Ethiopia KILM

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Introduction INTRODUCTION In order to complement the regular data collection and dissemination programmes, to make labour market information more accessible for analysis and to facilitate the comparison of the key elements of national labour markets, the ILO launched in 1999 a programme on Key Indicators of the Labour Market (KILM). According to the ILO, KILM was designed with two main objectives in mind: (a) To present a core set of labour market indicators; and (b) To improve the availability of the indicators to monitor new employment trends. These indicators were designed to satisfy the ever-increasing demands of governments and the social partners (workers’ and employers organization) for timely, accurate and accessible information on the world’s labour markets. According to the ILO, the selection of the indicators was based on the following criteria: (a) conceptual relevance; (b) data availability; and (c) relative comparability across countries and regions. The design and presentation of the core indicators has evolved since the first edition (1999). Two new indicators were added in the second edition (2001-2002) – occupational wages and earning indices (KILM 16) and labour market flows (KILM 19), but were subsequently dropped when updates were no longer made available from the original data sources. Therefore, the 18 indicators in the latest KILM edition represent a streamlining of content and presentation for the list of new developments. Summary of the 18 ILO Key Indicators of the Labour Market are given in Box 1 below. Box1: ILO Key Indicators of the Labour Market (KILM) KILM 1: Labour force participation rate KILM 2: Employment-to-population ratio KILM 3: Status in employment KILM 4: Employment by sector KILM 5: Employment by Occupation KILM 6: Part-time workers KILM 7: Hours of work KILM 8: Employment in the informal economy KILM 9: Unemployment KILM 10: Youth unemployment KILM 11: Long-term unemployment KILM 12: Time-related underemployment KILM 13: Inactivity rate KILM 14: Educational attainment and illiteracy KILM 15: Average monthly wages KILM 16: Hourly compensation costs KILM 17: Labour productivity KILM 18: Poverty, income distribution and the working poor 1
Introduction The KILM helps to identify where labour is underutilized and decent work is lacking, especially if measured not only in terms of people who are working yet still unable to lift themselves and their families above the poverty threshold (working poverty – KILM 18) but also in terms of the quality of work or the lack of any work at all. The lack of any work at all could be identified using unemployment (KILMs 9 and 10) but also more broadly using inactivity (KILM 13). Lack of quality of work could be determined using sets of indicators; for example, by identifying which individuals are in vulnerable employment (using status and sector – KILMs 3 and 4), working excessive hours (KILM 7), in the informal economy (KILM 8), underemployed (KILM 12) or in low-productivity jobs (KILM 17). More generally, the KILM can be used for evaluating and ensuring that economic development in a country like Ethiopia has been placing human development as its ultimate goal. Therefore, as economic development advances in a country, the availability of timely and reliable data on labour market becomes increasingly important to review progress made in human resources development and utilization perspective. Although a data base on labour market indicators spanning over a periods of time has not been compiled in one single publication in Ethiopia, the available statistics in fact dictate the construction of such indicators. The Central Statistical Agency (CSA) of Ethiopia has been conducting Census (every ten years), Labour Force Survey (every five years) and Urban Employment Unemployment Survey (annually) since 1984, 1999 and 2003 in that order. Henceforth, based on available data, only seven key indicators of the labour market are considered feasible for Ethiopia, which are provided in Box 2 below 1 . Box 2: Ethiopia Key Indicators of the Labour Market (KILM) KLMI 1: Labour force participation rate KLMI 2: Employment-to-population ratio KLMI 4: Employment by sector KLMI 8: Employment in the informal economy KLMI 9: Unemployment KLMI 10: Youth unemployment KLMI 13: Inactivity 1 Formulas used to calculate the KILM are given in Annex 1. 2
Page 1 and 2: 2013 LABOUR MARKET DYNAMICS IN ETHI
Page 3: List of Tables Table 1: Labour forc
Page 7 and 8: Participation in the world of work
Page 9 and 10: Labour Force Participation Rate Lab
Page 11 and 12: Labour force participation rate KIL
Page 13 and 14: Employment-to-population ratio KILM
Page 15 and 16: Employment-to-population ratio KILM
Page 17 and 18: Employment by sector KILM 4 1999 an
Page 19 and 20: Employment in the informal economy
Page 21 and 22: Employment in the informal economy
Page 23 and 24: Unemployment KILM 9 Trends Table 12
Page 25 and 26: Unemployment KILM 9 The unemploymen
Page 27 and 28: Youth unemployment KILM 10 Table15:
Page 29 and 30: Inactivity KILM 13 KILM 13: Inactiv
Page 31 and 32: Inactivity KILM 13 Figure 14: Inact
Page 33 and 34: Conclusion Seven, it appears from t
Page 35 and 36: Annexes Annexes 32
Page 37 and 38: Formulas used to calculate Key Indi
Page 39 and 40: Annex tables Annex 2 Annex 2: Annex
Page 41: Annex tables Annex 2 A2.4: Total Em

Ethiopia KILM

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