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Security of employment and social protection
4a - Security of employment
Seventh Meeting on Measuring Quality of Employment Geneva
Federica Pintaldi, Elisa Marzilli
September, 11th - 13th 2013
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
Introduction of the dimension
Security of employment essentially refers to how likely a person is to lose
his/her job.
It involves information on the degree of permanence and tenure of the work,
status in employment, and the formal or informal nature of employment.
Information on the perceived job security is an important element to
complement information available, e.g., on fixed-term contracts or persons
employed via temporary employment agencies.
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
Indicators
4a1 - Percentage of employees 25 years and older with fixed term contract
4a2 - Precarious employment rate (experimental)
4a3 - Job tenure at the current job or with the current employer
4a4 - Percentage of employed persons who are own-account workers
4a5 - Percentage of self-employed workers with only one client
4a6 - Informal employment rate (experimental)
4a7 - Perceived job security
4a8 - Percentage of persons employed via a temporary employment agency
4a9 - Percentage of employees without formal contracts
In black Indicators with non-substantial changes since 2011
In red new indicators
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
Common questions
Interpretation of indicators
 Definitions and operationalisations
 Level and trend of indicators
 Overlap among indicators
International comparabilty
 Concepts about employment
 National legislation, social protection
 Level of developement of country
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
Indicators sheets
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a1 - Percentage of employees 25 years
and older with fixed term contract
Description: Percentage of employees 25 years and older with fixed term contract
Measurement objectives: this indicator measures the employment security given
by the employee contract. It informs about the share of employees who are at
high risk to have to look for a new job after a limited, short time period. This
situation can lead to stress, insecurity and financial risk.
In relation to:
economic situation
perceived job security
the national legislation influences the proportion
employees with fixed term contracts in a country
of
an additional set of indicators could be a set of social
protection indicators that consider social safety nets in case
of job loss and income loss
The indicator is available in the EU-LFS.
Main variable in the EU-LFS are: STATPRO, TEMP, YEARBIR
Comparability: excluding apprentices? Analysis by age group
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a2 - Precarious employment rate (experimental)
Description: information regarding the share of the employed whose contract of
employment is of relatively short duration (casual workers, seasonal workers,
etc.) or whose contract can be terminated on short notice (shorter than standard
practice in the country).
Measurement objectives: workers' vulnerability in terms of both contract duration
and job instability, for both employees and self-employed workers. An increasing
trend in the indicator corresponds to a worsening of the quality of employment,
as it points to an increasing number of jobs becoming unstable and/or insecure.
In relation to:
economic situation
informal employment
indicator is sensitive to changes in the business cycle, having a
counter cyclical nature
jobs in precarious employment generally lack basic social or
legal protections or employment benefits
The indicator is available in the EU-LFS only for employees.
Main variable in the EU-LFS are: STATPRO, TEMP
Comparability: operational definition of precarious, especially for not employees
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a3 - Job tenure at the current job or with the current employer
Description: percentage of employed persons aged 25 years and over whose
number of years of tenure at the current job or with the current employer is (1)
< 1 year, (2) 1 - 5 years (3) 5 - 10 years and (4) >= 10 years.
Measurement objectives: the job tenure indicator measures the length of time
workers have been in their current job or with their current employer and is
valuable for analysing the stability of employment relationships, and ultimately,
the degree of job insecurity that workers may face.
In relation to:
business cycle
temporary employment, and
perceived job security
the proportion of workers with short job tenure may tend to
fall during an economic downturn
job tenure indicators and the share of temporary workers are
two complementary approaches of employment stability
interpretation for high occupation?
The indicator is available in the EU-LFS
Main variable in the EU-LFS are: STARTIME, ILOSTAT, AGE
Comparability: proportion of self-employed, industry composition, employment rate
of women
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a4 - Percentage of employed persons who are own-account workers
Description: own-account workers are those workers who, working on their own account or
with one or more partners, working in unincorporated enterprises, hold a ‘self-employment
job’ and have not engaged on a continuous basis any employees to work for them during
the reference period. The partners may or may not be members of the same family or
household.
Measurement objectives: own-account workers may have inadequate employment
conditions (for example, inadequate income, excessive hours), jobs of short duration, and
therefore higher degree of economic risk than other employed persons. Thus, high levels
of the indicator may point to inadequate employment conditions.
In relation to:
national income
informal employment
in developing countries many own-account informal sector
enterprises and own-account subsistence agriculture production
units
to exclude subsistence agriculture activities from employment?
The indicator is available in the EU-LFS
Main variable in the EU-LFS are: STAPRO
Comparability: income, sector and occupation of own-account workers
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a5 - Percentage of self-employed workers with only one client
Description: Percentage of self-employed workers with only one client in the reference period of survey on
total number of self-employed workers. In ICSE-93 self-employment jobs are those jobs where the
remuneration is directly dependent upon the profits derived from the goods and services produced . The
EWCS considers economic independence by asking about the degree of dependency on only one client
(a ‘genuine business’ is assumed to seek income from different sources).
Measurement objectives: the ongoing labour market deregulation process makes the traditional
distinction between employees and self-employed more complex. The group of self-employed workers
has a range of different characteristics in terms of employment security, that is low if the gain depends on
a single customer.
In relation to:
temporary employees
informal employment
social protection indicators which indicate the social safety net
available to such self-employed workers
self-employed workers only without employees?
The indicator is not available in the EU-LFS
Main variable in the EU-LFS are: STAPRO (for self-employed workers)
Comparability: legal framework, percentage of own-account workers
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a6 - Informal employment rate (experimental)
Description: IER is defined as the percentage of persons in total employment who are in
informal employment. For operational reasons the concept is measured as the number of
persons employed (and not the number of jobs) in informal employment in their main job.
Measurement objectives: To identify the segments of employment most exposed to
economic risk, lacking an adequate safety net in case of layoff or poor enterprise
performance, with the lowest chance (either de jure or de facto) to count on the
legal/institutional frame to protect them.
In relation to:
level of development
how to make the definitions relevant to developed
countries?
national legislation
all contributing family workers?
underground economy
it is expected it increases with recessions
The indicator cannot be calculated with the EU-LFS variables
Comparability: structure of economy, operational definition
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a7 - Perceived job security
Description: Percentage of employed persons who, in the following 6 months, consider
it is likely they will lose their job and it is not at all or little likely that they find another
similar job. This approach considers not only perceived job security (threat of job
loss) but also aspects of employability (to find similar job). Do you agree?
Measurement objectives: to capture the subjective aspects of wellbeing at work. The
perceived job security workers may not be closely related to the formal stability of a
job.
In relation to:
unemployment rate
unemployment benefits
job satisfaction
The feeling of insecurity is more prevalent in countries
where unemployment is higher, in particular the long-term
unemployment rate, and/or where public expenditures
related to labour market policies is lower. On the other
hand, perceived job security is linked to flexicurity policies.
The indicator is not available in the EU-LFS
The two questions of Eurofound questionnaire (q77a, q77f)
Comparability: the subjective questions are high sensible to cultural differences among
countries
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a8 - Percentage of persons employed via a
temporary employment agency
Description: Percentage of persons employed via a temporary employment
agency on total number of employed persons.
Measurement objectives: employees with an employment contract with a
temporary employment agency generally are exposed to a higher risk of
losing their job and often - depending on national regulations - have less
favorable working conditions than other employees doing similar work.
In relation to:
non standard employment
Information about each country’s framework for
regulating temporary employment agencies, as
enterprises, could be provided by each country.
informal employment
change on total employees?
The indicator is available in the EU-LFS
Main variable in the EU-LFS is: TEMPAGY (1=”Yes”)
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
4a9 - Percentage of employees without
formal contracts
Description: Percentage of employees without formal contracts or pay slip or
pay stub on total number of employees.
Measurement objectives: indicator measures the employment security of
employees without a formal employment contract or those without a pay
slip/pay stub. Employees without formal contracts or without a pay slip/pay
stub can be exposed to higher risks of losing their job and they may not
have social protection, suggesting a high vulnerability.
In relation to:
non standard employment
informal employment
The national legislation may influence the proportion
of employees without formal contracts in a country.
Are employees without formal contracts a subgroup
of informal workers, or is it possible to be in formal
employment while not having a formal contract?
The indicator is not available in the EU-LFS
Comparability: structure of economy, national legislation, recluctant to declare
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
Issues for discussion
 Keep all indicators?
 Change some definitions?
 Other indicators?
4a1 - Percentage of employees 25 years and older with fixed term contract Yes/Change/No
4a2 - Precarious employment rate (experimental) Yes/Change/No
4a3 - Job tenure at the current job or with the current employer Yes/Change/No
4a4 - Percentage of employed persons who are own-account workers Yes/Change/No
4a5 - Percentage of self-employed workers with only one client Yes/Change/No
4a6 - Informal employment rate (experimental) Yes/Change/No
4a7 - Perceived job security Yes/Change/No
4a8 - Percentage of persons employed via a temporary employment agency Yes/Change/No
4a9 - Percentage of employees without formal contracts Yes/Change/No
Seventh Meeting on Measuring Quality of Employment
4a – Security of employment
Thank you for your attention!

Seventh Meeting on Measuring Quality of Employment
4a – Security of employment