Joint OECD / Eurostat questionnaire on national accounts employment and hours worked CZECH REPUBLIC
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1 Joint OECD / Eurostat questionnaire on national accounts employment and hours worked CZECH REPUBLIC I. Employment Question 1.0: Describe succinctly the architecture of your estimation method for employment in persons. There are two main sources of employment data: Business Statistics based in annual statistical surveys taken in enterprises and other units Labour Force Sample Survey taken in households of respondents. Data from the Business Statistics present the demand of labour, data from the Labour Force Survey present supply of labour. Employment data in National Accounts like most of data are based on Business Statistics. Employment data from Business Statistics and Labour Force Survey are compared with aggregates of national accounts. The comparison is made not only for the total national economy but also by sector and by industry. The data surveyed are adjusted according to ESA95 methodology to ensure quality and comparability of data used in National Accounts and Labour Force Survey. Assembling of employment data for the NA The major data source on employment is business statistical reporting (statistical surveys P5-01, P4-01, Pen5-01, Poj5-01, VI1-01, Zdp P5-01, NI1-01). In the data source there are data on average numbers of registered employees (numbers of jobs and full time equivalents) and on the number of working owners of companies and cooperating members of households, for whom business is their main economic activity (persons). The data are broken down by sub-sector and CZ-NACE classification (three digits). Data on the employees from surveys are available also as full-time equivalent. Data on the self-employed persons have to be multiplied by the LFS ratio of the full-time equivalent to the number of jobs of self-employed persons. These ratios are used by the industry (NACE-17 classification). Because units up to 19 employees were not included in the P5-01 and P4-01 surveys in the NACE A, the estimates of employees and self-employed were calculated. It was based on the extrapolation of figures of the previous year. The data on employment obtained from Business Statistics are further adjusted by the exhaustiveness adjustments.
2 Producers deliberately not registering underground (N1) The estimate of producers number was based on the results of the total balance of labour and analysis of data on unemployment from LFS. Part of the producers deliberately not registering is assumed as employed and part is assumed as unemployed (unemployed, women on the maternity leave, pensioners) Table: Producers deliberately not registering, 2002 Producers deliberately not registering Unemployed Employed Share of Share of Total Unemployment unemployed employed Total rate (source Total persons in total persons in LFS) N1 total N ,1% 7,3% ,9% Producers deliberately not registering illegal (N2) Only prostitution is estimated for employment. The estimate of prostitutes number was based on the research aimed at factors, estimates and trends of prostitution in the Czech Republic. Producers not required to register (N3) The estimate includes the persons engaged in informal economy and was based on the estimate of the output they produced and labour productivity in a similar reported activity, especially on the value added per self-employed person. The estimate was made for market activities of households (under-threshold legal production activities in agriculture (N3a) and for household personnel services (N3b)) and for non-market activities of households such as agricultural self-supplying (N3c) and individual housing construction (N3d). The number of personnel in the household personnel services (N3b) is established by the LFS. Registered entrepreneurs not surveyed (N5) The estimate of numbers of registered entrepreneurs not surveyed includes the estimate of persons not recorded in the Business Register and was based on the estimate of the output they produced and labour productivity in a similar reported activity, especially on the value added per self-employed person. For instance it is persons engaged in arts (sculptors, painters, etc), journalists and all persons who have income from author s royalties and renting dwellings. Producers deliberately misreporting (N6z) The estimate of persons connected with intentional misreporting of reported data (the number of employees working illegally) was based on the estimate of intentionally not reported wages and salaries and on the estimate of average wages (80% of average wage surveyed in the statistical surveys of the relevant sub-sector industry). The number of the producers deliberately misreporting is divided to resident workers, non-resident workers with the legal stay and illegal non-resident workers. Statistical deficiencies (N6b) The estimate of numbers of persons resulting from statistical deficiencies was estimated by analysing the national accounts data in the individual sectors. Average wages, 1
3 intermediate consumption to output ratio, and value added per worker for each industry (CZ-NACE 3) were analysed. The growth rates of average wages of the national accounts data are compared with the annual growth rates of average wages published in the Labour Statistics department. These indicators were compared with the data in the time series. Data on persons are recounted after adjustments. The shares of main and second jobs from Business Statistics are available for employees. The self-employed persons are surveyed only in their main activity so only methodological and exhaustiveness adjustments are recounted to persons. Quarterly employment data The quarterly employment data of National Accounts is based on the corresponding quarterly data of previous year. The employment data of NA is multiplied by quarterly year-on-year indexes obtained from different sources than annual data because of the earlier availability of these sources and because the quarterly business statistics cover only units above 19 employees. Indexes from the Czech Social Security Administration are used for employees (NACE-60 classification) and the indexes from Harmonized Labour Force Survey are used for self-employed persons (NACE-17 classification). Finally the trend of quarterly data is checked with the trend of quarterly business statistics data and with the trend of Labour Force Survey. When annual data are known, adjustments have to be made to reach that the average of four quarter is equal to the annual data. Question 1.1: What is the main original source for employment in the national accounts (e.g. administrative source, Labour Force Survey, business survey, other)? Briefly describe this source, its coverage, its availability and whether it is in terms of jobs or persons. Business statistics complemented with administrative data If necessary, please specify sources for different parts of employment (in particular if sources differ between employees and self-employed, and/or between economic branches). In this case, please provide answers to the following questions for each of these sources where necessary. Question 1.2: Which calculations are made to pass from persons employed at a specific point-in-time (or several points) to annual averages? There are no calculations needed, annual average data are surveyed in business statistics. Question 1.3: Which adjustments are made to pass from jobs to the concept of persons (if the original source is in terms of jobs), or vice versa? Question 1.4: Which adjustments are made in terms of coverage (See ESA to for details)? This means specifically the exclusion of residents working for non resident producer units and the inclusion of non-residents working with resident producer units. If necessary, also specify adjustments for military (including 2
4 specifically conscripted forces) and other collective households not covered by the main source. Non-residents working with resident producers units are included in business statistics, residents working abroad are not included (national concept). Quantification of the number of residents working abroad is based on the quarterly data of the Labour Force Survey that is divided by individual country. Data about number of residents who works as the members of diplomatic missions, Institutions of the EU and International institutions are provided by the Ministry of Foreign Affairs. Czech nationals, members of the armed forces who work as military staff at international organisations abroad, are not employed there. Quotas that are given from agreements about mutual employing of nationals are not fulfilled from the CR side in the majority of cases. Illegal work is assumed to consist of casual work and second jobs. The number of illegally employed CR residents is based on the LFS data which includes a few illegally working residents. That is why this number is based on Labour Offices data. It accounts for 2 % of the legally working CR residents in EU countries, 20 % in the USA and 10 % in other countries. The Czech Ministry of Labour and Social Affairs provide the number of non-residents working in the CR. This data is obtained from the number of work permits issued. Data is divided by individual country and by kind of permit (seasonal workers who stay in the CR for less than one year, cross-border workers, short-term attachment workers, students etc.). Data about the number of registered Slovak workers, who do not require work permits, are also provided. Estimates of illegal workers are based on the development of number of residence prohibition and expatriations from the CR. The Czech Ministry of Foreign Affairs provides information about the number of non-resident employed by the Czech Republic embassies. Data of residents and non-resident are available quarterly. Question 1.5: Which exhaustiveness adjustments are made (i.e. adjustments to take into account the unobserved economy)? Question 1.6: Which, if any, other adjustments are made (e.g. inclusion of resident workers below the age threshold considered in source statistics, prisoners at work See ESA to and to for details)? Question 1.7: In cases where for some part of employment, Labour Force Survey data has neither been used as the main source nor for major adjustments, please explain why? Are LFS data used for cross-checking? Are differences monitored? Employment data from LFS surveyed in households were also further adjusted. The adjustments carried out include subtracting resident frontier workers, substitution of the 3
5 under-estimated data with the data from administrative data or from Business Statistics. The data on the armed forces and foreign workers were substituted with the administrative data. The data on employees (second jobs) were substituted with the data from Business Statistics. The National Accountants compare employment data from National Accounts and LFS regularly to ensure and check quality of employment data. Two main steps were made in the framework of the comparison of data for The first step related to the comparison of employment data (number of jobs full time equivalent) from NA and LFS harmonised according to the methodology ESA 95 to domestic concept. The comparison is listed in the table below (item 3). Table: Comparison NA with the LFS (Number of Jobs - Full Time Equivalent), 2002 Employees Self-employed persons 1. NA HLFS total HLFS - NA (5-4) Maternity leave Producers deliberately not registering - illegal (N2) 5. Agricultural self-supplying (N3c) Individual housing construction (N3d) HLFS after adjustment (2-4+5) HLFS after adjustment - NA (1-6) Share of difference to NA 0,18% -1,06% -0,04% Total The second step related to ensuring comparability of harmonised data on employment from NA and LFS. To make data from NA and HLFS comparable some adjustments had to be made. In view of the fact that employment data from the LFS don t include the persons for illegal economy (prostitutes N2) and for non-market activities of households (agricultural self-supplying N3c and individual housing construction N3d), the estimates for these persons were added to the employment data according to LFS. On the other hand, the LFS data include the number of women on the maternity leave that were subtracted. These adjustments were based on information on compiling harmonised employment data in NA and LFS. The difference between the HLFS data after adjustments and the national accounts employment data is less than 1% what could be supposed as a sufficient to ensure quality and comparability of these data. 4
6 II. Actual hours worked Question 2.0: Describe succinctly the architecture of your estimation method for hours worked. The hours worked data are based on the average hours worked per week data from the LFS. The hours for sickness leaves, for holidays and annual leaves, etc. is not included. These data are available for main and second jobs. The numbers of employees and selfemployed persons as the full time equivalence are multiplied by the data on average hours worked per week by industry (NACE-17 classification). The hours worked data are surveyed in business statistics since 2002, the estimation method described above will change in the near future. Question 2.1: What is the main original source for hours worked in the national accounts (e.g. administrative source such as official working hours, Labour Force Survey, other)? Briefly describe this source, its coverage and its ability to reflect the ILO definition of hours worked (see paragraphs of the SNA). LFS, see above. If necessary, please specify sources for different parts of the employed population (in particular if sources differ between employees and self-employed, and/or between economic branches). In this case, please provide answers to the following questions for each of these sources. If you do not compile national accounts employment data in terms of hours worked for the total economy, please indicate when you intend to do so. Question 2.2: Which adjustments are made to transform the original source to adapt it to the concept of working hours as defined in the national accounts? Please specify adjustments: to take into account holidays and annual leaves, for sickness leaves, for strikes and temporary lay-offs, for paid but unreported overtime, for unpaid overtime. Question 2.3: Is a specific adjustment made for unreported overtime of selfemployed? On the contrary, if LFS data is used, do you introduce a downward adjustment to reported actual hours by self-employed? No adjustment is made. Question 2.4: What assumption is made regarding the hours worked by persons included in the context of exhaustiveness adjustments? 5
7 No adjustments are made, adjustments of exhaustiveness are include in the number of persons and then are multiplied by the data on average hours worked. Question 2.5: Which, if any, other adjustments are made No adjustment is made. Question 2.6: If necessary, describe any additional calculations needed to derive total hours worked and average hours worked from the sources and adjustments specified above. 6
8 Annex: bridge table between LFS and national accounts This is a standard annex that may or may not fit with the sources and methods used in your country. The annex aims to reconcile the results of LFS with national accounts, both for estimates of persons (annual and quarterly) and annual hours worked. This information is most valuable to quantify the adjustments explained in sections I and II of the questionnaire. If you use LFS for the national accounts employment estimates, please quantify the adjustments in place for the periods indicated below (the figures included here are the latest estimates available at Eurostat). Complete at least one column for one of the periods; the information for several columns is welcome. If you do not use LFS for these employment estimates, but you use it for control or verification, please give your interpretation of the figures. Persons employed (annual data) LFS 1 4,684 4,731 4,701 4,691 (Insert here rows for your adjustments) National accounts (domestic concept) 4,837 4,912 4,845 4,849 Persons employed (quarterly data) 2004Q1 2004Q2 2004Q3 2004Q4 LFS 4,653 4,682 4,704 4,723 (Insert here rows for your adjustments) National accounts (domestic concept) 4,808 4,842 4,862 4,861 Annual hours worked LFS 9,290,587 9,412,959 9,303,185 9,351,854 (Insert here rows for your adjustments) National accounts (domestic concept) 9,444,816 9,462,445 9,438,232 9,487,020 1 The annual LFS results indicated here are actually the average of the quarters in the year. 7
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