LAMAS Working Group 19-20 June 2013 Agenda Item 5.1 Unemployment in Macroeconomic Imbalance Procedure (MIP) scoreboard statistics Laurs Nørlund,(Director of National Accounts, Prices and Key indicators) Laurs.Norlund@ec.europa.eu

MIP Scoreboard Eleven indicators covering BoP/IIP, Financial Accounts, National Accounts, Labour Market, other (exchange rates, etc) Expectations from high level users Quality and reliability for all indicators under the MIP EU Council invited in 2011 & 12 Commission (Eurostat) to take all necessary measures Reliable procedure for compilation Continuous improvement

Content of the MIP Regulation EP/ Council Regulation titled: Regulation on provision and quality of statistics for the macroeconomic imbalance procedure Cover several aspects relating to quality assurance framework, in particular Quality reporting in line with the Code of Practice Data coverage Cooperation between ESTAT and NSIs Methodological Aspects

EC (Eurostat) submitted a proposal for a EP/Council regulation: why? Provide a cross-domain legal framework for ensuring the quality of the MIP indicators produced by ESS Define who does what and when and where and how and why Build on existing practices in order to avoid duplication

Data Sources and Statistical Methods Preliminary investigation done to enquiry on the eleven MIP indicators. Best practices Best practices should be spread to other indicators/domains Missing or incomplete metadata Stocktake existing information Assess needs and provide support Take eventually corrective action

The MIP is here now: what's up for the Unemployment rate? Dedicated section on Eurostat Website plus dedicated MIP team The indicator is defined as the three-year backward average over of the unemployment rate from annual data provided by Eurostat, with a threshold of 10%) See dedicated DG/ECFIN occasional paper here Higher visibility of the indicator at political level Employment rate was already included within target indicator for Europe 2020: now unemployment rate is included within the MIP

Unemployment rate relevant for MIP It is the ILO unemployment rate for age group 15-74 It is the 3-year backward average It is the rate as published by Eurostat The average is calculated from the breaks-free time series reconstructed for the monthly unemployment rate

Unemployment rate vs. other MIP indicators LFS Standard Quality reports are deeply developed includes also inventories related information as required by the MIP regulation Eligible to be among the best practices Consider to make public the detailed quality report (not just the summary).

Next MIP steps related to LAMAS Further information gathering and digging into statistical methods Involvement of NSIs for the possible enhancement of the indicator EP/council discussion on the MIP regulation is likely to take about 1 year

LAMAS is invited to comment on the general approach to assure a reliable procedure for the compilation of MIP statistics make proposals for how to arrive at a common template for future Quality Reports and Inventories of sources and methods, taking account of the existing documentation; assist Eurostat with the quality assessment of the MIP indicators in autumn 2013 in view of the annual Alert Mechanism Report, especially when existing metadata (including inventories of sources and methods) are incomplete.

Q&A Thanks!