Statistics on the informal employment & employment in the informal sector: Statistical units Tite Habiyakare, Senior Statistician, ILO Regional Office for Asia and the Pacific Regional Course on Informality: Definitions, Measurement, SDGs and Other Policy Indicators Chiba (Japan), 16-20 October 2017

Contents From the conceptual framework and sub-classifications To measurement in surveys: key sources of data Summary statistical units and definitions ILO Department of Statistics

1. From the conceptual framework and sub-classifications … ILO Department of Statistics

Two separate concepts: IS & IE Informal sector (IS): enterprise-based (ref. the characteristics of the establishment); Informal employment (IE): job-based (ref. the characteristics of the job). Employment in the informal economy is used as a third separate concept, resulting from a combination of the two above. ILO Department of Statistics

Employment in the informal economy Two components (and 2 statistical units): Employment in informal sector enterprises (Informal sector employment) Employment in informal jobs (Informal employment) Two different aspects of informalization of employment Important to keep separate as often require different policies Informal sector employment Informal employment Informal jobs outside of IS Formal jobs in IS enterprises Employment in the Informal Economy: = Informal sector employment + informal employment outside of Informal Sector ILO Department of Statistics

2. To measurement objectives and sources of data ILO Department of Statistics

Objectives & preferred sources of data 1 Number & share of workers in informal employment / and number and share of workers employed in the informal sector  Labour force survey  Mixed modular survey 2 Number and share of informal economic units & contribution to GDP: To measure value added of the informal sector & features of economic units  Establishment survey* * Or Economic Census  Mixed survey (otherwise) 3 To measure both employment and production with the same source  Mixed modular survey ILO Department of Statistics

Measurement through surveys (2 units) Labour force surveys To measure jobs/persons in informal economy: Number & characteristics Conditions of employment & work Periodicity: annual or more frequent Informal sector surveys (enterprise-based) or mixed household enterprise surveys To measure of number & characteristics of IS enterprises: Employment, production, income generation, organization & functioning, constraints & potentials, etc. Periodicity: every 5 years ILO Department of Statistics

From data items needed (3 units) Persons employed in the informal sector and in informal employment Number of persons Demographic and labour characteristics Informal sector units (enterprises) Numbers Characteristics (such as size, industry, etc.) Production, sales and costs Informal sector entrepreneurs/ households Demographic and labour characteristics of entrepreneurs Demographic and labour characteristics of their households. ILO Department of Statistics

3. Summary of statistical units, Definitions of selected units ILO Department of Statistics

Statistical units of measurement (1) Analytical units – for which the statistics are produced Informal sector unit (informal sector enterprise) Persons employed in informal sector units, persons in informal employment Sampling units – units selected in sample Households, enterprises Reporting units – that provide information (questionnaire) Persons, entrepreneurs Observation units – for which information is collected Can same time be broader than the analytical unit or reporting units ILO Department of Statistics

Statistical units of measurement (2) Labour force survey Establishment surveys Mixed surveys Sample unit Household Establishment Households (first phase);informal sector entrepreneurs (second phase) Observation unit Jobs, persons and owners of informal sector units Establishments jobs Jobs, workers, and owners of informal sector unit (first phase); informal sector units (second phase) Reporting unit One or more members of the household Owner or manager of establishment One or more members of the household (first phase); owner of the informal sector unit (second phase) Analytical unit for employment Jobs and persons, owners of informal sector units Jobs Household component: jobs, persons and owners of informal sector units Informal sector survey: jobs, owners Analytical unit for informal sector units Establishments Informal sector units, establishments ILO Department of Statistics

Statistical units: jobs (1) “A job or work activity is defined as a set of tasks and duties performed, or meant to be performed, by one person for a single economic unit” Para 12.(b),Resol. I. (19th ICLS, 2013) Source: 19th ICLS Resolution concerning statistics of work, employment and labour underutilization (October 2013). Economic unit as defined in the 2008 SNA; The term job is used in reference to employment (Para 12.(b).(i)); When relating to own-use production work, unpaid trainee work, and volunteer work, the unit is referred to as work activity (Para 12.(b).(ii)). ILO Department of Statistics

Statistical units: jobs (2) & informality A person can have more than one informal and/or formal jobs A person is in informal employment if at least one of the jobs held is in an informal job Whether the main or secondary job* An informal job can be carried out in any type of production unit: Formal economic units Informal economic units Households (*) In practice however, only the main job is used (as defined by the 18th ICLS). ILO Department of Statistics

Statistical units: establishment (1) What is an enterprise? Any unit engaged in the production of goods and services (SNA) that can own assets and incur in liabilities (SNA 2008, Para 2.16) May have fixed visible premises or not May be operated by a person working alone or may be a legal entity (corporation) It may have one establishment or more (very rare even in the formal sector) What is an establishment? An enterprise or part of an enterprise that is situated in a single location and in which only a single (non-ancillary) productive activity is carried out or in which the principal productive activity accounts for most of the value added. ILO Department of Statistics

Statistical units: establishment (2) & IS Institutional units by sector SNA 2008 Corporations (market units) Government units (non-market units) Non-profit institutions (non-market units) Households Household unincorporated market enterprises (market units) Households producing mainly for own final use Production units by type (15th ICLS) Formal sector enterprises Informal sector enterprises House-holds Producers of goods mainly for own use (but also sell / barter some output) Producers of goods exclusively for own use Employers of paid domestic workers ILO Department of Statistics

References ILO (2013), Measuring informality: A statistical manual on the informal sector and informal employment, Geneva, October 2013; ILO (2013), Report III - Report of the Conference - 19th International Conference of Labour Statisticians, Geneva, 2 - 11 October 2013; Geneva, October 2013; ILO (1993), Resolution concerning statistics of employment in the informal sector, Geneva, January 1993; ILO (2003), Guidelines concerning a statistical definition of informal employment, Geneva, November 2003. ILO Department of Statistics