Introduction to the Labour Market

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1 1 Introduction to the Labour Market Gustavo Rinaldi - ITC-ILO Consultant University of Turin - ESCP Europe February 2017

2 2

3 3 Work: all productive activities Paid and Unpaid Formal or Informal Any activity performed by persons of any sex and age to produce goods or provide services for use by others or for own use Para 6, Resol I. (19th ICLS, October 2013) No begging, stealing, self-care No activities that can not be performed by others (eating, sleeping, learning)

4 4 EMPLOYMENT work for pay or profit

5 5 EMPLOYMENT work for pay or profit Paid-employment (including apprentices) Self-employment employers, own account workers, members of producers cooperatives

6 6 EMPLOYMENT work for pay or profit It includes: the under-employed full and part-time workers at the workplace... or not

7 7 OTHER FORMS OF WORK Own-use production work (including care work, housework...) Volunteer work Unpaid trainee work.

8 8 In Statistics: Employment N Number of people who have a paid job

9 9 Working age population: age (or 65 or 70) (it varies in different countries) Labour Force + Non in the labour force

10 Canarias (ES) Guadeloupe (FR) Martinique (FR) 0 25 Guyane (FR) Working Age Population 0 20 Réunion (FR) 0 20 Malta Mayotte (FR) 0 15 Açores (PT) /1/ Madeira (PT) 0 20 Liechtenstein (%) EU-28 = 60.2 < < < < 62.0 >= 62.0 Data not available

11 11 Employment rate = Employment. Working age population

12 Canarias (ES) Guadeloupe (FR) Martinique (FR) 0 20 Réunion (FR) 0 25 Guyane (FR) Mayotte (FR) Employment rate persons aged Year Malta Açores (PT) Madeira (PT) Liechtenstein 0 50 (%) Administrative boundaries: EuroGeographics UN-FAO Turkstat (%) EU-28 = 70.0 < < < < 80 >= 80 Data not available

13 Employment / Population 13

14 Employment / Population 14

15 15

16 16 Unemployment U Number of those who Do not have a job and In the last four weeks were job seeking

17 17 Unemployment Has financial and psychological consequences Indicates inefficiency in the system

18 18 And if you simply do not work? (without job seeking) You are non in the labour force

19 19 Labour Force = L = Employees (N) + Unemployed (U) The current supply of labour for the production of goods and services in exchange for pay or profit

20 20

21 Industrial and Employment Relations Working age population Labour force Outside the labour force Employed (for pay/profit) Unemployed Time-related underemployed Potential Labour Force -seeking, not available -available, not seeking Others outside the labour force Labour underutilization (new definition, 19 th ICLS, 2013) 21

22 22 population working age not working age outside the labour force at work Employment labour force unemployed potential labour force Other forms of work: - own-use production - unpaid trainee - volunteer labour underutilization - under-employment - skills mismatch - unavailable job not in employment seekers ( + ) active job search - available potential available Labour Market Analysis jobseekers ( + )

23 Flows and Stocks in the Labour Market 23

24 24 Participation rate = Labour Force. Working age population

25 25 Participation rate and u are different in different Countries Regions Sex groups Age groups Nationals and immigrates

26 Labour Force Participation

27 Labour Force Participation

28 Labour Force Participation

29 Labour Force Participation

30 Labour Force Participation

31 Labour Force Participation

32 Labour Force Participation

33 Labour Force Participation

34 Labour Force Participation

35 Labour Force Participation

36 Labour Force Participation

37 Labour Force Participation

38 Labour Force Participation

39 Labour Force Participation

40 Labour Force Participation

41 Labour Force Participation

42 Labour Force Participation

43 Labour Force Participation

44 Labour Force Participation

45 Labour Force Participation

46 Labour Force Participation

47 Labour Force Participation

48 Labour Force Participation

49 Labour Force Participation

50 Labour Force Participation

51 51 Unemployment rate u = U L

52 Canarias (ES) Guadeloupe (FR) Martinique (FR) 0 20 Réunion (FR) 0 25 Guyane (FR) Mayotte (FR) Unemployment rate persons aged Year Malta Açores (PT) Madeira (PT) Liechtenstein 0 50 (%) EU-28 = 9.4 < < < < 15.0 >= 15.0 Data not available

53 Unemployment Rate

54 Unemployment Rate 54

55 Unemployment Rate 55

56 Unemployment Rate 56

57 57

58 58 Problems with the interpretation of the Unemployment Rate Inactivity vs unemployment. Employment vs unemployment: to be employed, worked at least 1 hour or held a job - it is a fairly loose condition. Unemployed are more likely found where social security system exists/functional.

59 59 Underemployment (16th ICLS) Underutilisation of the productive capacity of the employed population in relation to alternative work situation time-related underemployment: insufficient hours of work inadequate employment situations: inadequate use of capacities

60 60 Inadequate employment situations Willing to change their current work situation make changes to work activities/environment For specific reasons: inadequate use and mismatch of occupational skills inadequate income in current job(s) excessive hours of work others: precarious job(s),...

61 Industrial and Employment Relations Labour Underutilization Source: ILO calculations based on national data (2011) 61

62 62 There is more than Labour Underutilization: Irregular Employment Working Poor Informality

63 63 Informal employment: persons employed in the informal + sector persons in informal employment outside the informal sector

64 64 Informal employment: Informal sector: enterprise-based definition Informal employment: job-based definition

65 65 Persons employed in the informal sector Persons in informal employment outside the informal sector Labour Market Analysis

66 66 Status of employment Wage and salaried workers Employers (with employee(s)) Own account workers (Unpaid) Contributing family workers

67 67 Vulnerable employment rate : Share of own-account and contributing family workers in total employment

68 68 Employment by sector: agriculture, industry, services

69 69 Indicators on adequate earnings: - Working Poverty Rate: proportion of workers living in households with earnings below the national poverty line - Low pay rate: proportion of workers with monthly earnings less than two-thirds of the median earnings - Average earning by occupation (ISCO classification)

70 70 Indicators on equal opportunity and treatment in employment Occupational segregation by sex (female employed % of total employment, ISCO classification) Female share of employment in ISCO-88 (groups 11 and 12: legislators and senior officials, corporate managers) Gender wage gap (% gap between male and female average monthly earnings/wages) Minimum wage as % of median wage by sex

71 71 We learned Employment Unemployment Labour Force Non in the Labour Force Working Age Poulation Participation Rate Employment Rate Thank You!

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