in focus Statistics Contents Labour Mar k et Lat est Tr ends 1st quar t er 2006 dat a Em ploym ent r at e in t he EU: t r end st ill up

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1 Labour Mar k et Lat est Tr ends 1st quar t er 2006 dat a Em ploym ent r at e in t he EU: t r end st ill up Statistics in focus This publication belongs to a quarterly series presenting the European Union Labour Force Survey main results for the and for all Member States. The employment rate in the increased by 0.7 percentage points in the first quarter 2006 compared with the same quarter one year before. In the first quarter 2006, 63.9% of the working age population (15-64 years of age) had a job or were engaged in any economic activity in the, compared with 63.2% in the first quarter of Estonia recorded the highest rise among the member states, reaching 67.4% 1, up from 63.2%. The analysis of the employment rate series 2 shows a significant increase since the beginning of 2004 (chart 1). POPULATION AND SOCIAL CONDITIONS 17/2006 Chart 1: Evolution of the employment rate (15-64 years) from 2000Q1 to 2006Q1 (%) Labour market Authors Fabrice ROMANS Ómar S. HARÐARSON Contents 62 SERIES : Employment rate of "15-64 years old" TREND Activity rates... 3 Employment rates... 4 Part-time employment as share of total employment... 5 Average actual hours worked.. 6 Share of employees with temporary contracts... 7 Share of person whose job started within past 3 months... 8 Unemployment rates... 9 Long term unemployment rates Methodological notes Manuscript completed on: Data extracted on: ISSN Catalogue number: KS-NK EN-C European Communities, The employment rate rose for both men and women, by 0.5 and 0.9 percentage points respectively in one year. In the first quarter 2006, 71.1% of men and 56.7% of women aged 15 to 64 years were employed in the. The highest yearly increase in female employment rate were recorded in Estonia (from 61.4% in 2005Q1 to 64.9% in 2006Q1). As a result of the rise in the employment rate, the share of the active population (employed plus unemployed people) in the whole population aged was up to 70.2% in the 1st quarter 2006, compared to 69.8% one year before. The unemployment rate showed a significant decrease in this period 3 (see chart 2, page 2). 1 Quarterly data are not yet available for Luxembourg. Breaks in series are mentioned in the methodological notes. 2 Quarterly EU Labour Force Survey data are used when they are available. Otherwise, estimations are performed on the basis of quarterly national labour force data or interpolations with reference to the quarter(s) available. The trend is calculated at an level using moving averages. In this publication, the data have not been adjusted for seasonal variation, due to the shortness of the available time series in some countries. 3 The unemployment rate calculated in this paper is directly derived from the Labour Force Survey data. The adjusted unemployment series (15+) published on a monthly basis by Eurostat can slightly differ from these results.

2 Part-time jobs and temporary contracts on the rise for men and for women The increase in employment rate was combined with increased prevalence of part-time employment as well as an increase of the share of employees having temporary contracts. The share of part time employment in total employment showed a significant growth between the first quarters 2005 and In the first quarter 2006, 7.9% of employed men (+0.4 percentage points) and 33.1% of the employed women (+0.5 percentage points) worked part-time. The share of employees having temporary contacts in the EU25 went up as well, to reach 13.7% (+0.4 p.p.) of male employees and 14.9% (+0.5 p.p.) of female employees. Chart 2: Changes in labour market indicators from 2005Q1 to 2006Q1 (in percentage points) Changes in activity rate (15-64) Changes in employment rate (15-64) Changes in share of parttime employment (15+) Changes in share of temporary contracts (15+) Changes in unemployment rate (15-64) Changes in long-term unemp. rate (15-64) Four out of ten young employees had a temporary contract in the 1 st quarter 2006 On average in the, 14.2% of employees had a temporary contract in the first quarter This average hides disparities by age, economic activity, and by member state. Firstly, young people (aged 15 to 24 years) are much more likely to have a temporary contract when employed: 40.1% of young employees had a temporary contract, compared with 11.4% of employees aged 25 to 54 years. Secondly, temporary contracts were most prevalent in agriculture (29.9%) and in construction (20.6%). Finally, Chart 3 shows a significant disparity by country: in five member states (Estonia, Ireland, Lithuania, Malta and Slovakia), this rate was less than 5%; at the other end of the scale, the rate of temporary contracts is higher than 20% in Poland (25.4%) and Spain (33.3%). Chart 3: Share of employees with temporary contracts, 15 years and more, 2006Q1 (%) IE EE MT LT SK UK HU IS LV CZ BE DK AT EL CY FR IT EU- 25 DE FI SE NL Euro area SI PT PL ES High mobility of workers in Spain, Denmark and Sweden Chart 4: Share of persons whose job started within past 3 months, 2006Q1 (%) The prevalence of persons whose job started within the past 3 months is an indicator of worker mobility and labour market flexibility. The indicator measures both the number of persons changing job in the last 3 months and those newly employed in the same period, after unemployment or inactivity. In the first quarter of 2006, this indicator reached 4.2% on average in the. In three countries this rate was 7% or more: Spain, Denmark and Sweden NL MT SK HU CZ EL PT SI UK PL DE BE IT LT AT CY EU- 25 LV Euro EE IE FR FI DK SE ES area 2 St at ist ic s in foc us Population and social conditions 17/2006

3 Table 1. Activity rates by levels of educational attainment, age groups and sex, 1st quarter and women Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level Table 2. Activity rates by countries, quarters and sex years 2006q1 and women (1000)¹ 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 214, , Belgium 4, Czech Republic 5, Denmark 2, Germany 40, Estonia Greece 4, Spain 21, France 27, Ireland 2, Italy 24, Cyprus Latvia 1, Lithuania 1, Luxembourg Hungaria 4, Malta Netherlands 8, Austria 3, Poland 16, Portugal 5, Slovenia Slovakia 2, Finland 2, Sweden 4, United Kingdom 29, Bulgaria 3, Croatia Romania 9, Iceland Norway 2, EEA , Switzerland Note: Breaks in series are mentioned in the methodological notes (p11). The data for Luxembourg refer to the whole year The data for Croatia in the 4th quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). ¹ Number of persons aged in the labour force. 17/2006 Population and social conditions St at ist ic s in foc us 3

4 Table 3. Employment rates by levels of educational attainment, age groups and sex, 1st quarter and women Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level Table 4. Employment rates by countries, quarters and sex years 2006q1 Margin of and women (1000)¹ error² 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 195,493 ± ± ,717 ± ± Belgium 4,170 ± ± Czech Republic 4,730 ± ± Denmark 2,726 ± ± Germany 36,005 ± ± Estonia 615 ± ± Greece 4,314 ± ± Spain 19,258 ± ± France 24,430 ± ± Ireland 1,961 ± ± Italy 22,397 ± ± Cyprus 341 ± ± Latvia 1,015 ± ± Lithuania 1,461 ± ± Luxembourg. :. : Hungaria 3,863 ± ± Malta 150 ± ± Netherlands 8,053 ± ± Austria 3,772 ± ± Poland 13,841 ± ± Portugal 4,805 ± ± Slovenia 923 ± ± Slovakia 2,251 ± ± Finland 2,358 ± ± Sweden 4,238 ± ± United Kingdom 27,622 ± ± Bulgaria 2,908 ± ± Croatia. :. : Romania 8,595 ± ± Iceland 156 ± ± Norway 2,275 ± ± EEA ,924 ± ± Switzerland. :. : Note: Tables 3 and 4 refer to EMPLOYMENT rates, whereas tables 1 and 2 refer to ACTIVITY rates. Both concepts are defined in the methodological notes (p11). Breaks in series are also mentioned in the methodological notes. The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). ¹ Number of persons aged in employment. ² Confidence limit of the number of persons aged in employment, at a level of confidence of 95%, in thousands of people. 4 St at ist ic s in foc us Population and social conditions 17/2006

5 Table 5. Part-time employment as share of total employment, by broad groups of economic activity in the main job, age groups and sex, 1st quarter and women Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing Industry, incl. Energy Construction u Trade, transport and communication services Business activities and financial services Other services Table 6. Part-time employment as share of total employment by countries, quarters and sex 15+ years 2006q1 Margin of and women (1000)¹ error² 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 37,864 ± ,645 ± Belgium 935 ± Czech Republic 243 ± Denmark 636 ± Germany 9,657 ± Estonia 50 ± u Greece 255 ± Spain 2,414 ± France 4,242 ± Ireland. : Italy 3,067 ± Cyprus 30 ± Latvia 83 ± Lithuania 181 ± Luxembourg. : Hungaria 150 ± Malta 15 ± Netherlands 3,794 ± Austria 858 ± Poland 1,440 ± Portugal 566 ± Slovenia 86 ± Slovakia 60 ± Finland 344 ± Sweden 1,062 ± United Kingdom 7,185 ± Bulgaria 58 ± Croatia. : Romania 880 ± Iceland 42 ± Norway 665 ± EEA-28 38,572 ± Switzerland. : Note: Breaks in series are mentioned in the methodological notes (p11). The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). Data on part-time / full-time distinction are missing for Ireland since the second quarter ¹ Number of persons aged 15 years or more in part-time employment. ² Confidence limit of the number of part-time employed people, at a level of confidence of 95%, in thousands of people. 17/2006 Population and social conditions St at ist ic s in foc us 5

6 Table 7. Average actual hours worked in all jobs per week by broad groups of economic activity in the main job, full-time/parttime distinction and sex, 1st quarter 2006 Total Full-time Part-time Total Full-time Part-time and women Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Table 8. Average actual hours worked in all jobs per week by countries, quarters and sex 15+ years 2006q1 and women (1000)¹ 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 182, ± , ± Belgium 3, ± Czech Republic 4, ± Denmark 2, ± Germany 34, ± Estonia ± Greece 4, ± Spain 17, ± France 22, ± Ireland 1, : Italy 21, ± Cyprus ± Latvia 1, ± Lithuania 1, ± Luxembourg.. : Hungaria 3, ± Malta ± Netherlands 7, : Austria 3, ± Poland 13, ± Portugal 4, ± Slovenia ± Slovakia 2, ± Finland 2, ± Sweden 3, ± United Kingdom 24, ± Bulgaria 2, ± Croatia.. : Romania 8, ± Iceland ± Norway 2, ± EEA , ± Switzerland Note: Breaks in series are mentioned in the methodological notes (p11). The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). ¹ Number of persons aged 15 years or more at work during the reference week. 6 St at ist ic s in foc us Population and social conditions 17/2006

7 Table 9. Share of employees with temporary contracts by broad groups of economic activity in the main job, age groups and sex, 1st quarter and women Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing u Industry, incl. Energy u Construction Trade, transport and communication services Business activities and financial services Other services Table 10. Share of employees with temporary contracts by countries, quarters and sex 15+ years 2006q1 and women (1000)¹ 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 23, , Belgium Czech Republic Denmark Germany 4, Estonia u 2.1u 4.0u 3.6u. 3.2u.. Greece Spain 5, France 2, Ireland Italy 2, Cyprus Latvia Lithuania u 3.2u 3.6u Luxembourg Hungaria Malta u u 5.3u 7.3 Netherlands 1, Austria Poland 2, Portugal Slovenia Slovakia Finland Sweden United Kingdom 1, Bulgaria Croatia Romania Iceland Norway EEA-28 23, Switzerland Note: Breaks in series are mentioned in the methodological notes (p11). The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). ¹ Number of employees aged 15 years having temporary job contracts. 17/2006 Population and social conditions St at ist ic s in foc us 7

8 Table 11. Share of persons whose job started within past 3 months by broad groups of economic activity in the main job, age groups and sex, 1st quarter and women Agriculture, hunting and fishing u Industry, incl. Energy u Construction Trade, transport and communication services Business activities and financial services u Other services Agriculture, hunting and fishing u u Industry, incl. Energy u Construction Trade, transport and communication services Business activities and financial services Other services Agriculture, hunting and fishing u 4.0. Industry, incl. Energy Construction Trade, transport and communication services Business activities and financial services u Other services Table 12. Share of persons whose job started within past 3 months by countries, quarters and sex 15+ years 2006q1 and women (1000)¹ 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 8, , Belgium Czech Republic Denmark Germany 1, Estonia u 4.8u 4.4u u Greece Spain 1, France 1, Ireland Italy Cyprus Latvia Lithuania u u Luxembourg Hungaria Malta 3u 1.8u u 1.9u 2.2u.. 4.4u. Netherlands Austria Poland Portugal Slovenia Slovakia Finland Sweden United Kingdom Bulgaria Croatia Romania Iceland Norway EEA-28 8, Switzerland Note: Breaks in series are mentioned in the methodological notes (p11). The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). ¹ Number of persons aged 15 years or more whose job started within the past 3 months. 8 St at ist ic s in foc us Population and social conditions 17/2006

9 Table 13. Unemployment rates by levels of educational attainment, age groups and sex, 1st quarter and women Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level Table 14. Unemployment rates by countries, quarters and sex years 2006q1 Margin of and women (1000)¹ error² 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 19,465 ± ± ,289 ± ± Belgium 399 ± ± Czech Republic 412 ± ± Denmark 130 ± ± Germany 4,657 ± ± Estonia 44 ± ± Greece 471 ± ± Spain 1,933 ± ± France 2,603 ± ± Ireland 88 ± ± Italy 1,873 ± ± Cyprus 22 ± ± Latvia 87 ± ± Lithuania 101 ± ± Luxembourg. :. : Hungaria 323 ± ± Malta 13 ± ± Netherlands 384 ± ± Austria 223 ± ± Poland 2,699 ± ± Portugal 430 ± ± Slovenia 70 ± ± Slovakia 398 ± ± Finland 218 ± ± Sweden 365 ± ± United Kingdom 1,511 ± ± Bulgaria 315 ± ± Croatia. :. : Romania 762 ± ± Iceland 4 ± ± Norway 92 ± ± EEA-28 19,560 ± ± Switzerland. :. : Notes: Breaks in series are mentioned in the methodological notes (p11). The unemployment rate calculated here is directly derived from the Labour Force Survey data. The adjusted unemployment series (15+) published on a monthly basis by Eurostat can differ from these results. The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). ¹ Number of unemployed persons aged ² Confidence limit of the number of unemployed persons aged 15-64, at a level of confidence of 95%, in thousands of people. 17/2006 Population and social conditions St at ist ic s in foc us 9

10 Table 15. Long term unemployment rates by levels of educational attainment, age groups and sex, 1st quarter and women Less than upper secondary Upper secondary level Tertiary level Less than upper secondary Upper secondary level Tertiary level u Less than upper secondary Upper secondary level Tertiary level Table 16. Long term unemployment rates by countries, quarters and sex years 2006q1 and women (1000)¹ 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 2006q1 2005q4 2005q1 8, , Belgium Czech Republic Denmark Germany 2, Estonia u 3.2u u 4.2u 4.4u Greece Spain France 1, Ireland Italy Cyprus Latvia Lithuania u u Luxembourg u.. 1.2u. Hungaria Malta u 4.0u. Netherlands Austria Poland 1, Portugal Slovenia Slovakia Finland Sweden United Kingdom Bulgaria Croatia Romania Iceland Norway EEA-28 8, Switzerland Note: The data for Luxembourg refer to the whole year The data for Croatia in the 4h quarter 2005 refer to the 2 nd half year The data for Switzerland refer to the 2 nd quarter 2005.The data for France cover the metropolitan territory (excluding overseas regions). In Ireland and UK (2005), the data refer to seasonal quarter (December to February for q1, September to November for q4). Due to ongoing corrections, data are not available in Sweden in 2005q4 and 2006q1. ¹ Number of persons aged years in long-term unemployment. 10 St at ist ic s in foc us Population and social conditions 17/2006

11 ESSENTIAL INFORMATION METHODOLOGICAL NOTES Source: the European Union Labour Force Survey is a quarterly (except in Luxembourg and Switzerland where it is annual, and in Croatia where every survey covers half a year), large sample survey providing results for the population in private households in the EU, EFTA, Acceding Countries and the Candidate Countries. Conscripts in military or community service are not included in the results. The sampling rates vary between 0.2% and 3.3%. The survey provides quarterly results on labour participation of people aged 15 and over as well as on persons outside the labour force. The figures in this publication are not seasonally adjusted, due to the short times series available. The concepts and definitions used in the survey follow the guidelines of International Labour Organisation. BREAKS. From 2005q2 onwards, Swedish data are derived from a revised questionnaire. In particular students looking for a job and available to work are now considered as unemployed according to EU definitions. Therefore Swedish figures for 2006q1 and 2005q4 are not fully comparable with previous quarters. Confidence limits: All confidence limits are calculated at a level of confidence of 95%. The country limits are derived from coefficients of variation calculated by the National Statistic Institutes. When a coefficient is not available, the coefficient for the last quarter available is taken. For the calculation of limits of aggregates, we assume that the EU-LFS is a stratified sample with the country as the first stratum. The economically active population comprises employed and unemployed persons. Employed persons are persons aged 15 and over (Spain, United Kingdom: 16 and over; Denmark, Estonia, Hungary, Latvia, Sweden, Finland and Norway (2006): 15-74; Iceland, Norway (until 2005): 16-74) who during the reference week performed work, even for just one hour per week, for pay, profit or family gain or were not at work but had a job or business from which they were temporarily absent because of, e.g., illness, holidays, industrial dispute and education or training. Unemployed persons are persons aged (in Spain, United Kingdom, Iceland Norway (until 2005): 16-74) who were without work during the reference week, were currently available for work and were either actively seeking work in the past four weeks or had already found a job to start within the next three months. Duration of unemployment is the duration of the search for employment or the length of the period since leaving last job, whichever period is shorter. Long-term unemployed persons are persons who have been unemployed for one year or more. Employment/activity rates represent employed/active persons as the percentage of the same age population. (Long-term) unemployment rates are measured relative to the active population of the same sex and age. All rates focus on the working age population (at most years). Employees are defined as persons who work for a public or private employer and who receive compensation in the form of wages, salaries, payment by results or payment in kind; non-conscript members of the armed forces are also included. Employees with temporary contracts are those who declare themselves as having an employment contract or a job which will terminate either after a period fixed in advance, or after a period not known in advance, but nevertheless defined by objective criteria, such as the completion of an assignment or the period of absence of an employee temporarily replaced. Average actual hours worked in all jobs are the sum of hours in the main and second jobs in the reference week divided by the number of persons who were actually working at least one hour in either main or second job during the reference week. These hours include all hours including overtime, whether paid or not. The full-time/part-time distinction in the main job is declared by the respondent except in the Netherlands and Iceland where parttime is determined if the usual hours are fewer than 35 hours and full-time if the usual hours are 35 hours or more. Persons having a new job are persons who have been in their present employment (main job) for less than three months. This should not be confused with the concept of job creation as the jobs are only new from the perspective of the respondents. The reference week starts on Monday and ends on Sunday. In all of the countries providing quarterly data the quarterly sample is spread uniformly over all or most weeks of the quarter. Classification by economic activity: six economic activities are distinguished on the basis of an aggregation of the sections of the Standard Classification of Economic Activities (NACE rev.1). Level of educational attainment is defined according to the International Classification of Education 1997 (ISCED 1997). Three levels are distinguished: Less than upper secondary (ISCED 1 or 2), upper secondary (ISCED 3-4), and third level (ISCED 5-6). Country codes applied in this publication: (European Union), (Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland), EEA- 28 (European Economic Area, including all Member States, Iceland and Norway, but without Liechtenstein). Aggregates: When data are unavailable for a country, the calculation of the corresponding aggregates takes into account the data for the same country one year before. Symbols: figures flagged with "u" lack reliability due to small sample size or the non-response for the underlying variable is more than 10%; : colons are used for unavailable or extremely unreliable data. vertical lines are used to indicate breaks in time-series. Quarter 1 of the year 2006 is written as 2006q1. 17/2006 Population and social conditions St at ist ic s in foc us 11

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