International standards concerning labour market concepts and definitions Farhad Mehran Economic Development Board (LMRA project) Bahrain, 9 May 2006.

International standardsInternational standardsconcerningconcerning

labour market concepts and labour market concepts and definitionsdefinitions

Farhad MehranFarhad MehranEconomic Development Board (LMRA project)Economic Development Board (LMRA project)

Bahrain, 9 May 2006Bahrain, 9 May 2006

22

Three lectures on labour market dataThree lectures on labour market data

Labour market concepts and definitions: Labour market concepts and definitions: ILO international standards (9 May 2006)ILO international standards (9 May 2006)

Sources of labour market data: A national Sources of labour market data: A national statistical programme (June 2006)statistical programme (June 2006)

Combining data from different sources: Combining data from different sources: Principles of labour accounting (July 2006)Principles of labour accounting (July 2006)

33

Labour market concepts and Labour market concepts and definitionsdefinitions

ILO international standards (5’)ILO international standards (5’)Employment, unemployment (20’)Employment, unemployment (20’)Underemployment, inadequate Underemployment, inadequate employment (10’)employment (10’)Status in employment (5’)Status in employment (5’)Wages (15’)Wages (15’)Hours of work (10’)Hours of work (10’)Private/Public sectors (10’)Private/Public sectors (10’)Informal/Formal sectors (5’)Informal/Formal sectors (5’)GDP and Labour market (5’)GDP and Labour market (5’)Labour productivity (5’)Labour productivity (5’)

BibliographyBibliography Index Index

Slide 4Slide 4 p. 1p. 1Slides 5-20Slides 5-20 pp. 2-5pp. 2-5Slides 21-28Slides 21-28 pp. 6-7pp. 6-7

Slides 29-36Slides 29-36 pp. 8-9pp. 8-9Slides 37-44Slides 37-44 pp. 10-11pp. 10-11Slides 45-52Slides 45-52 pp. 12-13pp. 12-13Slides 53-56Slides 53-56 p. 14p. 14Slides 57-64Slides 57-64 pp. 15-16pp. 15-16Slides 65-66Slides 65-66 p. 17p. 17Slides 67-68Slides 67-68 p. 17p. 17

Slides 69-70Slides 69-70 p. 18p. 18 Slides 71-72Slides 71-72 p. 18p. 18

44

International labour statisticsInternational labour statistics

Scope of labour statisticsScope of labour statistics– Economically active population, employment, unemployment, Economically active population, employment, unemployment,

underemploymentunderemployment– Income from employment, wage rates, earnings, labour costIncome from employment, wage rates, earnings, labour cost– Normal hours of work, usual hours of work, actual hours worked, and Normal hours of work, usual hours of work, actual hours worked, and

hours paid for hours paid for – Informal sector employment, and informal employment Informal sector employment, and informal employment – OccupationsOccupations– Status in employmentStatus in employment– Occupational injuries and diseasesOccupational injuries and diseases– Labour disputes (& child labour, forced labour, decent work) Labour disputes (& child labour, forced labour, decent work)

International standardsInternational standards– ILO Convention 160 & ILO Recommendation 170 ILO Convention 160 & ILO Recommendation 170 – ICLS ResolutionsICLS Resolutions– ILO Manuals on concepts and methodsILO Manuals on concepts and methods

http://www.ilo.org/public/english/bureau/stat/standards/index.htmhttp://www.ilo.org/public/english/bureau/stat/standards/index.htm

55

Person

Job

Establishment

Enterprise

Main tasksand duties

Main goodsand services

produced

Nature oflegal entity

Occupationalcategory

ISCO-1988

Branch of economic activity

ISIC Rev 3

Institutionalsector

SNA 1993

Status inemploymentICSE 1993

Worker-em

ployer relationship

Activity duringreference period

Economicallyactive population

ICLS 1982

Elements of the statistical system

Wages,Hours of work

Labour cost,Productivity

66

Usuallyactive

population

Currently activepopulation

(labour force)

Long reference period (e.g. one year)

Economically active population

Short reference period (e.g. one week)

1 ILO, Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, Thirteenth International Conference of Labour Statisticians, Geneva, October 1982.

2 Hussmanns, R., Mehran, F., and Verma, V., Surveys of Economically Active Population, Employment, Unemployment and Underemployment: An ILO Manual on Concepts and Methods, ILO, Geneva 1990. (Translated in Arabic, Persian, Portuguese, Russian, and Spanish.)

Definition: All persons of either sex who furnish the supply of labour for the production of economic goods and services as defined by the UN systems of national accounts and balances during a specified time-reference period. 1,2

77

Pop15+

Labour force

Employed Unemployed

Inactive

Conceptual frameworkICLS 1982

of which Underemployed

88

Definition of employmentDefinition of employment

Employed

Paid employment

Self-employment

At workWith a job

but not at work At workWith an

enterprisebut not work

99

Definition of “at work”Definition of “at work”

AT WORK = Performed some work for AT WORK = Performed some work for wage or salary, or profit or family gain, in wage or salary, or profit or family gain, in cash or in kind during the reference period cash or in kind during the reference period

WORK = Engagement in economic activityWORK = Engagement in economic activity

SOME WORK = Work for at least one SOME WORK = Work for at least one hour during the reference periodhour during the reference period

1010

Definition of “economic activity” Definition of “economic activity” SNA production boundarySNA production boundary

Production ofgoods and services

Goods Services

For marketFor own finalconsumption

For marketFor own finalconsumption

CollectingFire woods

Carrying waterat long distances

1111

Definition of “Absence from work”Definition of “Absence from work”

Persons with a job but not at work = in paid Persons with a job but not at work = in paid employment if employment if formal job attachmentformal job attachment

Continued receipt of wage or salaryContinued receipt of wage or salary

Assurance of return to workAssurance of return to work

Limited elapsed duration of absenceLimited elapsed duration of absence

Persons with an enterprise but not at work Persons with an enterprise but not at work = in self employment if= in self employment if

Continued existence of enterpriseContinued existence of enterprise

Specific reason for absenceSpecific reason for absence

1212

Treatment of particular groupsTreatment of particular groups

Students, homemakers, pensioners Students, homemakers, pensioners engaged in economic activityengaged in economic activity

Contributing family workers (unpaid family Contributing family workers (unpaid family workers)workers)

Producers for own and household Producers for own and household consumptionconsumption

Apprentices and traineesApprentices and trainees

Members of the armed forcesMembers of the armed forces

Standard definition of Standard definition of unemploymentunemployment

Without work during reference Without work during reference weekweek Currently available for workCurrently available for work Actively seeking work in recent Actively seeking work in recent periodperiod Two exceptionsTwo exceptions Future startsFuture starts Lay-offsLay-offs

Reference periodsReference periods

Interview date

Basic reference

period

Job search period

(Last four weeks)

Availability period

(Last week + 2 weeks)

Last week

1515

Active steps to seek workActive steps to seek work

Registration at public or private employment Registration at public or private employment exchange (for the purpose of obtaining a job offer)exchange (for the purpose of obtaining a job offer)Application to employersApplication to employersChecking at worksites, farms, factory gates, Checking at worksites, farms, factory gates, market or other assembly placesmarket or other assembly placesSeeking assistance of friends or relativesSeeking assistance of friends or relativesLooking for land, building, machinery or Looking for land, building, machinery or equipment to establish own enterpriseequipment to establish own enterpriseArranging for financial resourcesArranging for financial resourcesApplying for permits and licenses, etc. Applying for permits and licenses, etc.

1616

Reasons for not seeking workReasons for not seeking work

Illness, disability, pregnancyIllness, disability, pregnancyChild care, family responsibilitiesChild care, family responsibilitiesSchool or other trainingSchool or other trainingAlready found work to start laterAlready found work to start laterAwaiting recall to former jobAwaiting recall to former jobAwaiting replies from employers, results of competitionsAwaiting replies from employers, results of competitionsAwaiting busy seasonAwaiting busy seasonBelieving no suitable work available (in area or relevant to one’s skills)Believing no suitable work available (in area or relevant to one’s skills)Lacking employers’ requirements (qualifications, experience, age, etc.)Lacking employers’ requirements (qualifications, experience, age, etc.)Could not find suitable workCould not find suitable workDo not know how or where to seek workDo not know how or where to seek workNot yet started to seek workNot yet started to seek workOther reasons (bad weather, holidays, awaiting national service call, near Other reasons (bad weather, holidays, awaiting national service call, near retirement age, etc.) retirement age, etc.)

1717

Extended definition of Extended definition of unemploymentunemployment

Partial relaxation of “seeking work” Partial relaxation of “seeking work” criterioncriterion

Persons temporarily laid off without formal Persons temporarily laid off without formal job attachmentjob attachment

Discouraged workersDiscouraged workers

Seasonal workers awaiting busy seasonSeasonal workers awaiting busy season

1818

MoL/BCSRMoL/BCSRLabour force Labour force

surveysurvey December 2004 December 2004

Bahraini non-institutionalpopulation (432’400)

Non-institutional population 15+ Non-institutional population <15

Worked last week Not worked last week

With a job or enterprisebut not at work last week

Do not want towork or disable

Other reason for not working

Seeking work last four weeksNot seeking worklast four weeks

Available for workwithin two weeks

Not available for workwithin two weeks

1’800

18’100

157’600

27’000

26’000

130’600

1’000

139’700292’700

115’200

177’500

Employed117’000

Unemployed26’000

Inactive149’700

1919

Methods of job-search of unemployed BahrainisMethods of job-search of unemployed Bahrainis

Survey jobseekersSurvey jobseekers 26’00026’000 search effort =search effort =1.71.7- Ministry of LabourMinistry of Labour 12’90012’90011 11’77811’77833 MoLMoL20032003

- CSBCSB 3’300 3’30022 2’862 2’8624 4 CBSCBS

- Employment services Employment services 3’500 3’500- Newspaper adsNewspaper ads 10’50010’500- InternetInternet 1’000 1’000- Friends & relativesFriends & relatives 8’700 8’700- Starting own businessStarting own business 300 300- OtherOther 4’200 4’200 Total=Total=44’40044’400

1 10’600; 2 2’800 among core jobseekers.

3 Indicators of the Labour Market 2003-2004, (in Arabic) by Isma Al-Khalifa, Sana Maci, Anwar Al-Khunaisi, Ministry of Labour, Kingdom of Bahrain, May 2005.

4 Civil Service Bureau, Kingdom of Bahrain, Annual Report 2004, p. 13.

2020

Reservation wage of unemployed BahrainisReservation wage of unemployed Bahrainis

Reservation wage:Each worker has a specific wage rate that induces him or her to perform paid market work. A worker seeking work employment will accept jobs paying above his or her reservation wage, and reject those paying less.

Beyond unemploymentBeyond unemployment

Unemployment and its haloUnemployment and its halo

UnderemploymentUnderemployment Over-employmentOver-employment Soft-employmentSoft-employment Other issues:Other issues:

– Child labourChild labour– Full-time employment of women with low age childrenFull-time employment of women with low age children– Old age without pensionOld age without pension

2222

Underemployment and inadequate Underemployment and inadequate employment situationsemployment situations11

Characteristic of “employment”Characteristic of “employment”Based primarily on “current capacities and Based primarily on “current capacities and work situations of worker”work situations of worker”(not potential capacities and desires for (not potential capacities and desires for work)work)Judged against “alternative employment Judged against “alternative employment situation in which worker is willing and situation in which worker is willing and available to engage” available to engage”

1 ILO, Resolution concerning the measurement of underemployment and inadequate employment

situations, Sixteenth International Conference of Labour Statisticians, Geneva, October 1998.

2323

Time-related underemploymentTime-related underemployment

Willing to work additional hoursWilling to work additional hoursAvailable to work additional hoursAvailable to work additional hoursWorked less than a threshold relating to Worked less than a threshold relating to working timeworking time

Two particular groupsTwo particular groups::

Persons who usually work part-time schedules and want to work Persons who usually work part-time schedules and want to work additional hoursadditional hoursPersons who during the reference period worked less than their Persons who during the reference period worked less than their normal hours of worknormal hours of work

Definition:

2424

Inadequate employment situationsInadequate employment situations

Skill-related inadequate employmentSkill-related inadequate employmentwanting or seeking to change their current work situation in order to use wanting or seeking to change their current work situation in order to use their current occupational skills more fully, and were available to do so their current occupational skills more fully, and were available to do so

Income-related inadequate employmentIncome-related inadequate employmentwanting or seeking to change their current work situation in order to wanting or seeking to change their current work situation in order to increase income limited as result of low levels of organisation of work or increase income limited as result of low levels of organisation of work or productivity, insufficient tools or equipment and training or deficient productivity, insufficient tools or equipment and training or deficient infrastructure, and were available to do so infrastructure, and were available to do so

Inadequate employment related to excessive Inadequate employment related to excessive hourshourswanting or seeking to work less hours either in the same job or in another wanting or seeking to work less hours either in the same job or in another job, with a corresponding reduction of incomejob, with a corresponding reduction of income

2525

Other forms of inadequate Other forms of inadequate employment situationsemployment situations

Wanting to change current work situation or to make Wanting to change current work situation or to make changes to work activities and/or environmentchanges to work activities and/or environmentFor following reasons:For following reasons:– Excessive hours of workExcessive hours of work– Precarious jobPrecarious job– Inadequate tools, equipment or training for assigned tasksInadequate tools, equipment or training for assigned tasks– Inadequate social servicesInadequate social services– Travel to work difficultiesTravel to work difficulties– Variable, arbitrary or inconvenient work schedulesVariable, arbitrary or inconvenient work schedules– Recurring work stoppages because of delivery failures of raw Recurring work stoppages because of delivery failures of raw

material or energymaterial or energy– Prolonged non-payment of wagesProlonged non-payment of wages– Long overdue payments from customers Long overdue payments from customers

2626

Underemployment and inadequate employment situationsUnderemployment and inadequate employment situations

Employed Bahrainis (117’000)

Seeking another job Not seeking another job

Reason

Low income

Inadequate use of qualification

Short hours of work

Long hours of work

Other reason

Income-related inadequate employment

Skill-related inadequate employment

Time-related underemployment

Over-employment

1’300

100

1’300

24’500

82’600

34’400

7’200

2727

2828

2929

Status in employmentStatus in employment11

EmployeesEmployees

EmployersEmployers

Own-account workersOwn-account workers

Members of producers’ cooperativesMembers of producers’ cooperatives

Contributing family workersContributing family workers

Workers not classifiable by statusWorkers not classifiable by status

1 ILO, International Classification of Status in Employment, Fifteenth International Conference of Labour Statisticians, Geneva, 1993.

Classification:

3030

EmployeesEmployees

Working in “paid employment job”Working in “paid employment job”– Holding explicit (written or oral) or implicit employment Holding explicit (written or oral) or implicit employment

contractcontract– Remuneration not directly dependent upon the Remuneration not directly dependent upon the

revenue of the unit for which they workrevenue of the unit for which they work

Remuneration:Remuneration:– Wages and salariesWages and salaries– Commission from salesCommission from sales– Piece-ratesPiece-rates– BonusesBonuses– In-kind payments such as food, housing or training In-kind payments such as food, housing or training

Definition:

3131

EmployersEmployers

Working on own-account or with one or a few Working on own-account or with one or a few partnerspartners

In “self employment job”: Remuneration is In “self employment job”: Remuneration is directly dependent on the profits (or potential for directly dependent on the profits (or potential for profits) derived from the goods and services profits) derived from the goods and services produced or for own consumptionproduced or for own consumption

Engaging one or more “employees,” on a Engaging one or more “employees,” on a continuous basis, determined by national continuous basis, determined by national circumstances circumstances

Definition:

3232

Own-account workersOwn-account workers

Working on own-account or with one or a Working on own-account or with one or a few partnersfew partners

In “self employment jobIn “self employment job

Not engaging any “employees,” on a Not engaging any “employees,” on a continuous basis, during the reference continuous basis, during the reference period period

Definition:

3333

Members of producers Members of producers cooperativescooperatives

Working in a cooperative producing goods Working in a cooperative producing goods and servicesand services

In “self employment job”In “self employment job”

Engaging or not any “employee” on a Engaging or not any “employee” on a continuous basis continuous basis

Definition:

3434

Contributing family workersContributing family workers

Working in a market-oriented Working in a market-oriented establishment operated by a household establishment operated by a household member, who cannot be regarded as member, who cannot be regarded as partnerpartner

In “self employment job”In “self employment job”

Engaging or not any “employee” on a Engaging or not any “employee” on a continuous basis continuous basis

Definition:

3535

3636Source: http://laborsta.ilo.org

Proportion of employees in total employment:

International comparison

95.3

%

92.4

%

88.1

%

86.5

%

76.2

%

72.9

%

57.9

%

50.8

%

49.5

%

0%

20%

40%

60%

80%

100%

3737

System of Wages StatisticsSystem of Wages Statistics

Wages as price of labour:Wages as price of labour:

Wages as income to worker:Wages as income to worker:

Wages as cost to employer:Wages as cost to employer:

Income from employmentIncome from employment33

Wage rateWage rate11

EarningsEarnings11

Labour costLabour cost22

1 Twelve International Conference of Labour Statisticians, Geneva, October 1973. 2 Eleventh

International Conference of Labour Statisticians, Geneva, October 1966. 3 Sixteenth International

Conference of Labour Statisticians, Geneva, October 1998.

3838

Wage rateWage rate

Basic wagesBasic wages Cost-of-living allowancesCost-of-living allowances Other guaranteed and regularly paid allowancesOther guaranteed and regularly paid allowances

ExcludesExcludes: Overtime payments, Bonuses and : Overtime payments, Bonuses and gratuities, Family allowances, Other social security gratuities, Family allowances, Other social security payments by employers, Payments in kind, payments by employers, Payments in kind, supplementary to normal wage ratessupplementary to normal wage rates

Definition: Rate of pay per period of time or per unit of production for an employee on a given job.

Includes:

3939

EarningsEarnings

Direct wages and salaries Direct wages and salaries Remuneration for time not worked Remuneration for time not worked Bonuses and gratuities Bonuses and gratuities Payments in kindPayments in kind

ExcludesExcludes: Employers’ contributions to social security: Employers’ contributions to social security

and pension schemes, severance and termination payand pension schemes, severance and termination pay..

Definition: Remuneration in cash or in kind paid to employees, as a rule at regular intervals, for time worked or work done together with remuneration for time not worked such as annual vacation and other paid leave or holidays.

4040

Labour costLabour cost

EarningsEarnings

++

Employers’ social security expenditureEmployers’ social security expenditure

Cost of vocational trainingCost of vocational training

Cost of welfare servicesCost of welfare services

Taxes regarded as labour costTaxes regarded as labour cost

Other (transport, clothing, recruitment)Other (transport, clothing, recruitment)

Definition: Labour cost is the cost incurred by the employer in the employment of labour.

4141

Three types of labour costThree types of labour cost

Basic labour cost:Basic labour cost:

Hourly labour cost:Hourly labour cost:

Unit labour cost:Unit labour cost:

Labour cost per Labour cost per workerworker

Labour cost per hourLabour cost per hour

Labour cost per unit Labour cost per unit of outputof output

Labour cost index: The labour cost index measures the change in labourcost during a given period adjusted for employment shifts among occupations and branches of economic activity in that period.

4242

Employment-related incomeEmployment-related income

Income related to paid employmentIncome related to paid employmentEarningsEarningsProfit-related payProfit-related payEmployment-related social security benefits received directly from Employment-related social security benefits received directly from employer, or from social security or compulsory insurance schemes or the employer, or from social security or compulsory insurance schemes or the State State

Income related to self-employmentIncome related to self-employmentGross profit (or share of profit)Gross profit (or share of profit)Remuneration received by owner-manager of corporations and quasi-Remuneration received by owner-manager of corporations and quasi-corporationscorporationsEmployment-related social security benefits receivedEmployment-related social security benefits received

ExcludesExcludes: Income derived from property income, annuities, gifts, etc. and: Income derived from property income, annuities, gifts, etc. and allowances paid by social security schemes or the State without regard toallowances paid by social security schemes or the State without regard to employment statusemployment status

Definition: Payments, in cash, in kind or in services, which are received by individuals, for themselves or in respect of their family members, as a result of their current or former involvement in paid or self-employment jobs.

4343

Jordan 1997Jordan 1997

Economic Economic activityactivity

Isic Isic Rev 3Rev 3

EarningsEarnings Labour Labour cost *cost * RatioRatio

Dinars/MonthDinars/Month Dinars/YearDinars/Year

TextileTextile 1717 151.8151.8 19801980 1.091.09

Office Office machinerymachinery

3030 196.7196.7 30093009 1.271.27

TV, radio, etcTV, radio, etc 3232 193.5193.5 20502050 1.651.65

* Compensation of employees

4444

Labour cost = wage rate * (1 + r) + a r = variable componenta = fixed component

4545

Hours of workHours of work11

Normal hours of workNormal hours of work

Actual hours workedActual hours worked

Usual hours of workUsual hours of work

Hours paid forHours paid for

1 Tenth International Conference of Labour Statisticians, Geneva, October 1962.

4646

Normal hours of workNormal hours of work

Hours of work fixed by or in pursuance ofHours of work fixed by or in pursuance of– laws and regulationslaws and regulations– collective agreementscollective agreements– arbitral awardsarbitral awards

(If not fixed as above) Hours of work in excess of (If not fixed as above) Hours of work in excess of which which – remuneration is at overtime rate, orremuneration is at overtime rate, or– forms an exception to the rules or customs of the forms an exception to the rules or customs of the

establishment relating to the class of workers establishment relating to the class of workers concerned concerned

Definition:

4747

Actual hours workedActual hours worked

Hours worked during normal hours of workHours worked during normal hours of work

Overtime workOvertime work

Time spent at the place of work onTime spent at the place of work on– preparation of workpreparation of work– waiting or standing bywaiting or standing by– short rest periods including tea or coffee short rest periods including tea or coffee

breaks breaks

Definition:

4848

Hours paid forHours paid for

Hours actually workedHours actually worked

Hours paid for but not workedHours paid for but not worked– Paid annual leavePaid annual leave– Paid public holidaysPaid public holidays– Paid sick leavePaid sick leave– Paid meal breaksPaid meal breaks– Time spent travelling between home and Time spent travelling between home and

workplace workplace

Definition:

4949

Usual hours of workUsual hours of work

Hours worked in an activity during a typical Hours worked in an activity during a typical weekweek

Modal value of hours actually worked per Modal value of hours actually worked per week over a long periodweek over a long period

Definition:

Calculation:

5050

Hours worked:International comparison

38.9 42.9 43.449.3

34.1 31.9

0

10

20

30

40

50

60

Italy2003

Bahrain2004

USA2004

Turkey2004

USA2004

Canada2004

Actual hours worked

Hours paid for

Source: http://laborsta.ilo.org.

5151

5252

5353

Institutional units

Household Legal or social entity

Government unit

Corporation

Non-profit institution

Company

Partnership

Cooperative

Proprietorship

Other legal forms

Household unincorporatedmarket enterprise

Household enterpriseproducing for own final use

Other types of household

http://unstats.un.org/unsd/sna1993/toctop.asp

Definition of an institutional unit:

An economic entity that is capable, in its own right, of owning assets, incurring liabilities and engaging in economic activities and in transactions with other entities.

5454

Institutional units by sectorInstitutional units by sector

Institutional Institutional unitsunits

SectorsSectors

Non-Non-financial financial corporatiocorporations sectorns sector

Financial Financial corporations corporations sectorsector

General General governgovernment ment sectorsector

NPINPI

servingserving

hslds hslds sectorsector

House-House-holdhold

sectorsector

CorporationsCorporations11 xx xxGovernment Government unitsunits

xx

Non-profit Non-profit institutionsinstitutions

xx xx xx xx

HouseholdsHouseholds xx

1 Including all quasi-corporations, whether owned by households, government units or non-resident institutional units.

5555

Public – Private sector boundariesPublic – Private sector boundaries11

Total economy

Public sector Private sector

Non-marketsector

Market sector

Generalgovernment

Publiccorporations

Public non-financial corporations

Public financial corporations

“controlled + mainly financed”

“economically significant prices”

1 United Nations, “Government/Public Sector/Private Sector Delineation Issues,” Task Force on Harmonisation of Public Sector Accounting, Fourth meeting of the Advisory Expert Group on National Accounts, 30 January – 8 February 2006, Frankfurt, SNA/M1.06/17.

Ability to determine the entity’s general corporate policy, by appointing directors, if necessary

Prices that have a significant influence on the amounts the producers are willing to supply and on the amounts the purchasers wish to buy

5656

Public sector employment in Public sector employment in Bahrain, 2004Bahrain, 2004

Sub-sectorSub-sector Total Total employedemployed

Bahraini Bahraini employedemployed

Government services and public Government services and public administrationadministration

83’80083’800 49’30049’300

Public non-financial Public non-financial corporationscorporations

13’10013’100 9’1009’100

Public financial corporationsPublic financial corporations 700700 600 600

Other (education and health?)Other (education and health?) -- --

Total Total (32%/49% of total employment)(32%/49% of total employment) 97’60097’600 59’00059’000Source: Ministry of Labour, Bahrain Centre for Studies and Research, Labour Force Survey, December 2004.

5757

Domestic workers

Free visas

Ghost workers

5858

InformalInformal

Informal sector Informal sector 11

- Economic units with informal features - Economic units with informal features

Informal employment Informal employment 22

- Jobs with informal features- Jobs with informal features

1 ILO, Resolution on the measurement of employment in the informal sector, Fifteenth International Conference of Labour Statisticians, Geneva, January 1993.

2 ILO, Guidelines on statistics of informal employment, Seventeenth International Conference of Labour Statisticians, Geneva, November 2003.

5959

Informal sector enterprisesInformal sector enterprises

Subset of household enterprisesSubset of household enterprises (SNA(SNA unincorporated enterprises owned by unincorporated enterprises owned by

households)households)

Informal own-account enterprisesInformal own-account enterprises– Either all own-account enterprisesEither all own-account enterprises– Or, only those that are not registered under specific forms of national Or, only those that are not registered under specific forms of national

legislationlegislation

Enterprises of informal employersEnterprises of informal employers– Small in terms of employmentSmall in terms of employment– Not registered (in the same sense as for informal own-account Not registered (in the same sense as for informal own-account

enterprises)enterprises)– Non-registration of its employeesNon-registration of its employees

6060

Householdsector

EmployersOwn-account

workersEmployees

Recipients ofproperty and

transfer incomes

Recipients ofproperty income

Recipients ofpensions

Recipients of other transfer

incomes

Enterprisesof informalemployers

Informal own-accountenterprises

Informalsector

6161

Informal employmentInformal employment

Combination of following criteria: Combination of following criteria:

Written or oral contractWritten or oral contract

Paid annual leavePaid annual leave

Paid sick leavePaid sick leave

Employer’s contribution to social security Employer’s contribution to social security schemesschemes

6262

Employment in the Informal Economy(Brazil, percentages, 1999)

Informal employment

Formal employment

Informal sector A(33.1%)

B(4.7%)

Other sectors C(27.4%)

D(34.8%)

Employment in the informal sector: A + B (37.8%)Informal employment: A + C (60.5%)Informal employment outside the informal sector: C (27.4%)Employment in the informal economy: A + B + C (65.2%)

6363

6464

6565

GDP and the Labour MarketGDP and the Labour Market

11 PopulationPopulation

22 Population Population 15+15+

2/12/1 Proportion of population Proportion of population aged15 years and overaged15 years and over

33 Labour forceLabour force 3/23/2 Labour force participation rateLabour force participation rate

44 EmployedEmployed 4/34/3 1-Unemployment rate1-Unemployment rate

55 Hours workedHours worked 5/45/4 Average hours workedAverage hours worked

66 GDPGDP 6/56/5 Labour productivityLabour productivity

6/16/1 GDP per capitaGDP per capita

6767

Labour productivityLabour productivity

Amount of output per unit of labourAmount of output per unit of labour

Value-added based measure:Value-added based measure:Quantity index of value addedQuantity index of value added

Quantity index of labour inputQuantity index of labour input

Output based measure:Output based measure:Quantity index of gross outputQuantity index of gross output

Quantity index of labour inputQuantity index of labour input

6868

Labour market trends inBahrain and the World

Bahrain 2001

Bahrain 2001

Bahrain 2001

Bahrain 2004

Bahrain 2004

Bahrain 2004

World 2001

World 2001

World 2001

World 2004

World 2004

World 2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage pop 15+ LFPR Employment rate

Labour productivity per hour

Bahrain2001

Bahrain2004

Non-oilmarketsector2001

Non-oilmarketsector2004

World2001

World2004

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Labour productivity (BD per hour)

BD per hour

6969

BibliographyBibliographyhttp://www.ilo.org/public/english/bureau/stat/standards/index.htmhttp://www.ilo.org/public/english/bureau/stat/standards/index.htmhttp://laborsta.ilo.orghttp://unstats.un.org/unsd/sna1993/toctop.asphttp://web.worldbank.orgILO, Resolution concerning statistics of hours of work, Tenth International Conference of Labour Statisticians, Geneva, October 1962.ILO, Resolution concerning statistics of labour cost, Eleventh International Conference of Labour Statisticians, Geneva, October 1966.ILO, Resolution concerning an integrated system of wages statistics, Twelve International Conference of Labour Statisticians, Geneva, October 1973.ILO, Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, Thirteenth International Conference of Labour Statisticians, Geneva, October 1982.ILO, International Classification of Status in Employment, Fifteenth International Conference of Labour Statisticians, Geneva, 1993.ILO, Resolution concerning of statistics of employment in the informal sector, Fifteenth International Conference of Labour Statisticians, Geneva, January 1993.ILO, Resolution concerning the measurement of employment-related income, Sixteenth International Conference of Labour Statisticians, Geneva, October 1998. ILO, Resolution concerning the measurement of underemployment and inadequate employment situations, Sixteenth International Conference of Labour Statisticians, Geneva, October 1998.

7070

Bibliography (cont’d)Bibliography (cont’d)

ILO, Guidelines on statistics of informal employment, Seventeenth International Conference of Labour Statisticians, Geneva, November 2003.ILO, Hussmanns, R., Mehran, F., and Verma, V., Surveys of Economically Active Population, Employment, Unemployment and Underemployment: An ILO Manual on Concepts and Methods, ILO, Geneva 1990. (Translated in Arabic, Persian, Portuguese, Russian, and Spanish.) Kingdom of Bahrain, Ministry of Labour, and Bahrain Centre for Studies & Research, Labour Force Survey, December 2004, SPSS data file. Kingdom of Bahrain, Central Informatics Organisation, Census of Population, Housing, Buildings, and Establishments – 2001, Part two The Demographic, Social, Economic Characteristics of the Population, Housing, Buildings and Establishments, December 2004.Kingdom of Bahrain, Civil Service Bureau, Annual Report 2004, p. 13.Kingdom of Bahrain, Ministry of Labour, Indicators of the Labour Market 2003-2004, (in Arabic) by Isma Al-Khalifa, Sana Maci, Anwar Al-Khunaisi, Ministry of Labour, May 2005.United Nations, “Government/Public Sector/Private Sector Delineation Issues,” Task Force on Harmonisation of Public Sector Accounting, Fourth meeting of the Advisory Expert Group on National Accounts, 30 January – 8 February 2006, Frankfurt, SNA/M1.06/17.

7171

IndexIndexEconomically active populationEconomically active populationCurrently active populationCurrently active populationUsually active populationUsually active populationLabour forceLabour forceLabour force participation rateLabour force participation rateEconomic activityEconomic activityProduction boundaryProduction boundaryWorkWorkEmploymentEmploymentEmployment-population ratioEmployment-population ratioSeeking workSeeking workAvailability for workAvailability for workUnemploymentUnemploymentUnemployment rateUnemployment rateSeasonal workerSeasonal workerDiscouraged workerDiscouraged workerUnderemploymentUnderemploymentTime-related underemploymentTime-related underemploymentInadequate employmentInadequate employment

Skill-related inadequate Skill-related inadequate employmentemploymentIncome-related inadequate Income-related inadequate employmentemploymentOver employmentOver employmentJobJobOccupationOccupationBranch of economic activityBranch of economic activityAbsence from workAbsence from workFormal job attachmentFormal job attachmentPaid employment jobPaid employment jobSelf-employment jobSelf-employment jobStatus in employmentStatus in employmentEmployeeEmployeeEmployerEmployerOwn-account workerOwn-account workerUnpaid family worker (Contributing Unpaid family worker (Contributing family worker)family worker)Member of producer’s cooperativeMember of producer’s cooperative

7272

Index (cont’d)Index (cont’d)Establishment Establishment Institutional unitInstitutional unitEnterpriseEnterpriseCorporationCorporationQuasi-corporationQuasi-corporationGovernment unitGovernment unitNon-profit institutionNon-profit institutionPublic sectorPublic sectorPrivate sectorPrivate sectorMarket sectorMarket sectorNon-market sectorNon-market sectorHousehold sectorHousehold sectorInformal sectorInformal sectorInformal employmentInformal employmentInformal economyInformal economyHidden economyHidden economyUnrecorded activitiesUnrecorded activities

WagesWagesWage rateWage rateEarningsEarningsLabour costLabour costLabour cost indexLabour cost indexUnit labour costUnit labour costHourly labour costHourly labour costEmployment-related incomeEmployment-related incomeHours of workHours of workNormal hours of workNormal hours of workActual hours workedActual hours workedUsual hours of workUsual hours of workHours paid forHours paid forGDPGDPGoodsGoodsServicesServicesValue addedValue addedLabour productivity Labour productivity

7373

QuestionnaireQuestionnaire

3. Which topics have been the most 3. Which topics have been the most clearly described?clearly described?

a.a. ________________________________________________b.b. ________________________________________________c.c. ________________________________________________

4. Which topics, in your view, require 4. Which topics, in your view, require further clarification?further clarification?

a. _________________________a. _________________________b. _________________________b. _________________________c. _________________________c. _________________________

5. Were the numerical examples 5. Were the numerical examples appropriate for comparing Bahrain appropriate for comparing Bahrain in relation to other countries?in relation to other countries?

a.a. Yes, explain ______________Yes, explain ______________b.b. No, explain ______________No, explain ______________

1.1. Among the topics discussed in the Among the topics discussed in the lecture, which do you think are lecture, which do you think are more relevant for the analysis of more relevant for the analysis of the labour market in Bahrain?the labour market in Bahrain?

a.a. __________________________________________________b.b. __________________________________________________c.c. __________________________________________________

2. Are there any other topics not 2. Are there any other topics not discussed in the lecture that you discussed in the lecture that you think should be included in relation think should be included in relation to the analysis of the labour to the analysis of the labour market in Bahrain?market in Bahrain?

a.a. __________________________________________________b.b. __________________________________________________c.c. _________________________ _________________________