Statistics Explained

Archive:European Neighbourhood Policy - East - labour market statistics

Revision as of 13:51, 20 January 2015 by EXT-S-Allen (talk | contribs)
Data from September 2014. Most recent data: Further Eurostat information, Main tables and Database. Planned article update: October 2015.

This article is part of an online publication; it presents information on a range of labour force statistics for the European Union (EU) and in the six countries that together form the European Neighbourhood Policy-East (ENP-East) region, namely, Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. The article presents indicators such as activity rates, employment rates, an analysis of employment by economic activity and professional status, and statistics on unemployment.

Figure 1: Activity rates
(persons aged 15–64) by sex, 2013 (1)
(% of total population) - Source: Eurostat (lfsi_act_a) and (enpr_pslm)
Figure 2: Gender gap for employment rates
(persons aged 20–64), 2003 and 2013
(percentage points difference, male employment rate - female employment rate) - Source: Eurostat (lfsi_emp_a), (enpr_pslm) and (enpr_siemp)
Table 1: Analysis of employment
(persons aged 15 or more) by economic activity (NACE Rev. 2), 2003 and 2013
(% of total employment) - Source: Eurostat (lfsa_egana), (lfsa_egan2) and (enpr_pslm)
Table 2: Analysis of employment
(persons aged 15–64) by working status, 2003–13
(% of total employment) - Source: Eurostat (lfsa_egaps) and (enpr_pslm)
Table 3: Unemployment rates
(persons aged 15–74), 2003–13
(% of labour force) - Source: Eurostat (lfsa_urgan) and (enpr_pslm)
Table 4: Long-term unemployment rates
(persons aged 15–74), 2003–13
(% of labour force) - Source: Eurostat (une_ltu_a) and (enpr_sisoc)
Table 5: Employment and unemployment rates, 2003, 2008 and 2013
(%) - Source: Eurostat (lfsa_ergan), (une_rt_a), (enpr_pslm) and (enpr_siemp)

Main statistical findings

Activity rates

Moldova stood out from the other ENP-East countries due to its relatively low activity rate

The proportion of the male population aged 15–64 across the EU-28 that was economically active (in other words, in work or actively seeking work and available to start work) stood at 78 % in 2013, while the corresponding rate for women was 66 %.

With the exception of Moldova (48 %), more than 70 % of the male population in each of the ENP-East countries was economically active in 2013. Georgia (82 %) was the only ENP-East country to record an activity rate for men that was above the EU-28 average (see Figure 1).

Male activity rates were systematically higher than those recorded for women, both for the EU-28 and across the ENP-East countries, other than in Belarus (note that the data for Belarus relates to men aged 16–59, while that for women is for a smaller and more youthful subsection of the population, namely, those aged 16–54). The gender gap in activity rates ranged from 4 percentage points in Moldova to 20 percentage points in Georgia; the corresponding gap was 12 percentage points in the EU-28.

Female activity rates for four of the six ENP-East countries were lower than the EU-28 average (66 %); with two exceptions, Belarus (86 %, see methodological note above) and Azerbaijan (67 %). Moldova recorded the lowest female activity rate among the ENP-East countries (44 %) — repeating the pattern observed for men.

Employment rates

The gender gap for employment rates in the ENP-East countries was much higher than across the EU

The gender gap for EU-28 employment rates — among those aged 20–64 — decreased during the period 2003–13. However, the EU-28 male employment rate (74.2 %) remained considerably higher than the corresponding rate for women (62.5 %) in 2013, despite the gap having fallen from 16.8 percentage points in 2003 to 11.7 points by 2013 (see Figure 2).

Among the ENP-East countries in 2013, the gender gap (between male and female employment rates) was lowest in Moldova (3.2 percentage points), while Azerbaijan and Ukraine also recorded gaps that were smaller than the EU-28 average. By 2013, the gender gap had fallen to 15.0 percentage points in Georgia and 19.4 percentage points in Armenia, although both remained above the EU-28 average. Belarus was the only ENP-East country where the employment rate for women (85.6 %) was higher than that for men (75.5 %) in 2013; note again that these statistics relates to men aged 16–59 and to a smaller and more youthful subsection of the female population aged 16–54.

The gender gap narrowed considerably in Armenia, as a result of a rapidly increasing female employment rate that rose from 37.6 % in 2003 to more than half (51.8 %) of the female working-age population in 2013. The gender gap also narrowed in Georgia and in Azerbaijan, although at a much less rapid pace, as well as in Belarus, where the male employment rate increased at a more rapid pace than the female rate. By contrast, the gender gap for employment rates widened during the 10-year period under consideration in Moldova and Ukraine, rising by almost 3 percentage points in both countries.

Analysis of employment by economic activity

Agriculture, forestry and fishing accounted for a relatively high share of total employment in many of the ENP-East countries

Table 1 shows an analysis of the structure of employment for 2003 and 2013. Within the EU-28, services accounted for 70.9 % of those employed (aged 15 or more) in 2013. The services share rose over the most recent 10-year period for which data are available, gaining 6.1 percentage points.

This pattern was reproduced in most of the ENP-East countries, as employment in services accounted for the largest share of the workforce, albeit with considerably lower shares than in the EU-28, and for an increasing share of the workforce (other than in Azerbaijan). Indeed, services employed the highest number of persons in five out of the six ENP-East countries in 2013 and accounted for more than half of those employed in the economies of Belarus, Ukraine and Moldova.

By contrast, more than half (51.7 %) of the workforce in Georgia in 2013 were active within agriculture, forestry and fishing, while high shares were also recorded in Azerbaijan, Armenia, Moldova and Ukraine; agriculture, forestry and fishing was the second largest employer in each of these countries. As such, Belarus was the only ENP-East country to record a distribution of employment across economic activities that resembled the structure of the workforce in the EU-28.

There was a rapid restructuring of the labour market in Moldova between 2003 and 2013. The proportion of those working in agriculture, forestry and fishing activities fell by 14.2 percentage points, while the share of the workforce employed in services rose by 12.6 percentage points. Indeed, Moldova was the only ENP-East country to report a shift in the structure of employment towards services that was above the EU-28 average (where the share of services rose by 6.1 points).

Analysis of employment by professional status

Self-employed and family workers occupied approximately one out of every six jobs in the EU-28 in 2013; employees occupied accounted for the remainder of the workforce (see Table 2). The relative share of the self-employed and family workers in total employment in the EU-28 fell between 2003 and 2008 and was then relatively stable during the period 2008–13, tending to fall gradually during periods of economic growth and rise marginally during periods of more testing economic conditions (for example, at the height of the global financial and economic crisis in 2009 and 2010).

The structure of employment by working status was quite different in most of the ENP-East countries. The relative importance of self-employed and family workers rose to a high of 66.9 % of the total workforce in Azerbaijan and was 57.1 % in Georgia. These high figures reflect, to some degree, the relative weight of agricultural activities in these countries, with work spread across numerous small scale, family-run farms and co-operatives. By contrast, the structure of employment in Ukraine (the largest of the ENP-East countries) more closely resembled that observed in the EU-28, with employees accounting for more than four out of every five (81.8 %) members of the workforce in 2013. In Belarus (note that the latest data available refer to 2009) a high proportion of the workforce was employed by the state and this may, at least in part, explain the very high share (96.8 %) of employees.

Unemployment rates

Male, youth and long-term unemployment appear to be more susceptible to cyclical economic changes than overall unemployment. Indeed, social policymakers often face the challenge of remedying these situations by designing ways to increase employment opportunities for various groups of society, those working in particular economic activities, or those living in specific regions.

Contrary to developments in the EU, unemployment rates declined in each of the ENP-East countries from 2010–13

When there is an economic downturn, it usually takes several months before the unemployment rate begins to rise. Once the economy starts to pick up again, employers usually remain cautious about hiring new workers and there may again be a lag of several months before unemployment rates start to fall. While the largest contractions in economic activity were recorded in 2009 (as a result of the financial and economic crisis), it was not uncommon for unemployment rates to still be increasing a year later in 2010 and beyond. The EU-28’s unemployment rate rose from a low of 7.0 % in 2008 to reach 9.6 % in 2010. It was unchanged in 2011, before increasing again in both 2012 and 2013 (see Table 3).

Azerbaijan recorded a relatively low unemployment rate and an uninterrupted decline in its unemployment rate over the period 2003–13. The labour markets of the four remaining ENP-East countries for which data are available (data for Belarus are not considered comparable as they are based upon registered unemployment) were more affected by the global economic and financial crisis as their unemployment rates peaked in 2009 or 2010, after which there were signs of a more balanced labour market. The latest data available for 2013 show there were considerable differences in the unemployment rates of the ENP-East countries, as rates in Armenia and Georgia were at a higher level than in the EU-28, while rates in the remaining ENP-East countries ranged from 5.0 % to 7.2 %.

More than 1 in 10 economically active women in Armenia had been unemployed for more than a year

Long-term unemployment is often viewed as a key indicator by policymakers, because it provides information in relation to structural weaknesses that may affect social cohesion and, ultimately, economic growth. The long-term unemployment rate in the EU-28 was 5.1 % of the labour force in 2013; with almost identical rates among men (5.2 %) and women (5.1 %) — see Table 4.

The long-term unemployment rate was lower than the EU-28 average in three of the ENP-East countries (note again that the data presented for Belarus are not considered as comparable as they are based upon registered unemployment). Particularly low rates were recorded in Moldova and Ukraine (less than 2 % for both men and women), while the level of long-term unemployment was also below the EU-28 average in Azerbaijan. By contrast, long-term unemployment rates in Georgia and Armenia were above the EU-28 average. This was particularly true among women in Armenia. The share of the female labour force unemployed for more than 12 months was 10.7 % in 2013.

Youth unemployment rates were between two and three times as high as the unemployment rate for the whole population in the ENP-East countries

Table 5 provides a summary of developments in labour markets with data for 2003, 2008 and 2013. It shows quite clearly the effects of the financial and economic crisis and the relatively slow pace with which the EU-28 economy re-adjusted following the crisis. Aside from long-term unemployment rates, another indicator that has received a great deal of attention in recent years is the youth unemployment rate. Between 2008 and 2013 this increased in the EU-28 at a much faster pace than the overall unemployment rate (for those aged 15–74). Almost one quarter (23.5 %) of the EU-28’s labour force aged 15–24 was without work in 2013, compared with 15.8 % at the start of the crisis in 2008.

Across the ENP-East countries, youth unemployment rates were also consistently higher than overall unemployment rates. The difference was particularly marked in Armenia and in Georgia, where youth unemployment rates were around 20 percentage points higher than the average for the labour force aged 15–74; these were the only ENP-East countries to record youth unemployment rates that were higher than the EU-28 average in 2013.

Data sources and availability

The main source for European labour force statistics is the European Union labour force survey (EU LFS). This household survey is carried out in all EU Member States in accordance with European legislation; it provides figures at least each quarter.

The data for ENP-East countries are supplied by and under the responsibility of the national statistical authorities of each country on a voluntary basis. The data that are presented in this article result from an annual data collection cycle that has been established by Eurostat. These statistics are available free-of-charge on Eurostat’s website, together with a range of different indicators covering most socio-economic areas.

The economically active population (labour force) comprises employed and unemployed persons. The EU LFS defines persons in employment as those aged 15 and over, who, during the reference week, performed some work, even for just one hour per week, for pay, profit or family gain. The labour force also includes people who were not at work but had a job or business from which they were temporarily absent, for example, because of illness, holidays, industrial disputes, education or training.

Employment statistics are frequently reported as employment rates to discount the changing size of countries’ populations over time and to facilitate comparisons between countries of different sizes. These rates are typically published for the working age population, which is generally considered to be those aged between 15 and 64 years, as well as for those aged 20–64 (to take account of the increasing proportion of young people who remain in education).

Eurostat publishes unemployment statistics based on a definition of unemployment provided by the International Labour Organisation (ILO) for which there are three criteria, namely: being without work, actively seeking work, and being available for work.

Context

Labour market statistics are increasingly used to support policymaking and to provide an opportunity to monitor participation in the labour market. In the aftermath of the global financial and economic crisis, these statistics have been used to monitor the knock-on effects of the crisis on labour markets (which notoriously lag behind fluctuations in economic activity).

In March 2010, the European Commission launched the Europe 2020 strategy for smart, sustainable and inclusive growth. One of the headline targets for the strategy is to raise the employment rate for women and men aged 20–64 years old to 75 % by 2020. EU Member States may set their own national targets in the light of these headline targets and draw up national reform programmes that include the actions they aim to undertake in order to implement the strategy.

The slow pace of recovery from the financial and economic crisis in the EU and mounting evidence of rising unemployment led the European Commission to make a set of proposals on 18 April 2012 for measures to boost jobs through a dedicated employment package. In December 2012, in the face of high and still rising youth unemployment in several EU Member States, the European Commission proposed a Youth employment package (COM(2012) 727 final). Efforts to reduce youth unemployment continued in 2013 as the European Commission presented a Youth employment initiative (COM(2013) 144 final) designed to reinforce and accelerate measures outlined in the Youth employment package. It aimed to support, in particular, young people not in education, employment or training in regions with a youth unemployment rate above 25 %. There followed another Communication titled ‘Working together for Europe's young people – A call to action on youth unemployment’ (COM(2013) 447 final) which is designed to accelerate the implementation of the youth guarantee and provide help to EU Member States and businesses so they may recruit more young people.

In cooperation with its ENP partners, Eurostat has the responsibility ‘to promote and implement the use of European and internationally recognised standards and methodology for the production of statistics, necessary for developing and monitoring policy achievements in all policy areas’. Eurostat undertakes the task of coordinating EU efforts to increase the statistical capacity of the ENP countries. Additional information on the policy context of the ENP is provided here.

See also

Further Eurostat information

Publications

Database

Population and social conditions (enpr_ps)
ENP countries: labour market (enpr_pslm)
LFS main indicators (lfsi)
Population, activity and inactivity - LFS adjusted series (lfsi_act)
Employment - LFS adjusted series (lfsi_emp)
Unemployment - LFS adjusted series (une)

Dedicated section

Methodology / Metadata

Source data for tables and figures (MS Excel)

External links


Retrieved from "https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Archive:European_Neighbourhood_Policy_-_East_-_labour_market_statistics&oldid=215676"