MIP auxiliary indicators: the social dimension ESTP Course Luxembourg 9-11 December 2014 Romana Vitas, MIP TF

28 auxiliary indicators Supplementing the headline indicators Provides additional information on aspects linked to the general macroeconomic situation Enhance the information base for understanding potential imbalances, as well as the adjustment capacity of the economy No thresholds Macroeconomic conditions, competitiveness, house prices, private sector indebtedness, social situation

Social indicators

Reasons Better understanding of the risks of imbalances in terms of unemployment, poverty and wider social consequences Better understanding of social developments during adjustment processes Help in identifying policy measures to correct imbalances while minimising their social consequences

Activity rate The activity rate is the percentage of economically active population aged 15-64 years on the total population of the same age. The economically active population is the sum of employed and unemployed persons. Inactive persons are those who, during the reference week, were neither employed nor unemployed.

Long-term unemployment rate The long-term unemployment rate is the number of persons unemployed for 12 months or longer as a percentage of the labour force (i.e. economically active population). Unemployed persons comprise persons aged 15 to 74 who fulfil all the three following conditions: are without work during the reference week; are available to start work within the next two weeks and have been actively seeking work in the past four weeks or have already found a job to start within the next three months.

Youth unemployment rate The youth unemployment rate is the unemployment rate of people aged 15 to 24 as a percentage of the labour force of the same age. Unemployed persons comprise persons aged 15 to 74 who fulfil all the three following conditions: are without work during the reference week; are available to start work within the next two weeks and have been actively seeking work in the past four weeks or have already found a job to start within the next three months.

% of young people not in employment, education or training The indicator young people neither in employment nor in education and training (NEET) provides information on young people aged 15 to 24 who meet the following two conditions: (a) they are not employed (i.e. unemployed or inactive according to the International Labour Organisation definition) and (b) they have not received any education or training in the four weeks preceding the survey.

People at risk of poverty or social exclusion This indicator corresponds to the sum of persons who are: at risk of poverty or severely materially deprived or living in households with very low work intensity. Persons are only counted once even if they are present in several sub-indicators. Severely materially deprived persons have living conditions severely constrained by a lack of resources, they experience at least 4 out of 9 deprivations items. People living in households with very low work intensity are those aged 0-59 living in households where the adults (aged 18-59) work less than 20% of their total work potential during the past year. Students are excluded.

At risk of poverty rate The indicator measures persons with an equivalised disposable income below the risk-of-poverty threshold, which is set at 60 % of the national median equivalised disposable income (after social transfers) as a % of total population.

Severely materially deprived people Severely materially deprived persons have living conditions severely constrained by a lack of resources. They experience an enforced lack of at least 4 out of the 9 following deprivations items relating to the 'economic strain and durables' dimension of their household: cannot afford i) to pay rent or utility bills, ii) keep home adequately warm, iii) face unexpected expenses, iv) eat meat, fish or a protein equivalent every second day, v) a week holiday away from home, vi) a car, vii) a washing machine, viii) a colour TV, or ix) a telephone.

People living in households with very low work intensity People living in households with very low work intensity are people aged 0-59 living in households where the adults (aged 18-59) worked less than 20% of their total work potential during the past year. Students are excluded.

Quality assessment Quality report of the European Union Labour Force Survey 2012 - 2014 edition, Eurostat 2010 Comparative EU Final Quality Report (SILC), Eurostat EU and national level

Useful links Strengthening the social dimension of the economic and monetary union http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1407943583961&uri=CELEX:52013DC0690 Quality report of the European Union Labour Force Survey 2012 - 2014 edition http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-TC-14-001 Comparative EU Final QR (SILC) http://epp.eurostat.ec.europa.eu/portal/page/portal/income_social_inclusion_living_conditions/documents/tab9/2010%20EU%20COMPARATIVE%20FQR.pdf