Labour costs survey 2008, 2012 and 2016 - NACE Rev. 2 activity (lcs_r2)

National Reference Metadata in ESS Standard for Quality Reports Structure (ESQRS)

Compiling agency: Statistics Iceland

Time Dimension: 2016-A0

Data Provider: IS1

Data Flow: LACOST_LCSR2EQ_A


Eurostat metadata
Reference metadata
1. Contact
2. Statistical presentation
3. Statistical processing
4. Quality management
5. Relevance
6. Accuracy and reliability
7. Timeliness and punctuality
8. Coherence and comparability
9. Accessibility and clarity
10. Cost and Burden
11. Confidentiality
12. Comment
Related Metadata
Annexes (including footnotes)
 



For any question on data and metadata, please contact: EUROPEAN STATISTICAL DATA SUPPORT

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1. Contact Top
1.1. Contact organisation

Statistics Iceland

1.2. Contact organisation unit

Wage Statistics

1.5. Contact mail address

Borgartuni 21A

IS-150 Reykjavik

Iceland


2. Statistical presentation Top

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2.1. Data description

The data for LCS 2016 is taken from the ISWEL survey (Icelandic Survey on Earnings, Wages and Labour cost). The data for private sector and municipalities is based on a survey sample. Employees working in the central government or its institutions are all included.

2.2. Classification system

NACE Rev. 2.

2.3. Coverage - sector

NACE Rev. 2 Sections B-S.

The Icelandic LCS 2016 includes the economic activities NACE Rev. 2; C, D, E, F, G, H, J, K, M, O, P, Q and R, which cover about 90% of the labour market (B-S) according to the Pay as You Earn data (PAYE). Economic activity M is not fully covered and therefore flagged. The economic activities I, L, N and S are missing in LCS 2016 for Iceland. The economic activity B is only a remote part of the Icelandic economy.

2.4. Statistical concepts and definitions

[Not requested]

2.5. Statistical unit

The statistical units are the local units by division of the NACE Rev. 2 on a 2-digit level.

2.6. Statistical population

Enterprises with ten or more employees.

2.7. Reference area

Iceland.

2.8. Coverage - Time

2016

2.9. Base period

2016


3. Statistical processing Top

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3.1. Source data

Full coverage data was received for employees working for the central government and its institutions. All employees working in institutions with 10 or more employees are included.

3.2. Frequency of data collection

[Not requested]

3.3. Data collection

[Not requested]

3.4. Data validation

[Not requested]

3.5. Data compilation

[Not requested]

3.6. Adjustment

[Not requested]


4. Quality management Top

-

4.1. Quality assurance

[Not requested]

4.2. Quality management - assessment

[Not requested]


5. Relevance Top

Iceland has delivered LCS survet data five times. Known users, along with Eurostat, are institutions, companies, analysts, news media and the public.

 

5.1. Relevance - User Needs

The LCS data is used by Eurostat. In addition, part of the data is published on Statistics Iceland’s website.

5.2. Relevance - User Satisfaction

User satisfaction has not been measured.

5.3. Completeness

For the LCS 2016 most variables are accounted for; however a number of optional variables were excluded in the Icelandic results. These are:

  •      D.11141 Company products
  •      D.11142 Staff housing
  •      D.11143 Company cars
  •      D.11144 Stock options and share purchase schemes
  •      D.11145 Other
  •      D.1221 Guaranteed remuneration in the event of sickness
  •      D.1222 Employers' imputed social contributions for pensions and health care
  •      D.1223 Payments to employees leaving the enterprise
  •      D.1224 Other imputed social contributions of the employer

 Information for three mandatory variables is missing. These are:

  •      D.2 Vocational training costs
  •      D.3 Other expenditure paid by the employer
  •      D.5 Subsidies received by the employer
5.3.1. Data completeness - rate

The Icelandic LCS 2016 includes the economic activities C, D,E, F, G, H, J, K, M, O, P, Q and R, which cover about 90% of the labour market (B-S) according to the Pay as You Earn data (PAYE). Economic activitiy M is not fully covered and therefore flagged. The economic activities I, L, N and S are missing in LCS 2016 for Iceland. The economic activity B is only a remote part of the Icelandic economy.


6. Accuracy and reliability Top

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6.1. Accuracy - overall

The data for LCS 2016 is based on the ISWEL survey (The Icelandic Survey on Earnings, Wages and Labour cost). The survey is based on a sample of provate companies and municipalities (local government) with 10 or more employees. In addition, data are collected directly from the central government for all its employees.

6.2. Sampling error

The ISWEL survey is subject to possible errors due to the sampling methods and/or quality of the PAYE (Pay as You Earn) data which the population is based on.

The ISWEL sample is a stratified cluster sample, where the sample unit is the business unit and the observation unit is the employee. The target population contains all business units with 10 or more employees. The population frame is based on monthly PAYE data. The PAYE register reflects the sum of the wages reported to the tax authorities. The population is stratified in sections and subsections according to NACE Rev. 2. Business units with more than A/m employees are selected with a probability of 1 (where A is the number of employees in the stratum and m is the number of business units to be selected from the stratum). For the rest of the population, a simple random sample is selected from each stratum.

Full coverage data was received for employees working for the central government and its institutions. All employees working in institutions with 10 or more employees are included.

6.2.1. Sampling error - indicators

For the municipalities, a sample is drawn as to achieve a certain proportion for each of the country's regions. The target population contains also municipalities with 10 or more employees.

The coefficients of variation (CV) for the population as a whole can be seen in table 1.

 

Table 1: Coefficient of variation for annual and hourly labour cost for population

Size Class Estimated value (ISK) Standard Error (ISK) Coefficient of variation (%)
Annual labour cost 744,640,000 2,106,051,000 2.83
Hourly labour cost 5,225 10,302 1.97

Note: Annual labour cost = Code D (total labour cost), sum of the values of code D1, D2, D3, D4 minus D5 and Hourly labour cost = Code D (total labour cost), sum of the values of code D1, D2, D3, D4 minus D5, divided by the value of code B1, in Annex 1 to Regulation (EC) No 1726/1999. Unit of measure is labour cost per business units.

 

The coefficients of variation (CV) broken down according to the structure of LCS for Annual labour costs are listed in tables 2 and 3.

 

Table 2: Coefficient of variation for annual labour cost by NACE Rev. 2 sections

NACE Section Estimated value (ISK) Standard Error (ISK) Coefficient of variation (%)
B - - -
C 921,020,000 1,094,083,000 1.19
D 1,756,783,000 1,468,584,000 0.84
E 336,126,000 405,442,000 1.21
F 297,316,000 398,280,000 1.34
G 587,325,000 571,598,000 0.97
H 1,165,839,000 3,164,768,000 2.71
I - - -
J 2,200,768,000 1,423,892,000 0.65
K 1,891,102,000 3,351,011,000 1.77
L - - -
M .. .. ..
N - - -
O 561,542,000 797,365,000 1.42
P 1,350,013,000 3,233,006,000 2.39
Q 1,012,148,000 4,279,000,000 4.23
R 106,721,000 209,699,000 1.96
S -   -

Note: Annual labour cost = Code D (total labour cost), sum of the values of code D1, D2, D3, D4 minus D5  in Annex 1 to Regulation (EC) No 1726/1999. - = No data is available, .. = Data is confidential. Unit of measure is labour cost per business units.

 

Table 3: Coefficient of variation for annual labour cost by size class

Size class Estimated value (ISK) Standard Error (ISK) Coefficient of variation (%)
1-9 - - -
10-49 201,687,000 97,311,000 0.48
50-249 474,800,000 572,682,000 1.21
250-499 1,172,978,000 1,055,572,000 0.90
500-999 1,707,892,000 1,963,803,000 1.15
1000- 4,363,801,000 7,807,552,000 1.79

Note: Annual labour cost = Code D (total labour cost), sum of the values of code D1, D2, D3, D4 minus D5  in Annex 1 to Regulation (EC) No 1726/1999. - = No data is available. Unit of measure is labour cost per business units.

 

The coefficients of variation (CV) broken down according to the structure of LCS for Hourly labour cost are listed in tables 4 and 5. As seen in these tables there are some outliers in economic activity Q and size class 250-499. The reason for high standard error and high CV is due to settlement payments in business units that worked part of the year.

 

Table 4: Coefficient of variation for Hourly labour cost by NACE Rev. 2 sections

NACE Section Estimated value (ISK) Standard Error (ISK) Coefficient of variation (%)
B - - -
C 4,527 667 0.15
D 6,076 1,386 0.23
E 5,739 1,791 0.31
F 5,030 701 0.14
G 4,595 1,247 0.27
H 4,801 781 0.16
I - - -
J 6,130 657 0.11
K 9,254 2,996 0.32
L - - -
M .. .. ..
N - - -
O 6,558 2,474 0.38
P 4,691 691 0.15
Q 6,339 30,373 4.79
R 3,871 541 0.14
S - - -

 Note: Hourly labour cost = Code D (total labour cost), sum of the values of code D1, D2, D3, D4 minus D5, divided by the value of code B1, in Annex 1 to Regulation (EC) No 1726/1999.  - = No data is available, .. = Data is confidential. Unit of measure is labour cost per business units.

 

Table 5: Coefficient of variation for hourly labour cost by size class

Size Class Estimated value (ISK) Standard Error (ISK) Coefficient of variation (%)
1-9 - - -
10-49 5,140 1,903 0.37
50-249 4,955 1,846 0.37
250-499 7,485 31,407 4.20
500-999 4,570 1,450 0.32
1000- 4,532 1,214 0.27

Note: Hourly labour cost = Code D (total labour cost), sum of the values of code D1, D2, D3, D4 minus D5, divided by the value of code B1, in Annex 1 to Regulation (EC) No 1726/1999.  - = No data is available. Unit of measure is labour cost per business units.

6.3. Non-sampling error

Some non-sampling errors can occur in the data.

6.3.1. Coverage error

The Icelandic LCS 2016 includes the economic activities C, E, F, G, H, J, K, M, O, P, Q and R. Those economic activities cover about 90% of the Icelandic labour market for business units with 10 or more employees according to the PAYE register. Economic activity M is not fully covered and therefore flagged. Economic activities I, L, N and S are not yet included in the ISWEL survey and therefore are those activities are missing. The economic activity B is a remote part of the Icelandic economy.
The ISWEL sample is based on the PAYE register and therefore errors in NACE classification in the PAYE register can have an impact on the coverage in the survey.

6.3.1.1. Over-coverage - rate

The sampling frame is built on the PAYE register, which in turn is the target population. Thus over-coverage is non-existing.

6.3.1.2. Common units - proportion

[Not requested]

6.3.2. Measurement error

The data is collected directly from the software each business unit uses for calculating wages. Taking advantage of data collection by direct access, it minimises the bias caused by recording.

6.3.3. Non response error

Business units are obligated to participate in the survey if requested. Henceforth, response rate is very high, approximately 95%. For the 2016 data the response rate was not examined specifically. Normally, after a data collection starts from a business unit, it usually takes part in the survey for a long time and only drops out in case of splitting up or merges with another enterprise. Hence, enterprises stay in the survey for a continuous period of time and non-responses are rare.

6.3.3.1. Unit non-response - rate

[Not requested]

6.3.3.2. Item non-response - rate

[Not requested]

6.3.4. Processing error

The ISWEL data is collected directly from the software each business unit uses for calculating wages. Taking advantage of data collection by direct access, it minimises the bias caused by recording.

6.3.4.1. Imputation - rate

not applicable

6.3.5. Model assumption error

Not applicable.

6.4. Seasonal adjustment

[Not requested]

6.5. Data revision - policy

[Not requested]

6.6. Data revision - practice

[Not requested]

6.6.1. Data revision - average size

[Not requested]


7. Timeliness and punctuality Top

The ISWEL survey is based on a lengthy tradition of collecting data directly from the software each company uses for calculating wages. Every month, each business unit sends a text file containing detailed information on earning structure and cost items, together with background data on the individuals and the business units. Information is collected for all employees in the business unit. Thus, all data retrieved from the ISWEL survey is collected simultaneously.

7.1. Timeliness

The Icelandic LCS 2016 tables were first delivered to Eurostat in June 2018 and national publication is scheduled at end of the year 2018.

7.1.1. Time lag - first result

[Not requested]

7.1.2. Time lag - final result

[Not requested]

7.2. Punctuality

A separate survey was not conducted for the LCS since the Icelandic LCS is based on an ongoing monthly survey, the ISWEL survey. The Icelandic LCS 2016 was sent to Eurostat in end of June 2018, on time. 

7.2.1. Punctuality - delivery and publication

[Not requested]


8. Coherence and comparability Top

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8.1. Comparability - geographical

Iceland has only one region and therefore LCS data are provided only at NUTS 1 level.

The LCS 2016 data is based on the ISWEL survey which complies with most mandatory variables drawn up in the commission regulation (EC) no 1737/2005, and subsidiary commission regulations.

Incoherence can occur due to some specific characteristics of the Icelandic labour market.

  • In Iceland each legal unit has a unique identification number and the business unit is equated to be the same as the legal unit
  • The local unit is defined on the basis of the identification number (the same as above) and NACE 5-digit level as in previous submission.
  • When defining full-time/part time employees all working hours are considered. In some industries a considerable part of the employees work mainly (and sometimes only) on overtime rates, as their main working hours are during nights and weekends. Thus, all hours are used when defining full-time employees.
  • The grossing up factor for the local unit is based on the number of local units in NACE sections on a 2-digit level.
8.1.1. Asymmetry for mirror flow statistics - coefficient

[Not requested]

8.2. Comparability - over time

Statistics Iceland has conducted the LCS five times; in 2000, 2004, 2008, 2012 and 2016. The sample size and coverage has grown with each survey with the exception of 2016, where the data for economic activity I was considered insufficient and therefore not submitted in the LCS 2016.

The ISWEL survey does not yet fully cover the Icelandic labour market. Data for NACE Rev. 2 economic activities I, L, N & S are missing in LCS 2016. Economic activity M is not fully covered in ISWEL and thus, aggregated data for those activities are flagged. In addition NACE 2-digit levels 05, 06, 07, 09 & 12 are insignificant parts of the Icelandic economy. Comparability between LCS surveys is listed in table 6.

Table 6 List of economic activities covered in Labour Costs Survey by Statistics Iceland 

Survey & year NACE Rev. 1 NACE Rev. 2  
LCS 2000 D, F, G, I  - Data covered only the private sector.
LCS 2004 D, F, G, I, L, M, N, O  - Data covered same sectors in the private sector as in 2000, plus the economic activities L,M,N & O for the public sector.
LCS 2008 D, F, G, I, J, L, M, N C, D, E, F, G, H, I, J, K, M, O, P, Q, R Data was recalculated with wider dataset when LCS 2012 was made in 2014. Economic activities D, I & M were added. In the new dataset for LCS 2008 economic activities I and M (NACE Rev. 2) are not fully covered and thus, aggregated data is flagged.
LCS 2012

 -

C, D, E, F, G, H, I, J, K, M, O, P, Q, R In LCS 2012 economic activities I and M (NACE Rev. 2) are not fully covered and thus, aggregated data is flagged.
LCS 2016  - C, D, E, F, G, H, J, K, M, O, P, Q, R In LCS 2016 economic activity M (NACE Rev.2) is not fully covered and thus, data is flagged.

 

 

 

8.2.1. Length of comparable time series

[Not requested]

8.3. Coherence - cross domain

Coherence with LFS

The average actual hours worked by employee in the main job per year of the Labour Force Survey (LFS) has been estimated as the annual average from the quarterly data of the actual hours worked in the main job in the reference week in 2016 for employees. LFS weekly figures were multiplied by 52 weeks in the year. The results are shown in table 7 below.

 

Table 7: Number of hours actually worked per employee in LFS and LCS in Iceland1

NACE Section LFS LCS Diff %

B

- - :
C 2,184.0 1,555.9 40.4
D 2,272.4 1,602.1 41.8
E 2,480.4 1,560.4 59.0
F 2,345.2 1,505.3 55.8
G 1,887.6 1,190.9 58.5
H 2,132.0 1,723.0 23.7
I 1,757.6 - :
J 2,012.4 1,134.3 77.4
K 1,991.6 1,427.1 39.6
L 1,908.4 - :
M 2,017.6 .. :
N 2,121.6 - :
O 2,100.8 1,217.3 72.6
P 1,856.4 1,319.5 40.7
Q 1,731.6 1,262.6 37.1
R 1,591.2 1,149.1 38.5
S 1,908.4 - :

Note: - = No data is available, .. = Data is confidential, : = No data in the LCS to compare with.

 

All data for economic activities in table 7 are lower in the LCS 2016 than the LFS. This discrepancy can be explained by certain differences in the methodology of the surveys and a different sample design. LFS is a household survey (question survey) whereas LCS is based on information of administrative payroll system data from the business units. In the LCS there were only enterprises with 10 employees or more whereas the LFS figures include all enterprises and including self-employed.

1The number of hours actually worked in the referenece year, expressed per employee, LCS code B1, divided by the value of LCS code A1, and the average actual hours worked in the main job per year of the LFS, again expressed per employee.

Coherence with SBS

A comparison of wages and salaries per employee with Structure of Business Statistics (SBS) can be seen in Table 8. In the LCS there were only enterprises with 10 or more employees whereas all firms are taken into account in the SBS data.

The fact that the LCS does not include small enterprises is obvious in the economic activity of Constructions (F). In the economic activity J small enterprises and enterprises in information technology (divisions 62 and 63) are missing from the sample of the LCS and therefore the difference is greater than in other economic activities.

 Table 8: Wages and salaries (in ISK), per employee in SBS and LCS in Iceland2

NACE Section SBS LSC Diff%
B 6,931 - :
C 6,473 6,096 6.2
D 9,606 8,899 7.9
E 5,684 5,749 -1.1
F 5,197 6,340 -18.0
G 4,678 4,384 6.7
H 6,705 6,284 6.7
I 3,254 - :
J 6,877 5,805 18.5
K - 9,038 :
L 4,360 - :
M 6,750 .. :
N 4,584 - :
O - 5,805 :
P - 4,652 :
Q - 4,372 :
R - 3,565 :
S - - :

Note: - = No data is available, .. = Data is confidential, : = No data in the LCS to compare with.

 

2The variable 'wages and salaries', expressed per employee, LCS code D11, divided by the value of LCS code A1, and the same variable, per employee of the SBS.

 

Coherence with LCI

The following table shows the growth rate from the LCS 2012 and the LCS 2016 and the growth rate from the total labour cost series of working-day adjusted3 Labour cost index (LCI)

The main difference is the data coverage. The LCS is based on a sample of business units with 10 or more employees from one ISWEL survey. Whereas the LCI is mainly based on the PAYE register data and business units with 10 or more employees.

As seen in table 9 there is relatively small difference in growth rate with the exception in economic activities H, J & O. In the ISWEL survey some economic activities in certain sub-groups are missing. In the economic activity J small enterprises and enterprises in information technology (divisions 62 and 63) are missing from the sample of the LCS. Economic activities O, P and Q include only the public sector. Weights are adjusted for O, P, and Q to represent full coverage of these economic activities. Weights are not adjusted for J as the sub-groups that are missing are different from the groups that are included in the sample.

 

Table 9: Average annual rates of change of labour costs per hour between 2012 and 2016 in Iceland4

NACE Section LCI % LCS % Diff %
B .. - :
C 30.3 30.3 0.0
D 37.3 39.6 2.3
E 31.7 35.3 3.6
F 25.5 28.3 2.8
G 30.8 33.3 2.5
H 27.9 15.0 -12.9
I 30.9 - :
J 30.6 42.2 11.6
K 35.8 38.5 2.7
L 27.9 - :
M 26.7 .. :
N 29.2 - :
O 33.1 35.1 2.0
P 34.3 36.1 1.8
Q 35.2 26.7 -8.5
R 30.9 34.9 4.0
S 27.6 - :

Note: - = No data is available, .. = Data is confidential, : = No data in the LCS to compare with.

 

3The LCI data is working day adjusted (WDA) not unadjusted. The main reason is that the source data is, i.e. without working days/calendar effects can only be produced through complicated adjustments.

4The average annual growth rates of the variable 'hourly labour costs', LCS code D divided by LCS code B1, and the average annual growth rate of the working day adjusted LCI. The growth rates should refer to the reference year of the survey and that of the previous survey.

8.4. Coherence - sub annual and annual statistics

[Not requested]

8.5. Coherence - National Accounts

Table 10 contains a comparison with the National Accounts (NA) compensation of employees. The NA data for 2016 is preliminary. In the LCS there were only enterprises with 10 or more employees whereas all firms are taken into account in the NA data.

Table 10: Compensastion of employees (in ISK), per employee in NA and LCS in Iceland5

NACE Section NA LSC Diff %
B 13,753 - :
C 7,407 7,440 -0.5
D 8,698 11,119 -21.8
E 9,291 7,091 31.0
F 8,560 7,617 12.4
G 5,965 5,352 11.5
H 9,629 7,867 22.4
I 4,666 - :
J 9,231 7,060 30.8
K 10,263 11,275 -9.0
L 6,545 - :
M 9,117 .. :
N 6,304 - :
O 7,872 7,309 7.7
P 5,993 5,920 1.2
Q 6,702 5,620 19.3
R 4,743 4,503 5.3
S 7,020 - :

Note: - = No data is available, .. = Data is confidential, : = No data in the LCS to compare with.

 

5The variable 'compensation of employees', expressed per employee, LCS code D1 divided by the value of LCS code A1, and the same variable of the NA. The NA data on self-employed is not included.

8.6. Coherence - internal

[Not requested]


9. Accessibility and clarity Top

-

9.1. Dissemination format - News release

Users were informed via news on the Statistics Iceland website, https://statice.is/statistics/business-sectors/labour-cost/.

9.2. Dissemination format - Publications

National publication was October 2018.

9.3. Dissemination format - online database

Results from the LCS data, along with metadata, are published on Statistics Iceland website www.statice.is.

9.3.1. Data tables - consultations

[Not requested]

9.4. Dissemination format - microdata access

[Not requested]

9.5. Dissemination format - other

Non-applicable.

9.6. Documentation on methodology

not applicable

9.7. Quality management - documentation

[Not requested]

9.7.1. Metadata completeness - rate

[Not requested]

9.7.2. Metadata - consultations

[Not requested]


10. Cost and Burden Top

[Not requested]


11. Confidentiality Top

-

11.1. Confidentiality - policy

[Not requested]

11.2. Confidentiality - data treatment

[Not requested]


12. Comment Top

-


Related metadata Top


Annexes Top