BASIC CONCEPTS AND DEFINITIONS
Last update: 30/08/2006
This section presents the main concepts and definitions used in the
EU-LFS. It is organised in four parts:
1 Introduction
2 Labour status and
main dimensions
3 Detailed
definition of employment and unemployment
4 Socio-demographic
dimensions
The information provided is based on the Eurostat publication The European Union Labour Force Survey – Methods and
definitions 2001 that contains a comprehensive presentation of definitions
and technical aspects of survey as well as a detailed list of variables and
related explanatory notes.
For a concise summary, definition of rates and indicators published by EUROSTAT, please view LFS Series - Quarterly survey results.
The main statistical objectives of the Labour Force Survey
is to divide the population of working age (15 years and above) into three
mutually exclusive and exhaustive groups - persons
in employment, unemployed persons
and inactive persons - and to
provide descriptive and explanatory data on each of these categories.
Respondents are assigned to one of these groups on the basis of the most
objective information possible obtained through the survey questionnaire, which
principally relates to their actual activity within a particular reference
week.
The concepts and definitions used in
the survey are based on those contained in the Recommendation of the 13th
International Conference of Labour Statisticians, convened in 1982 by the International Labour Organisation
(hereafter referred as the ‘ILO guidelines’). To further improve comparability
within the EU, Commission Regulation (EC) No 1897/2000, gives a more
precise definition of unemployment. This definition remains fully compatible
with the International Labour Organisation standards.
2.
Labour status and main dimensions
The economic active population comprises employed and unemployed persons.
Employed persons are persons aged 15 year and over (16 and over in ES, UK and SE
(1995-2001); 15-74 years in DK, EE, HU, LV, FI, NO[1][3] and SE (from 2001 onwards); 16-74 in IS)
who during the reference week performed work, even for just one hour a 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 and training.
Unemployed
persons are persons aged 15-74 (in
ES, NO[1][3], SE (1995-2000), UK and IS
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.
Inactive persons are those who neither classified as employed nor as unemployed.
Labour
force classification in the European Union Labour Force Survey
Indicators to
supplement the unemployment rate
Underemployed
part-time workers are
persons aged 15-74 working part-time who wish to work additional hours and are
available to do so. Part-time work is recorded as self-reported by individuals.
Persons seeking work
but not immediately available are the sum of persons aged 15-74 neither employed nor
unemployed who:
- Are actively seeking work during the last 4 weeks but not
available for work in the next 2 weeks;
- Found a job to start in less than 3 months and are not
available for work in the next 2 weeks;
- Found a job to start in 3 months or more;
- Are
passively seeking work during the last 4 weeks and are available for work in
the next 2 weeks.
Persons available to
work but not seeking
are persons aged 15-74 neither employed nor unemployed who want to work, are
available for work in the next 2 weeks but are not seeking work.
Professional status
Employer employing one or more employees are defined as persons who work in
their own business, professional practice or farm for the purpose of earning a
profit, and who employ at least one other person.
Self-employed person not employing any employees are defined as persons who work in
their own business, professional practice or farm for the purpose of earning a
profit, and who employ no other persons.
Employees are
defined as persons who work for a public or private employer and who receive
compensation in the form of wages, salaries, fees, gratuities, payment by
results or payment in kind; non-conscript members of the armed forces are also
included.
Family workers are persons who help another member of the family to run a farm or other
business, provided they are not classed as employees.
Economic activity
The classification used for economic activities is the Statistical Classification of Economic Activities (NACE Rev.1, from 2005 NACE Rev.1.1). It is based on the 3 digit level for the main job and 2 digit level for other job descriptions. For more details, please view: NACE Rev.1and NACE Rev.1.1.
Occupation
The
classification used for occupation is the International Standard
Classification of Occupations - ISCO-88 (Com) on 4 digit level for the main job
and 3 digit level for the previous occupation. For more details, please view ISCO
88 (COM).
Full-time/part-time
This variable refers to the main job. The distinction
between full-time and part-time work is based on a spontaneous response by the
respondent (except in the Netherlands, Iceland and Norway were part-time is
determined if the usual hours are fewer than 35 hours and full-time if the
usual hours are 35 hours or more, and in Sweden where this criterion is applied
to the self-employed. It is impossible to establish a more precise distinction
between full-time and part-time employment, since working hours differ from one
Employees with fixed-term contracts
In the majority of Member States,
most jobs are based on written work contracts. In some countries, however,
contracts of this type are concluded only in specific cases (e.g. for
public-sector jobs, apprentices or other trainees within an enterprise). Given
these institutional discrepancies, the concepts of ‘temporary employment’ and
‘work contract of limited duration’ (or ‘permanent employment’ and ‘work
contract of unlimited duration’) describe situations which, in different
institutional contexts, may be considered similar. A job may be considered
temporary if employer and employee agree that its end is determined by
objective conditions such as a specific date, the completion of a task or the
return of another employee who has been temporarily replaced. Where there is a
work contract of limited duration, it usually states the terms of the end of
the contract.
The following belong to these
categories:
1. Persons with seasonal employment,
2. Persons engaged by an agency or
employment exchange and hired to a third party to perform a specific task
(unless there is a written work contract of unlimited duration with the agency
or employment exchange),
3. Persons with specific training
contracts. If there are no objective criteria for the end of a job or work
contract, this should be considered permanent or of unlimited duration.
Total duration of
temporary job or work contract of limited duration
This refers to the total of the time already elapsed plus
the time remaining until the end of the contract.
Working time
Number of hours usually worked per week
The number of hours usually worked
per week covers all hours including extra hours, either paid or unpaid, which
the person normally works, but excludes the travelling time between home and
workplace and the time taken for the main meal break (usually at lunchtime) are
excluded. Persons who usually also do homework are asked to include the number
of hours they usually work at home. Apprentices, trainees and other persons
learning a job are asked to exclude any time spent at college or in other
special training centres. Some persons, particularly self-employed persons and
family workers, may not have usual hours, in the sense that their hours vary
considerably from week to week or month to month. If a respondent is unable to
provide a figure for usual working hours for this reason, the average of hours
actually worked per week over the past four weeks should is used as a measure
of usual hours.
Number of hours actually
worked during the reference week
The number of hours actually worked
during the reference week covers all hours including extra hours regardless of
whether they were paid or not. Travel time between home and the place of work
as well as the main meal breaks (normally taken at
Calculation
of average hours
Average hour
results are computed as the mean of individual replies to the question on usual
hours (or actual hours, accordingly). The frequency of each individual after
grossing-up procedures is used as a weight. Non responses are not taken into
account.
Duration of unemployment
Duration of unemployment is defined
as:
-
the
duration of search for a job, or
-
the
length of the period since the last job was held (if this period is shorter
than the duration of search for a job).
Involuntary part-time employment
This is when respondents declare
that they work part-time because they are unable to find full-time work.
Working at home
This concept applies to many
self-employed persons exercising, for example, an artistic or liberal
profession and working solely or partly at home, often in a part of the
premises set aside for the purpose. However, if the workplace consists of a
separate unit adjacent to the person’s living unit but with a separate entrance
(a doctor’s consulting room or a tax consultant’s office, for example), the
work done on these premises should not be classed as ‘homework’. Similarly, a
farmer should not be considered as ‘working at home’ when occupied in fields or
buildings adjacent to his or her home.
In the case of employees, ‘homework’ should be interpreted strictly on
the basis of formal agreements concluded with the employer, in which both
parties, employee and employer, agree that part of the work is to be done at
home. Such an agreement may either be stated explicitly in the work contract or
recognised in another way (e.g. if the employee informs the employer explicitly
of his or her work by completing a suitable form or by applying for additional
pay or another form of compensation). Such an agreement is also recognised if
the employee is provided with a home computer for performing his or her work.
Other typical examples of ‘working at home’ include sales representatives who
prepare at home for the meetings they are to conduct with clients in their
offices or homes, and persons doing typing or knitting which is then sent to a
central collection point.
‘Work at home’ does not cover
employees choosing to work at home for personal or emergency reasons but whose
work contract stipulates that they could equally have done the work at the
workplace.
A person is considered ‘usually’ to
work at home if, for a reference period of four weeks before the interview, he
or she has worked at home under the type of agreement described above and the
hours worked at home amount to at least half of the total hours worked during
the period.
A person is considered ‘sometimes’
to work at home if, for a reference period of four weeks before the interview,
he or she has worked at home under the type of agreement described above but
the hours worked at home amount to less than half of the total hours worked
during the period.
A person is considered ‘never’ to
work at home if, for a reference period of four weeks before the interview, he
or she has on no occasion worked at home under the type of agreement described
above.
Asocial working time
Evening or night work
Since the definitions of evening and
night differ widely, it is not easy to establish a strictly uniform basis for
all Member States. In general, however, ‘evening work’ is considered to be work
done after usual working hours but before the usual hours of sleep in the
‘Night work’ is generally be
regarded as work done during usual sleeping hours and implies abnormal sleeping
times.
In this context, ‘usually’ is
interpreted as meaning at least half the number of days on which the person
worked during a four-week reference period before the interview, ‘sometimes’ as
less than half the number of days worked (but at least one occasion) and
‘never’ as no occasion during the four-week reference period preceding the
interview.
Saturday or Sunday working
This concept is interpreted strictly
on the basis of formal agreements concluded with the employer. Employees taking
office work home and/or occasionally working at the workplace on Saturday or
Sunday are not generally included under this heading.
In this context, ‘usually’ may be
interpreted as meaning two or more Saturdays (or Sundays) during a four-week
reference period before the interview, ‘sometimes’ as one Saturday (or Sunday)
in this period and ‘never’ as no Saturday (or Sunday) during the four-week
reference period preceding the interview.
Shift-work
The question of shift work applies only to employees. Shift work is a regular work schedule during which an
enterprise is operational or provides services beyond the normal working hours
from
(Note: The definition of shift-work changed in
2001. The previous definition can be found in the publication “The European Union Labour Force Survey - Methods and definitions
1998”)
3.
Detailed definition of employment and unemployment
Employment
Persons in employment
Persons in employment are those aged 15 year and over (16 and over in ES, UK and
SE (1995-2001); 15-74 years in DK, EE, HU, LV, FI, NO[2][3][1] and SE
(from 2001 onwards); 16-74 in IS) who during the reference week did any work
for pay or profit, or were not working but had jobs from which they were
temporarily absent. Family workers are included.
"Work"
means any work for pay or profit during the reference week, even for as little
as one hour. Pay includes cash payments or "payment in kind" (payment
in goods or services rather than money), whether payment was received in the
week the work was done or not. Also counted as working is anyone who receives
wages for on-the-job training which involves the production of goods or
services (European System of Accounts 11.13 f). Self-employed persons with a
business, farm or professional practice are also considered to be working if
one of the following applies:
1) A person works in his own business,
professional practice or farm for the purpose of earning a profit, even if the
enterprise is failing to make a profit.
2) A person spends time on the
operation of a business, professional practice or farm even if no sales were
made, no professional services were rendered, or nothing was actually produced
(for example, a farmer who engages in farm maintenance activities; an architect
who spends time waiting for clients in his/her office; a fisherman who repairs
his boat or nets for future operations; a person who attends a convention or
seminar).
3) A person is in the process of
setting up a business, farm or professional practice; this includes the buying
or installing of equipment, and ordering of supplies in preparation for opening
a new business. An unpaid family worker is said to be working if the work
contributes directly to a business, farm or professional practice owned or
operated by a related member of the same household.
Self-employed persons
If
self-employed persons are absent from work, then they are regarded as in
employment only if they can be said to have a business, farm or professional
practice. This is the case if one or more of the following conditions are met:
1) Machinery or equipment of
significant value, in which the person has invested money, is used by him or
his employees in conducting his business, an office, store, farm or other place
of business is maintained.
2) There has been some advertisement of
the business or profession by listing the business in the telephone book,
displaying a sign, distributing cards or leaflets, etc.
3) Person who works on their own small
agriculture farm, who do not sell their products, but produce only for their
own consumption
The
classification as employment of persons who work on their own small agriculture
farm and who do not sell their products, but produce only for their own
consumption depends on whether it falls within the production boundaries. When
this production is included in national accounts, underlying employment must be
identified. This depends on the relative quantitative importance of the
production of agricultural products for own consumption in relation to the
total supply of these products in a country (European System of Accounts 3.08)
Conscripts
Conscripts
who performed some work for pay or profit during the reference week are not
considered in employment.
Seasonal workers
During the
off-season, seasonal workers cannot be considered as having a formal attachment
to their high-season job— because they do not continue to receive a wage or
salary from their employer although they may have an assurance of return to
work.
Maternity and paternity leave
Maternity
leave is first given to the mother (but may include the leave of the father in
the case of a transfer of the entitlements) and corresponds to the compulsory
period of the leave stipulated by national legislation to ensure that mothers
before and after childbirth have sufficient rest, or for a period to be
specified according to national circumstances. People in maternity leave are
always considered in employment.
Parental leave
Parental
leave can be taken either by the mother or the father and is the interruption
of work in case of childbirth or to bring up a child of young age. It corresponds
to the period when parents receive “parental leave benefit”. People in
full-time parental leave are treated as a case of long term absence from work.
Unpaid family workers
The unpaid
family worker can be said to have a job but not be at work if there is a
definite commitment by the employer (a related household member) to accept
his/her return to work and the total absence does not exceed a period of 3
months. In this point Eurostat diverges from the ILO recommendation.
Lay-offs
A person on
lay-off is one whose written or unwritten contract of employment, or activity,
has been suspended by the employer for a specified or unspecified period at the
end of which the person concerned has a recognised right or recognised
expectation to recover employment with that employer.
Lay–offs
are classified as employed if they receive
³ 50% of their wage or salary from their employer or have an
assurance of return to work within a period of 3 months. In 2001, the surveys
in BE, BG, EE, ES, LT, SI and partially SK included the test to capture this
type of lay-offs classification.
Long-term absence from work
If the
total absence from work (measured from the last day of work to the day on which
the paid worker will return) exceeds three months then a person is considered
to have a job only if he/she continues to receive ³ 50% of
the wage or salary from their employer (ESA 11.14a). In 2001, the surveys in
BE, BG, EE, ES, LT, SI and partially SK included the test to capture this type
of long-term absence classification.
Unemployment
1) In accordance with the ILO standards
adopted by the 13th and 14th International Conference of Labour Statisticians
(ICLS) and Commission Regulation (EC) No 1897/2000, since 2001, unemployed persons comprise persons aged
15 to 74 (16 to 74 in ES, NO[3][3], SE (1995-2000), UK, IS 16-74) who were:
a) without work during the reference
week, i.e. neither had a job nor were at work (for one hour or more) in paid
employment or self-employment;
b) currently available for work, i.e.
were available for paid employment or self-employment before the end of the two
weeks following the reference week;
c) actively seeking work, i.e. had
taken specific steps in the four week period ending with the reference week to
seek paid employment or self-employment or who found a job to start later, i.e.
within a period of at most three months.
For the purposes of point 1(c), the following are considered as specific steps:
- having been in contact with a public employment office to find work, whoever took the initiative (renewing registration for administrative reasons only is not an active step),
- having been in contact with a private agency (temporary work agency, firm specialising in recruitment, etc.) to find work,
- applying to employers directly,
- asking among friends, relatives, unions, etc., to find work,
- placing or answering job advertisements,
- studying job advertisements,
- taking a recruitment test or examination or being interviewed,
- looking for land, premises or equipment,
- applying for permits, licences or financial resources.
Comparability with results prior to 2001:
- unemployment results used to
refer to persons aged 15 and more
2)
Education
and training are considered as ways of improving employability but not as
methods of seeking work.
Persons without work and in education or training will only
be classified as unemployed if they are ‘currently available for work’ and
‘seeking work’, as defined in points 1(b) and (c).
3)
Lay-offs
are classified as unemployed if they do not receive any significant wage or
salary (significant is set at =50%) from their employer and if they are
‘currently available for work’ and ‘seeking work’. Lay-offs are treated as a
case of unpaid leave initiated by the employer — including leave paid out of
government budget or by funds (16th ICLS). In this case, lay-offs are
classified as employed if they have an agreed date of return to work and if
this date falls within a period of three months.
4)
During
the off-season, seasonal workers cannot be considered as having a formal
attachment to their high-season job because they do not continue to receive a
wage or salary from their employer although they may have an assurance of
return to work. If they are not at work during the off-season, they are
classified as unemployed only if they are ‘currently available for work’ and
‘seeking work’, as defined in points 1(b) and (c).
4.
Socio-demographic dimensions
Age
The age of the respondent is calculated
from the year of birth. For persons born in the same year, those whose
birthdays fall between 1 January and the end of the reference week are, for the
purposes of survey results analysis, regarded as being one year older than
those whose birthdays fall after the end of the reference week. This definition
applies to all tables incorporating an age structure.
Nationality
Nationality is interpreted as
citizenship. Citizenship is defined according to national legislation of each
country. For the sake of reliability, the results by nationality are shown only
in three groups:
nationals of
the
Marital status
Marital status is the conjugal
status of each individual in relation to the marriage laws of the country (i.e.
de jure status). Therefore it
does not necessarily match the real household situation in terms of
cohabitation arrangements. Those countries that have a legal framework for
registering partnerships giving them a legal status parallel to married couples
are treated as married. This definition applies to all tables incorporating
this variable.
Degree of urbanisation
The concept of ‘urbanisation’ was
introduced to indicate the character of the geographical area in which the
surveyed person lives. Three types of area have been identified:
-
densely-populated
area;
-
intermediate
area;
-
sparsely-populated
area.
A set of local areas with a total
area of less than 100 km² and less than the required population density which
is entirely enclosed within a densely-populated or intermediate area should be
regarded as part of this area. If the area is surrounded by a densely-populated
area and an intermediate area, it is regarded as part of the intermediate area.
Population in education or training
The data collected refer to all
education or vocational training whether or not relevant to the respondent’s
current or future employment (International Standard Classification of Education 1997).).
They should include initial
education, additional education, continuing or additional training, training in
enterprises, apprenticeships, on-the-job training, seminars and workshops,
distance education, evening classes, self-learning[5][2], etc. They should also include courses
followed out of personal interest only and may cover all forms of learning, and
training in subjects such as languages, computer studies, business studies, art
and culture, health and medicine.
Due to the transition to harmonised concepts, several
countries experienced breaks in those series (see notes for the indicator ‘Lifelong Learning’)
Purpose of education
or training
First of all, this questions aims at collecting information
on participation in training under a specific employment measure.
Secondly, the question aims at collecting individual perception of purpose. The
answer does not depend on the characteristics of a programme but on the
perception the individual has about his current training. This perception would
usually depend on whether the person has had a previous main job before.
Highest level of education or
training successfully completed
-
Education level is classified according to the International Standard Classification
of Education 1997.
- The expression 'level successfully completed' is associated with obtaining a certificate or a diploma, when there is a certification. In cases where there is no certification, successful completion must be associated with full attendance.
- When determining the highest level, both general and
vocational education/training is taken into consideration.
For more information on the
comparability of results over time see the notes available for the indicator ‘Youth Education attainment level’. For the main quality
features of this structural indicator, please view its Eurostat
Quality Profile Background Document on
Quality.
Dependent
child
A
child is defined as a household member aged less than 25 years and in full
social and economic dependence from other household member/-s (parents/ adults).
All household
members
aged below 15 are by default considered 'children', whereas an additional check
on the social and economic dependence is required for the household members
aged between
15
and 24. The check is based on the LFS variables determining whether a person is
living in a common household with a parent (HHMOTH/HHFATH) and whether a person
perceives
her-/himself
as economically inactive (MAINSTAT) or, in lack of this information, is
considered inactive according to the ILO definition or works for a very limited
number of hours (less than 10 hours a week).