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Employment Trends www.ilo.org/trends
Labour Market Indicators and the new MDG goals of full and
productive employment and decent work for all
Lawrence Jeff Johnson
Chief, Employment TrendsInternational Labour Organisation
Geneva, Switzerland
Employment Trends www.ilo.org/trends
The MDG goals
• World leaders agreed to several important targets at the 2005 World Summit.
• They recommended the incorporation of these targets into the set used to follow up on the Millennium Declaration, including a new target under MDG1.
Employment Trends www.ilo.org/trends
The MDG goals
New MDG 1 Target:
To make the goals of full and productive employment and decent work for all, including for women and young people, a central objective of our relevant national and international policies and our national development strategies
Employment Trends www.ilo.org/trends
Employment-to-population ratios for persons aged 15+ and youth (15-24) by sex
The share of working poor (US$1.25 a day) in total employment
Labour productivity
Vulnerable employment
What are the new indicators ?
Employment Trends www.ilo.org/trends
Employment-to-population ratio for persons aged 15 +
• Worldwide, slightly more than 6 persons out of 10 are working
• The highest ratio is in East Asia (71.4 per cent)
• Lowest in Middle East and North Africa (around 46 per cent)
• There is no “correct” employment-to-population ratio
Employment Trends www.ilo.org/trends
Employment-to-population ratio for persons aged 15 +
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
WORLD DevelopedEconomies
andEuropean
Union
Central andSouth
EasternEurope
(non-EU) &CIS
East Asia South-EastAsia and
the Pacific
South Asia LatinAmericaand the
Caribbean
Middle East NorthAfrica
Sub-Saharan
Africa
1997 2007
Employment Trends www.ilo.org/trends
Employment-to-population ratio for youth (15–24)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
WORLD DevelopedEconomies
andEuropean
Union
Central andSouth
EasternEurope
(non-EU) &CIS
East Asia South-EastAsia and
the Pacific
South Asia LatinAmericaand the
Caribbean
Middle East NorthAfrica
Sub-Saharan
Africa
1997 2007
Employment Trends www.ilo.org/trends
Share of working poor (US$1.25 a day) in total employment
• Worldwide, over 600 million persons are considered as “working poor”
• 2 out of every 10 workers are working and earning less than US$ 1.25 a day
• Over the last 10 years, the ratio has been declining of 15 percentage points
Employment Trends www.ilo.org/trends
Share of working poor (US$1.25 a day)in total employment
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
WORLD Central andSouth
EasternEurope
(non-EU) &CIS
East Asia South-EastAsia and
the Pacific
South Asia LatinAmericaand the
Caribbean
Middle East North Africa Sub-Saharan
Africa
1997 2007
Employment Trends www.ilo.org/trends
Share of working poor (US$2 a day)in total employment
0.0
20.0
40.0
60.0
80.0
100.0
WORLD Central andSouth
EasternEurope
(non-EU) &CIS
East Asia South-EastAsia and
the Pacific
South Asia LatinAmericaand the
Caribbean
Middle East NorthAfrica
Sub-Saharan
Africa
1997 2007
Employment Trends www.ilo.org/trends
Labour productivity
• Over the past 10 years, labour productivity has been increasing in every region
• But the gap between developed economies and the rest of the world is wider than ever !
Employment Trends www.ilo.org/trends
Labour productivity
0
10000
20000
30000
40000
50000
60000
70000
80000
WORLD DevelopedEconomies
&European
Union
Central &South
EasternEurope
(non-EU) &CIS
East Asia South EastAsia & the
Pacific
South Asia LatinAmerica &
theCaribbean
Middle East NorthAfrica
Sub-Saharan
Africa
Ou
tpu
t p
er w
ork
er (
2005
US
$ at
PP
P)
1997 2007
Employment Trends www.ilo.org/trends
Vulnerable employment
• Worldwide, around 1.5 billion vulnerable employed (of which around 900 million women)
• 5 out of every 10 workers can be considered vulnerably employed• 33.9 per cent own-account workers• 16.7 per cent contributing family workers
• Lowest in developed economies (10.1 per cent)
• Largest reduction over the past ten years: East Asia (- 8.3 percentage points)
Employment Trends www.ilo.org/trends
Global vulnerable employment and vulnerable employment share
1'250
1'300
1'350
1'400
1'450
1'500
1'550
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Vu
lne
rab
le e
mp
loy
me
nt
(mil
lio
n)
49.0
49.5
50.0
50.5
51.0
51.5
52.0
52.5
53.0
53.5
54.0
Sh
are
of v
uln
era
ble
em
plo
ym
en
t (%) Vulnerable employment
(million)
Vulnerable employment as ashare of total employment
Employment Trends www.ilo.org/trends
Vulnerable employment share
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
WORLD DevelopedEconomies
andEuropean
Union
Central andSouth
EasternEurope
(non-EU) &CIS
East Asia South-EastAsia and
the Pacific
South Asia LatinAmericaand the
Caribbean
Middle East NorthAfrica
Sub-Saharan
Africa
1997 2007
Employment Trends www.ilo.org/trends
Conclusion
• These 4 indicators are powerful tools to analyze the progress made by each country (or region) in promoting full and productive employment and decent work for all
Employment Trends www.ilo.org/trends
New Target 1bis has 3 specific dimensions:
Full Employment Productive Employment Decent EmploymentNo Single Labour Market Indicator exists today that would address all three dimensions of the target or meet the specified requirements
Employment Trends www.ilo.org/trends
• Informal sector employment
• Hours of work
• Part-time workers
• Employment by sector
• Status in employment
• Employment-to-population ratio
• Labour force participation rate
Key Indicators of the Labour Market
Educational attainment and illiteracy
Inactivity rate
Time-related underemployment
Unemployment by educational attainment
• Long-term unemployment
• Youth unemployment
• Unemployment
Poverty and Working Poor
Employment Elasticity
Productivity and unit labour cost
Hourly compensation costs
Occupational wages rates & earnings
Real manufacturing wage indices