Guide To The Millennium Development Goals Employment .

Part A  1. BackgroundIn 2000, the largest-ever gathering of world leadersushered in the new millennium by adopting theMillennium Declaration, endorsed by 189 countries. Itwas then translated into a roadmap setting out goals tobe reached by 2015.The eight Millennium Development Goals, seebox below, build on agreements made by all countriesat the United Nations in the 1990s to reduce povertyand hunger, and to tackle ill-health, gender inequality,lack of education, lack of access to clean water and environmental degradation.The MDGs are a compact, which recognizes theefforts that must be undertaken by developing countries, the contribution that developed countries canmake as well as the importance of all countries workingin partnership for the betterment of all, in particularthe most vulnerable.In February 2007, the Secretary-General of theUnited Nations began a two-year devoted effort inthe Commission for Social Development to actionswhich “promote full employment and decent workfor all.” 1 Resolutions adopted guided the work ofthe Inter-Agency and Expert Group (IAEG) in theirefforts to expand the MDGs to include a new target foremployment and four new employment indicators. Theindicators (detailed in this Guide) call on all countriesto report progress and provide disaggregate data by sexand urban/rural as far as possible.The aim of this Guide is to inform national andinternational stakeholders on the definitions, concepts, calculations and data sources for each of theemployment indicators introduced in 2008 under theMDGs (see next page). It also reinforces the previously established indicator on gender equality in thelabour market under Goal 3. The purpose is to assistcountries to monitor and report effectively on theirrunning head1Millennium Development Goals1. Eradicate extreme poverty and hunger2. Achieve universal primary education3. Promote gender equalityand empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malariaand other diseases7. Ensure environmental sustainability8. Develop a global partnershipfor developmentemployment situation. It should be recognized thatthe four employment indicators are a first step towardsmonitoring the employment-dimension of the DecentWork Agenda. The 2008 ILO Declaration on SocialJustice for a Fair Globalization endorses Decent WorkAgenda and its four essential pillars:yy(i) International labour standards and fundamental principles and rights at workyy(ii) Employment creationyyyy(iii) Social Protection(iv) Social Dialogue and tripartismThe Declaration recommends that ILO Members mayconsider “the establishment of appropriate indicatorsor statistics, if necessary with the assistance of the ILO,to monitor and evaluate the progress made towarddecent work.” 2 Thus, the MDG employment indicatorsshould be seen in the context of the full set of nearly1. See www.un.org/esa/socdev.2. See paragraph II.B.ii of the 2008 ILO Declaration on Social Justice for a Fair Globalization, oad/dg announce en.pdfContents

GUIDE TO THE MILLENNIUM DEVELOPMENT GOALS EMPLOYMENT INDICATORS90 Decent Work Indicators (DWIs) that cover thefour strategic objectives of the Decent Work Agenda.A conceptual framework for measuring decentwork which covers the DWIs was defined in September2008 in a Tripartite Meeting of Experts and subsequently presented to the ILO Governing Body and the18th International Conference of Labour Statisticians(ICLS). (See Part B.3 for the full list of decent workindicators and see also the ILO Manual (First Version),Decent Work Indicators Concepts and Definitions whichprovides guidelines on the full set of Decent WorkIndicators).3This Guide complements the ILO Manual(First Version), Decent Work Indicators Concepts andDefinitions and is a supplement to the 2003 Indicatorsfor Monitoring the Millennium Development Goals: definitions, rationale, concepts and sources. The basic information needed to monitor progress on each indicator isexplained. For the complete MDG database please referto http://mdgs.un.org.2Contents3. See ts/---stat/documents/publication/wcms 183859.pdf

A. 2.  MDG 1B targetand indicatorsRecognizing that decent and productive work for allis central to addressing poverty and hunger, MDG 1included a new target and indicators (agreed upon in2008):New MDG Target (1B) –Achieve full and productive employment and decentwork for all, including women and young peopleThis target contains four indicators specifically and directly relating to employment issues. This Guide focuseson these four employment indicators:Employment Indicators:yy Growth rate of labour productivity (GDP perperson employed)yy Employment-to-population ratioyy Proportion of employed people living belowthe poverty line (working poverty rate)yy Proportion of own-account and contributingfamily workers in total employment (vulnerableemployment rate)running headThese employment indicators are designed to:yy Provide relevant and robust measures of progress towards the new target of the MillenniumDevelopment Goalsyy Be clear and straightforward to interpret and provide a basis for international comparisonyy Be relevant and link to national-level country monitoring systemsyy Be based on concepts and definitions defined asinternational statistical standards (for example,based on resolutions and guidelines of the ICLS)and best practice in labour statistics, informationand analysisyy Be constructed from well-established data sourceswhich enable consistent measurement over time3Contents

A. 3.  Strengthening monitoringof labour marketsGUIDE TO THE MILLENNIUM DEVELOPMENT GOALS EMPLOYMENT INDICATORS4ContentsThe need to monitor employment trends internationally and at country level is not new, but it is more urgentthan ever given the impact of economic crises thatbegan in late 2008. The slowdown in economic growthin both developed and developing countries is cuttinginto government revenues and their abilities to investin infrastructure, health and education. As economiesslow, job losses and vulnerable employment increasesand productivity declines. ILO reports show dramaticincreases in unemployment, working poverty and vulnerable employment.1There is an urgent need, therefore, to have accurateand detailed data and information regularly produced onemployment, especially among the poorest segments ofthe population. Reliable statistics, information and analyses are required in order to develop and monitor policies. This not only concerns strong national statisticaloffices, but also requires collaboration between statisticalagencies, government departments and social partners.The economic crisis is just one of the reasons forstrengthening labour market information and analysis. There is need in most countries to strengthen theanalytical base for national development plans and priorities. By establishing a set of indicators on the labourmarket and monitoring them regularly, evidence-basedpolicy decision making can be strengthened.1. See the series of Global Employment Trends (Geneva, ILO, January 2009-12, www.ilo.org/trends).

A. 4.  Background tothe information sheetsThe information sheets in Part B.1 (see next pages)provide practical guidance on data collection and analysis of each of the four employment indicators underMDG 1. In addition, an information sheet is includedon the employment indicator under MDG 3 (GenderEquality). For each indicator, the following informationis included:yy The link between the indicator and the MDG goaland targetyy Description and method of computationyy Definitionsyy Sources and data collectionyy Rationale for use of the indicatoryy Comments and limitationsyy Links to global and regional monitoringrunning headA practical example of the type of national analysis that can be produced based on the four MDG 1Bindicators is provided in Part B.2.The MDG employment indicators should be understood as a sub-set of the full set of nearly 90 ILODecent Work Indicators listed in Part B.3. The fullset can be adapted to national circumstances andused to monitor the national Decent Work CountryProgramme (DWCP), Poverty Reduction Strategy(PRS), and National Development Frameworks. It mayalso be useful for countries that are considering establishing a Labour Market Information and AnalysisSystem (LMIAS).Finally, Part B.4 includes references which may beuseful for additional information.5Contents

Part B  1.  Information sheets foremployment indicatorsPart B 1. Information sheets for employment indicatorsIndicator 1.4 Growth rate of labour productivity(GDP per person employed)Goal and target addressedIndicator: descriptionand method of computationGoal and target addressedMDG Goal 1: Eradicate extreme poverty & hungerMDG Target 1B: Achieve full and productive employment and decentwork for all, including women and young peopleIndicator: description and method of computationThe labour productivity growth rate is measured as the annual change inGross Domestic Product (GDP) per person employed.Labour productivity GDP (measured at constant market prices in national currency)total employmentLabour productivity labour productivity year N labour productivity year N 1 100growth ratelabour productivity year N 1DefinitionsDefinitionsLabour productivity represents the amount of output achieved per unit oflabour input. For this purpose, output is measured as the national grossdomestic product or GDP, a measure found in the national accounts of acountry. According to the System of National Accounts (SNA), GDPderives from the concept of value added. Gross value added is the difference between output and intermediate consumption. GDP is the sumof gross value added of all resident producer units plus that part (possibly the total) of taxes on products, less subsidies on products, that isnot included in the valuation of output. Next, GDP is also equal to thesum of the final uses of goods and services (all uses except intermediateconsumption) measured at purchasers’ prices, less the value of imports ofgoods and services. Finally, GDP is equals the sum of primary incomesdistributed by resident producer units.1Labour input is measured as the number of persons employed, ortotal employment. Employment refers to people above a certain age whoworked or held a job during a specified reference period (as defined in theResolution concerning statistics of the economically active population,1. See System of National Accounts 2008 (New York, 2009), available /SNA2008.pdf7Contents

GUIDE TO THE MILLENNIUM DEVELOPMENT GOALS EMPLOYMENT INDICATORSemployment, unemployment and underemployment, adopted by the13th International Conference of Labour Statisticians (ICLS), October1982).2 Included are: persons who worked for pay or profit (or pay inkind), persons who were temporarily absent from a job for such reasons asillness, maternity or parental leave, holiday, training or industrial dispute,and unpaid family workers who work for at least one hour. The measure isintended to capture persons working in the formal and informal sectorsand households.8Sources and data collectionContentsSources and data collectionEstimates of GDP at constant prices, which should be used for the measurement of labour productivity over time, refer to the volume level ofGDP and are obtained by expressing values in terms of a base period.Guidelines for measurement of GDP are outlined in the United NationsSystem of National Accounts (UNSNA), 2008. See website: http:// dfEmployment data could be obtained from population censuses,labour force or other household surveys, establishment surveys, administrative records and official estimates based on results from several ofthese sources. Labour force surveys can be designed to cover virtually theentire population of a country, all branches of economic activity, all sectors of the economy, and all categories of workers, including own-accountworkers, unpaid family workers and persons engaged in the informaleconomy. For this reason, household-based labour force surveys offer aunique advantage for obtaining information on the labour market ofa country and its structure. [See section in employment-to-populationratio, indicator 1.5 for more information.]Disaggregation: For the purpose of this indicator, no disaggregation(for example, of specific economic sectors) is required. Disaggregations byeconomic sector can however provide additional insights.RationaleRationaleLabour productivity can be used to assess the likelihood of the country’seconomic environment to create and sustain decent employment opportunities with fair equitable remuneration. Growth in labour productivitycan occur in a number of ways. There may be an increased efficiency in theuse of labour, without using any more of the other inputs. Alternatively,the growth may be due to an increased use of other inputs such as physicalcapital or intermediate inputs. A third way in which growth in the totaleconomy can occur is as a result of a shift in the mix of activities in theeconomy. For instance, an industry might have shifted from activitieswith low levels of productivity to activities with higher levels, even if noneof the activities has become more productive.2. See MS 087481/lang--en/index.htm

Part B 1. Information sheets for employment indicatorsThere is empirical evidence that the link between productivitygrowth and poverty reduction is highest when productivity growth andemployment growth go hand in hand. Consequently, measuring bothgrowth in employment (see employment-to-population ratio, indicator1.5) and productivity is needed to assess whether the development processis heading in the right direction. In addition, productivity increases ofteninfluence the social and economic environment positively, in turn leadingto poverty reduction through investment, sectoral shifts, trade, technological progress and increases in social protection.Increases in productivity do not guarantee improvements in theseareas, but it is certain that without productivity growth, improvementsin conditions of work are less likely to occur. With limited increases inproductivity, an economy generally sees little increase in the wages ofworkers and there is no additional potential to create new jobs. It is important that productivity growth is accompanied by improvements inthe education and training systems so that the future workforce is betterprepared to perform the jobs needed.Comments and limitationsData for globaland regional monitoringComments and limitationsDifferences in valuation concepts such as GDP at factor costs or GDPat market prices affect the consistency of the levels of output in nationalcurrency when compared across countries. But the valuation concept haslittle impact on comparisons of growth rates of productivity as the percentage differences between output at various valuation concepts do notchange much over time.Despite the common principles based on the United Nations Systemof National Accounts, there are still significant problems in internationalconsistency of national accounts estimates, in particular for economiesoutside the Organization for Economic Co-operation and Development(OECD). One example of inconsistency arises from the different degree ofcoverage of informal economic activities in developing economies and ofthe underground economy in developed economies in national accounts.Some economies use data from special surveys for “unregistered activities”,or indirect estimates from population censuses or other sources to estimate these activities, and large differences in coverage between economiesremain. In addition to such inconsistencies there are significant differences in scope and quality of the primary national statistics and the staffresources available for the preparation of the relevant national estimates.For more information on limitations to comparability, see chapter 7of ILO, Key Indicators of the Labour Market, 7th Edition (Geneva, 2011);www.ilo.org/kilm.Data for global and regional monitoringData for global and regional monitoring for this indicator is reportedby the International Labour Organization, Employment Trends Unit,Geneva, Switzerland.Rather than collect national estimates on labour productivity, theILO produces estimates of labour productivity based on internationalsources of GDP and ILO estimates of employment. [See section on the9Contents

GUIDE TO THE MILLENNIUM DEVELOPMENT GOALS EMPLOYMENT INDICATORSemployment-to-population ratio, indicator 1.5, for more information onILO estimates of employment.] GDP estimates are those extracted fromthe World Bank’s World Development Indicators and the IMF’s WorldEconomic Outlook database. Documentation about these sources is available at at: opmentindicators and odata/index.aspxSources of discrepancies between reported MDG indicators and national indicators: To compare labour productivity levels across economies, it is necessary to convert GDP expressed in national currency toGDP expressed in US dollars adjusted by purchasing power parity (PPP).A PPP represents the amount of a country’s currency that is required topurchase a standard set of goods and services worth one US dollar. Theuse of PPPs, as well as discrepancies between nationally-reported and ILOestimates of employment, may result in productivity levels and growthrates that differ from those reported by national institutions.10ContentsIndicator 1.5. Employment-to-population ratioGoal and target addressedIndicator: descriptionand method of computationGoal and target addressedMDG Goal 1: Eradicate extreme poverty & hungerMDG Target 1B: Achieve full and productive employment and decentwork for all, including women and young peopleIndicator: description and method of computationThe employment-to-population ratio is the proportion of a country’sworking-age population that is employed. The indicator is computed bydividing the total number of employed person above a certain age (typically 15 years and over) by the population of the same age group:total employmentEmployment-to-population ratio 100working-age populationThe indicator typically falls between 50 and 75 per cent with a highershare indicating that a greater proportion of the population that could beworking does work. A low ratio indicates that a large share of the population is not involved in production of economic goods and services. Inmost countries, the ratio is lower for females than for males.DefinitionsDefinitionsEmployment refers to people above a certain age who worked or held ajob during a specified reference period (as defined in the Resolution concerning statistics of the economically active population, employment, unemployment and underemployment, adopted by the 13th InternationalConference of Labour Statisticians, October 1982). Included are: persons

Part B 1. Information sheets for employment indicatorswho worked for pay or profit (or pay in kind), persons who were temporarily absent from a job for such reasons as illness, maternity or parentalleave, holiday, training or industrial dispute, and unpaid family workerswho work for at least one hour. The measure is intended to capture persons working in the formal and informal sectors and households.The working age population is the population above a specifiedminimum age and below a specified maximum age, prescribed forthe measurement of economic characteristics. For most countries, theworking-age population is defined as persons aged 15 years and older, although this may vary slightly from country to country.Sources and data collectionSources and data collectionData could be obtained from population censuses, labour force or otherhousehold surveys, establishment surveys, administrative records and official estimates based on results from several of these sources. Both components (employment and population) should come from the same source.Labour force surveys can be designed to cover virtually the entirepopulation of a country, all branches of economic activity, all sectorsof the economy, and all categories of workers, including own-accountworkers, unpaid f

Guide to the Millennium Development Goals Employment Indicators Second edition . studies and other contributions rests solely with their authors, and publication does . ushered in the new millennium by adopting the Mille