employment Outlooks [OECD (1987); OECD (1990); OECD (1993)j, this chapter will extend the analysis to consider more countries and over a longer time period. Central issues to be dis- cussed include the adequacy of the current defini- tions of these two groups, their distribution by age and sex, how their numbers vary over the business cycle and the basis on which these groups might be considered additional slack in the labour market as has traditionally been assumed in many complemen- tary measures to unemployment, including those developed by the Bureau of Labor Statistics in the United States.

Section B outlines measurement issues with respect to unemployment and underemployment. Section C turns to an analysis of discouraged workers and Section D to involuntary part-time workers. Section E draws the analysis together and presents supplementary measures of labour market slack. Section F presents some concluding remarks.

Main findings

In terms of numbers, involuntary part-time work is a more important element of labour market slack than discouragement. In OECD countries in 1993. there were about 15 million of the former compared

with about 4 million of the latter. This relative differ- ence holds for most countries with the exception of Japan where discouragement is more important. As a per cent of the labour force, these supplementary measures (discouraged and involuntary part-time workers) indicate another 2 to 9 percentage points above that measured by the unemployment rate in most countries. As noted below, however, the analy- sis in this chapter throws doubt on whether all dis- couraged workers should be considered as additional slack in the labour market, although traditionally they are. But including some or all of them would not change country rankings given the rather small num- ber of discouraged workers in most countries. The most important element of labour market slack remains unemployment in virtually all countries.

Although a longer time series to draw tighter conclusions would be preferable, it does not appear that there has been a trend rise since the early 1980s in these other forms of labour market slack i.e. dis- couraged and involuntary part-time workers com- bined. In fact, in Japan and the United States, their numbers were lower in 1993 (as a per cent of the labour force) compared with the early 1980s. In most other countries, relative stability prevailed over the 1980s, although they did pick up in the recent downturn and only time will tell if they decline in the subsequent recovery.

The analysis in Section C - which examines the characteristics of discouraged workers - however, sheds some doubt on whether all discouraged work- ers should be considered as part of and a supplemen- tary measure of additional slack. Strikingly similar to the conclusions reached in the 1987 Employment Outlook, which questioned the existing concept and measurement of discouragement, this analysis, cover- ing a larger number of countries finds: first, most discouraged workers have been jobless for a long period of time (over 3 years in most countries) and this is consistent across countries and over time. Sec- ond, in a number of European countries there is little cyclical movement in their numbers. Third, labour force flow data for Australia, Norway and the United States show that most of those counted as discour- aged at time “t” were still out of the labour force one- quarter to one year later, the majority of whom were

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no longer counted as discouraged nor said they wanted a job. Fourth, those that do enter are less successful in getting work compared to other non- participants. Furthermore, this “success rate” has diminished over time in these three countries. Given the length of joblessness for discouraged workers, this is not surprising. Fifth, compared to other groups of non-participants a higher share of discouraged workers come from long-term unemployment.

The analysis of involuntary part-time workers concludes first, that involuntary part-time work fol- lows a cyclical pattern in many countries, particularly for those who could not find full-time. Second, in many European countries, involuntary part-time work for economic reasons bears very little relationship with the cycle. This is a puzzling finding for which no obvious explanation exists. Third, flow data for Australia and the United States indicate that involun- tary part-time workers who normally work full-time typically return to full-time jobs in the subsequent period, while those who normally work part-time move back into voluntary part-time work i.e. back to their usual hours. Flow data for Norway and Spain indicate that involuntary part-time workers typically end up in voluntary part-time work in the subsequent period. Fourth, with respect to involuntary part-time workers who could not find full-time work, it is inter- esting that it is disproportionate, relative to their share of employment, among teenagers. This sug- gests problems with the school-to-work transition in some countries and/or problems with school systems in retaining youths since it is surprising that many would be seeking full-time work. Finally, and unlike the conclusions on discouraged workers, involuntary part-time workers are clearly one manifestation of labour market slack.

B. UNEMPLOYMENT AND UNDEREMPLOYMENT

I . Measurement of unemployment

i) Survey issues

Labour force surveys are the source of compara- ble unemployment information across countries. The International Conference of Labour Statisticians (ICLS), through the ILO, has laid out broad guidelines for a standard definition of unemployment for pur- poses of international comparison. To be considered unemployed, an individual must be - during the refer- ence period - without a job, taking measures to get work during a specific time period (job search), and available to start work, usually immediately. Other- wise, the individual will be classified as outside the labour force, and then depending on how other ques-

tions are answered with respect to desire for work, may be considered discouraged (see below).

In some cases, individuals who have not worked at all during the reference week may be considered employed. Many fall into this category, including those on vacation, maternity/parental (see Chapter 5) and sick leave. They are classified as employed because a formal link is maintained with the employer. An exception concerns the treatment of temporary layoffs. In Europe and Japan, these individ- uals are counted as employed. but with no hours worked in the reference week. In North America, however, temporary layoffs are grouped with the unemployed. Data reported by the BLS indicate that the numbers of individuals on temporary layoff in Europe tend to be small [Sorrentino (1993); Elder and Sorrentino (1993)l.

Another closely related group found in Europe is the “partially-unemployed”. Although national regu- lations vary, in general these are individuals who are working fewer hours than usual and who are receiving unemployment benefits to compensate them for the reduced hours. They will be counted as involuntary part-time workers (see below).

ii) Supplemental measures to unemployment

It is widely agreed that the unemployment rate by itself has limits. Its relevance in fully measuring labour market slack, in particular can be noted. The main issue is what are the most relevant additional statistics needed.

The employment/population ratio has some- times been put forward as an alternative (or addition) to the unemployment rate since the level of employ- ment is a primary concern in most countries. There are a number of problems with this measure [Cain (1979)l. First, declines can be interpreted in many ways. For example, the employment/population ratio for youths might decline because of increased enrolment in education - probably considered a posi- tive outcome - but it might also decline because of job loss - a negative outcome. In addition, employed individuals may be underemployed (e.g. working fewer hours than normal or that they wish to work), which this measure does not consider. Yet another measure, the non-employment rate - which com- prises the unemployed and non-participants in the labour force -was examined in the 1992 Employment Outlook. This is simply the inverse of the employ- ment/population ratio. Problems with this include the fact that many non-participants do not want to work ( e g retired individuals) and the underemployed are excluded.

There is thus no single measure of labour market slack. What is necessary are complements to the unemployment rate which can help enrich labour market analysis. Several complements have been

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put forward, including R1 to R9 in Canada [Devereaux (1992)j and, probably the best known, the U 1 to U 7 measures published by the U.S. Bureau of Labor Statistics [Sorrentino (1993)j. Similar to their U6 and U 7 measures, the OECD has also published mea- sures of labour market slack comprising the number of involuntary part-time and discouraged workers [ OECD ( 1993, 199421) 1 .

2. Underemployment

Underemployment has been defined by the ICLS in Resolution 1 (1982) as follows: “Underemployment exists when a person’s employment is inadequate in relation to specified norms of alternative employ- ment, account being taken of his or her occupational skil l . Two principal forms of underemployment may be distinguished: visible and invisible”.

Visible underemployment includes individuals who are “involuntarily working less than the normal duration of work determined for the activity, who were seeking or available for additional work during the reference period”. This can usually be measured in labour force surveys. Invisible underemployment is much more difficult to measure and refers to individ- uals who are working in jobs where their skills are not adequately utilised, and by its very nature is difficult to measure. For this reason, it is not discussed. When measuring visible underemployment, it can be done in terms of the number of people, or potential num- ber of hours that could be provided. Each has its own merits. From a social point of view, the number of individuals is clearly important. But from an eco- nomic point of view, it is probably the number of potential hours that is more important.

C. DISCOURAGED WORKERS

A considerable body of work exists on the concept, definition and measurement and analysis of discouraged workers [ OECD ( 1987, 1993) 1 . The 1987 Employment Outlook concluded that the concept was highly subjective and nebulous, and that discouraged workers were neither “close” to the unemployed in the sense that they were quite likely to enter the labour market and look for work, nor “close” in the sense that their lack of job-finding success had driven them out of the labour market. However, these con- clusions were based on analysis of just a few coun- tries. This section, in addition to looking at the cycli- cal pattern of discouragement over a wider range of countries and a longer time period, will update work on flows in and out of discouragement. It will also focus on the last time they worked as one dimension of their presumed labour force attachment.

1. What is the definition of discouraged workers?

Discouragement is a concept used to describe individuals who would like work, but are not seeking work because they feel no suitable job is available.’ It is, therefore, a subjective measure, in contrast to the objectively-based measure of unemployment. Dis- couraged workers are counted as out of the labour force under international guidelines since they are not looking for work. Because they say that they would like work - and because many studies have found that their numbers vary pro-cyclically - they are usually viewed as being closer to the labour market than other non-participants, including those who would like work but do not give discouragement as a reason for not job-seeking. Thus , they are tradition- ally viewed as an identifiable element of labour mar- ket slack, even though they do not fit under the ILO definition of underemployment. Indeed, at least in the United States, given the presumption that in a statistical and behavioural sense discouraged workers are close to the unemployed, periodic debates have occurred as to whether they should be included in the unemployment count.

How discouragement is defined in practice depends on the specific questions asked to non-par- ticipants in labour force surveys. Unlike unemploy- ment, where considerable work has been done to standardise definitions, those for discouragement vary widely and can change greatly over time; there- fore, comparable data are not available. Furthermore, since it is a subjective measure, how individuals per- ceive questions, the ordering of the questions and other factors will affect their measurement (of course this may also affect measured unemploy- ment). Country-specific definitions are outlined in Annex 2.B, and there are three important sources of difference worth noting:

- the specific questions asked to survey

- whether availability for work is a criterion to be

- whether previous job search is required over a

respondents;

considered discouraged; and

some past period of time.

The question referring to the reason for not searching for work differs across countries, and over time within them. For example, Canada (monthly labour force survey) and Sweden ask the “main” rea- son for not searching for work, several others ask for “the” reason, and some countries ask for all reasons. Several countries have changed these questions over time so that a consistent time series is not possible: e.g. Australia, Japan and Sweden and most recently the United States. It is difficult to determine the exact impact of these differences on measured discouragement.

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Chart 2. I

Distribution of discouraged workers in OECD countries by age and sex, I983 and I993

% I00

80

60

40

20

83 93 83 93 83 93 84 93 90 93 83 93 83 92 83 91 Australia Belgium Canada Denmark France Greece Ireland Italy

100 %

80

60

40

20

0

% 100 %

80

60

40

20

n " 85 93 87 93 86 93 86 93 86 93 88 93 89 93 83 93 83 93 Japan Netherlands New Portugal Spain Sweden Turkey United United

Zealand Kingdom States

Men 16 to 24' Men 25 to 54 Men 55 to 64 Men 16 to 64" i I Women I 6 to Ma Women 25 to 54 Women 55 to 64 Women 16 to 64" j I ~

a) The age groups 16-24 and 16-64 refer to 15-24 and 15-64 in Australia, Canada,

Sources: See Table 2. I. Japan and N e w Zealand.

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The criteria of being available to take a job and last job search also vary across countries. Only Australia ( 1983 forward), Canada (March survey), Sweden, Turkey and the United States (1994 forward) apply a work availability test. Canada (monthly labour force survey) and the United States (1994 forward) appear to be the only countries that also apply a prior job-search test. A comparison of 1993 data gathered using both the old and revised surveys indicates that the number of discouraged workers in the United States was more than halved in the latter. For the most part, this was probably due to the new and more strict definition [U.S. Department of Labor (1994)]. Finally, in most countries individuals must indicate, prior to being asked why they are not seeking work, that they would like a job. Exceptions are Belgium, Denmark, Greece, Italy and Spain where the sequence of questions is reversed.

2. Who are discouraged workers?

Discouraged workers numbered about 4 million in 1993, with women making up over two thirds in most OECD countries (Chart 2.1 and Annex Table 2 .D. I ) . Exceptions where women made up a smaller proportion include Belgium, Canada, Sweden, Turkey, the United Kingdom and the United States. The United Kingdom is unique in that women have traditionally had a lower share than men (with 1992 being an exception). Not surprisingly, the largest pro- portion of discouraged workers were prime-age (25-54). There were only three exceptions: Sweden and Turkey where youths made up the largest share, and the United Kingdom where older workers typi- cally made up the largest share.

Over time, the proportion of men among dis- couraged workers has generally increased in those countries where women make up the largest propor- tion (Chart 2 .1) . Thus the share of women has fallen since the early 1980s in Australia, Belgium, Denmark, Greece, Ireland, Japan, New Zealand, Portugal, Spain, Sweden, Turkey and the United States. By age, there has been relatively little change, although there has been some tendency for the share of older workers to increase. Two exceptions to this “share stability” are Sweden, where the share of youths has increased, and the United Kingdom, where the share of older workers fell.

It is also instructive to consider their number relative to the size of the labour force of each group since this gives an idea of what the impact would be i f discouraged workers were in fact counted in the labour force (and because the size of the labour force varies greatly by age group). For the purposes of this chapter, discouraged workers will be expressed as a percentage of the labour force. This “rate” will be used in subsequent analysis.2 Considered this way, the patterns are somewhat different. For example,

older workers have typically had the highest rate (Table 2 .1 ) . This holds for both men and women and for all countries except Sweden where it was the youth group (based on 1993 data).

3. Discouraged workers and the business cycle

The traditional view of discouraged workers is that as output expands, they are likely to enter the labour market to take advantage of new job opportu- nities. By contrast, as unemployment increases in a downturn, some people will leave the labour force because of poor prospects and be counted as disco~raged.~

Between 1983 to 1993, and thus covering in most countries one cycle from trough to trough, confirms that in some countries, discouraged worker move- ments tend to follow the unemployment rate quite closely, i.e. when the unemployment rate dips, dis- couragement also falls and vice versa (Chart 2 .2 ) . Cor- relations presented in Table 2.2 allow a closer look at this link.4 They appear particularly strong in Australia, Canada, lapan, New Zealand, Portugal, Sweden, the United Kingdom and the United States. Some countries - Belgium, Denmark, Ireland and most of Southern Europe - exhibit a weak correlation.

Given the short time period examined, it is diffi- cult to tell if there has been a secular trend, but in many countries the unemployment rate has moved back up to levels reached in the early 1980s, while the “rate” of discouragement has not. Measured in this way, there appears to be a downward trend in most countries with four exceptions: Australia, New Zealand, the Netherlands and Sweden.

This aggregate picture applies to both men and women. Where there is a robust correlation between the discouraged worker rate and the overall unem- ployment rate, there is also a robust correlation between the unemployment rate and the rate of discouragement of both men and women.

4. Labour market attachment of discouraged workers

Given that there is some correlation between the economic cycle and discouragement, it is interesting to examine the previous work experience of discour- aged workers. One reason this is a useful issue is that this cyclical relation has often been cited as one of the reasons they should be considered as “close” to the unemployed It is assumed that increases in their numbers reflect loss of a job, followed by a period of unsuccessful search and then departure from the labour force. Some doubts have been cast on this assumption. For example, on the basis of a few coun- tries, the 1987 Employment Outlook noted that there had been a general drop over time in the proportion

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Table 2. I . Discouraged workers by age and sex As a per cent of the respective labour force of each groupa

I983

Men

16-64' 16-24b 25-54 55-64

Australia Belgium Canada Denmark ( I 984) Finland Greece Ireland Italy Japan (1985) Netherlands (1987) New Zealand ( I 986) Norway ( 1989) Portugal (1986) Spain (1987) Sweden (1987) Turkey ( 1988)c United Kingdom United States

0 4 0 2 1 2 0 5 0 5

1

0 1 1 1 0 4 0 2 0 8 0 3 0 2 0 9 0 9 1 3 1 1

0 5

2 0

3 3 *

0 2

0 4 0 3 1 5 0 7 0 9 3 1

1 3 1 9

0 2

0 6 0 3 0 1

0 3 0 2 0 3

0 0 0 4

0 8 0 7

1 5

3 5 18 0 0

0 6

1 6 0 3 2 8

0 5 1 0

3 7 16

Men

16-04' I 6-24' 25-54 55-64

Australia Belgium Canada Denmark Finland France Greece Ireland Italy (1991) lapan Mexico Netherlands New Zealand Norway Portugal Spain Sweden Turkey United Kingdom United States

0 7 1 2 0 8 1 2 1 2 0 1

0 3 0 9 0 9 0 6 0 5 0 7 0 9

0 1 3 3 0 3 0 5 0 8

0 9

L O

6 9 c

*

3 5

I 1 0 4 0 6 1 8

15 8

0 5 1 1

0 3 0 6 0 4 0 8 0 4 0 0

0 4

0 3 0 3 0 4 0 5

0 0 1 7

0 2 0 6

2 8 9 6 3 1 4 4 1 6 0 4

* 0 8

1 2 2 3 2 4 1 2

0 3 1 7

2 7 1 6

Women

16-64b 16-24' 25-54 55-64

3 5 0 4 2 2 1 0 1 6 0 3 0 9 3 1 6 6 1 7 0 8 2 0 1 8 2 1 1 3 4 0 1 2 2 1

1 0

2 0

3 7

3 0

0 4 2 3 2 8 2 1 3 7

0 8 2 2

4 1 0 4 16 0 8 1 1 0 3

2 9

2 4 1 0 1 5 1 6 2 1 0 7

1 1 2 1

I I 1

8 5 3 3 1 5

6 7

1.3 7 0

I .6 1 6

2 7 2.1

*

1993

Women

16-64' 16-24b 25-54 55-64

3 0 1 9 1 0 2 2 1 8 0 3 0 7 0 9 5 7 4 2 2 7 1 8 1 4 1 7 0 2 0 4 3 1 0 4 0 7 1 1

0 6

0 7

10 8 0 2 1 0

7 1

3 7

0 9 1 4

0 2 15 3

0 2 1 1

*

2 8 1 5 0 7 1 3 0 9 0 3 0 6 1 0 5 3

1 8 18 1 3 1 3 0 2 0 4 1 4

0 4 0 9

14 9 I4 9 5 5

12 1 1 0 0 5

5 3

7 0 7 8 5 0 4 6

0 8 I 4

3 4 2 3

Data not available Sample size too small to be signihcant Discouraged workers are not included in the labour force numbers Reler respectively to 15-64 and 15-24 in Australia, Finland. lapan. Mexico. New Zealand. Norway and Turkey In Canada, discouraged worker data refer to 15- 24, 25-44 and 45 and over, while labour force data refer to 15-24, 25-54 and 55-64 Data for 1988 refer to October

- a) bj

cj Sources Austraiia Australian Bureau of Statistics, compilation of the September Persons Not in the Labour Force

Canada Cornpilation of the March supplement Survey of iob Opportunities provided by Statistics Canada Finiand Statistics Finland, Supplemental Survey of the Labour Force Survey, Autumn iapan February I993 Mexico lnstituto Nacional de Estadistica Ceografia e Informitica IINECI). Encuesb Nacionai de Empieo. 1993 New Zeaiand Customer Services, New Zealand Department of Statistics. annual averages Norway Norway Central Bureau of Statistics, annual averages Sweden Statistics Sweden, Arbetskrafts Undersokningen (AKU). annual averages Turkey State Institute of Statistics. Household Labour Force Surveys, annual averages United States Compilation of lanuary's Empioyment dnd Earnings provided by the U S Bureau of Labor Statistics, annual averages For other countries, data were provided by Eurostat on the basis of each country's Labour Force Sample Survey

Statistics Bureau, Management and Coordination Agency. Report on the Speciai Survey of the Labour Force Survey. February 1983 and

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Men

Table 2.2. Correlations between discouraged worker rates and unemployment rates, 1983-1 993

Women

Female unemployment

ratee

Unemployment rated unemployment

rateC

Unemployment rateb

Both sexesd

Australia Belgium Canada Denmark Greece Ireland (1983-92) Italy (1983-91) Japan (1985-93) Netherlands ( 1987-93) New Zeaiand ( 1986-93) Portugal (1986-93) Spain ( 1986-93) Sweden (1987-92) United Kingdom United States

1 0 -0 5

0 8 0 5 0 4 0 3 0 5 0 8

-0 5 1 0 0 9 0 5 1 0 0 7 0 9

0 8 -0 5

0 8 0 5 0 6 0 0 0 7 0 8

-0 4 1 0 0 8 0 7 1 0 0 7 0 9

0 9 0 1 0 7 0 5 0 2 0 0 0 7 0 8

-0 5 I0 0 7 0 8 1 0 0 5 0 9

0 9 -0 4

0 7 0 5 0 3 0 4 0 4 0 8

-0 3 1 0 0 9 0 5 1 0 0 7 0 9

0 9 -0 8

0 8 0 5 0 5 0 4 0 4 0 8

-0 3 1 0 0 9

-0 I 1 0 0 7 1 0

aJ The correlation is between the sum of male and female discouraged workers (as a per cent of the male and female labour forces) and the unemployment rate for both sexes

bj The correlation is between male discouraged workers (as a per cent of the male labour force) and the unemployment rate cJ The correlation is between male discouraged workers (as a per cent of the male labour force) and the male unemployment rate d) The correlation is between female discouraged workers (as a per cent of the female labour force) and the unemployment rate eJ The correlation is between female discouraged workers (as a per cent of the female labour force) and the female unemployment rate Source Secretariat estimates

of discouraged workers with recent job experience. This section re-examines this issue.

Data in Table 2.3, which show the last time dis- couraged workers had worked, lead to the following important points:

- In most countries, well over 80 per cent of discouraged workers state that they had worked at some point in the past. Greece, Italy and Turkey - where a majority have never worked - are exceptions.

- However, in most countries, both men and women report remote work experience i.e. hav- ing last worked 3 or more years ago, and this exceeds 50 per cent in many. Mexico had almost 5 out of every 10 discouraged workers who had reported working in the previous year, but it is an e~cep t ion .~ Only two other coun- tries - Denmark and the United States - had even close to 3 out of 10 discouraged workers in a job within the previous year.

- In the most recent downturn, there appears to have been some tendency for the share of dis- couraged workers with recent work experience to increase slightly (Australia and the United States in 1990, the United Kingdom in 1991, and France, Belgium and Spain in 1992). In many other countries this did not happen, and in some, the share of discouraged workers with more remote work experience actually

increased (data not presented). Interpreting this is not straightforward

- The distribution of discouraged workers by the time last worked has been fairly constant except in Belgium, the Netherlands and the United Kingdom where those who had not worked in over 3 years increased substantially (although in the latter country, the share did decline and remain lower from 1991).

While these data suggest that there may be'a group of "long-term" discouraged workers, it is worth re-emphasising several points that complicate this view: what appears to be long-term discouragement may be the result of people leaving the labour force after a long bout of unemployment; or they may actu- ally have been discouraged for a long period of time; or they may have been counted as discouraged, left this group into another group of non-participants and returned to discouraged status at a later point in time What is clear is that a large share of discour- aged workers tend to be jobless for long periods of time. Given this situation, they would most likely face problems similar to or worse than those of the long- term unemployed, e.g. deterioration of human capi- tal, and thus face considerable difficulties in trying to get work should they decide to re-enter the labour market. This issue will be examined below using flow data for Australia, Norway and the United States.

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Chart 2.2

Discouraged, involuntary part-time workers and unemployment in OECD countries As a per cent of the labour force

12 5 ._ E Y = 10 3 V

c u e 9 8 a

E 6 - 6

E 5 4

u . U

Q

2

Australia

1.8 E 51

E 1.6 ._

e 1.4 .

V

1.2 p a ::

1.0 6

0.8

0.6

0.4 81 82 83 84 85 86 87 88 89 90 91 92 93

Years

Belgium

6 2.5

1 E " 2.0 'i

8 W

V .

1.5 % c!

:: 6 0

I .o

0.5

0 81 82 83 84 85 86 87 88 89 90 91 92 93

Years

Economic reasons 1 I

Discouraged workers - - - - Could not find Unemployment full-time work

m B B l " l i m *

Canada

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

- - - - i

Unemployment I Could not find I full-time work

! llImilmlls

I Discouraged workers Economic reasons 1 I - - - -

Unemployment Could not find full-time work

I I s I m 0 - I I

1.8 2

E 1.6 ,%

E e 1.4 .

V

1.2 p a

1.0 6 ::

0.8

0.6

0.4

s .- E %

Y - - 3

V

(i:

u

r

e a Y E - 6

5

9

C

?

Denmark

1.8 2 51

1.6 5 E

1.4

._

8

1.2 z w . F

1.0 ; 6

0.8

0.6

0.4

0 81 82 83 84 85 86 87 88 89 90 91 92 93

Years

Discouraged workers Economic reasons - - - - Unemployment

Sources: See Table 2. I.

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E M P L O Y M E N T O U T L O O K

Chart 2.2 (Cont.)

Discouraged, involuntary part-time workers and unemployment in OECD countries As a per cent of the labour force

France

0.7 P

0.6 E 'F e

0.5 . W

0.4 8

0.3 a

0.2

0. I

I

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

0

I Discouraged workers Economic reasons - - - - 1 Unemployment Could not find

full-time work

Greece

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

1 Discouraged workers Economic reasons I - - - - I

Could not find i full-time work Unemployment I

4.0 2 P

3.5 E

3.0

2.5 p

._

8 w . P

2.0 g a

I .5

I .o

0.5

0

Germany*

I

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

I - - - - I # r Unemployment , Could not find

full-time work -18111-1111

Ireland

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

I I Discouraged workers Economic reasons 1 - - - - I i

J 1

Unemployment Could not find full-time work

iin-lslIil

0.6 2 2 E

0.5 .v E e s

0.4 ? W

P 0.3 $

a 0.2

0. I

0

1 .1 2 P

E 1.0 : ._

0.9 s w . 0.8

0.7 8 a

0.6

0.5

P

0.4

0.3

01 Up to 1990, data refer to western Germany; thereafter t o the whole of Germany.

Sources: See Table 2. I.

Page 10: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

E M P L O Y M E N T O U T L O O K

Chart 2.2 (Cont.)

Discouraged, involuntary part-time workers and unemployment in OECD countries As a per cent of the labour force

Italy

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

Discouraged workers Economic reasons *,"- "- ," - - - -

Unemployment Could not find full-time work m C I I Q - * I

New Zealand

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

1 Discouraged workers Economic reasons __ #a ,, - - - - I J

i Unemployment i

Could not find full-time work

3.5

3.0

2.5

2.0

I .5

I .o

0.5

0

I .2

1.1

I .o

0.9

0.8

0.7

0.6

0.5

0.4

g a e!

E e 8

L e s :: 6

U .-

w

v .

v) s 1 e!

E " .-

e 8 LU

V . M e s :: 6

Japan

3.5

3.0

2.5

2.0

I .5

I .o

0.5 81 82 83 84 85 86 87 88 89 90 91 92 93

Years

4.0 2 8

3.5 'F

3.0 w .

2.5 i?

2.0 g B

I .5

I .o

0.5

0

Discouraged workers Economic reasons - - = _ - - - -

Unemployment Could not find full-time work I - L( /I - I - I

Portugal

1.0 g

0.8 'E

a n! U

e 8 w

v .

0.6 F 8 B

0.4

0.2

0 81 82 83 84 85 86 87 88 89 90 91 92 93

Years

I Discouraged workers Economic reasons - - - -

Unemployment Could not find full-time work

- - - - - - - *

Sources: See Table 2. I.

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E M P L O Y M E N T O U T L O O K

3 25 P .- E Y = 20 2 V

(i: Y

4 15 a ?

- 6 E 5 5

E 10

a

0

Chart 2.2 (Cont.)

Discouraged, involuntary part-time workers and unemployment in OECD countries As a per cent of the labour force

Spain

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

1.0 c" 4 e U

0.8 'g

0.6 a P a P a

E

w

V

9 .

0.4

0.2

0

Discouraged workers Economic reasons i -, ~ - - - -

Unemployment Could not find full-time work

a n e r - r s s -

United Kingdom

7 1.8 - 1

1.6 e!

s U 'g

T

1.4 e 1.2 p

W . 1.0 8

ii 0.8

1

0.2 81 82 83 84 85 86 87 88 89 90 91 92 93

Years

1 ! Discouraged workers Economic reasons - - - - I

I

Unemployment j Could not find 1 full-time work

Sweden

8

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

Could not find Unemployment 1 full-time work I

S 8 1 . i j S S * * _1_1__1 I

United States

E - 6 4

E 5 n

2

0

# - a \

c" 51 2

E U ._

e :: w

V . P a :: B

81 82 83 84 85 86 87 88 89 90 91 92 93 Years

- - - - Unemployment Could not find

full-time work m F _ i _ s s l l ~ I

3.5 t

p1 3.0 .:

e e w

V 2.5 -

P 2.0 8

ii

I .5

I .o

0.5

Sources: SeeTable 2. I.

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54 E M P L O Y M E N T O U T L O O K

Table 2.3. Length of time since last job: discouraged workers Per cent of total discouraged workers

Worked

83 93

Australiaa

Total Men Women

Belgium Total Men Women

Denmarkb

Total Men Women

France Total Men Women

Greece Total Men Women

Ireland Total Men Women

ItalyC Total Men Women

Mexicod

Total Men Women

Netherlandsa

Total Men Women

New Zealande Total Men Women

91 7 9 0 9 8 8 9 83 5 92 5 93 2

739 8 9 3 909 9 5 8 6 3 2 8 3 2

I000 91 5 I000 9 0 3 I000 92 3

88 0 83 0 89 5

392 21 8 399 23 5 39 1 21 4

8 7 6 8 4 7 95 7 82 1 8 4 4 8 6 3

248 365 6 2 6 338 21 9 372

68 6 78 9 65 2

8 9 0 8 7 0 8 6 8 8 8 8 8 9 9 8 6 4

8 9 7 8 7 4 85 3 8 4 6 9 2 6 8 9 3

Less than 1 year ago

83 93

17 8 34 6 13 7

12 6 19 6 8 2

28 9 39 1 23 2

10 8 39 9 8 2

8 5 14 4 6 2

2 5 9 7 1 9

6 8 1 1 8 4 9

24 9 28 6 23 4

16 2 24 1 13 7

3 3 3 8 2 8

25 2 30 0 22 3

1 1 0 1 1 7 10 9

6 1 14 9 4 1

7 1 10 8 4 8

8 1 1 1 3 7 2

47 4 65 0 41 5

6 6 16 3 2 9

18 7 24 4 15 5

I to 3 years ago

83 93

I6 6 176 I6 4

14 8 24 9 8 5

32 9 37 7 30 1

4 2 0 0 4 5

10 0 15 2 8 0

4 4 17 4 3 4

22 7 35 7 17 8

13 5 14 3 13 2

22 1 32 6 18 7

10 5 1 1 1 9 9

27 0 34 4 22 7

19 3 37 9 I4 0

5 2 3 3 5 7

9 0 10 8 8 0

6 0 7 3 5 6

21 3 I4 0 23 7

6 6 1 1 4 4 7

9 9 8 1

I0 9

3 years and over

83 93

57 2 36 7 62 4

46 5 46 4 46 5

38 2 23 2 46 8

24 2 0 0

26 4

69 1 66 1 70 3

17 9 35 6 16 6

59 6 39 3 67 2

42 3 46 0 40 4

52 5 26 8 60 9

75 5 80 8 70 6

39 3 25 9 47 2

57 7 33 4 64 6

10 5 5 3

1 1 7

68 6 60 5 73 4

22 5 15 1 24 4

73 8 61 0 78 7

41 I 42 3 40 7

Never worked

83 93

8 3 1 1 1 7 5

26 1 9 1

36 8

0 0 0 0 0 0

60 8 60 1 60 9

1 2 4 4 3

1 5 6

75 2 37 4 78 1

I 1 0 13 2 10 1

22 6 10 7 28 8

9 1 16 5 6 8

10 7 4 2

I6 8

8 5 9 7 7 7

12 0 17 0 10 5

78 2 76 5 78 6

15 3 I7 9 13 7

63 5 66 2 62 8

31 4 21 I 34 8

13 0 I 1 2 13 6

27 6 17 9 33 2

It is useful to consider the reason given for being discouraged from active job search. In many surveys, a reason for discouragement relates to a “lack of skills, education or qualifications”. This could become self-perpetuating. Not searching for work for lack of appropriate skills for the jobs perceived availa- ble could lead to further deterioration in skills, rein- forcing the initial futility to search. I f discouragement has resulted from long-term unemployment, then “outsider” problems like this may be even more rele- vant. Therefore, some of the reasons for discourage-

ment may reflect supply-side constraints that could take on a more permanent nature, rather than simply reflecting a demand-side problem. This would partic- ularly be the case for older workers who have a rela- tively shorter time horizon to re-coup lost skills.6

It is also instructive to compare the situation of discouraged workers with other non-participants who say they would like work. Data published in the 1987 Employment Outlook indicated that both discour- aged workers and other non-participants had roughly the same proportion who had worked less than a year

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E M P L O Y M E N T O U T L O O K 55

Table 2.3. Length of time since last job: discouraged workers (Cont.) Per cent of total discouraged workers

Worked

83 93

Portugal' Total Men Women

Spaina

Total Men Women

Turkeys Total Men Women

United Kingdom Total Men Women

United States Total Men Women

6 0 9 559 58 7 76 5 61 3 492

51 5 72 1 572 84 5 504 6 7 4

21 2 394 44 1 3 8 8

9 8 4 0 8

8 9 3 9 2 4 8 9 0 924 900 9 2 3

85 2 a 8 4 8 2 6 8 8 0 8 6 8 8 8 7

Less than 1 year ago

83 93

23 0 18 7 25 5 32 7 22 4 14 1

12 3 19 3 12 0 34 2 12 4 13 6

4 5 22 4 10 6 24 9

1 3 17 3

19 6 10 I 19 9 9 4 19 2 10 9

28 6 32 3 34 3 34 0 25 I 30 8

1 to 3 years ago

83 93

7 0 16 9 9 3 30 6 6 5 12 4

7 7 18 7 158 39 5 6 0 10 7

4 5 8 1 9 3 7 4 2 1 9 2

31 9 28 4 33 1 33 4 29 7 23 2

38.3 36.6 39.2 35.5 37.8 37.5

. . Data not available aJ 1987 and 1993 b) 1984 and 1993 c) 1983 and 1991 d) The category " 1 to 3 years ago" includes all discouraged workers who worked over one year ago e) 1991 and 1993 f) 1986 and 1993 g) 1988 and 1993 Sources See Table 2 1

3 years and over

83 93

30 9 20 4 23 9 13 2 32 4 22 7

31 5 34 1 29 3 10 8 31 9 43 1

12 2 9 0 24 2 6 4 6 3 14 2

37 9 53 8 36 0 49 6 41 0 58 2

18 3 19 6 9 1 18 5

23 9 20 5

Never worked

83 93

39 1 44 1 413 235 387 508

485 279 4 2 8 155 496 326

788 6 0 6 5 5 9 61 2 90 2 592

10 7 7 6 1 1 0 7 6 10 0 7 7

148 116 174 120 132 I 1 3

before. However, compared to other non-participants, discouraged workers had a much larger proportion who had not worked in over 3 years. More recent data for Australia and the United States confirm these earlier results (Tables 2.3 and 2.4).

5. Labour market flows and discouraged workers: where do they come from?

Data first presented in the 1987 Employment Outlook for the United States in the 1984/85 time period showed that over a half of discouraged workers were out of the labour force in the previous year, but only a small fraction were discouraged at each point in time. Data for the 1992/93 time period show virtu- ally the same pattern, with about 50 per cent of dis- couraged workers out of the labour force at each point in time, but only about 1 1 per cent being dis- couraged in both years (Table 2.5). About 25 per cent of discouraged workers came from the group of non- participants who stated that they "did not want a job" in the previous year. Data for Norway (Table 2.6) show a similar picture. About two thirds of discouraged

workers were out of the labour force in the previous year (in all age groups except males aged 25-54) and typically less than a third were counted discouraged in both periods.

Data for the United States also shed some light on the relative importance of short vs. long-term unemployment as one source of discouraged workers. For all age groups, short-term unemployment in 1992 comprised a relatively larger percentage of discour- aged workers in 1993.7 However, compared with other non-participants, a substantially higher percentage of discouraged workers came from long-term unemploy- ment. This is particularly the case for older workers, where 13 per cent of individuals discouraged in 1993 were long-term unemployed in 1992 compared to less than 3 per cent for other non-participants. These data indicate that slightly less than half the number of discouraged workers in 1993 were either employed or short-term unemployed in 1992 while the remainder were out of the labour force or long-term unemployed.8

A critical question, however, remains: to what extent do people drop out of the labour force because

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56 E M P L O Y M E N T O U T L O O K

Table 2.4. Length of time since last lob for non-participants who want a job (excluding discouraged workers): Australia and the United States

Australia

Wanted a job and searched in previous 4 weeks

1987 1993

Men Worked

Less than one year ago I to under 3 yearsa 3 years and overb

Never worked Total

Women Worked

Less than one year ago I to under 3 yearsa 3 years and overb

Never worked Total

Total Worked

Less than one year ago 1 to under 3 yearsa 3 years and overb

Never worked Total

70 6 39 3 13 6 17 7 29 3 100 0

88 2 20 3 I7 7 50 2 1 1 6 100 0

84 2 24 6 16 8 42 9 I5 6 100 0

67 7 29 3 20 5 I8 0 32 3

100 0

86 7 I7 8 21 9 47 1 13 3 100 0

81 9 20 7 21 5 39 6 18 I 100 0

a) United States I to 5 years b) United States 5 years and over Sources See Table 2 1

United States

Wanted a job

I988

82 0 43 3 24 3 I4 4 18 0

100 0

86 3 35 3 27 5 23 5 13 7 100 0

84 8 38 2 26 4 20 2 15 2 100 0

Discouraged workers

I988

84 4 36 4 27 3 20 8 15 6 100 0

85 2 30 2 26 2 28 8 I4 8 100 0

84 8 33 0 26 7 25 2 15 2

100 0

they have become discouraged about their prospects and is this at all related to their experience of unem- ployment? Data in Table 2.7 show the probability that someone would leave the labour force and become discouraged: in the United States about 4 per cent of the employed and about 12 per cent of the unem- ployed who had left the labour force (similar once again to data from the 1984/85 time period where the probabilities were about 3 per cent and 14 per cent respectively) and in Norway about 12 per cent and 29 per cent, respectively, were counted as discour- aged. By duration of unemployment, the likelihood of leaving and being counted as discouraged tends to be greater the longer the spell of unemployment, espe- cially for men and older workers. While considerable caution is necessary in stating with certainty that there is some role for relatively long and unsuccessful job search in determining discouragement, the results are suggestive that this may be one factor.

6 . Where do discouraged workers go?

People may leave discouragement either by entering the labour force - as employed or unem- ployed - or being classified in another category of non-participants A central issue is whether discour-

aged workers are substantially more likely than other non-participants to enter the labour force. Flow data for Australia, Norway and the United States are avail- able to shed light in this area.

Data for the United States (Table 2.8) show the labour force status of discouraged workers and other non-participants in 1992 compared with that in 1993. While about 25 per cent of discouraged workers were employed one year later, over 60 per cent were out of the labour force. Only 1 1 per cent were discouraged at both dates and over 40 per cent stated that they no longer wanted a job. These data reveal virtually the same picture as those published in the 1987 Employment Outlook which referred to the 1984/85 time period (also a similar point in the economic cycle). Data for Australia paint a similar picture, where only a small fraction of discouraged workers were in employment in the subsequent period (gener- ally less than 10 per cent) (Table 2.9). Compared with data for 1985, the percentage in employment was much smaller [OECD (1987)l. Norwegian data also show a smaller percentage of discouraged workers in employment compared with 1985 (23 per cent as opposed to 34 per cent) and, at each period in t ime, about 60 per cent were not in the labour force (Table 2.10).

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Table 2.5. Discouraged workers and other non-participants in 1993 distributed by their labour force status in 1992: United States Age in 1992 and labour force status in 1993

16-24

Discouraged Others who Did not want Labour force status in 1992

workers wanted a job a job

Sample size total (000s) Status in 1992 (%) Employed involuntary part-timed invoiuntary part-timeb Unemployed < I 2 months Unemployed > I 2 months Not in labour force

Discouraged worker Others who want a iob Did not want a job

Sampie size male (000s) Status in 1992 (%) Employed Involuntary part-timea involuntary part-timeb Unemployed < 12 months Unemployed > I 2 months Not in labour force

Discouraged worker Others who want a job Did not want a iob

Sampie size female (000s) Status i n 1992 1%) Employed Involuntary part-time a lnvoiuntary part-timeb Unemployed < I 2 months Unemployed > I 2 months Not in labour force

Discouraged worker Others who want a job Did not want a job

I07 100 0 26 2 6 5

I 9 6 1 9

5 2 3 7 5

I4 0 30 8

58 100 0 29 3 8 6

I 9 0 1 7

50 0 6 9

19 0 24 I

49 100 0 22 4 4 1

20 4 2 0

5 5 1 8 2 8 2

18 8

752 3 864 100 0 100 0 24 1 20 0 2 8 1 3 0 7 0 2

12 1 6 4 0 7 0 2

62 9 73 4 1 2 0 8

180 7 6 43 8 65 0

365 I 725 100 0 100 0 27 7 20 9

2 7 1 4 1 4 0 2

110 6 7 0 5 0 2

60 3 72 2 0 5 0 6

I 6 7 7 7 43 0 63 8

387 2 139 100 0 100 0 20 7 19 3

2 8 1 3 0 2

I 3 2 6 2 0 8 0 1

65 4 74 4 1 8 0 9

19 I 7 5 44 4 66 0

25-51

jiscouraged Others who Did not want workers wanted a job a lob

347 I 282 9 414 100 0 100 0 100 0 26 8 26 8 15 7 4 6 2 7 1 0 0 6 0 6 0 3

23 3 I 1 8 3 9 2 9 1 3 0 4

47 0 60 I 80 0 12 I 3 0 1 5 10 I I 9 5 6 6 24 8 37 7 71 8

I33 347 1 725 100 0 100 0 100 0 29 3 35 4 19 I 4 5 3 7 1 3 1 5 1 2 0 6

28 6 14 1 5 9 6 0 1 7 0 9

36 I 48 7 74 0 14 3 4 9 1 9 4 5 I4 4 7 9

17 3 29 4 64 2

214 935 7 689 LOO 0 100 0 100 0

25 2 23 5 I 4 9 4 7 2 2 0 9

0 4 0 2 20 1 10 9 3 5 0 9 1 2 0 3

53 7 64 4 81 3 10 7 2 2 1 4 13 6 21 4 6 3 29 4 40 7 73 5

Data not available Individuals who normally work part-time Individuals who normally work full-time

a) bj Source Tabulations based on unpublished data from the Current Population Survey provided by the Bureau of Labor Statistics

5 5 -64

jiscouraged Others who Did not want workers wanted a job a job

1 1 1 100 0

I8 0 4 5

18 0 9 0

55 0 12 6 9 0

33 3

61 100 0 18 0

1 6

23 0 13 1 45 9 I 6 4 6 6

23 0

50 100 0 180 80

I 2 0 4 0

66 0 8 0

12 0 46 0

255 6 959 100 0 100 0 29 8 120

I 2 0 5 0 4 0 1 7 8 1 4 1 2 0 3

61 2 86 3 1 6 0 9

14 5 2 5 45 I 82 9

I 1 2 2 558 100 0 100 0 40 2 I6 0 0 9 0 5 0 9 0 1

116 2 1 2 7 0 5

45 5 81 4 1 8 I 1 9 8 3 2

33 9 77 I

I43 4 401 100 0 100 0 21 7 9 7

1 4 0 5 0 1

4 9 1 0 0 2

73 4 89 2 1 4 0 8

18 2 2 1 53 8 86 3

16-64

Iiscouraged Others who Did not want workers wanred a job a job

565 2 289 20 237 100 0 100 0 100 0 25 0 26 2 I 5 2

5 0 2 5 0 9 0 4 0 6 0 2

21 6 1 1 4 3 5 3 9 1 1 0 3

49 6 61 2 80 9 I1 3 2 2 1 2 10 6 I8 4 5 4 27 6 40 5 74 3

252 824 6 008 100 0 100 0 100 0 26 6 32 6 I8 3 4 8 2 9 1 0 0 8 I 2 0 3

25 0 12 4 4 5 6 7 1 3 0 5

41 7 53 4 76 6 13 I 2 5 1 2 8 3 I 4 8 5 8

20 2 36 0 69 6

313 165 14 229 100 0 100 0 100 0 23 6 22 6 139

5 1 2 3 0 8 0 3 0 2

18 8 I0 9 3 1 1 6 1 0 0 2

5 5 9 65 5 82 7 9 9 2 0 1 2

I 2 5 20 5 5 2 33 5 43 0 76 3

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Table 2.6. Discouraged workers and other non-participants in 1993 Q l distributed by their labour force status in 1992 Q1: Norway Age in 1992 Q I and labour force status in 1993 01

Labour force status in I992 Q i

16-24

Discouraged Others who Did not want worker3 wanted a job a job

Sample size total (000s) Status in 1992 01 ( % l a Employed Voluntary part-time Involuntary part-time Unemployed Not in labour force

Discouraged worker Others who want a job Did not want a job

Sample size male (000s) Status in 1992 01 Employed Voluntary part-time Involuntary part-time Unemployed Not in labour force

Discouraged worker Others who want a job Did not want a iob

Sample size female [OOOs) Status in 1992 Q I [%la Employed Voluntary part-time Involuntary part-time Unemployed Not in labour force

Discouraged worker Others who want a job Did not want a job

32 I00 0 I8 8 63 31 94 71 9 21 9 I5 6 34 4

I5 93 3 20 0

67 13 3 60 0 20 0 13 3 26 7

17 I05 9 176 118

59 82 4 23 5 I7 6 41 2

44 100 0 20 5 91 2 3 91 70 5 I8 2 I8 2 34 1

21 100 0 23 8 14 3

48 71 4 19 0 I 4 3 38 1

24 91 7 I6 7 42 42 83 66 7 I6 7 16 7 33 3

I70 100 0 24 1 12 9

1 8 41 71 8 59 47 61 2

79 I01 3 24 I 10 I

1 3 51 72 2 76 51 59 5

90 I01 I 24 4 I5 6 2 2 44 72 2 44 56 62 2

25-54

Discouraged Others who Did not want workers wanted a job d job

32 96 9 21 9 12 5

I5 6 59 4 34 4 I 2 5 12 5

9 100 0 33 3

22 2 44 4 22 2 1 1 I I 1 I

23 95 7 174 I7 4

13 0 65 2 39 I 13 0 13 0

48 102 1 25 0 83 42

10 4 66 7 10 4 25 0 31 3

I6 100 0 25 0 63

12 5 62 5 18 8 18 8 25 0

32 103 I 25 0 63 63 94 68 8 63 28 I 34 4

I69 99 4 17 2 89 12 24 79 9 36 95 66 9

45 100 0 I7 8 67

44 77 8 44 89 64 4

I24 100 0 I6 9 I1 3 16 24 80 6 3 2 97 67 7

55-64

lscouraged Others who Did not want workers wanted a job a job

8 1125 25 0 25 0

12 5 75 0 50 0

25 0

3 100 0

33 3 66 7 33 3

33 3

6 83 3 I6 7 I6 7

66 7 33 3 16 7 16 7

9 88 9 22 2 I 1 I

I1 I 55 6 l l I 22 2 22 2

5 I00 0 40 0

60 0 20 0 40 0

3 133 3 66 7 33 3

66 7 33 3 33 3

I27 I00 0

I 1 8 47 08 08 87 4 24 39 81 I

43 100 0 I6 3 2 3 2 3 2 3 81 4 2 3 70 72 I

83 101 2 84 72

12 91 6 24 24 86 7

16-64

Discouraged Others who Did not want workers wanted a job a job

72 100 0 20 8 1 1 I 14

12 5 66 7 29 2 12 5 25 0

26 100 0 23 I 38 38

19 2 57 7 23 I l l 5 23 I

45 102 2 20 0 13 3 2 2

73 3 33 3 13 3 26 7

8 9

101 101 0 23 8 79 30 89 68 3 I4 9 21 8 31 7

42 100 0 26 2 95

71 66 7 19 0 I9 0 28 6

60 100 0 21 7

3 3 10 0 68 3 10 0 25 0 33 3

83

466 99 6 180 94 13

78 8 41 62 68 5

I69 100 0 20 I 65 06 41 75 7 5 3 59 64 5

28

297 99 7 I6 8 1 1 I 17 20 80 8 37 57 71 4

Data not available 'Total may not add to 100% due to rounding of estimates a j

Source Tabulations based on unpublished data from the Labour Force Survey provided by the Central Bureau of Statistics

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E M P L O Y M E N T O U T L O O K 59

Table 2.7. The conditional probability that someone who was employed or unemployed in 1992 was discouraged in 1993: Norway and the United States

Employed in 1992

Involuntary Involuntary part-timea part-timeb All

Norway

Total

1992 Q I to 1993 01

16-24 25-54 55-64

M e n 16-24 25-54 55-64

W o m e n 16-24 25-54 55-64

United States 1992 to 1993

Total 16-24 25-54 55-64

M e n 16-24 25-54 55-64

W o m e n 16-24 25-54 55-64

0 1 2 0 1 1 0 15 0 1 1

0 1 2 0 1 1 0 20

0 13 0 10 0 12 0 10

0 04 0 03 0 05 0 02

0 05 0 04 0 08 0 02

0 03 0 02 0 04 0 02

0 13 0 07 0 17 0 22

0 06

0 14 0 12 0 20 0 13

0 I 1 0 09 0 1 1 0 I 1

0 13 0 13 0 15 0 07

0 09 0 05 0 10 0 13

0 10 0 20

0 50 0 50

0 13

0 03 0 00 0 06 0 00

0 07 0 00 0 13 0 00

Total

0 29 0 21 0 36 0 33

0 33 0 29 0 33 0 50

0 25 0 14 0 33

0 12 0 06 0 14 0 17

0 16 0 07 0 21 0 21

0 09 0 06 0 10 0 12

Unemployed in 1992

Duration (months)

0-3 4-6 6-12 >12

0 20 0 17 0 25

0 20

0 33

0 20

0 09 0 04 0 1 1 0 13

0 10 0 05 0 15 0 16

0 08 0 03 0 10 0 10

0 43 0 33 0 25

0 50 0 50 0 50

0 33

0 19 0 22 0 17 0 19

0 24 0 33 0 24 0 19

0 14 0 17 0 13 0 20

0 20 0 40 0 33 0 50 0 33

0 33 0 50

0 50 0 50

0 14 0 19 0 04 0 14 0 17 0 15 0 13 0 29

0 19 0 28 0 00 0 14 0 26 0 27 0 18 0 33

0 09 0 09 0 08 0 14 0 1 1 0 06 0 06 0 18

Data not available, or sample size insignificant a, b) See notes to Table 2 5 Norwegian data refer to voluntary part-time and involuntary part-time. respectively Sources See Table 2 5 for the United States and Table 2 6 for Norway

The issue is, however, more than whether or not discouraged workers enter the labour force (indeed, on this basis there is little t o distinguish them from other non-participants who want a job). An important facet is, given entry into the labour force, was a job found? Data for the United States indicate discour- aged workers who entered the labour force fared worse compared with other non-participants who entered the labour force. For example, about 60 per cent of those who were discouraged in 1992 - and who had entered the labour force in 1993 - were employed, compared with over 70 per cent of others who wanted a job, and over 80 per cent of those who stated they did not want a job in 1992 (Table 2.1 I ) . Once again, data published in the 1987 Employment Outlook for the period 1984/85 showed similar results wi th o n e i m p o r t a n t d i f fe rence : c o m p a r e d with 1984/85, the chances of successful labour force entry have diminished, particularly for prime age workers (a decline from 71 per cent to 61 per cent).

A similar pat tern prevailed in Australia (Table 2.1 1 ) . Discouraged workers who entered the labour force had the lowest probability of being employed in the next period compared with other non-participants. As in the United States, people who indicated they did not want a job, but subsequently entered the labour force, had the highest probability of being employed. The Australian probabilities are much lower, but the data are based on one quarter compared with one year for the United States. It seems more likely that impediments t o labour force entry - at least among those who stated they did not want a job, or were not discouraged -would be allevi- ated over a longer rather than a shorter period. Once again, these probabilities are much lower than those reported over a similar quarter in 1986. The difference is particularly striking for discouraged workers where the probability of moving into employment in 1993 was about half that in 1986. Finally, in Norway, dis- couraged workers who entered the labour force also

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Table 2.8. Discouraged workers and other non-participants in 1992 distributed by their labour force status in 1993: United States Age and labour force status in 1992

Labour force status in 1993

16-24

Discouraged Others who Did not want workers wanted a job a job

Sample size total (000s) Status in 1993 (Yo) Empioyed Involuntary part-timea Involuntary part-timeb Unemployed < 6 months Unemployed 6 to 12 months Not i n labour force

Discouraged worker Others who want a job Did not want a lob

Sample size male (000s) Status in 1993 (70) Employed Involuntary part-timea involuntary part-timeb Unemployed < 6 months Unemployed 6 to 12 months Not in labour force

Discouraged worker Others who want a job Did not want a job

Sample size female (000s) Status in 1993 (%) Employed Involuntary part-tirnea Involuntary part-timeb Unemployed < 6 months Unemployed 6 to I 2 months Not in labour force

Discouraged worker Others who want a job Did not want a job

98 I00 0 36 7 9 2

10 2 4 1

49 0 8 2 9 2

31 6

49 100 0 49 0 12 2

10 2 6 1

34 7 8 2 4 1

22 4

49 I00 0 24 5 6 1

10 2 2 0

63 3 8 2

I 4 3 40 8

916 100 0 37 9 3 3 0 7

12 4 0 8

48 4 1 6

14 7 32 0

448 100 0 38 4

3 8 0 7

13 4 1 3

45 8 2 5

136 29 7

468 100 0 37 4 2 8 0 6

I 1 5 0 2

50 9 0 9

158 34 2

4 429 100 0 28 2

2 8 0 4 6 3 0 4

64 9 0 7 7 4

56 7

2 039 100 0 30 I 2 9 0 5 6 7 0 5

62 4 0 7 7 7

54 0

2 390 100 0 26 6

2 6 0 3 5 9 0 3

67 1 0 8 7 2

59 I

Datd not available Source and notes See Table 2 5

25-54

Discouraged Others who Did not want workers wanted a job a job

372 1 435 8 836 100 0 I00 0 100 0 24 5 27 0 I 3 9 4 6 3 1 1 2 0 5 0 9 0 3

124 7 0 2 4 I 1 1 7 0 5

59 7 63 3 83 0 I 1 3 2 4 1 0 10 2 17 4 5 5 38 2 43 4 76 5

143 33 I I 524 100 0 I000 100 0 32 2 29 0 I 5 0

5 6 2 4 2 0 1 4 2 4 0 5

154 7 3 2 5 1 4 3 6 1 0

47 6 58 0 80 9 13 3 1 8 1 5 1 1 9 15 I 6 7 22 4 41 I 72 7

229 I04 7 312 100 0 100 0 100 0 19 7 26 4 13 7 3 9 3 3 1 0

0 5 0 3 10 5 7 0 2 4 0 9 1 1 0 4

67 2 64 9 83 4 10 0 2 6 0 9 9 2 18 1 5 2

48 0 44 I 77 3

55-64

Discouraged Others who Did not want workers wanted a job a job

105 100 0

15 2 4 8

2 9 2 9

78 I 13 3 3 8

61 0

51 100 0

15 7 3 9

3 9 2 0

78 4 I 9 6 3 9

54 9

54 100 0 I 4 8 5 6

1 9 3 7

77 8 7 4 3 7

66 7

276 6 195 I00 0 100 0 I 4 9 4 0

I 1 0 1 l l 0 1 2 5 0 3 1 4 0 1

80 I 95 6 3 6 0 6

I 3 4 1 9 63 0 93 1

1 I 9 2 135 100 0 100 0

13 4 4 6 0 8 0 0 2 5 01 1 7 0 4 1 7 0 1

81 5 94 8 3 4 0 7 9 2 1 8

68 9 92 4

157 4 060 100 0 100 0

I 5 9 3 6 1 3 0 2

0 1 3 2 0 2 1 3 0 1

79 0 96 0 3 8 0 6

16 6 1 9 58 6 93 5

16-64

Discouraged Others who Did not want workers wanted a job a job

575 2 627 100 0 I00 0 24 9 29 5

5 4 2 9 0 3 0 8

10 3 8 5 1 9 1 3

61 2 59 8 1 1 I 2 3 8 9 16 1

41 2 41 5

243 898 100 0 100 0

32 I 31 6 6 6 2 9 0 8 1 6

I ! 9 9 6 2 5 2 2

5 1 4 55 0 13 6 2 3 8 6 13 6

29 2 39 I

332 I 729 100 0 100 0

I 9 6 28 5 4 5 2 9

0 5 9 0 7 9 I 5 0 9

68 4 62 3 9 3 2 3 9 0 174

50 0 42 7

19 460 100 0

14 0 1 2 0 3 2 6 0 3

82 9 0 8 4 8

77 3

5 698 100 0 16 5

1 6 0 4 3 2 0 5

79 5 0 9 5 2

73 4

13 762 100 0

129 1 0 0 2 2 3 0 3

84 3 0 8 4 6

78 9

rn 3 -0 r 0 4 II rn z -I

0 C 4 r 0 0 x

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Table 2.9. Discouraged workers and other non-participants in September 1993 distributed by their labour force status in December: Australia Age and labour force status in September 1993

15-24

Discouraged Others who Did not want Labous force status in December 1993

workers wanted a job a lob

Sample size total (OOOs] 5 1 I46 2 188 2 Status in December ( % I 100 0 100 0 100 0 Employed 6 3 18 5 13 I Involuntary part-timea 0 0 6 0 3 6 involuntary part-timeb 0 0 0 0 0 2 Unemployed 43 5 21 2 12 8 Not i n labour force 50 2 60 3 74 I

Sample size male [OOOs] 3 5 68 2 85 4 Status in December ( % I 100 0 100 0 100 0 Employed 9 2 22 7 15 4 Involuntary part-timea 0 0 6 3 4 9 invoiuntary part-timeb 0 0 0 0 0 3 Unemployed 48 3 25 3 14 0 Not in labour force 42 6 51 9 70 6

Sample size female (000s) 1 6 78 1 102 8 Status in December (%) 100 0 100 0 100 0 Employed 0 0 I 4 8 I 1 1

involuntary part-timeb 0 0 0 0 0 0 Involuntary part-time” 0 0 5 7 2 5

Unemployed 33 2 I 7 6 1 1 8 Not in labour force 66 8 67 7 71 I

25-54

Discouraged Others who Did no? want workers wanted a job a job

39 9 100 0

8 3 1 7 0 0

I 4 8 76 9

4 0 100 0

21 7 0 0 0 0

37 2 41 I

35 9 100 0

6 8 1 8 0 0

I 2 3 80 9

295 3 100 0

10 4 2 3 0 0 9 6

80 0

44 7 100 0 I 4 2 3 0 0 0

16 3 69 5

250 6 100 0

9 7 2 2 0 0 8 4

81 9

420 4 100 0

5 6 0 5 0 2 2 7

91 7

79 0 100 0

6 6 0 8 0 4 6 5

86 8

341 4 100 0

5 4 0 4 0 2 1 8

92 8

a bj See notes to Table 2 5 Source Tabulations bdsed on unpublished data psovided by the Australian Bureau ot Statistics

17-64 I 55-64

Discouraged Others who Did not want I Discouraged Others who Did not wan?

- 21 4

100 0 3 4 0 6 0 0 8 5

88 I

6 7 100 0

2 0 2 0 0 0

22 7 75 3

I 4 7 100 0

4 1 0 0 0 0 2 0

93 9

42 2 100 0

8 6 2 7 0 0 8 6

82 8

21 9 100 0 10 8 4 0 0 0

12 3 76 9

20 3 100 0

6 2 1 3 0 0 4 5

89 2

378 4 100 0

2 7 0 3 0 1 1 2

96 I

1189 100 0

? 9 0 4 0 0 35

92 5

259 5 100 0

2 2 0 2 0 1 01

97 7

66 4 100 0

6 6 1 2 0 0

15 0 18 5

14 L 100 0

9 3 0 9 0 0

33 0 57 7

52 2 100 0

5 8 1 3 0 0

10 I 84 1

483 8 100 0

12 7 3 5 0 0

13 0 74 3

1348 100 0 18 0 4 8 0 0

20 2 61 8

349 0 100 0 10 6 2 9 0 0

10 2 19 2

986 9 100 0

5 9 1 0 0 2 4 0

90 0

283 3 100 0

8 1 1 9 0 2 75

84 3

703 6 100 0

5 1 0 6 0 1 2 6

92 3

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s

rn II -0 r 0 -< II rn Z -i

0 C -I

0 0

r

K

Table 2.10. Discouraged workers and other non-participants in 1992 QI distributed by their labour force status in 1993 Q I : Norway Age and labour force status in 1992 01

Labour force status in 1993 01

16-24

Discouraged Others who Did not want workers wanted a job a job

Sample size total (000s) Status in I993 Ol (%ja Employed Voluntary part-time lnvoliintary part-time Unemployed Not in labour force

Discouraged worker Others who want a job Did not want a job

Sample size male (000s) Status in 1993 Ol ( % l a Employed Voluntary part-time Involuntary part-time Unemployed Not in labour force

Discouraged worker Others who want a job Did not want a job

Sample size female (000s) Status in 1993 Q I ( % l a Employed Voluntary part-time Involuntary part-time Unemployed Not in labour force

Discouraged worker Others who want a job Did not want a job

7 97 6 29 3 I4 6 2 4 7 3

61 0 17 I I9 5 24 4

3 95 0 25 0 I5 0

5 0 65 0 I5 0 20 0 30 0

4 95 2 28 6 14 3 4 8 9 5

57 1 190 I9 0 190

5 94 9 30 8 I5 4 2 6

10 3 53 8 1 2 8 20 5 20 5

2 100 0 41 2

5 9 5 9 5 9

52 9 1 1 8 176 23 5

3 95 5 31 8 I 8 2 4 5 9 1

54 5 136 18 2 22 7

I 1 94 8 24 7 I I 3

1 5 3 1

67 0 5 7 7 7

53 6

4 96 7 28 3 8 7

4 3 64 I

4 3 8 7

51 I

7 95 0 21 8 I5 8 2 0 3 0

70 3 6 9 7 9

55 4

25-54

Discouraged Others who Did not want workers wanted a job a job

1 1 90 2 2 2 0 9 8 2 4

I4 6 53 7 26 8 12 2 I4 6

2 92 9 14 3

28 6 50 0 I4 3 21 4 I4 3

9 88 9 25 9 I4 8 3 7 7 4

55 6 33 3

7 4 I4 8

4 94 4 24 I 9 3

I 1 I 59 3 7 4

22 2 29 6

1 88 2 I7 6

23 5 47 I

5 9 176 23 5

3 94 6 24 3 13 5

5 4 64 9

8 1 24 3 32 4

4 94 3 I6 7 7 5 0 6 1 7

75 9 2 3 8 6

64 9

I 90 2 21 6

3 9

2 0 66 7

2 0 7 8

56 9

3 96 7 I5 4 8 9 0 8 1 6

79 7 2 4 8 9

68 3

55-64

Discouraged Others who Did not wan1 workers wanted a job a job

4 2 100 0 LOO 0 95 7

I I I 2 6 I 1 1 1 7

88 9 44 4 I 1 I 33 3

I 75 0

75 0 25 0 25 0 25 0

2 100 0

16 7 16 7

83 3 33 3 16 7 33 3

100 0

28 6 71 4

I25 0

I25 0

50 0 75 0

1 100 0

100 0 50 0 50 0

93 0 1 7 1 7

89 6

I 94 4

5 6 2 8

88 9 2 8

86 I

1 97 5

2 5 1 3

94 9 1 3 2 5

91 1

16-64

Discouraged Others who Did not want workers wanted a job a job

21 94 5 24 2 12 1 2 2 9 9

60 4 23 I I6 5 20 9

6 94 7 21 1

7 9

13 2 60 5 I5 8 21 1 23 7

15 94 3 26 4 15 1 3 8 7 5

60 4 28 3 1 1 3 20 8

9 94 0 25 0 10 0 2 0 9 0

60 0 9 0

22 0 29 0

3 92 I 23 7

5 3 2 6

13 2 55 3 7 9

21 I 26 3

6 93 5 25 8 1 2 9

1 6 6 5

61 3 9 7

24 2 27 4

18 95 4 16 8 7 7 0 8 2 3

76 4 3 7 6 6

66 0

6 95 0 21 1 4 4 0 6 3 3

70 6 3 3 6 7

60 6

12 96 4 I3 9 9 6 1 0 2 0

80 5 4 0 6 6

70 0

Data not available Total may not add to iOOYo due to rounding of estimates a )

Source See Table 2 6

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E M P L O Y M E N T O U T L O O K 63

Table 2 1 1 Probability of successful labour force entry among discouraged workersa

Discouraged Others wanting a job Who did not want a lob

Australia Total Sample size (000s)

September 1993 to December 1993

15-64 15-24 25-54 55-64

Men Sample size (000s)

15-64 15-24 25-54 55-64

Women Sample size (000s)

15-64 15-24 25-54 55-64

Norway Total Sample size (000s)

1992 Q I to 1993 01

16-64 16-24 25-54 55-64

Men Sample size (000s)

16-64 16-24 25-54 55-64

Women Sample size (000s)

16-64 16-24 25-54 55-64

United States 1992 t o 1993 Total Sample size (000s)

16-64 16-24 25-54 55-64

Men Sample size (000s)

16-64 16-24 25-54 55-64

Women Sample size (000s)

16-64 16-24 25-54 55-64

66 0 30 0 13 0 36 0 29

14 0 22 0 16 0 37 0 08

52 0 37 0 00 0 35 0 67

91 0 71 0 80 0 60

38 0 62 0 83 0 33

53 0 78 0 75 0 78

575 0 64 0 72 0 61 0 70

243 0 66 0 75 0 61 0 73

332 0 62 0 67 0 60 0 67

484 0 49 0 47 0 52 0 50

I35 0 47 0 47 0 47 0 47

349 0 51 0 46 0 54 0 58

I00 0 74 0 75 0 68

38 0 64 0 88 0 43

62 0 80 0 78 0 82

2 627 0 74 0 74 0 74 0 75

898 0 70 0 71 0 69 0 73

1 729 0 76 0 76 0 75 0 76

987 0 60 0 51 0 68 0 70

283 0 52 0 52 0 50 0 52

704 0 66 0 49 0 75 0 96

483 0 88 0 89 0 91

180 0 86 0 87 0 92

303 0 88 0 88 0 90

19 460 0 82 0 81 0 82 0 89

5 698 0 81 0 80 0 79 0 88

14 762 0 82 0 81 0 82 0 90

(0.06)

(0.05)

a) This is defined as the number of people employed coming from each situation ("discouraged" or "others wanting a job" or "who did not want a job") divided by the number of people who entered the labour force

bj The numbers in brackets refer to the per cent of each group that entered employment Sources See Table 2 5 for the United States, Table 2 6 for Norway and Table 2 9 for Australia

had the lowest probability of being employed in the next period (Table 2.1 l ) . Once again, this probability has declined since 1985 (OECD (1987)j.

These findings tend to further into question the current concept and measure of discouraged workers insofar as they are supposed to be a group

"close" to the unemployed and potential labour mar- ket entrants. Given that their previous work experi- ence is quite remote, it is not surprising that they would face difficulties in getting employment when they d o attempt t o re-enter the labour market. The lack of success is indicative of problems that other

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64 E M P L O Y M E N T O U T L O O K

groups face, e.g. the long-term unemployed. But it is surprising that over t ime, they appear to have encountered further difficulties in getting work, although this conclusions rests on evidence from only three countries. This probably reff ects changes in labour market conditions over time, e.g. worsening Unemployment that reduces the chances of many groups to find work, particularly the long-term unem- ployed although this would appear to be more of a problem in Australia (and t o a lesser extent in Norway), where long-term unemployment has risen dramatically in the early 1990s, than in the United States.

These results also raise the question as t o whether or not all non-participants who say they want a job should be considered as potential labour force entrants - and thus part of overall labour underu- tilisation - particularly since they have higher probabilities of both entering the labour market and getting work than discouraged workers. The reason why they are not is that it is traditionally assumed that discouraged workers can easily re-enter the labour market compared with others who state they want a job but are not looking, for example because of long-term illness/disability or schooling (where availability may or may not be an issue). However, given that in many surveys discouraged workers avail- ability or desire for a job is not checked casts some doubt on the validity of this presumption. And once again, both groups have a lower probability than indi- viduals who did not want work of entering the labour force a s employed, indicating the need for further information on differences in characteristics among all of these groups.

7. Summary

1 . Discouraged workers numbered about 4 mil- lion people in 1993 in the OECD area, most of whom were women.

2. In some countries - Australia, Japan, New Zealand, Portugal, Sweden and the United States - there is a strong cyclical pattern. In most other countries there is no strong rela- tionship, except in Canada and the United Kingdom where it is moderate.

3 . Most discouraged workers have not worked in a considerable amount of time. Although most had work experience prior t o becoming discouraged, in most countries, the largest proportion had last worked over three years before. This could indicate either that they predominantly come from t h e long-term unemployed, that they remain discouraged for a long period of time but d o test the labour market from time to time, and/or that they remain non-participants for a long period of time.

Flow data for Norway and the United States indicate that about 50 to 60 per cent of dis- couraged workers in 1993 were also out of the labour force in 1992, but only a small percent- age were discouraged at each point-in-time (about 1 2 per cent in the United States and about one-quarter in Norway). The figures for the United States are virtually the same as those published in the 1987 Employment Outlook for the period I984/85. The flow data also reveal that, compared with other groups of non-participants, a higher percentage - although small - of discouraged workers came from long-term unemployment. Flow data for Australia, Norway and the United States indicate that when discouraged workers d o enter the labour force, they have a smaller chance of getting a job compared with other non-participants. Furthermore, t h e chance of getting a job was lower in the early 1990s compared with the mid-1980s. These results shed considerable doubt on whether all discouraged workers should be considered a s “being close to the labour mar- ket” and ready to enter when times get better. Flow data for the United States - where there is a strong cyclical element to discourage- ment - indicate that about half of discouraged workers were also out of the labour force in the previous year. Combined with stock data on the last time they had worked indicates that many experience long periods of jobless- ness. Furthermore, a majority of discouraged workers remain jobless even when they change status. These moves are not typically into the labour force but rather into other groups of non-participants. Few are discour- aged at two points in time. Even when dis- couraged workers d o test the labour market, the flow data are not sufficient t o indicate whether it was the long-term discouraged workers or those who had been without work for only a short period of time. Given the lack of recent work, it is not surprising that they would face considerable difficulties in getting work when they d o search. To the extent that some discouraged workers d o come from long-term unemployment - and this appears to be the case mainly for older workers - indi- cates that their impact on the wage adjust- ment process would be minimal. At least some fraction, however, is influenced by the cycle. This highlights the need for more information on their specific characteristics compared to other non-participants t o help shed light on the different outcomes observed with respect to labour force entry. While dif- ferences in age may be one important ele- ment, it may also be the case that some of the

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E M P L O Y M E N T O U T L O O K 65

reasons that make up discouragement are more fundamental barriers to successful labour force entry than has been presumed, for example a lack of schooling or training. This might reflect a more serious supply side problem than simply a lack of demand in recessions.

D. INVOLUNTARY PART-TIME WORKERS

1. What is involuntary part-time work?

Involuntary part-time work refers directly to the ILO concept of visible underemployment. It com- prises three groups: first, individuals who usually work full-time but are working part-time because of economic slack; second, individuals who usually work part-time but are working fewer hours in their part- time job because of economic slack; and third, those working part-time because full-time work could not be found.9 The first two more clearly reflect aggregate - and perhaps sectoral-specific - demand problems and would be expected to be closely correlated with the economic cycle. The latter could reflect aggregate demand problems - for example, a lack of full-time jobs - or supply side issues such as a lack of qualifi- cations for the jobs that are open, lack of flexibility in work arrangements and others.

Involuntary part-time work is defined differently across countries. Differences in their numbers reflect in part these differences and, in part, differences in how part-time work per se is measured (see Annex 2.C to this chapter, and Statistical Annex Table E) . Consider those working part-time because full-time work could not be found. In Australia, Japan and New Zealand, the data refer to those who would like more hours. Thus, it includes those who want to work full-time hours and those who wish to work more part-time hours. This may lead to more individ- uals counted as involuntary part-time workers com- pared to countries where the definition relates only to those who want to work full-time. With respect to economic reasons, data for many of the EU countries refer to slack work and either taking-up or ending a job. In the United States, an additional economic reason is “because of a shortage of materials”. The United States has also recently revised its definition and now only those who are also available for - and want - additional work are classified as involuntary part-time.

For the concerns of this chapter - addressing the issue of supplementary measures to unemployment - it is not clear how the “availability” and “search” criteria of the ILO, and the “desire” criterion of the United States should be interpreted. For example, in the case of those working fewer hours for economic reasons, it is not clear that t h e y should be expected

to look for work i f their situation is temporary and a formal link is maintained with the employer. With respect to the “desire” criterion, it may be sufficient that the individual could not find full-time work to infer that it does exist. Typically, all individuals work- ing part-time involuntarily are assumed to be under- employed, regardless of whether the availability and search criteria are met.

2. Who are involuntary part-time workers?

Most involuntary part-time workers are those who say they could not find full-time work: about 8 million in 1993.1° Individuals who normally work full-time, but are working fewer hours for economic reasons are the next largest group, followed by those who normally work part-time but are working fewer hours than normal. These two latter groups totalled roughly 7 million people. In 1993, workers who stated they could not find full-time work comprised about 1 to 2 per cent of the labour force in most countries, except in Australia, Canada, France and New Zealand, where they made up about 6 per cent (Table 2.12) . Those who normally work full-time but were working part-time for economic reasons accounted for between 0.1 to 1 per cent of the labour force, except in Mexico, Sweden and the United States, where they comprised about 5, 6 and 2 per cent, respectively.

Chart 2.3 (and Annex Tables 2.D.2 and 2.D.3) shows the distribution of involuntary part-time work- ers who could not find full-time work. They are over- whelmingly women (typically around 70 per cent in most countries),” and there has been little change in their proportions over time except in three countries where the share of women declined: New Zealand (7 percentage points), Turkey (about 20 percentage points, but the data are quite volatile) and the United Kingdom (about 1 2 percentage points).

Not surprisingly, the 25 to 54 age group accounts for the largest proportion of this group (Chart 2.4). However, as a percentage of the labour force, youths had the highest rate of involuntary part-time work (Table 2.12). Other data - not presented - indicate that it is typically teenagers and in particular women.I2 This raises two important points. First, this may reflect a problem with the transition from school to full-time work. Second, however, it is surprising that many teenagers would want full-time work. Although there are considerable differences in educa- tional systems across countries, many teenagers are still in full-time education making it quite difficult to combine full-time work and full-time study. This remains an area for further research.

Turning to economic reasons for part-time work,I3 in contrast to the above group, men typically had the largest proportion and this has changed little over time. Notable exceptions where the male share

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E M P L O Y M E N T O U T L O O K

Chart 2.3

Distribution of involuntary part-time work (could not find full-time job) by age and sex, I983 and I993

%

83 93 83 93 83 93 83 93 92 93 85 93 83 93 83 92 83 93 Australia Belgium Canada Denmark France Germanya Greece Ireland Italy

100 %

80

60

40

20

0

% I

85 93 87 91 86 93 86 93 87 93 88 93 83 93 83 93 Japan Netherlands New Portugal Spain Turkey United United

Zeaiand Kingdom States

%

a) See note a t o Chart 2.2. b) See note a t o Chart 2. I . Sources: See Table 2. I.

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E M P L O Y M E N T O U T L O O K 67

Men

16-64% 16-24a 25-54 55-64

Table 2.12. Involuntary part-time workers because could not find full-time job by age and sex As a per cent of the respective labour force of each group

1983

Women

16-64” 16-24a 25-54 55-64

Aust ra I ia 1 8 3 7 1 2 1 2 Belgium 0 4 1 1 0 3 Canada 2 1 5 4 0 9 2 7 Denmark (1984) 1 1 18 0 9 Finland I 0 2 8 0 7 0 7 Germanyb (1985) 0 2 0 2 Greece 1 6 2 5 1 6 1 0 Ireland 1 3 2 1 1 0 Italy 0 7 1 3 0 6 0 6 Japan (1985) 0 6 ! I 0 4 1 0 Netherlands (1987) 1 7 3 6 1 2 1 7 New Zealand ( 1986) 0 9 2 2 0 5 0 6 Portugal (1986) 0 9 1 4 0 8

Turkey ( 1988)c 1 8 United Kingdom 0 5 0 8 0 4 0 7 United States 1 9

Spain (1987) 0 6 1 2 0 5 0 4

5 4 6 5 5 2 2 8 3 5 5 7 3 0 6 5 9 2 4 2 15 4 4 2 4 4 4 3 2 8 3 0 5 9 2 6 1 5 1 7 1 0 2 0 1 3 1 4 1 7 1 3 2 0 2 6 1 7 2 2 2 7 2 2 1 2 2 2 1 1 2 4 2 3

1 1 3 9 4 12 1 12 8 3 5 3 0 3 8 2 6 2 8 2 5 2 9 2 4 3 1 3 5 3 0 3 0 1 8 3 0 2 8 3 1 2 5 4 1

Men I Women

16-64a 16-24a 25 54 55 64

3 9 8 5 2 8 3 0 I 0 2 7 0 7 1 6 3 3 8 2 1 8 6 5 1 1 2 4 0 9 2 4 6 2 1 7 3 3 1 7 4 4 1 4 0 8 0 2 0 3 0 2 0 1 1 2 2 1 1 1 1 0 1 8 2 6 1 7 0 8 1 4 0 8 0 6 0 5 1 1 0 3 1 0 1 9 4 0 1 4 2 5 3 5 7 4 2 4 3 8 0 6 1 2 0 5 0 8 0 3 0 6 0 2 0 2 0 1 16 2 5 1 3 2 6 1 6 4 2 1 1 1 0

Australia Belgium Canada Denmark Finland France Germany Greece Ireland (1992) Italy lapan Netherlands (1991) New Zealand Portugal Spain Turkey United Kingdom United States

16-64% 16 24a 25-54 55-64

9 2 13 1 a 4 4 2 7 2 10 5 6 8 4 4 a 2 I 1 6 5 6 26 8 6 3 6 1 6 0 9 5 3 5 6 9 3 3 2 0 7 5 124 7 1 4 0 2 0 0 9 2 1 2 6 2 1 2 4 2 0 1 9 3 6 4 1 3 5 2 a 3 5 2 7 1 4 1 9 0 9 2 2 2 1

10 4 7 8 10 9 15 9 8 8 10 6 8 4 6 7 2 5 2 0 2 5 3 1 16 2 1 1 5 0 9 0 0 4 3 5 0 4 0 5 1 3 1 5 8 2 6 2 7

Data not available * Sample size too small to be significant aj See note b to Table 2 1 for age group definitions b) Data up to 1990 concern western Germany. thereafter the whole of Germany c) See note c to Table 2 I Sources See Table 2 I

fell significantly were Portugal and Spain. The 25 to 54 age group once again had the highest proportion out of all of those working part-time for economic reasons, but the rates were much more uniform than with other involuntary part-time work, with some ten- dency for youths to have a slightly higher rate (Table 2.13). This could be explained by their relative lack of work experience, where they could be much more likely to be put on reduced hours first in a downturn.

3. Is involuntary part-time work cyclical?

Generally, there should be some correlation between the economic cycle and involuntary part- time work related to reduced hours For example, dur- ing a downturn, firms generally reduce hours first before resorting to layoffs Therefore slack work should bear some relation to the cycle and would be expected to react fairly quickly to a downturn relative to layoffs The extent to which it will, however,

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E M P L O Y M E N T O U T L O O K

Chart 2.4

Distribution of involuntary part-time work (economic reasons) by age and sex, 1983 and 1993

% 100

80

60

40

20

n 83 93 83 93 84 93 83 93 85 93 83 93 83 92 83 93 85 93

Australia Belgium Denmark France Germany' Greece Ireland Italy Japan

% 100

80

60

40

20

n 87 91 86 93 86 93 87 93 87 92 90 93 83 93 83 93

Netherlands New Portugal Spain Sweden Turkey United United Zealand Kingdom States

100 %

80

100 %

80

60

Men I6 to 24b Women I 6 to 24b Women 25 to 54 Women 55 to 64 Women 16 to 64b I

Men 25 to 54 Men 55 to 64 Men I6 to 64b

xxI_ - __I-- ____-----~---___I -a - --

Sources and notes: See Chart 2.3

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E M P L O Y M E N T O U T L O O K 69

Men

Table 2.13. Involuntary part-time workers for economic reasons by age and sexa As a per cent of the respective labour force of each group

W o m e n

Australia 0.9 . . . . . . Belgium 0.9 1 .o 0.9 Canada [ 1989) 0.8 0.9 0.9 . . Denmark (1984) 0.9 1 .o 0.9 France 0.6 0.5 0.7 0.3 GermanyC [ 1985) 0 1 0.2 Greece 2.3 2.3 2.4 2.0 Ireland 0.9 1 .o Italy 0.6 0.6 0.6 1 .o Japan (1985) 0.6 0.3 0.6 1 .o

Portugal (1986) 0.1 *

Sweden ( 1987) 2.3 6.1 1.8 0.6

United Kingdom 0.5 0.5 0.5 0.7

*

* Netherlands (1987) 0.3 0.4 0.2 New Zealand [ 1986) 0.9 0 6 1.1 0.6

Spain [ 1987) 0 5 0.5 0.5 0.6

Turkey [ 1990)

United States 2.9 2.2 I .8 1.7

16-64b 16-24b 25-54 55-64 I 16-64b 16-24b 25-54 55-64

0.4 . . 0.8 0.8 0 8 0.8 0.9 0.9 0.8 0.8 0.4 0.4 0.4 0.1 0.1 I .a 1.9 3.1

1 .o 0.6 1 . 1 2.0 1 .2 0.3 1 .3 I .3 0.5 0.4 0.5 0.4 0.4 0.7 0.5

0.6 0.3 0.7 0.8 7.4 14.0 6.7 3.3

* * 0.3 0.2 0.3 2.8 1.7 1.5 1.6

* *

16-64b 16-24b 25-54 55-64

Australia 1 . 1 . . . . . . Belgium 0.4 0.3 Canada I 1 1 .o 1 .3 . . Denmark I .5 1.4 1.6 France 0.6 0.4 0.7 0.5 Germany 0.7 0.3 0.8 0.8 Greece 1.7 I .6 1.4 2.7 Ireland 0.7 0.7 Italy 0.4 0.4 0.4 0.5 lapan 0.6 0 6 0.5 1 .o Mexico 4 9 4 5 4.8 7.3 Netherlands [ 1991) 0.3 0 8 0.3 New Zealand 0.6 0 6 0.7 0.4 Portugal 0.3 0.3 Spain 0.3 0.3 0.3 Sweden ( 1992) 3.7 9.3 3.1 1 0 Turkey * United Kingdom 0.5 0.6 0.5 0 5 United States 2.9 2 0 1 7 1.6

*

*

*

*

Men I W o m e n

16-64b 16-24b 25-54 55-64

0.4 . . . . 0.2 0.2 0.9 0.8 1 .o . . I .o I .o 0.3 0.3 0.3 0.3 0 2 0.3 0 4 1.4 1.2 4.3

0.5 0.4 0.5 1.1 0.5 1 . 1 1 6 5.8 4.1 6.2 11.0 0.4 0.8 0.3 0.3 0.1 0.3 0.4 0.3 0.2 0 2 0.2 8.9 14.7 8.5 5.3

* * 0.3 0.4 0.2 0 3 2.6 1.5 1 .3 1.2

*

* * *

*

*

* *

depends on the specific institutional arrangements and policies that workers and firms can use. For example, temporary layoffs are more common in North America than in Europe, where "partial" unem- ployment benefits exist and working hour reductions are more common. Working-hour reductions might

also affect youth and women more than other groups because reductions would probably be based on seniority. With respect to involuntary part-time work because a full-time job cannot be found, this would seem more complicated. I f a lack of full-time jobs is an aggregate demand problem - which would be the

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70 E M P L O Y M E N T O U T L O O K

case in a downturn - then there should be some relation to the cycle. I f , however, it is more of a struc- tural problem - for example a lack of qualifications to f i l l existing full-time jobs - then there may be no relation t o the economic cycle.

Turning first to individuals who could not find full-time work, there is a moderate positive correla- tion with the unemployment rate in most countries (Table 2.14). Countries with little or no correlation include Belgium, Ireland, Spain and the United King- dom. By contrast, countries with a strong cyclical pat-

tern include Germany, Italy, New Zealand, Portugal and the United States. There, thus, appears to be some cyclical influence, although the strength of the correlations suggest that structural reasons may also play a role.

With respect to those working part-time for eco- nomic reasons, the surprising result is that there are few countries where the expected influence shows up. Generally, their numbers as a percentage of the labour force have remained relatively constant in many countries, in contrast to those who could not

Table 2.14. Correlations between unemployment rates and involuntary part-time work, 1983- I993

Both sexesa

lnvoluntary part-time work:

Aust ra I ia Belgium Canada Denmark Germanyf (1985-90) Greece Ireland (1983-92) Italy Japan (1985-93) Netherlands (1987-91) New Zealand (1986-93) Portugal (1986-93) Spain (1986-93) United Kingdom United States

Involuntary part-time work:

Australia Belgium Denmark France Germanyf ( 1985-90) Greece Ireland (1983-92) Italy Japan (1985-93) Netherlands (1987-91) New Zealand (1986-93) Portugal (1986-93) Sweden ( 1987-92) Spain (1987-93) United Kingdom United States

could not find full-time work

economic reasons

0 7 -0 2

0 7 0 6 0 8 0 5

-0 3 0 8 0 6 0 5 0 9 0 8

-0 2 0 4 0 9

0 7 0 0

-0 1 -0 1

0 8 -0 5 -0 1 -0 6

1 0 0 1

-0 6 -0 3

0 9 -0 I

0 1 0 7

Men

0 7 0 3 0 7 0 7

-0 1 0 3

-0 4 0 7 0 4

-0 4 0 9 0 9 0 0 0 3 0 9

0 7 0 0 0 1

-0 1 0 8

-0 4 -0 1 -0 5

0 9 41 - 0 4 -0 3

0 1 0 1 0 6

0 8 0 6 0 8 0 7

-0 1 0 7

-0 3 0 5 0 4

-0 3 0 9 1 0

-0 2 0 5 0 9

0 8 -0 5

0 1 0 4 0 9

-0 3 -0 I -0 4

0 9 0 1

-0 4 -0 I

-0 I 0 1 0 7

Women

0 7 -0 3

0 8 0 5 0 9 0 5

-0 2 0 7 0 6 0 8 0 9 0 6

-0 3 0 6 0 9

0 4 0 0

-0 3 -0 2

0 9 -0 5 -0 2 -0 8

0 9 0 5

-0 9 -0 2

-0 3 0 2 0 9

0 5 -0 8

0 8 0 6 0 9 0 7

-0 3 0 5 0 6 0 7 0 9 0 7 0 3 0 1 0 9

0 2 0 6

-0 2 -0 3

0 9 -0 3 -0 3 -0 6

0 9 0 5

-0 9 -0 4

0 2 0 4 0 8

Data not available a) The correlation is between the s u m of male and female involuntary part-time workers (as a per cent of the male and female labour forces) and the

unemployment rate for both sexes bj The correlation is between male involuntary part-time workers (as a per cent of the male labour force) and the unemployment rate c) The correlation is between male involuntary part-time workers (as a per cent of the male labour forcej and the male unemployment rate dj The correlation is between female involuntary part-time workers (as a per cent of the female labour force) and the unemployment rate e) The correlation is between female involuntary part-time workers (as a per cent of the female labour force) and the female unemployment rate f ) Data refer to western Germany Source Secretariat estimates

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E M P L O Y M E N T O U T L O O K 71

find full-time work. Sweden and Japan, with correla- tions close to one, and Australia, Germany and the United States are the only exceptions. In neither form of involuntary part-time work was there a large nega- tive correlation suggesting that movements in one variable were not offset by movements in the other. Finally, although the rate of involuntary part-time work for economic reasons could "lead" the unem- ployment rate - for reasons described above -testing for this possibility did not change the picture.14

By gender, the picture is similar to the overall patterns described above, with a few exceptions. With respect to those who could not find full-time work, in Germany and the Netherlands it was women who exhibited a strong correlation with the business cycle and not men. The pattern is reversed in Denmark and Portugal. With respect to involuntary part-time work for economic reasons, in countries where there was a strong correlation between this measure and the unemployment rate, it held for both men and women. The only two exceptions where the correlation between the gender-specific measure of involuntary part-time work (for economic reasons) and the gen- der-specific unemployment rate differs from the pic- ture given at the more aggregate level are among women in Australia, where the correlation was rela- tively weaker, and the United States, where it was relatively stronger.

Given the surprising results with respect to the link between the rate of involuntary part-time work for economic reasons and the unemployment rate, another approach was attempted. The unemployment rate may not be the best indicator of the cycle from the firm's perspective and, in the short-term, hours adjustments are typically a firm's decision. A measure that might more clearly reflect the demand side is the output gap, i.e. the difference between actual and potential output.I5 Correlations between this variable and both types of involuntary part-time work do yield some differences from the results described above. While the results for involuntary part-time work because full-time work could not be found remain basically unchanged, those for economic reasons did show some difference. The most interesting changes pertain to Italy and France. In Italy, the correlation was -0.9 while in France it was -0.6.16 In both countries, but particularly the latter, correlations with respect to the unemployment rate were relatively weak.

Comparing these patterns with those of discour- aged workers reveals that movements in the latter are much more closely linked to the economic cycle. These results also cast some doubt for some coun- tries that part-time work for economic reasons results from a cyclical slowdown. The numbers appear fairly constant over time in contrast to other involuntary part-time work which more closely follows the cycle. Furthermore, in three countries, there appears to be a

rising share of this form of involuntary part-time work. Indeed, in Australia the rate of involuntary part-time work because full-time work could not be found increased from about 3 to over 6 per cent of the labour force between 1983 and 1993. Canada and New Zealand also show rising rates, which could reflect relatively slow growth in full-time work in the latest recovery period (see Chapter I ) .

Finally, countries where there were moderate to strong cyclical movements in the discouraged worker rate tend to show the same patterns with the rate of involuntary part-time work, although not to the same degree. These are largely, although not exclusively, non-Continental European countries. Although there is currently no evidence for or against t h e proposi- tion, this suggests that specific factors in European countries may account for what appears to be a more structural element of this form of part-time work.

4. Are they looking for work?

The majority of involuntary part-time workers say they could not find full-time work. This implies they would like such work. Thus, a useful question to ask is how many were actually looking for work? About 40 to 60 per cent of men who could not find full-time work report that they had looked for additional work or a second job, but among women it tends to be below the 50 per cent mark (Table 2.15).

The interpretation of the gender differences is, however, not straightforward. While job search is an objective measure of whether an individual actually wants work, it is not a necessary or sufficient condi- tion to judge whether the person will accept further work. For example, while the gender differences might indicate that men desire to work more and actually go out and seek additional work, they may also reflect barriers for women in finding the time to search for additional work or a form of discouragement (e.g. wanting a full-time job but not believing that one is available that suits desired work patterns or skills). Therefore, while job search is one way to ascertain whether a n individual wants more work, it is not necessarily a sufficient measure of whether the individual is available or actually wants more work.

5. Where do involuntary part-time workers come from and where do they go?

Are involuntary part-time jobs stepping stones for unemployed or discouraged workers? While infor- mation is restricted to Australia, Norway and the United States, some interesting results emerge (Table 2.16; data refer to conditional probabilities, i.e for those that did move into employment, did they end up in full voluntary or involuntary part-time jobs?).I7 In each, those who left unemployment to a job generally entered into full-time work directly. The

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72 E M P L O Y M E N T O U T L O O K

Table 2.15. Incidence of looking for work among those who could not find full-time work

I983 I 985 1987 1989 1990 1991 1992 1993

Total Australia Belgium Denmark France Germanya Greece Ireland Italy Netherlands New Zealand Portugal Spain Turkey United Kingdom

Men Australia Belgium Denmark France Germanya Greece Ireland Italy Netherlands New Zealand Portugal Spain Turkey United Kingdom

Women Australia Belgium Denmark France Germanya Greece Ireland Italy Netherlands New Zealand Portugal Spain Turkey United Kingdom

36 9 42 9 32 3

63 2 66 0 48 0 20 0

33 2

49 8 59 4 46 9

66 6 69 I

37 9 55 a

50 2

30 0 40 0

55 8 61 6 43 2 16 8

28 8

36 5 36 9 29 7

30 2 55 9 61 1 59 3 37 5

32 6

50 5 58 2 51 3

30 2 64 8 65 2 65 9 51 4

49 3

29 9 32 7 25 8

I7 8 42 2 57 1 54 2 33 2

26 3

38 0 33 5 31 6

34 9 46 6 60 9 59 8 25 2 35 7 40 1 43 4

34 8

51 4 48 1 33 4

34 9 49 6 66 1 68 9 29 7 44 3 64 0 48 5

49 5

31 4 30 2 31 3

I4 9 42 8 56 1 51 8 24 1 32 4 31 3 41 3

26 0

35 2 29 9 30 1

28 6 49 3 57 7 57 I 24 9 42 2 35 9 31 7 50 1 32 1

47 1 44 4 39 4

28 6 47 9 67 2 62 8 35 0 52 2 47 9 51 4 51 5 49 8

30 0 27 7 28 a I7 2 51 0 48 9 53 2 22 0 37 3 33 I 27 I 37 3 26 0

36 6 22 I 26 7

29 0 49 3 54 0 55 0 23 1 36 2 38 7 27 1 28 5 28 7

48 0 34 9 47 1

29 0 54 4 60 1 63 7 30 3 41 9 54 9 40 3 30 5 45 9

31 2 20 0 23 0

16 0 44 4 47 7 49 2 21 2 33 5 33 4 23 9 20 2 21 3

37 7 20 3 34 2

29 3 40 8 57 4 57 7 21 2 38 3 32 2 25 7 39 1 31 3

50 4 25 2 50 3

29 3 40 9 65 6 63 5 27 8 46 2 47 3 36 8 48 6 44 6

30 9 19 6 30 6

15 5 40 7 48 9 53 5 I9 4 34 4 29 1 22 9 28 2 26 5

39 7 24 3 28 1 34 5 37 0 51 8 50 8 56 8 41 1 37 8 21 3 30 0 37 5 30 9

51 6 41 3 35 1 40 2 37 0 57 3 61 8 64 2 43 0 46 0 21 3 30 0 37 4 43 5

32 6 22 0 26 8 33 1 I3 5 46 5 41 1 52 1 40 0 33 2 19 3 25 8 37 9 25 4

38 4 24 9 27 1 37 3 29 9 51 7

50 6 41 6 36 1 22 0 33 3 20 7 29 4

51 3 40 3 36 4 45 1 29 9 57 8

57 7 44 6 46 0 22 0 33 3 24 2 44 7

30 9 22 3 25 4 35 2 13 0 45 7

46 9 39 7 30 9 19 6 30 4 00 21 9

Data not available. a) Data up to 1990 refer to western Germany, and thereaiter to the whole of Germany Sources See Table 2.1

exceptions are Australian and Norwegian women, where well over half either entered into voluntary o r involuntary part-time employment, and American women, except those between 25 and 54 years of age. With respect t o discouraged workers who became employed, there is a somewhat different pattern. Compared with t h e unemployed who found a job, in each country women who had been classified a s discouraged workers were far more likely t o be in part-time work. This also holds true for American and Norwegian, but not Australian men.

What is the probability that workers in involun- tary part- t ime jobs move in to more permanent employment i.e. to full-time or voluntary part-time jobs?'8 In the cases of Australia and t h e United States there is a clear distinction between those who usually work full-time and those who usually work part-time (Table 2.17a). The first group predominantly ended u p in full-time jobs in t he next period. A small percent- age ended u p in voluntary part-time work and s o m e became unemployed. With respect to t h e latter group, t he picture is more mixed. Roughly half of those who

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E M P L O Y M E N T O U T L O O K 73

Table 2.16. The conditional probability that the unemployed and the discouraged move into a full-time, voluntary part-time or involuntary part-time job

Australia Total

15-24 25-54 55-64

Men 15-24 25-54 55-64

Women 15-24 25-54 55-64

Norway Total

16-24 25-54 55-64

Men 16-24 25-54 5 5-64

Women 16-24 25-54 55-64

Conditional upon being unemployeda

Voluntary Involuntary part-time part-time Full-time

United States Total

16-24 25-54 55-64

Men 16-24 25-54 55-64

Women 16-24 25-54 55-64

September 1993 and December 1993 0 5 0 1 0 5 0 1 0 5 0 2 0 3 0 1

0 6 0 1 0 6 0 1 0 7 0 0 0 4 0 0

0 4 0 3 0 4 0 2 0 4 0 3 0 0 0 5

1992 01 and 1993 Q1

0 7 0 6 0 7 0 5

0 8 0 7 0 9 0 7

0 4 0 4 0 4

1992 and 1993 0 7 0 5 0 7 0 6

0 7 0 5 0 8 0 7

0 6 0 4 0 6 0 5

0 2 0 3 0 2 0 3

0 1 0 2 0 0 0 3

0 4 0 4 0 5

0 2 0 3 0 1 0 2

0 2 0 4 0 1 0 2

0 3 0 4 0 2 0 3

0 3 0 3 0 3 0 6

0 3 0 3 0 3 0 6

0 4 0 4 0 3 0 5

0 1 0 1 0 1 0 3

0 1 0 1 0 1

0 2 0 1 0 2

0 2 0 2 0 2 0 2

0 1 0 2 0 1 0 2

0 2 0 2 0 2 0 3

Conditional upon being discouragedb

Involuntary Voluntary part-time part-time Full-time

0 4 1 0 0 4 0 4

0 9 1 0 1 0 0 0

0 2

0 2 0 5

0 4 0 4 0 4

0 4 0 0 0 4 0 4

0 0 0 0 0 0 0 0

0 5

0 6 0 5

0 5 0 5 0 4

0 2 0 0 0 2 0 2

0 1 0 0 0 0 1 0

0 2

0 3 0 0

0 1 0 1 0 1

0 6 0 4 0 5 0 5

0 2 0 6 0 2 0 2 0 6 0 2 0 3 0 6 0 1

0 5 0 4 0 5 0 4

0 4 0 3 0 7 0 5

0 4 0 3 0 5 0 3

0 3 0 3 0 2 0 5

0 4 0 6 0 2 0 3

0 5 0 6 0 4 0 6

0 2 0 3 0 2 0 1

0 1 0 1 0 2 0 3

0 1 0 1 0 1 0 1

Data not available a] These columns show the status of the persons in the first period (conditional on being unemployed) by their status in the second period (one of "full-time",

"voluntary part-time" or "involuntary part-time" worker). b) These columns show the status of the persons in the first period (conditional on being discouraged) by their status in the second period (one of "full-time".

"voluntary part-time" or "involuntary part-time" worker) Sources See Table 2 5 For the United States, Table 2 6 for Norway and Table 2 9 for Australia

changed s ta tus ended up in full-time jobs, just over a quarter in voluntary part-time jobs and the remainder in unemployment. This varies somewhat by age and sex. A high percentage of women end u p in part-time work than men and more men in unemployment than women. These da ta are, however, consistent with the

fact that those who normally work part-time wish to remain in part-time work. In t h e case of Norway and Spain, most involuntary part-time workers who left that category also ended u p in voluntary part-time work in the next period (Table 2.17b). These jobs, therefore, while perhaps not being t h e first choice

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74 E M P L O Y M E N T O U T L O O K

Table 2 . I7a. The conditional probability that an involuntary part-time worker will move into a full-time job, part-time job or unemploymenta Australia and the United States

Full-time job

Usually Usually work work

part-timeb full-timec

Australia Total

15-24 25-54 55-64

M e n 15-24 25-54 55-64

Women 15-24 25-54 55-64

September 1993 and December 1993 0 47 0 56 0 43 0 39

0 59 0 63 0 57 0 54

0 39 0 51 0 34 0 12

United States Total

16-24 25-54 55-64

Men 16-24 25-54 55-64

Women 16-24 25-54 55-64

1992 and 1993 0 55 0 60 0 55 0 38

0 64 0 63 0 67 0 48

0 49 0 57 0 49 0 34

0 85 0 80 0 86 0 77

0 87 0 71

1 00

0 79 1 00 0 78 0 50

o 88

0 80 0 74 0 82 0 70

0 82 0 75 0 85 0 67

0 77 0 71 0 78 0 77

Voluntary part-time lob

Usually Usually work work

part-timeb full-timec

0 34 0 12 0 26 0 12 0 38 0 12 0 44 0 23

0 14 0 10 0 20 0 17 0 10 0 10 0 24 0 00

0 47 0 21 0 30 0 00 0 55 0 22 0 79 0 50

0 34 0 1 1 0 27 0 17 0 34 0 09 0 54 0 23

0 21 0 08 0 22 0 16 0 19 0 05 0 38 0 23

0 42 0 16 0 32 0 18 0 42 0 15 0 60 0 23

Unemployment

Usually Usually work work

part-timeb full-timec

0 19 0 02 0 18 0 08 0 19 0 02 0 17 0 00

0 26 0 03 0 17 0 12 0 33 0 02 0 22 0 00

0 14 0 00 0 19 0 00 0 1 1 0 00 0 08 0 00

0 1 1 0 09 0 13 0 10 0 1 1 0 09 0 08 0 07

0 15 0 10 0 16 0 09 0 15 0 10 0 15 0 10

0 09 0 07 0 1 1 0 I 1 0 09 0 07 0 06 0 00

a j

bj c) Sources See Table 2 5 for the United States and Table 2 9 for Australia

This table shows the status of persons in the first period (conditional on being involuntary part-time) by their status in the second period (one of "employed full-time". "voluntary par?-time" or "unemployed") Individuals who usually work part-time but are working fewer hours than desired Individuals who normally work full-time but are working part-time involuntarily

among workers, are not precarious in the sense that many in them ended u p in voluntary part-time o r full-time work.

6. Summary

1. Involuntary part-time work refers directly to the ILO concept of underemployment i.e. indi- viduals who are working although for fewer hours than they would like for involuntary rea- sons. There are a substantial number of such workers. Those who could not find full-time work numbered about 8 million in 1993, and were mainly women. Those who were working fewer hours for economic reasons numbered about 7 million, and most were men.

2. Involuntary part-time work because full-time work could not be found shows s o m e correla-

tion with the economic cycle, but in most countries was not a s strong a s t h e link found with discouragement. Involuntary part-time work for economic reasons surprisingly had little link with the economic cycle in most countries. Typically, countr ies o u t s i d e of Europe were more likely to show cyclical rela- tionships between the economic cycle, invol- untary part-time work and discouragement. These findings are not easy t o explain. Clearly more da ta are necessary o n the characteristics of these workers and employers.

3. In most countries, less than 50 per cent of those who could not find full-time work had looked for additional work. It is difficult t o indicate whether this should be considered an objective measure of the desire for full-time work - and o n e objective measure of under- employment - since there may be impedi-

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E M P L O Y M E N T O U T L O O K 75

Table 2.17b. The conditional probability that an invol- untary part-time worker will move into a full-time job, part-time job or unemployment:a Norway and Spain

Norway Total

M e n

W o m e n

Spain Total

16-24 25-54 55-64

M e n 16-24 25-54 55-64

W o m e n 16-24 25-54 55-64

Unemployment Full- t ime iob Voluntary part-time job

0 43

0 33

0 28 0 28 0 28 0 28

0 51 0 55 0 51 0 41

0 22 0 16 0 24 0 16

0 54

0 6 3

0 4 6 0 32 0 49 0 72

0 28 0 00 0 43 0 59

0 50 0 45 0 50 0 84

0 03

0 04

0 26 0 41 0 23 0 00

0 21 0 45 0 06 0 00

0 28 0 39 0 26 0 00

~

* Sample size too small to be signihcant a/ This table shows the status of workers in 1993 01 (one of full-time

involuntary part time in 1992 01 voluntary part time or unemployment ) conditional o n being

Sources Unpublished data provided by the lnstituto Nacional de Estadistica See Table 2 6 for Norway

ments that prevent or discourage some indi- viduals from looking for additional work.

4. Involuntary part-time jobs, to some extent, can be considered temporary situations. Flow data for Australia and the United States indi- cate that individuals who are involuntary part- timers - but normally work full-time - and who changed situations were in full-time jobs in the subsequent period. However, these jobs do not tend to be stepping stones for the unemployed - or discouraged workers - who typically end up either in full-time or volun- tary part-time jobs. As well, involuntary part- time workers who normally work part-time typically end up in voluntary part-time jobs in the next period. In Norway and Spain, flow data show that most involuntary part-time workers also ended up in voluntary part-time work in the subsequent period.

5. Data disaggregated by age and sex indicate that involuntaw part-time work because full-

full-time work suggests problems keeping them in the school system, as it is difficult to see how they could easily do both; and, to the extent that they had successfully completed education, it may reflect a problem with the transition from school into full-time work.

E. SUPPLEMENTARY MEASURES OF LABOUR MARKET SLACK

This section combines data discussed in the pre- vious two sections to calculate supplementary mea- sures of labour market slack. As noted in Section B, many additional measures of labour market slack have been put forward to complement the unemploy- ment rate. In some cases, the purpose is to focus on particular aspects of unemployment, for example long-term unemployment, youth unemployment etc. Almost all of these indicators also include discour- aged and involuntary part-time workers to capture groups, which by definition are excluded from the unemployment rate. Probably the best known among these indicators are the Bureau of Labor Statistics “U6” and “U7” measures, which have been published up until 1993. The OECD has also pub- lished measures similar to these in previous work, including the lobs Study and the Employment Out- look (OECD 1994a, b] (Annex 2.A provides definitions, an explanation of the measures and how OECD mea- sures compare with those of the BLS).

Discouraged workers are typically included in such measures because - given their apparent cyclical pattern - they are assumed to be close to the labour market and, in fact, closer to the unemployed than other non-participants. Evidence presented in this chapter, however, suggests that this is not the case. The analysis in Section C has challenged the analyti- caVempirica1 foundation for including all discouraged workers with the unemployed. Involuntary part-time workers are typically included because they have indi- cated a desire for more work or that they are working less hours through involuntary reasons and the evi- dence presented in Section D is largely supportive of this practice.

One way to judge the relative importance of dis- couraged and involuntary part-time workers is to compare them with the number of unemployed. This section, therefore, first expresses each as a per cent of the labour force. Second, the data are combined in a way similar to that of the BLS “U7” measure. Table 2.18 and Chart 2.5 show these data.

What do these supplementary measures reveal? time work could not be found is especially a problem for youths - and where data were available - particularly teenagers. This raises two important issues: why youths would want

- First, and most importantly, the unemployed make up a much larger share of the labour force than either discouraged workers ( i f they were in fact included in the labour force) or

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76 E M P L O Y M E N T O U T L O O K

Table 2.18. Supplementary measures of labour market slack in selected OECD countries, I983 and I 993a

Unemployment rate ( 1 1

198% 1993

Australia Men Women

Belgium Men Women

Canadad

Men Women

Denmarke

Men Women

Finland Men Women

France Men Women

Germanyf

Men Women

Greece Men Women

Irelandg Men Women

ltalyh Men Women

Japan' Men Women

Mexico Men Women

Netherlands' Men Women

9 7 9 6 9 9

I 1 4 7 5

17 9

12 0 12 2 1 1 7

9 0 7 9

10 2

6 0 5 9 6 1

8 0 61

10 5

6 9 5 9 8 5

8 1 6 0

12 1

15 0 14 6 16 0

8 4 5 5

14 0

2 7 26 2 8

9 7 7 3

13 8

10 8 1 1 4 9 8

8 1 6 2

10 9

1 1 3 1 1 8 I0 7

10 8 10 6 11 1

19 2 21 7 16 4

11 4 9 7

13 5

7 7 6 5 9 4

9 6 6 2

15 2

15 3 15 3 15 4

10 2 6 8

15 8

2 6 2 5 2 8

2 6 2 2 3 3

7 2 5 5 9 8

Discouraged workers as a per cent of the labour forceb

121

198% 1993

1 6 16 0 4 0 7 3 4 2 9

0 3 1 5 0 2 1 2 0 4 1 9

1 6 0 9 1 2 0 8 2 2 1 0

0 7 16 0 5 1 1 0 9 2 2

1 0 1 5 0 5 1 2 1 5 18

0 2 0 1 0 3

0 1 0 3 0 0 0 1 0 3 0 7

0 4 0 5 0 2 0 3 0 9 0 9

1 1 2 6 0 1 0 9 3 0 5 4

3 2 2 2 1 1 0 9 6 2 4 0

1 3 0 6 2 7

0 9 0 6 0 4 0 2 1 7 1 3

Supplementary measures

Involuntary part-time workers as a per cent of the labour force

1%)

1983 1993

3 9 6 9 2 7 5 0 5 8 9 6

2 4 3 8 1 2 1 3 4 3 7 4

3 9 5 5 2 1 3 3 6 5 8 2

3 4 4 8 1 9 2 6 5 0 7 3

2 0 2 9 1 0 2 4 3 0 3 5

4 8 2 3 7 8

0 9 1 5 0 3 1 0 1 9 2 3

3 7 3 1 3 9 2 9 3 2 3 5

2 3 3 3 2 2 2 7 2 7 4 3

2 0 2 3 1 3 16 3 3 3 3

2 1 1 9 1 2 1 1 3 4 3 0

5 2 4 9 5 8

5 7 5 6 2 0 2 2

1 1 a 10 8

BLS 'U7' type measureC ( 1 ) + (21 + 13)

198% 1993

13 0 I 1 3 15 8

12 8 8 3

20 4

I5 3 14 3 I6 8

1 1 3 9 3

I3 6

8 0 6 9 9 0

7 4 6 0 9 5

10 0 8 0

13 9

16 5 15 8 I8 0

10 4 6 3

18 2

6 8 4 3

10 4

13 3 8 6

21 0

15 6 14 5 17 1

I I 4 8 0

16 1

14 8 14 2 15 6

14 7 12 9 16 6

21 9 23 8 19 7

14 0 10 9 17 7

8 5 7 0

10 5

I 1 4 7 7

17 6

174 16 9 18 3

13 6 8 5

21 9

5 7 3 9 8 1

6 4 5 3 8 7

10 6 6 8

16 2

involuntary part-time workers and, indeed, is larger than both of these groups combined in most countries. There are only two exceptions: Japan and Sweden. These findings held in both 1983 and 1993.

- Second, the correlation - in 1993 - between the unemployment rate and a rate including

both discouraged and involuntary part-time workers was about 0.84 suggesting they both tell a quite similar story. Furthermore, includ- ing these supplementary forms of slack would only affect cross-country comparisons to a lim- ited degree i.e. rankings are not that much different from that given solely by looking at

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E M P L O Y M E N T O U T L O O K 77

Table 2.18. Supplementary measures of labour market slack in selected OECD countries, 1983 and 1991Ja (Cont.)

Unemployment rate ( 1 1

I983 1993

New Zealandl Men W o m e n

Norwayk Men W o m e n

Portugal/ Men W o m e n

Spain' Men W o m e n

Swedenm " Men W o m e n

United Kingdom

Men W o m e n

United States Men W o m e n

4 1 9 6 3 6 10 I 4 7 8 9

4 9 6 0 5 1 6 6 4 7 5 2

8 8 5 5 6 8 4 6

1 1 7 6 4

20 8 22 4 17 2 18 7 28 3 28 8

2 0 5 3 2 1 6 3 1 9 4 2

I 1 2 10 3 12 I 12 5 9 9 7 6

9 8 6 9 10 1 7 2 9 3 6 6

Discouraged workers as a per cent of the labour forceb

(21

I983 I993

0 5 1 0 0 2 0 7 0 8 1 4

1 3 1 2 0 7 0 9 1 9 1 6

0 9 0 1 0 3 0 1 1 8 0 2

0 8 0 2 0 2 0 1 2 0 0 4

I 1 2 0 0 9 2 0 1 3 2 1

1 3 0 6 1 3 0 5 I 2 0 7

1 5 0 9 1 1 0 8 2 0 1 0

Supplementary measures

Involuntary part-time workers a s a per cent of the labour force

(3)

1983 1993

2 7 6 3 18 4 2 3 8 9 1

1 8 1 8 1 0 1 0 2 9 2 8

2 0 1 0 1 1 0 6 3 7 1 8

4 7 6 2 2 3 3 7 7 4 8 9

1 9 3 2 1 0 2 2 3 3 4 5

5 7 5 0 4 8 4 4 6 9 5 7

BLS 'U7' type measureC ( 11 + 121 + (3)

1983 1993

5 8 136 4 7 1 2 8 7 4 14 7

6 1 7 1 5 8 7 4 6 6 6 7

10 5 6 5 7 5 5 2

I4 8 8 0

22 4 23 1 I7 9 19 1 31 5 30 0

5 4 10 2 4 1 9 9 6 8 10 6

13 3 12 5 13 8 I4 0 12 5 10 5

13 9 10 2 13 4 10 1 14 6 10 4

Data not available Data for the unemployed, discouraged and involuntary part-time workers refer to persons aged 16-64, except in Australia. Finland, Japan, Mexico, New Zealand, Norway and Turkey, where they pertain to persons aged 15-64 In Canada, involuntary part-time and discouraged worker data pertain to those I5 and over while unemployment data refer to those 15-64 Discouraged workers are included in the labour force BLS Bureau of Labor Statistics For the definition of how this is calculated, see Annex 2 A Involuntary part-time work includes only those who could not find full-time work

a )

b) cj di e) 1984 and 1993 fj 1985 and 1993 g) 1983 and 1992 hj 1983 and 1991 ij 1987 and 1991 j j 1986 and 1993 k ) 1989 and 1993 /j 1987 and 1993 rnj 1987 and 1992 nj Sources See Table 2 I

Involuntary part-time work includes only those working fewer hours for economic reasons

the unemployment rate. The largest change is with Sweden, which ranks as a country with relatively high labour market slack although its unemployment rate puts it towards the bot- tom of the list. A rank correlation - based on an ordering with the unemployment rate - and both discouraged and involuntary part-time workers was about 0.82 suggesting changes in rank are not of great importance.

- Third, discouraged workers are very small com- pared with the size of the labour force and are only greater than 2 per cent of it in Italy, Japan

-

and Sweden. Thus, even their inclusion in a BLS "U7" type measure would not significantly affect cross-country comparisons of labour market slack, except in the case of these three countries.

Fourth, t h e BLS-type measure - which includes the unemployed, involuntary part- time and discouraged workers - generally indi- cates an additional 2 to 3 percentage points above that measured by the unemployment rate. Countries where it is smaller (about I percentage p o i n t ) , include Germany,

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E M P L O Y M E N T O U T L O O K

Chart 2.5

Unemployment, discouragement and involuntary part-time worPp b, I983 and I993 As a per cent of the labour force

I983 25 25

20 20

15 I5

10 10

5 5

n 0

I993

25 25

20 20

15 15

10 10

5 5

n n

Involuntary part-time work 1

o) Part time work for economic reasons and persons working part-time because full-time

b) See note a to Table 2.18 for age group definitions. Sources: SeeTable 2. I.

work could not be found (seeTable 2. I8 for exceptions).

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E M P L O Y M E N T O U T L O O K 79

Portugal and Spain, and countries where the increase is larger (4 to 5 percentage points) inc lude Austra l ia , Canada , I9 Denmark, New Zealand and Sweden.

With respect to what the data reveal about how such supplemental measures have evolved over time, Table 2.18 and Chart 2.5 show:

- For s o m e countr ies well in to recovery - Australia and New Zealand - the amount of additional labour market slack was much higher in 1993 than 1983 (1986 for New Zealand), relatively similar points in the cycle, and generally stems from a higher rate of involuntary part-time work (because full-time work could not be found). In Canada and the United Kingdom, lower rates of discourage- ment were more than offset by higher rates of involuntary part-time work. By contrast, in the United States, it was much lower, the result of both lower rates of discouraged and involun- tary part-time work.

- The pattern is much more diverse among countries which have recently entered recov- ery. Japan, for example, is similar to the United States with lower amounts of labour market slack in 1993 compared with the early 1980s, mainly as a result of a decline in the rate of discouragement. In many European countries, the supplementary rates indicate rises in both the rate of discouragement and involuntary part-time work compared to the early 1980s in Belgium, Denmark, Ireland and Italy. By con- trast, countries where they were lower in the early 1990s include the Netherlands, Portugal and Spain.

- Sweden is an exception: all forms of labour market slack - unemployment, discourage- ment and involuntary part-time work - have risen dramatically in recent years. Time will tell whether they remain high. Given their apparent cyclical nature in this country sug- gests that if the unemployment rate remains high, other forms of labour market slack may also remain a t elevated levels.

Finally, these data suggest that there has not been a general trend increase in labour market slack - as defined in this chapter through discouragement and involuntary part-time work - in most countries. Where there may be an upward trend in the latter, e.g. in Australia and New Zealand, data over the

recovery period will help confirm whether this is in fact a trend rather than a cyclical disturbance. In two countries - Japan and the United States - the rates are lower than those recorded in the early 1980s, while in Sweden they are higher.

F. CONCLUSIONS

This chapter began with a discussion of reasons to look beyond the unemployment rate as the sole measure of labour market slack. The unemployment rate has a precise definition which does not include some groups outside the labour force that are tradi- tionally considered close t o the unemployed - typi- cally discouraged workers - nor does it include those within employment who want to work more hours, referred to as involuntary part-time workers.

The analysis indicates that not all discouraged workers should be considered a s “close” t o the labour market and, therefore, an immediately produc- tive and available resource. Work presented in this chapter indicates that, in fact, many discouraged workers may need public help in making the transi- tion into the labour force and, indeed, into employ- ment. They may face similar problems to , particularly, the long-term unemployed - given their long spells of joblessness. This does not mean, of course, that data on them should not be collected, nor that they are an unimportant group t o examine. Indeed, further infor- mation is necessary to explain why some discouraged workers do reenter the job market as prospects improve while many others d o not. The same situa- tion holds with respect to other non-participants who would like work but state reasons other than discour- agement for not looking. Those that d o enter the labour force tend to have more success in getting work. It would seem that considerably more work is needed concerning the concept, definition and mea- surement of discouraged workers.

The analysis of involuntary part-time work tends t o suggest that this form of work is temporary. Flow data for a small number of countries indicates that these individuals tend to end up back in full-time or voluntary part-time jobs in the subsequent period. Therefore, policy intervention is probably not neces- sary to the extent that involuntary part-time work remains of relatively short duration.

Finally, and critically, unemployment remains the largest form of slack in the labour market and it should remain the focus of policy effort.

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80 E M P L O Y M E N T O U T L O O K

Notes

1 . Given the wide range of factors that may lead to non- participation, one particular measure of slack would be to count all individuals who state they want work, but are not currently looking for it. This goes beyond dis- couraged workers to include other individuals, for example women who sat they would like work but are not searching because of problems with access to child-care facilities, In many cases, however, although these individuals would like work, they are not availa- ble for work, a criterion that some countries impose to be considered as discouraged on the grounds that this is a good determinant of whether they could easily move into the labour market.

2. Discouraged workers by definition are not in the labour force. They are presented with respect to the traditional measure of the labour force only as a guide.

3. Working in the opposite direction is the "added worker" effect. In a recession, some individuals might be forced into the labour force to help supplement family income, particularly if the main income earner loses his/her job.

4. A strong correlation is taken to mean a correlation greater than 0.8. A moderate correlation is taken to be between 0.5 and 0.8 while no correlation falls below 0.5.

5. The characteristics of the Mexican labour market are quite different from those in most other OECD coun- tries, in particular because of the lack of an unemploy- ment benefit. The Mexican labour market is discussed more fully in the 1994 Employment Outlook.

6. Data presented in the 1987 Employment Outlook, how- ever, indicated that such personal related reasons for discouragement were not cited by a majority of discour- aged workers as their reason for not looking for work.

7. Some caution is necessary because the duration of dis- couragement is unknown and therefore it is not possi- ble to state with certainty the exact status prior to being classified as discouraged.

8. Given the way the matches in Table 2.5 were done - the same month one year apart - any changes in status between them will be missed.

9. It is possible - depending on the specific wording of labour force questionnaires - that there could be some double counting among these groups. For example, some individuals working part-time for economic rea- sons may also be included in those who could not find full-time work.

10. Although the data are not presented, most part-time work is voluntary. As pointed out in the 1993

11.

12.

13.

14.

15.

16.

17.

18.

19.

Employment Outlook, involuntary part-time work gen- erally makes up about 20 to 30 per cent of total part- time employment. In part, this reflects the relatively higher shares of women in part-time work. In some cases, data disaggregated into 16-19 and 20-24 age groups have relatively high standard errors and must be interpreted with caution. However, the results hold for the 20-24 age group as well. This category includes both people who usually work full-time but are working fewer hours for economic reasons and those who usually work part-time but are working fewer hours. Once again, it is possible that there is correlation, but that it is not contemporaneous. In particular, with respect to part-time for economic reasons, there could be a one period lead, e.g. firms put people on short- time work before temporary/permanent layoff. Correla- tions were calculated with both a one period lag and lead. Only the results for Australia and Belgium were affected. In both, correlations with a one period lead were slightly stronger. The December 1994 Economic Outlook describes the output gap - and how it is measured - in more detail. Unlike correlations with the unemployment rate, corre- lations would be expected to be negative in this case. As the output gap widens, involuntary part-time work for economic reasons should increase i.e. it moves in an opposite direction thus giving a negative correlation. In terms of the percentage of individuals who moved from unemployment or discouragement into employ- ment, these are: 27 per cent of the unemployed and 7 per cent of discourages workers in Australia, '39 per cent and 24 per cent, respectively, in Norway, and 50 per cent and 25 per cent, respectively, in the United States. Once again these are conditional probabilities, i.e. for involuntary part-time workers w h o move into the labour force, how many ended up in full or part-time work or unemployment. In terms of the percentage of involuntary part-time workers who move into employ- ment, the figures are the following: 85 per cent in Australia, 84 per cent in the United States, 76 per cent in Norway and 74 per cent in Spain. The data in Table 2.18 and Chart 2.5 for Canada do not include those working part-time for economic reasons. I f these were added into the total, the figures would rise about 1 percentage point.

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E M P L O Y M E N T O U T L O O K 81

ANNU( 2.A

Comparison with BLS U6 and U7 measures

Data in Table 2.18 on involuntary part-time and dis- couraged workers to calculate the rate of labour market slack are used in the following manner:

Including involuntary part-time workers and discouraged workers

= [unemployed + discouraged workers + (involuntary part-time workers) I / ( labour force + discouraged workers)

The US Bureau of Labor Statistics uses a slightly differ- ent method [Sorrentino (1993)l:

U 7 (including involuntary part-time and discouraged workers)

= [U6 + discouraged workers]/[labour force - '/2 (part-

The BLS U6 measure is the U7 measure less discour- aged workers.

The differences between the BLS measures and those presented in this chapter can be easily seen From the break- down below:

time labour force) + discouraged workers]

Including involuntary part-time workers and discouraged workers

= lunemployed seeking full-time work + unemployed seeking part-time work + '/z (involuntary part-time workers) + discouraged workersl/[employed full-time + employed part-time + unemployed seeking full- time work + unemployed seeking part-time work + discouraged workers1

It is clear that the measure presented in Table 2.18

- (unemployed seeking part-time work) in the

- '12 (employed part-time + unemployed seeking part-

differs from the BLS measures by the inclusion of:

numerator; and

time) in the denominator.

This ratio must be less than one given that the denom- inator is larger by half of the employed part-time labour force. Furthermore, with the number of people in part-time jobs Far outweighing those unemployed and seeking part- time jobs, the ratio is very small, in fact it is around the 0.1 to 0.2 percentage point range. Therefore, the U.S. mea- sures are only slightly different from those presented in Table 2.18. Data for the United States, calculated using U.S. definitions are presented in Table 2.A.I for reference.

Table 2.A.1. U.S. Bureau of Labor Statistics U7 measure

Men Women Total

U7 (including discouraged and involuntary part-time workers)

United States 1983 13.6 15.7 14.4 1993 LO 1 10 9 10 5

Source Secretariat estimates

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82 E M P L O Y M E N T O U T L O O K

ANNEX 2.B

Sources and definitions of discouraged workers

Because a series of criteria generally must be met for people to be classified as discouraged, this annex lays out the steps followed by each country. Not all countries have an official definition of discouraged workers; in such instances, Chapter 2 has used the data available to arrive at a definition which is as close as possible to the general concept of discouragement.

Australia

Compilation of September's "Persons Not in the

September 1981-1982 (persons 15 to 64 years of age): I . had not looked for work in the past four weeks but; 2. wanted a full- or part-time job now (a response of

yes or maybe) and; 3. the reasons for not looking were one or more of the

following: - considered too young or too old by employers; - have language or racial difficulties; - lack necessary training, skills or experience; - belief that no jobs were available in locality or

Labour Force":

their line of work.

September 1983-1993 (persons 15 to 64 years of age): 1. had not looked for work in the past four weeks but; 2. wanted a full- or part-time job (a response of yes or

3. were available to start work within the next four

4. the main reason for not looking was either:

maybe) and;

weeks and;

- considered too young or too old by employers; - difficulties with language or ethnic background; - lack necessary schooling, training, skills or

- belief that no jobs were available in locality or

- belief that no jobs at all were available.

experience;

their line of work;

Canada

March Survey of job Opportunities (persons 15 years of

I . had not looked for work in the last four weeks but; 2. wanted a job last week and; 3. were available to take a job last week and; 4. the main reason that they had not looked in the last

week was the belief that no work was available in the area or suited to their skills.

age and over):

Eurostat countries (Belgium, Denmark, France, Greece Ireland, Italy, the Netherlands, Portugal, Spain and the United Kingdom):

Labour Force Sample Surveys (based on spring

Person is not seeking employment because of: 1 . belief that work is not available or does not know

where to get work.

surveys) (16 to 64 years of age), 1983-1993:

Finland

Supplemental Labour Force Survey (persons 15 to

Person is not seeking employment because of: 1. belief that suitable work not available in locality; 2. insufficient level of education.

64 years of age):

lapan

15 to 64 years of age): Special Survey of the Labour Force Survey (persons

March 1982 1. had not looked for work during the survey week but; 2 . wished to do work for pay or profit (a response of

3. the reason for not looking was: yes or depends on conditions) and;

- the belief that there was n o prospect of finding a job.

February 1983 1 . had not looked for work during the survey week but; 2. wished to do work for pay and profit and; 3. the reason for not looking for a job or for not pre-

paring to start a business was either: - no prospect of finding a job; - did not know where to look for a job; - not confident in own knowledge or skill.

February 1984 I . had not looked for work during the survey week but; 2. wished to have a job for pay and profit i f there are

any or conditions are favourable and; 3. the reason for not looking was either:

- no prospect of finding a job; - did not know where to look for a job; - not confident in own knowledge or skill.

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E M P L O Y M E N T O U T L O O K 83

February 1985- 1993 1 . had not looked for work during the survey week but; 2. wished to have a job for pay and profit if there are

3. the reason for not looking for work was that there any or conditions are favourable and;

was no prospect of finding a job either: - in the area; - suitable for own knowledge or skill; - under the current economic situation or in the

current season.

Mexico

Encuesta Nacional de Empleo (National Employment Survey), 1991 and 1993 (data refer to the second quarter, persons 15 to 64 years of age):

1 . persons willing to work but were not actively looking for a job during the reference period: - because they felt no suitable work is available.

New Zealand

Labour Force Survey (March 1986-December 1990) annual averages (persons 15 to 64 years of age):

1 . had not looked for work because of the belief that; - lacks skills or is wrong age; - right work is unavailable in area.

Labour Force Survey June 1990 to 1993 (persons 15 to 64 years of age):

1. beginning in Iune 1990 the definitions given above were grouped under “discouraged”.

Norway

Labour Force Survey (persons 16 to 64 years of age), annual averages:

1 . had not looked for work but; 2. needed or wished to have paid work (a response of

yes, or yes on certain conditions) and; 3. had not looked because of the belief that:

- suitable work was not available.

Sweden

Labour Force Survey, annual averages: 1981-1986 (persons 16 to 64 years of age):

1 . had not looked for work within the last 60 days but; 2. would have liked to have had a job last week and; 3. could have taken a job last week and; 4. the main reason for not looking was:

- no suitable job opportunities in the area;

- person rated the chance of obtaining employment as small.

1987-1993 (persons 16 to 64 years of age)

1 had wanted to work and could work but, 2 had not looked for work during the reference week

because of the belief that no suitable work was available locally; the chance of getting a job was small; considered young people to have priority; no work was available; other.

Household Labour Force Survey, averages of April and October results (persons 15 to 64 years of age):

I . available for work but not seeking a job because: - believes no job available in the region; - does not know where to search for a job.

United States (to 1993)

Monthly Current Population Survey (persons 16 to 64 years of age), annual averages:

I . 2.

3.

had not looked for work in the last four weeks but; wanted a regular job now (a response of yes or maybe, it depends) and; the reasons for not looking were one or more of the following (persons w h o give school attendance, i l l health or home responsibilities in addition to any of the other reasons are not classified as discouraged): - believes no work is available in line of work

- could not find any work; - lacks necessary schooling, training, skills or

- employers think too young or too old; - other personal handicaps in finding a job (such as

or area;

experience;

discrimination or criminal record).

1994

I . had not looked for work in the last 4 weeks and; 2. want a job and; 3. looked for work in the last 12 months or since end

of last job held in prior 12 months and; 4. were available last week, and 5. were in one of the following groups:

- believes no work available; - could not find work; - lacks school or training etc.; - employers think too young or old; - other types of discrimination.

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84 E M P L O Y M E N T O U T L O O K

ANNM 2.C

Sources and definitions of involuntary part-time work

Australia b) Can‘t find full-time work: The job is a part-time job which was taken because: - person could not find a full-time job.

Labour Force Survey (persons 15 to 64 years of age) annual averages.

Economic reasons:

Finland Full-time workers who worked less than 35 hours who were: - stood down, on short-time, insufficient work. Can’t find full-time work: Part-time workers: whether preferred to work b) Can’t find full-time work: more hours: - had actively looked for full-time work; - preferred to work more hours; - persons who did not work in the reference week.

Supplemental labour force survey.

Part-time worker (normal working time 1-29 hours/ week): - prefer to work full-time.

Canada

The Labour Force, annual averages (persons aged

a) Economic reasons (from 1989 on):

15 and over).

Employment by reason for time lost: - laid off part of the week; - working short-time.

b) Can’t find full-time work: Reasons for part-time employment: - could only find part-time work.

Eurostat countries (Belgium, Denmark, France, Germany, Greece, Ireland, Italy. the Netherlands, Portugal, Spain and the United Kingdom)

Labour Force Sample Surveys, based on spring survey

a) Economic reasons:

results (persons 16 to 64 years of age) 1983-1993.

Full-time workers who worked less than usual hours due to: - slack work for technical or economic reasons; - start of jobkhange in job during reference week; - end of job without taking up a new one during

Part-time workers who worked less than usual hours due to: - slack work for technical or economic reasons; - start of jobkhange in job during reference week; - end of job without taking up a new one during

the reference week.

the reference week.

Japan

Special Survey of the Labour Force Survey (persons

February 1983

a) Economic reasons: People working 1 to less than 35 hours in the last week of February: Reasons for short-time working: - due to slack in business.

aged 15 to 64).

February 1984- 1993

a) Economic reasons: At work, 1 to less than 35 hours in last week of February: Reason for short-time working: - due to slack in business.

At work, 1 to less than 35 hours in last week of February: Reason for short-time working: - wish to work 35 hours or more.

b) Can’t find full-time work:

Mexico

Encuesta Nacional de Empleo (National Employment Survey), 1991 and 1993 (data refer to the second quarter, persons 15 to 64 years of age).

a) Economic reasons: At work less than 35 hours per week during the reference period: - due to slowdown in economic activity.

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E M P L O Y M E N T O U T L O O K 85

New Zealand

Labour Force Survey, annual averages (persons 15 to

a) Economic reasons: 64 years of age).

Persons who usually work 30 hours or more per week but in the reference week worked less than 30 hours for the following economic reasons: - not enough work or short time or temporary

layoff - expect to return. b) Can’t find full-time work:

Persons who usually work less than 30 hours per week but would prefer to work more hours than usual.

Sweden

Labour Force Survey, annual averages a) Economic reasons:

Reason for part-time work: - labour market reasons which include slack work

and either starting a new job or ending a job without taking up a new one.

Turkey

Household Labour Force Survey, averages of April and October results (persons 15 to 64 years of age).

a) Economic reasons: Persons working less than 40 hours: - slack work for technical or economic reasons

Persons working less than 40 hours because: - could not find full-time work.

b) Can’t find full-time work:

United States (to 1993)

Current Population Survey, annual averages (persons

a) Economic reasons:

16 to 64 years of age).

Persons at work 1-34 hours who usually work part-time: - slack work. Persons who usually work full-time: - slack work; - material shortages, plant or machine repairs; - job started; - job ended.

Persons at work 1-34 hours who usually work part- time because: - could find only part-time work.

b) Can’t find full-time work:

Page 44: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

A N N M 2.D

Proportion of discouraged and involuntary part-time workers in OECD countries

Tables 2.0. I to 2.D.3.

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E M P L O Y M E N T O U T L O O K 07

Table 2.D. 1 . Shares of discouraged workers by age and sex in selected OECD countries

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Australia Total (000s)

Total % Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

Belgium

Total % Total (000s)

Men 16-64 Women 16-64

Canada Total (000s)

Total % Men

15-24 25-44 45 and over

Women 15-24 25-44 45 and over

Denmark

Total % Total (000s)

Men 16-64 Women 16-64

Finland Total (000s)

Total % Men

15-24 25-44 45-64

Women 15-24 25-44 45-64

France

Total % Total (000s)

Men 16-64 Women 16-64

Greece Total (000s) 16-64

Ireland

Total % Total (000s)

Men 16-64 Women 16-64

I102 100 0 16 7

1 5 6 0 6 6 1 5

83 3 3 3 4 3

59 2 I6 6

10 3 100 0 38 0 62 0

197 0 LOO 0 43 7 15 7 14 7 I3 7 56 3 13 7 26 4 16 8

26 0 100 0 26 9 23 1

3 8 0 0

73 1 26 9 38 5 7 7

4 0

4 8 100 0 28 4 71 6

88 2 100 0

15 3 2 6 4 8 5 0 0 9

84 7 6 5 3 2

55 2 19 8

39 6 100 0 35 4 64 6

148 0 100 0 50 0 13 5 I9 6 176 50 0 1 1 5 25 7 12 8

18 2 100 0 36 4 63 6

3 0

8 0 100 0 27 8 72 2

82 6 100 0

15 9 2 1 4 7 5 6 0 9

84 1 3 0 4 5

54 6 22 0

38 9 100 0 43 6 56 4

123 0 100 0 47 2 13 0 15 4 18 7 52 8 10 6 22 8 18 7

17 9 100 0 28 6 71 4

3 3

I 1 2 100 0 26 9 73 1

82 7 100 0

15 7 0 6 3 5 7 4 1 2

84 3 4 6 2 9

51 1 25 6

38 0 100 0 49 1 50 9

102 0 100 0 47 1 I 1 8 16 7 18 6 52 9 8 8

23 5 20 6

9 2 100 0 32 6 67 4

3 9

8 4 100 0 35 4 64 6

91 7 100 0 18 5

1 6 5 7 8 2 1 5

81 5 4 1 1 7

51 1 24 4

30 7 100 0 53 8 46 2

90 0 100 0 45 6 12 2 I5 6 17 8 54 4 8 9

23 3 23 3

8 1 100 0 39 3 60 7

5 2

10 1 100 0 34 6 65 4

80 7 100 0 20 3

1 5 6 3 8 2 1 3

79 7 5 8 2 9

46 8 24 2

29 5 100 0 52 5 47 5

68 0 100 0 45 6 1 1 8 13 2 19 1 54 4 8 8

27 9 19 I

10 3 100 0 35 0 65 0

4 6

12 1 100 0 29 5 70 5

71 8 100 0

19 4 1 7 7 4 6 8 0 9

80 6 4 2 3 3

46 9 26 2

42 2 100 0 52 0 48 0

70 0 100 0 48 6 1 1 4 15 7 21 4 51 4 I 1 4 25 7 14 3

9 8 100 0 24 4 75 6

24 0 100 0 37 5 25 0 4 2 8 3

62 5 33 3 20 8 8 3

3 1

12 4 100 0 37 6 62 4

94 0 100 0

18 6 1 8 6 6 7 0 1 2

81 4 4 0 3 9

49 6 23 8

73 5 100 0 52 2 47 8

8 5 100 0 31 9 68 I

37 9 100 0 14 0 86 0

5 4

12 1 100 0 36 4 63 6

131 0 100 0 20 9

2 4 6 0 7 0 18

79 1 5 6 3 1

53 2 17 3

73 7 100 0 44 2 55 8

93 0 1000 48 4 10 8 19 4 17 2 51 6 6 5

26 9 18 3

9 6 100 0 35 6 64 4

47 0 100 0 44 7 36 2 6 4 2 1

55 3 34 0 14 9 6 4

35 0 100 0 17 2 82 8

4 7

10 3 100 0 43 9 56 1

139 0 I00 0 22 4

1 4 8 6 9 3 2 4

77 6 4 9 3 0

49 7 19 9

78 8 100 0 47 1 52 9

99 0 100 0 49 5 12 1 19 2 17 2 50 5

7 1 24 2 19 2

30 3 I00 0 36 6 63 4

32 4 100 0 15 0 85 0

21 5

6 9 100 0 36 6 63 4

I40 4 100 0 23 4

2 4 6 7

10 3 2 8

76 6 1 7 1 9

49 9 23 1

61 7 100 0 48 2 51 8

122 0 100 0 47 5

9 8 20 5 18 0 52 5 6 6

26 2 19 7

46 2 100 0 37 0 63 0

37 0 100 0 43 2 27 0 10 8 5 4

56 8 29 7 24 3

2 7

43 4 100 0 21 3 78 7

12 8

7 5 100 0 38 2 61 8

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88 E M P L O Y M E N T O U T L O O K

Table 2.D. 1. Shares of discouraged workers by age and sex in selected OECD countries (Cont.)

2 640.0 100.0

1 1 . 7 88.3

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 I993

1 860.0 1 750.0 1 980.0 I 740.0 1 590.0 1 370.0 1 230.0 I 280.0 1 380.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 19.9 21.1 20.7 21.8 23.9 21.2 22.0 25.6 23.9 80.1 78.9 79.3 78.2 76.1 78.8 78.0 74.4 76.1

Italy Total (000s)

Total % Men

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

Japan

Total Yo Total (000s)

Men 15-64 Women 15-64

Mexico Total (000s)

Total Yo Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

Netherlands

Total % Total (000s)

Men 16-64 Women 16-64

New Zealand Total (000s)

Total % Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

Norway Total (000s)

Total % Men

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

254 0 100 0

7 0 1 1 0 9 1 2 3 8

93 0 10 0 1 1 1 58 6 I3 3

3 0200 100 0

I I 6 88 4

680 5 100 0 20 5

7 7 4 5 5 0 3 3

79 5 12 1 12 5 50 6 4 3

622.8 100.0

19.1 7.6 5.2 3.6 2.7

80.9 10.6 13.3 52.7 4.4

6306 6363 6272 5702 4723 1000 1000 1000 1000 I000 206 207 209 210 241 8 3 7 7 6 3 6 7 9 1 5 6 4 4 6 1 5 0 5 4 4 0 5 3 5 3 5 3 7 1 2 7 3 3 3 2 4 0 2 6

794 793 791 790 759 9 4 8 0 8 4 8 2 7 8

109 124 128 126 1 1 8 553 540 534 540 529

3 8 4 8 4 5 4 1 3 4

631 3 100 0 21 1 6 6 5 9 6 4 2 1

78 9 8 1

12 6 53 6 4 7

217.6 255.0 100.0 100.0

9.2 10.3 0.4 0.9 0.3 0.9 2.2 3.0 6.3 5.6

90.8 89.7 3.5 4.8 6.4 6.8

53.1 51.1 27.9 27.0

. . . . . . . . 594.0 . . . . . . 100.0

. . . . . . . , 25.2

. . . . . . . . 11.4

. . . . . . 5.9

. . . . . . . . 5.4

. . . . . . 2.5

. . . . . . 74.8

. . . . . . . . 24.6

. . . . . . 16.3 . . . . . . 28.2

. . . . . . . . 5.7

402 0 100 0 33 5 I3 6 4 8 9 5 5 6

66 5 I8 6 1 1 1 27 4 9 4

576 5 3 9 48 I 54 7 42 2 78 1 70 1

272 21 4 21 6 294 185 247 2 8 2 728 786 784 706 81 5 753 71 8

1000 1000 1000 , 1000 1000 1000 1000

7 6 7 5 10 9 1 1 1 12 8 17 I 16 0 16 4 1000 1000 1000 1000 I000 I000 I000 I000 263 293 3 5 8 360 398 333 356 372 6 6 8 0 9 2 8 1 7 0 6 4 4 4 4 9 2 6 2 7 6 4 4 5 5 5 3 5 5 0 2 4

I3 2 107 128 17 1 I7 2 15 2 16 9 17 7 3 9 8 0 7 3 6 3 10 2 8 2 9 4 12 2

737 707 6 4 2 6 4 0 602 667 6 4 4 6 2 8 5 3 5 3 7 3 6 3 6 3 5 3 5 6 4 3 5 3 8 0 8 3 7 2 4 7 4 7 5 0 4 3

55 3 480 404 43 2 406 456 438 396 7 9 9 3 8 3 7 2 8 6 I 1 1 10 0 I4 6

280 310 290 280 260 I000 I000 I000 I000 1000 32 1 323 414 357 350

7 1 6 5 6 9 7 1 5 0 3 6 3 2 3 4 7 1 5 0

10 7 9 7 17 2 143 200 10 7 12 9 I3 8 7 1 5 0 6 7 9 6 7 7 586 6 4 3 65 0 I0 7 9 7 6 9 7 1 5 0 3 6 3 2 3 4 7 1 5 0

3 9 3 41 9 345 3 9 3 450 17 9 16 I I3 8 I0 7 10 0

Page 47: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

E M P L O Y M E N T O U T L O O K 89

Table 2.D. 1. Shares of discouraged workers by age and sex in selected OECD countries (Cont.)

1983 1984 1985 I 986 1987 1988 1989 1990 1991 1992 1993

Portugal

Total % Total (000s)

Men 16-64 Women 16-64

Total (000s)

Men 16-64 Women 16-64

Sweden Total (000s)

Total % Men

Spain

Total %

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

Turkey Total (000s)

Total % Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

United Kingdom Total (000s)

Total % Men

16-19 20-24 25-54 55-64

16-19 20-24 25-54 55-64

Women

United States Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

51 4 100 0 33 5 18 3 3 3 7 6 4 3

66 5 20 6 4 3

31 7 9 9

326 1 100 0 62 7

5 9 7 2

25 6 24 0 37 3

3 7 2 5

21 6 9 5

1 6400 100 0 39 6 14 8 18 0 6 8

60 4 15 1 39 2 6 1

43 2 100 0 33 1 17 4 4 2 8 3 3 7

66 9 19 4 4 6

32 9 10 0

429 1 100 0 53 9 2 3 4 8

21 9 24 9 46 1

2 9 2 8

22 7 17 7

I 2830 100 0 38 1 14 5 170 6 6

61 9 I6 0 38 0 8 0

29 9 100 0 38 1 21 I 4 0 8 7 4 3

61 9 17 4 4 3

29 4 10 4

288 8 100 0 56 1 2 5 5 6

20 7 27 3 43 9

2 5 16

21 6 18 2

1 2040 100 0 41 9 I3 2 19 8 9 0

58 1 13 0 36 4 8 6

40.3 100.0 17.2 82.8

416.8 100.0

4.7 95.3

27 1 100 0 35 I 15 5

1 5 I 1 I 7 0

64 9 17 0 5 2

29 5 13 3

301 9 100 0 64 1

2 3 5 5

25 4 30 9 35 9

1 5 2 6

15 4 16 4

1 1230 100 0 38 9 1 1 8 19 9 7 1

61 1 13 0 38 6 9 4

28.0 29.6 17.0 14.6 100.0 100.0 100.0 100.0 24.8 22.7 10.3 16.2 75.2 77.3 89.7 83.8

114.5 46.5 28.6 24.3 100.0 100.0 100.0 100.0

16.8 20.5 15.1 17.4 83.2 79.5 84.9 82.6

48.3 33.4 32.7 37.2 100.0 100.0 100.0 100.0 42.9 44.6 44.0 48.1 18.6 21.9 24.2 28.2 4.3 4.8 3.7 5.1

13.3 10.8 9.8 10.2 6.6 6.9 6.1 4.8

57.1 55.4 56.0 51.9 19.7 24.0 26.6 27.7 7.0 5.4 4.9 4.8

20.1 16.5 14.7 12.4 9.9 9.0 9.8 7.0

. . 355.4 129.4 159.6

. . 100.0 100.0 100.0

. . 33.1 30.8 41.9

. . 14.4 14.4 20.0

. . 4.5 3.5 7.6

. . 9.1 5.6 11.4

. . 5.1 7.2 2.8

. . 66.9 69.2 58.1

. . 19.1 26.2 18.1

. . 14.5 10.7 14.4

. . 32.0 31.2 24.2

. . 1.3 1 .2 1.5

214.4 167.4 100.0 100.0 58.9 61.1

I .6 2.7 4.8

22.8 18.3 31.8 37.2 41.1 38.9

* 2.1

17.6 13.7 21.0 22.0

* *

1 0260 I00 0 41 3 13 1 20 7

7 6 58 6 12 8 36 2 9 6

954.0 100.0 45.9 12.3 25.4 8.4

54.1 10.6 35.1 8.5

143 5 100 0 59 6

*

14 9 41 3 40 4

*

13 0 25 9

859 0 100 0 45 5 13 3 22 6 9 7

54 6 10 7 34 0 9 9

110.2 100.0 61.2

3.2

15.8 40.3 38.8

*

* *

16.6 21.5

855.0 100.0 42.9 12.7 22.3 7.8

57.1 12.2 35.6 9.4

18 7 100 0

18 8 81 2

13 8 100 0 31 3 68 7

63 I 100 0 46 9 24 2

5 5 12 7 4 8

53 1 23 9 6 7

170 5 4

102 3 100 0 42 5 12 8 8 6

176 3 5

57 5 30 3 8 1

19 1 0 0

1 1 1 5 100 0 61 0

* *

I4 7 41 6 39 0

* 15 2 21 7

I 0 2 5 0 100 0 42 4 1 1 0 22 5 8 9

57 6 10 3 37 2 10 1

7.4 100.0 14.6 85.4

18.8 100.0 22.2 77.8

91.7 100.0 50.4 20.8 8.7

16.9 3.7

49.6 21.6 7.4

16.4 4.3

80.6 100.0 52.2 31.0

5.1 14.8

1.4 47.8 19.9 8.0

19.8 0.0

101.5 100.0 42.7

5.2 5.2

22.3 10.0 57.3

4.4 36.4 13.6

1 097.0 100.0 45.4 10.5 25.5 9.3

54.7 8.5

37.7 8.5

6 6 100 0 24 6 75 4

30 4 100 0 27 8 72 2

140 3 100 0 53 5 17 5 12 8 20 0

3 4 46 5 18 5 9 6

158 2 6

70 2 100 0 66 1 31 6 9 4

23 6 1 4

33 9 10 7 5 2

18 0 0 0

166 6 100 0 50 7

2 5 4 8

14 5 28 9 49 3

22 7 23 7

1 1290 100 0 46 5 10 5 26 5 9 5

53 5 9 1

33 7 10 7

Data not available Sample size too small to be significant Indicates a break in the series

*

I Sources See Table 2. I .

Page 48: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

90 E M P L O Y M E N T O U T L O O K

Table 2.D.2. Shares of involuntary part-time workers who could not find full-time work by age and sex in selected OECD countries

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Australia Total (000s)

Total % Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 5 5-64

Belgium Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

Canada Total (000s)

Total % Men

15-24 25-44 45 and over

Women 15-24 25-44 45 and over

Denmark Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

Finland Total (000s)

Total % Men

15-24 25-44 45-64

Women 15-24 25-44 45-64

218 1 100 0 35 2 9 9 6 5

16 1 2 7

64 8 14 4 10 2 38 I

2 1

59 0 100 0

15 1 6 3 8 0

84 9 31 I 52 0

*

*

467 0 100 0 30 8 176 8 8 4 5

69 2 26 8 29 6 12 a

60 0 100 0 20 7 6 8 9 3 4 7

79 3 15 4 56 4 7 5

49 0 100 0 26 5 10 2 14 3 2 0

73 5 22 4 46 9 4 1

212 7 100 0 34 3 10 1 6 7

14 2 3 2

65 7 14 4 10 1 38 9 2 3

79 2 100 0 16 2 7 6 7 5

83 8 31 1 52 1

*

*

502 0 100 0 32 1 17 9 9 6 4 6

67 9 25 9 29 1 12 9

66 2 I00 0 22 7

7 6 13 0

77 3 17 4 54 8

5 0

*

201 7 100 0 32 0 9 4 6 0

14 I 2 4

68 0 14 0 9 6

42 4 1 9

92 1 100 0

16 4 7 9 7 9

83 6 29 5 52 9

*

511 0 100 0 31 9 17 0 10 4 4 5

68 I 24 3 30 9 12 9

78 8 100 0

I 5 4 4 7 9 5

84 6 18 2 60 4

6 0

231 7 100 0 32 4 10 I 6 2

13 4 2 8

67 6 I3 6 9 3

42 9 1 8

1108 100 0

19 4 7 4

1 1 3

80 6 27 9 50 6

506 0 100 0 31 4 16 2 10 5 4 7

68 6 23 3 32 6 12 6

68 1 100 0

17 4 5 8 9 5

82 6 15 4 57 5 9 7

264 0 100 0 32 8 10 1 5 5

14 4 28

67 2 13 1 9 9

42 4 1 9

108 7 100 0

I8 4 6 6

I 1 I

81 6 29 9 50 3

479 0 100 0 29 2 15 0 9 6 4 6

70 8 22 3 34 7 13 8

56 5 100 0

13 8

9 5

86 2 136 63 3

9 3

263 0 100 0 32 3 10 0 5 8

13 8 2 6

67 7 13 1 9 4

43 4 1 9

1126 100 0

16 7 4 7

1 1 2

83 3 23 9 57 8

445 0 100 0 28 5 14 4 9 9 4 3

71 5 21 3 35 5 14 6

68 2 100 0

I4 4

I0 2

85 6 14 1 63 I

a 4

279 5 100 0 30 6 9 5 5 7

12 5 2 9

69 4 13 3 9 4

44 5 2 2

98 4 I00 0 13 3 3 7 8 9

86 7 23 3 61 8

120 0 100 0 28 1 13 3 10 0 4 8

71 9 20 0 36 7 15 2

72 5 100 0

12 4

7 9

87 6 14 0 64 3

9 2

41 0 100 0 31 7

7 3 19 5 4 9

68 3 14 6 48 8

4 9

319 5 100 0 32 3 9 4 6 4

13 8 2 7

67 7 12 2 9 4

44 2 1 9

1165 100 0

14 5 4 7 9 6

85 5 22 I 61 6

433 0 100 0 30 0 13 2 1 2 0 4 8

70 0 18 0 36 3 15 7

70 7 100 0 15 7 4 8 8 7

84 3 18 6 58 1

7 6

*

415 6 100 0 35 1 8 7 7 0

16 5 3 0

64 9 10 9 9 6

42 3 2 0

118 8 100 0

1 1 3 2 6 8 5

88 7 19 4 67 8

*

*

560 0 I00 0 31 8 13 6 12 1 6 1

68 2 18 0 35 0 15 2

85 0 100 0

18 0 4 8

1 1 1

82 0 17 3 56 2 8 6

*

49 0 100 0 38 8 10 2 24 5 4 1

61 2 14 3 44 9

2 0

506 6 100 0 37 I 8 4 7 5

179 3 2

62 9 10 4 10 8 39 7

1 9

141 4 100 0 12 5 3 0 7 7 1 9

87 5 I9 0 66 6

1 9

592 0 100 0 31 3 1 1 1 13 2 6 9

68 8 12 5 39 2 17 I

91 3 100 0

15 8 4 2 8 9

84 2 12 9 60 3 1 1 0

525 4 100 0 36 9 8 1 7 5

18 4 2 9

63 1 10 I 1 1 0 40 2

1 8

142 4 100 0

16 I 4 5 9 5 2 1

83 9 15 8 66 0

2 1

759 0 100 0 32 9 I3 4 13 4 6 1

67 1 17 0 34 5 15 5

99 3 100 0

16 1 5 9 9 3

83 9 14 2 58 1 I 1 6

72 0 I00 0 43 1 12 5 25 0

5 6 56 9 9 7

44 4 2 8

Page 49: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

E M P L O Y M E N T O U T L O O K 91

1978 I000

162

14 1

8 3 8 8 3

6 8 0 7 6

Table 2.D.2 Shares of involuntary part-time workers who could not find full-time work by age and sex in selected OECD countries (Cont.)

1926 1000

128 1 9

106

872 7 9

70 7 8 6

*

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

France Total (000s)

Total % Men

16-19 20-24 25-54 55-64

W o m e n 16-19 20-24 25-54 55-64

Germany Total (000s)

Total % Men

16-24 25-54 55-64

W o m e n 16-24 25-54 55-64

Greece Total (000s)

Total Yo Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

Ireland Total (000s)

Total % Men

16-24 25-54 55-64

W o m e n 16-24 25-54 55-64

Italy Total (000s)

Total Yo Men

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

55 8 100 0 68 7 12 3 50 1 6 3

31 3 7 4

20 7

I9 3 100 0 58 2 21 7 29 0

41 8 21 I 19 0

*

269 3 100 0 37 9

3 5 6 5

23 8 4 2

62 1 6 2

I 1 7 42 0

2 2

202 9 100 0

15 1 2 9

1 1 4

84 9 14 7 64 3

5 9

50 8 100 0 66 8 10 0 50 1 6 7

33 2 7 1

23 I

17 0 100 0 53 9 20 6 26 9

46 1 20 9 21 9

360 4 100 0 45 3

3 4 8 1

27 5 6 2

54 7 4 1

1 1 5 36 8

2 4

217 0 I00 0

12 2

10 5

87 8 12 7 68 9 6 2

50 1 100 0 60 7 10 I 44 5 6 1

39 3 I 1 2 25 9

I7 5 100 0 50 1 23 8 22 7

49 9 24 1 23 6

*

363 6 100 0 43 5

4 0 8 3

25 6 5 6

56 5 5 8

1 1 8 36 5

2 4

246 3 100 0 I5 0

2 2 1 1 5

85 0 I5 6 62 8

6 5

*

54 8 100 0 64 4 1 1 6 46 2 6 6

35 6 6 6

25 8

20 9 100 0 51 9 18 7 29 3

48 1 20 3 24 8

384 0 100 0 43 6

3 2 8 2

27 0 5 3

56 4 3 6

1 1 9 38 5

2 4

226 8 100 0

I3 9 18

1 1 0

86 1 15 4 63 9

6 7

*

47 9 100 0

10 2 40 1

5 5 44 2

7 8 30 7

55 8

24 8 100 0 48 0 15 9 28 1

52 0 22 9 26 8

432 8 100 0 46 8

2 9 10 0 29 5 4 4

53 2 3 5

10 8 36 0 2 8

228 3 100 0 14 7 2 8

10 4

a5 3 14 7 64 3 6 4

51 8 100 0 53 7 8 3

38 5 7 0

46 3 10 1 31 9

29 0 100 0 53 3 16 1 32 5

46 7 17 4 27 1

*

448 9 100 0 47 I

3 5 8 4

29 8 5 4

52 9 3 7

10 6 35 9 2 6

213 5 100 0

I6 4 1 6

13 3

83 6 10 8 66 5

6 3

46 2 I00 0 54 4 10 5 38 4

5 5 45 6

9 1 31 6

25 3 100 0 47 8 I4 8 28 3

52 2 18 6 31 2

*

423 9 100 0 40 6

1 3 7 5

27 7 4 1

59 4 2 8

I3 0 40 9

2 8

42.7 100.0 48.4 10.2 33.4

51.6 10.5 37.2

*

*

26.9 100.0 50.8 13.4 32.2

49.2 15.9 30.8

*

376.8 100.0 39.8 2.0 6.5

26.6 4.6

60.2 2.2

13.2 41.3

3.6

39 8 100 0 50 7 13 2 30 5

7 0 49 3

9 2 35 4

28 7 100 0 50 6 12 8 33 7

49 4 14 I 32 8

*

413 5 100 0 42 3

3 0 7 9

27 3 4 2

57 7 4 1

130 38 3

2 3

850 5 100 0 19 3

I 1 4 3

I3 0 0 9

80 7 3 0

I5 4 59 3 3 1

283 7 100 0

15 1 2 3

1 1 5 1 3

84 9 6 5

71 0 7 4

59 8 100 0 49 5 12 2 32 5 4 8

50 5 I 1 1 34 6 4 8

32 3 100 0 46 8 12 1 31 2

53 2 I5 8 35 0

405 6 100 0 38 7

1 8 7 7

25 8 3 4

61 3 3 0

12 1 44 8

1 4

1 0568 100 0

21 I 0 8 5 4

14 2 0 8

78 9 2 1

I4 3 59 5 2 9

369 0 100 0

12 8 2 0 9 8 1 0

87 2 6 2

71 5 9 5

60 4 100 0 49 2 10 1 32 8 6 3

50 8 9 9

36 2 4 8

345 3 100 0 34 4

1 4 6 3

24 0 2 7

65 6 2 1

I3 5 48 1

2 0

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92 E M P L O Y M E N T O U T L O O K

6600 1000 258 4 5

136 7 6

742 61

6 0 6 7 6

Table 2.D.2. Shares of involuntary part-time workers who could not find full-time work by age and sex in selected OECD countries (Cont.)

1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

7000 1000 286

5 7 157 7 1

71 4 5 7

55 7 100

lapan Total (000s)

Total % Men

15-24 25-54 55-64

Women 15-24 25-54 55-64

Netherlands Total (000s)

Total % Men

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

New Zealand Total (000s)

Total % Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

Portugal Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

Spain Total (000s)

Total % Men

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

6800 7000 6500 1000 1000 I000 279 257 246 4 4 5 7 6 2

162 129 123 7 4 7 1 6 2

72 1 743 754 5 9 5 7 4 6

559 586 61 5 103 100 9 2

9 0 0 8 8 3 1000 1000 199 200 3 7 2 9 3 9 3 5

102 120 2 1 1 6

80 1 8 0 0 7 2 4 8

116 132 572 575 4 1 4 5

800.0 100.0 31.3

3.8 17.5 10.0 68.8 6.3

53.8 8.8

650 0 100 0 24 6 4 6

I3 8 6 2

75 4 6 2

60 0 9 2

540.0 100.0 25.9

5.6 11.1 9.3

74.1 5.6

57.4 1 1 . 1

101 1 800 768 I000 1000 1000 222 21 5 22 1

3 7 3 4 2 9 4 3 3 9 4 5

120 126 126 2 2 1 6 2 1

778 785 779 5 7 4 6 4 6

130 108 9 5 545 584 5 8 8 4 6 4 7 5 0

570.0 100.0 22.8

3.5 10.5 8.8

77.2 7.0

56.1 14.0

680 0 100 0 27 9

7 4 1 1 8 8 8

72 1 5 9

54 4 I I 8

39.6 42.7 100.0 100.0 37.7 39.3 4.3 2.7 5.8 10.6

26.7 25.0

62.3 60.7 7.1 4.7

19.6 18.2 35.2 37.3

*

*

31 5 32 7 36 1 389 6 4 8 8 7 2 9 9 9 9 5 4 1000 I000 1000 I000 1000 1000 I000 1000 268 276 286 32 1 31 1 330 3 5 3 340 131 128 103 I I 1 108 108 109 9 7 2 9 3 2 4 4 3 6 4 6 4 3 6 3 4 8 8 9 9 6 124 152 133 147 153 162 1 9 2 1 I 5 2 2 2 4 3 2 2 8 3 3

732 724 71 4 6 7 9 6 8 9 6 7 0 6 4 7 6 6 0 128 133 131 1 2 1 132 116 110 105 5 1 5 4 6 9 6 0 5 6 7 3 8 0 7 7

514 510 479 469 472 458 4 3 3 444 3 9 2 8 3 5 2 8 3 0 2 4 2 4 3 4

735 8 0 3 790 642 61 6 65 1 6 2 8 6 5 8 1000 I000 1000 I000 1000 I000 I000 1000 319 269 234 193 246 170 216 237 9 7 8 4 5 7 5 9 8 2 5 8 4 2 7 6

188 156 142 9 4 121 8 4 143 124 3 4 2 9 3 5 4 1 4 4 2 7 3 2 3 7

68 1 73 1 766 8 0 7 75 4 8 3 0 784 763 138 148 141 159 129 127 126 104 485 51 9 538 568 543 5 9 3 577 562

5 7 6 4 8 6 7 9 8 2 110 8 1 9 7

2053 1868 1503 1578 1278 1127 113 1 I000 I000 I000 I000 1000 I000 I000 290 240 189 195 205 200 227 4 2 3 9 2 8 2 7 3 2 2 3 3 2 6 6 5 2 4 3 5 4 4 2 4 6 4 7

156 128 105 I 0 5 1 2 2 107 129 2 1 * 2 4 2 6

710 760 811 8 0 5 795 8 0 0 773 9 0 7 0 6 2 6 1 4 7 5 5 5 9

158 152 158 15 I 15 1 170 169 398 466 51 1 538 52 1 509 5 0 8 6 4 7 2 8 0 5 5 7 6 6 6 3 7

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E M P L O Y M E N T O U T L O O K 93

Table 2.D.2. Shares of involuntary part-time workers who could not find full-time work by age and sex in selected OECD countries (Cont.)

Turkey Total (000s)

Total % Men

15-19 20-24 25-54 55-64

W o m e n 15-19 20-24 25-54 55-64

United Kingdom Total (000s)

Total % Men

16-19 20-24 25-54 55-64

W o m e n 16-19 20-24 25-54 55-64

United States Total (000s)

Total % Men

16-24 25-54 55-64

W o m e n 16-24 25-54 55-64

~

I983 I984 1985 1986 I987 I988 1989 I990 1991 1992 I993

3868 4497 1000 1000 205 260

2 6 4 9 4 4 5 4 9 6 117 4 0 4 0

795 740 9 1 7 5 9 9 110

530 484 7 4 7 1

3 0990 2 9480 1000 1000 368 36 I

632 6 3 9

. . . .

. . . .

4659 5155 1000 1000 275 309 4 1 5 2 8 8 8 6

106 1 2 4 4 0 4 7

72 5 69 1 7 8 81

I 1 5 10 8 45 7 42 1

7 5 8 1

2 819.0 2 800.0 100.0 100.0 36.6 36.3

63.4 63.7 . . . .

546 2 100 0 37 2

5 5 12 3 14 4 5 1

62 8 6 4

10 6 38 8 7 0

2 672 0 100 0 36 9

63 1

231 0 100 0 67 7 10 9 8 2

40 1 8 5

32 3 7 3 4 7

17 8 2 5

485 3 100 0 35 0 3 7 9 2

16 9 5 2

65 0 5 5 9 7

42 3 7 4

2 487 0 100 0 37 8

62 2

95 0 100 0 90 1 I3 4 6 8

62 2 7 8 9 9 0 5 0 4 8 0 1 1

394 6 100 0 25 4

2 7 4 3

12 3 6 1

74 6 7 0

12 3 47 5

7 8

2 1770 100 0 37 6 I7 7 17 5 2 3

62 4 20 5 36 4 5 5

34 2 100 0 72 2 6 5 5 9

57 2 2 6

27 8 16 0 0

23 6 2 5

347 9 100 0 29 8 2 2 5 5

14 7 7 5

70 2 6 5 81

48 1 7 6

2 161 0 100 0 37 4 17 1 I7 8 2 5

62 6 21 4 36 4 4 8

21 0 100 0 76 9 0 0 6 2

61 6 9 2

23 1 18 3 5

I6 0 1 7

446 0 100 0 26 5

3 4 3 7

I3 8 5 7

73 5 61 9 1

47 9 I0 3

2 479 0 100 0 38 7 I7 4 19 1 2 2

61 3 19 5 37 0 4 8

38 1 100 0 83 0

4 8 7 3

65 9 5 0

17 0 3 3 3 3

10 3 0 0

632 0 100 0 30 5

2 7 5 4

16 4 6 0

69 5 6 1 8 4

47 3 7 7

2 7990 100 0 38 6 I6 8 19 3 2 5

61 4 18 8 38 0 4 6

1 1 0 100 0 85 7 10 5 0 0

46 0 29 1 14 3 0 0 0 0

14 3 0 0

774 3 100 0 32 9

3 4 5 3

18 2 6 0

67 1 61 8 3

44 9 7 7

2 844 0 100 0 37 2 I5 9 I9 0 2 3

19 7 38 2

5 0

62 8

Data not available Sample size too small to be significant Indicates a break in the series.

*

I Sources See Table 2 I

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94 E M P L O Y M E N T O U T L O O K

Table 2.D.3. Shares of involuntary part-time workers for economic reasons by age and sex in selected OECD countriesa

Australia

Total % Total (000s)

Men 15-64 Women 15-64

Total (000s)

Men 16-64 Women 16-64

Total (000s)

Men 15-64 Women 15-64

Belgium

Total %

Canada

Total %

Denmark

Total % Total (000s)

Men 16-64 Women 16-64

France Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

Germany

Total % Total (000s)

Men 16-64 Women 16-64

Greece Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

Ireland

Total % Total (000s)

Men 16-64 Women 16-64

50 2 100 0 81 7 I8 3

32 2 I00 0 65 7 34 3

1189 100 0 68 6

9 2 55 8 3 7

31 4 6 2

22 9

1506 100 0 79 4 20 6

77 8 100 0 71 3 8 3

53 9 9 1

28 7

20 7 5 3

*

10 1 I00 0 75 8

38 2 100 0 77 5 22 5

19 6 I00 0 63 2 36 8

22 0 100 0 55 3 44 7

I46 0 100 0 66 6

9 2 52 4 4 9

33 4 5 0

25 6 *

75 0 100 0 69 8

7 4 50 2 12 2 30 2

20 5 7 8

9 4 I00 0 75 1

*

36 1 100 0 76 0 24 0

10 4 100 0 54 8 45 2

20 3 100 0 49 I 50 9

91 9 100 0 65 6 I3 0 48 8

3 8 34 4

7 0 25 7

38 5 100 0 64 9 35 1

83 2 100 0 67 0

7 3 47 6 12 1 33 0

3 4 23 8 5 8

9 2 100 0 78 9

42 9 100 0 75 1 24 9

1 1 5 100 0 59 1 40 9

27 7 100 0 50 6 49 4

68 0 100 0 62 8

8 8 49 6

37 2 8 8

27 5

32 3 100 0 71 3 28 7

95 9 100 0 64 I

5 3 44 8 13 9 35 9

25 3 8 5

*

6 0 100 0 74 I

42 9 100 0 76 5 23 5

9 0 100 0 62 1 37 9

194 100 0 58 1 41 9

74 4 100 0 69 9

7 1 59 7

30 1 5 0

23 4 *

58 5 100 0 79 1 20 9

90 3 100 0 63 4

6 3 41 5 15 5 36 6

24 1 10 I

9 6 I00 0 75 6

*

37 7 100 0 73 I 26 9

6 8 100 0 60 2 39 8

29 6 100 0 53 6 46 4

54 7 100 0 62 0 13 3 44 7

38 0 7 8

27 8

*

37 8 100 0 74 2 25 8

145 1 100 0 59 5 6 8

37 2 I5 6 40 5

3 3 26 4 10 7

10 3 100 0 76 8

40 5 100 0 70 9 29 1

5 7 100 0 60 4

109 0 100 0 54 1 45 9

21 2 100 0 63 7 36 3

45 9 100 0 60 9 14 3 42 6

39 1 16 5 20 2

29 3 100 0 66 7 33 3

1 1 1 6 100 0 55 7

5 8 34 3 I5 6 44 3

3 6 28 2 12 5

7 3 100 0 67 3

60 0 100 0 74 6 25 4

4 7 100 0

63 3

135 0 100 0 60 7 39 3

166 100 0 66 9 33 I

28 5 100 0 47 4

33 9

52 6 I5 6 35 8

86 7 100 0 80 0 20 0

3 6 100 0

*

151 0 100 0 58 9 41 1

I5 3 100 0 62 4 37 6

83 I 100 0 72 6 9 6

59 7

27 4 6 3

*

20 1

89 0 100 0 60 5

7 6 39 8 13 I 39 5 4 5

26 4 8 5

7 5 100 0 78 7

60 5 100 0 64 8 6 5

41 2 17 1 35 2 4 3

22 0 8 9

8 4 100 0 65 7 34 3

80 2 100 0 79 6 20 4

7 7 100 0 60 3 39 7

1390 100 0 60 4 39 6

39 5 100 0 64 I 35 9

63 0 100 0 64 0 12 4 47 7

36 0 6 4

28 0

101 7 100 0 58 9 41 1

79 2 100 0 64 9 6 8

40 5 17 5 35 1

21 7 10 2

1 1 0 100 0 72 9 27 1

66 4 100 0 79 2 20 8

12 4 100 0 71 3 28 7

142 0 100 0 59 9 40 I

35 8 100 0 62 9 37 1

120 0 100 0 70 7

5 3 61 0

4 4 29 3

3 6 23 8

210 7 100 0 78 3 25 4

62 3 100 0 66 3

7 5 42 1 I6 6 33 7

20 4 I0 7

*

7 6 100 0 72 7

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E M P L O Y M E N T O U T L O O K 95

5100 1000

2 0 41 2

9 8 47 1

2 0 392 5 9

529

Table 2.D.3. Shares of involuntary part-time workers for economic reasons by age and sex in selected OECD countriesa (Cont.)

-

4800 I000

2 1 333 104 542

2 1 438 8 3

458

1983 1984 1985 1986 1987 1988 1989 1990 1991 I992 1993

Italy Total (000s)

Total Yo Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

lapan Total (000s)

Total Yo Men

15-24 25-54 55-64

Women 15-24 25-54 55-64

Mexico Total (000s)

Total % Men

15-19 20-24 25-54 55-64

W o m e n 15-19 20-24 25-54 55-64

Netherlands Total (000s)

Total % Men

16-24 25-54 55-64

Women 16-24 25-54 55-64

New Zealand Total (000s)

Total Yo Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

170 3 100 0 54 3

7 7 36 7 9 9

45 7 6 7

33 0 6 0

610 0 100 0 47 5

16 39 3 6 6

52 5 0 0

42 6 9 8

131 8 100 0 62 6 I0 7 45 3 6 6

37 4 6 3

26 9 4 2

490 0 100 0 49 0 0 0

36 7 12 2 51 0 4 1

38 8 8 2

10 6 100 0 78 0 4 9 7 8

59 6 5 7

22 0 3 1 3 3

13 4 2 2

142 2 100 0 69 3 10 7 48 8

9 8 30 7

5 7 22 I

2 8

530 0 100 0 47 2

1 9 32 1 13 2 52 8 0 0

45 3 7 5

21 4 100 0 47 3 14 8 32 5

52 7 13 2 39 5

I 1 7 I00 0 76 7

2 6 I 0 I 59 4 4 7

23 3 3 1 3 0

I5 0 2 1

93 9 100 0 64 2

8 8 45 2 10 3 35 8 8 2

24 2

360 0 100 0 38 9 0 0

27 8 ! I I 61 I

44 4 I3 9

2 8

24 I 100 0 53 5 19 7 30 8

46 5 14 4 30 4

*

I I I 100 0 75 8

3 4 9 6

58 I 4 7

24 2 3 6 2 9

16 2 1 5

93 9 100 0 65 I

7 6 46 2 1 1 3 34 9 9 7

23 0

300 0 100 0 40 0

0 0 26 7 13 3 60 0 0 0

50 0 10 0

23 0 100 0 56 0 I9 9 33 3

44 0 17 4 24 7

10 0 100 0 77 3

5 0 9 0

54 2 9 0

22 7 1 8 3 5

15 8 1 7

86 2 100 0 65 I

5 2 46 9 13 0 34 9 6 5

25 0

200 0 100 0 45 0

5 0 30 0 10 0 55 0 0 0

45 0 10 0

20 8 100 0 51 6 I9 4 30 9

48 4 15 9 30 9

10 3 100 0 80 9

2 7 7 3

66 3 4 6

19 1 1 7 2 7

136 1 2

1149 100 0 59 0 9 9

40 9 8 2

41 0 7 9

31 2

230 0 100 0 43 5 4 3

30 4 8 7

56 5 0 0

43 5 13 0

1 347 1 100 0 70 8 12 2 7 1

44 2 7 2

29 2 3 1 2 4

20 7 3 0

25 1 100 0 51 8 15 7 33 9

48 2 20 5 26 9

I I 4 100 0 81 6

3 7 10 5 59 4 7 9

I8 4 1 5 2 4

I3 6 0 9

135 4 100 c 62 8

7 2 46 4 9 3

37 2 10 3 25 3

300 0 100 0 36 7

3 3 23 3 10 0 63 3

3 3 46 7 13 3

*

8 7 100 0 78 1

I 1 8 9

59 2 8 9

21 9 0 8 4 6

15 7 0 9

97 4 I00 0 61 3

6 9 46 7

7 7 38 7 6 5

30 2

500 0 I00 0 46 0

6 0 28 0 12 0 54 0 4 0

38 0 12 0

1611 5 100 0 64 9 10 0 8 4

38 3 8 2

35 1 4 9 3 4

23 I 3 7

7 6 100 0 76 4

3 6 1 1 2 57 3 4 3

23 6 0 9 2 3

178 2 6

Page 54: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

96 E M P L O Y M E N T O U T L O O K

Table 2.D.3. Shares of involuntary part-time workers for economic reasons by age and sex in selected OECD countriesa (Cont.]

Portugal

Total % Total (000s)

M e n 16-64 Women 16-64

Spain Total (000s)

Total % Men

16-24 25-54 55-64

Women I 6-24 25-54 55-64

Sweden Total (000s)

Total % Men

I 6-24 25-54 55-64

Women 16-24 25-54 55-64

Turkey Total (000s)

Total % Men

15-19 20-24 25-54 55-64

Women 15-19 20-24 25-54 55-64

United Kingdom Total (000s)

Total % Men

16-19 20-24 25-54 55-64

Women 16-19 20-24 25-54 55-64

United States Total (000s)

Total % Men 16-64 Women 16-64

I983 1984 1985 1986 I987 I988 I989 I990 1991 1992 1993

. .

I10 I 1593 1000 1000 71 5 6 6 5

5 7 3 6 7 8 106

4 5 3 439 12 7 8 4 28 5 33 5

4 3 4 5

199 208 3 8

3 1270 2 7620 I000 I000 577 568 42 3 43 2

1386 100 0 66 6

5 5 9 0

46 4 5 6

33 4 4 6 6 6

I9 8

2 7190 100 0 55 9 44 I

5 3 100 0 63 3

*

172 5 100 0 67 2

6 2 10 0 44 4

6 6 32 8

5 0 5 3

20 5

2 7560 100 0 56 3 43 7

4 9 100 0

*

72 I 100 0 63 2 I 1 2 40 6 1 1 5

5 7 26 3 4 8

209 I 100 0 25 0 10 4 13 6

1 0 75 0 23 1 47 3

4 5

36 8

161 I 100 0 65 5

6 7 13 2 39 5 6 2

34 5 5 7 5 2

20 8 2 7

2 694 0 I00 0 55 8 44 2

5 5 100 0 56 3

66 7 100 0 64 6 10 7 42 3 1 1 7 35 4 6 7

23 8 4 9

170 5 100 0 23 0 9 7

12 5 0 8

77 0 22 7 49 2

5 1

181 8 100 0 63 7

5 1 10 2 42 1 6 4

36 3 3 9 6 3

22 7 3 3

2 7180 100 0 56 5 43 5

3 1 100 0

44 2 100 0 61 3 12 6 41 6

7 1 38 7 9 0

26 0

161 0 100 0 26 I 1 1 0 14 3 0 8

73 9 20 6 48 1

5 2

I18 I 100 0 63 9

3 2 10 5 43 8 6 5

36 I 4 1 6 4

23 I

2 620 0 100 0 54 3 45 7

6 6 100 0 59 1 40 9

45 5 100 0 49 5 14 2 30 8

50 5 10 I 34 7

5 7

182 1 100 0 31 4 I 1 8 I8 6 0 9

68 6 19 3 43 7

5 7

4 4 100 0 86 4 0 0

I9 8 56 3 10 3 I3 6 0 0

13 6 0 0 0 0

126 1 100 0 67 7

5 8 10 6 44 6 6 7

32 3

6 9 21 1

*

2 838 0 100 0 56 1 43 9

6 3 100 0 61 4

39 5 100 0 50 2 7 6

35 8 6 8

49 8

41 0

233 5 100 0 33 4 12 7 19 7 0 9

66 6 17 5 44 I

5 1

9 3 100 0 90 1

5 1 13 5 66 2

5 4 9 9 0 0 5 1 4 9 0 0

208 4 100 0 72 3 3 3 8 9

53 4 6 7

27 7 2 4 5 2

I7 8 2 3

3 460 0 100 0 58 2 41 8

9 1 100 0 56 2 43 8

38 9 100 0 61 9 1 1 6 42 0 8 3

38 1 8 1

24 3

273 7 100 0 30 8 10 4 19 3

1 1 69 2 15 7 48 1

5 4

4 4 100 0 68 3

0 0 32 7 35 6 0 0

31 7 I5 8 0 0

I5 8 0 0

I39 4 100 0 68 5

8 6 51 0

7 5 31 5

2 8 5 2

21 1

*

14 1 I00 0 58 7 41 3

39 7 100 0 68 3 13 3 50 I

31 7

23 8

306 7 100 0

2 8 100 0 100 0 I8 6 0 0

66 3 15 1 0 0 0 0 0 0 0 0 0 0

1 I8 2 I00 0 71 5

3 2 10 2 50 0 8 0

28 5 3 1 4 4

I7 8 3 2

3 4760 3 3970 I000 I000 5 7 7 568 42 3 43 2

Data not available Sample size too small to be significant Indicates a break in the series See note a to Table 2 I 1

* I a) Sources See Table 2 I

Page 55: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION

E M P L O Y M E N T O U T L O O K 97

Bibliography

CAIN, G.C. (1979)’ “Labor Force Concepts and Definitions in OECD (I987), Employment Outlook, Paris . .

View of Their Purposes”, Concepts and Data Needs, OECD (19931, E ~ ~ / ~ ~ ~ ~ ~ ~ ~ ~ ~ l ~ ~ k , paris, National Commission on Employment and Unemploy- ment Statistics, U.S. Government Printing Office. OECD (1994a)r Paris ” Washington D.C.

DEVEREAUX, M.S. (1992), ”Different Measures of Unem- ployment”, Perspectives on Labour and Income. Statis- tics Canada, catalogue 75-001 E. Winter.

ELDER, S. and SORRENTINO, C. (1993), “Japan’s low unem- ployment: a BLS update and revision”, Monthly Labor Review, October. Earnings, February.

OECD (1994b), The OECD lobs Study, Evidence and Expla- nations, Part 1 , “Labour Market Trends and Underlying Forces of Change”, Paris.

SORRENTINO, c. 993), t , ,nternational comparisons of unemployment indicators”, Monthly Labor Review, March.

U.S. DEPARTMENT OF LABOUR (1994), Employment and

Page 56: Supplementary measures of labour market slack an analysis ... · Supplementary measures of labour market slack an analysis of discouraged and involuntary part-time workers A. INTRODUCTION