This document is an excerpt from the EUR-Lex website
Document 52012DC0701
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Council Regulation (EC) No 577/98
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Council Regulation (EC) No 577/98
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Council Regulation (EC) No 577/98
/* COM/2012/0701 final */
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Council Regulation (EC) No 577/98 /* COM/2012/0701 final */
REPORT FROM THE COMMISSION TO THE
EUROPEAN PARLIAMENT AND THE COUNCIL on the implementation of Council
Regulation (EC) No 577/98 1. Introduction Council
Regulation (EC) No 577/98 on the organisation of the labour force sample survey
in the Community[1]
sets minimum standards for the harmonised production of labour force surveys in
the European Union and its Member States. It was amended in 2002, 2003 and 2007[2]. Article
7 of Regulation (EC) No 577/98 states that: ‘A report on the implementation of this Regulation shall be
submitted by the Commission to the Parliament and the Council every three
years, beginning in the year 2000. This report shall evaluate in particular the
quality of the statistical methods envisaged by the Member States to improve
the results or to lighten the survey procedures.’ This
is the Commission's fifth report to the Parliament and the Council. Section 2
gives an overview of the European Union Labour Force Survey and its relevance
to supporting European Union policies. Section 3
takes stock of how Regulation (EC) No 577/98 has been implemented in the Member
States, in Candidate countries, in EFTA countries and in Switzerland. Section 4
focuses on ongoing initiatives launched by the European Statistical System[3] (ESS) to improve the quality
and reduce the burden of the Labour Force Survey. 2. Overview of the labour
force survey 2.1. General description The European Union Labour Force Survey
(hereinafter referred to as EU-LFS) is a large sample survey of residents in
private households. It provides both quarterly and annual labour market
statistics, on employment and unemployment, as well as on people outside the
labour force. It also collects multi-annual information from ad hoc modules and
provides input for model-based monthly estimates of unemployment and
unemployment rates. The national
statistical institutes of the Member States are responsible for designing
national questionnaires, drawing the sample, conducting interviews and sending results
to the Commission (Eurostat) in accordance with a common coding scheme established
by Commission Regulation (EC) No 377/2008[4].
Eurostat is
in charge of monitoring the implementation of Regulation (EC) No 577/98,
providing assistance to national statistical institutes, promoting harmonised
concepts and methods, and disseminating comparable national and European labour
market statistics. The EU-LFS sample size is 1.8 million
people every quarter, covering 33 participating countries[5]. This makes the EU-LFS the
largest household survey in Europe. 2.2. Relevance The EU-LFS is the most important source of
official statistics on labour markets in the European Union. All in all, it collects
more than 100 variables on labour status, employment characteristics, working
time, educational background and training of individuals, complemented by
thematic yearly ad hoc modules[6].
Based on international standards and definitions, it has relevance beyond
European Union borders, enabling the situation in the European labour market to
be compared with that in other areas or countries. Some key EU policy initiatives rely on
EU-LFS data to monitor progress. For instance, the EU-LFS is one of the main
data sources for monitoring Member States’ progress under the employment
guidelines in the context of Article 148 of the Treaty on the Functioning of the European Union[7] (TFEU) and
the EU’s growth strategy, Europe 2020. Two of the five Europe 2020 headline
targets are monitored with LFS indicators (75 % target for employment rate
20-64; share of early school leavers under 10 %; at least 40 % of
30-34 years to have completed tertiary education). Many other LFS-based
indicators are used under the Europe 2020 Joint Assessment Framework. The
EU-LFS data also played a key role in the Lisbon Strategy (2000-2010). The LFS-based monthly unemployment rate is
an important short-term economic indicator. It is one of the Principal European
Economic Indicators[8],
also used to build moving annual averages of unemployment rates for the
scoreboard of economic and financial indicators to detect macroeconomic and
competitiveness imbalances. The EU-LFS provides input for national accounts information
on employed persons and on working time, and on other areas beyond the labour
market, such as education. Finally, the EU-LFS is one of the most important
sources of statistical microdata for researchers in Europe. The large samples enable
studies to be done on specific groups in the labour market. There is also broad
coverage of demographic, regional and educational background variables, among
others. 3. Implementation of the
labour force survey 3.1. Accuracy Estimates from sample surveys are subject
to two types of errors: sampling errors and non-sampling errors. Together, they
determine the accuracy of the estimates. Sampling errors occur because
only a subset of the whole population is surveyed. Non-sampling errors are all
other errors introduced that are not the result of sampling (coverage errors,
measurement errors, processing errors, non-response errors). As regards sampling
errors, the size of the sample is the main determinant of sampling errors.
Larger samples improve the accuracy of the results. The table below shows the
size of the sample interviewed each quarter in each participating country, in
absolute terms and compared with the total population. The sampling rate[9] ranges from 0.2 %
(Belgium, Germany, France, United Kingdom, Croatia, and Turkey) to 1.6 %
(Malta). On average, the quarterly sample size was 1.8 million individuals in
2010, 0.3 % of the total population in the 33 countries taking part. European Labour
Force Survey Achieved sample size and percentage of the
total population (average 2010 quarters) || Quarterly sample size (thousand) || Percentage of total population || || || Quarterly sample size (thousand) || Percentage of total population BE || 26 || 0.2 % || || NL || 96 || 0.6 % BG || 34 || 0.4 % || || AT || 46 || 0.5 % CZ || 59 || 0.6 % || || PL || 104 || 0.3 % DK || 30 || 0.5 % || || PT || 40 || 0.4 % DE || 174 || 0.2 % || || RO || 61 || 0.3 % EE || 5 || 0.4 % || || SI || 16 || 0.8 % IE || 62 || 1.4 % || || SK || 26 || 0.5 % EL || 76 || 0.7 % || || FI || 37 || 0.7 % ES || 172 || 0.4 % || || SE || 65 || 0.7 % FR || 108 || 0.2 % || || UK || 106 || 0.2 % IT || 166 || 0.3 % || || IS || 3 || 1.0 % CY || 11 || 1.4 % || || NO || 20 || 0.4 % LV || 9 || 0.4 % || || CH || 32 || 0.4 % LT || 17 || 0.5 % || || HR || 10 || 0.2 % LU || 5 || 0.9 % || || MK || 14 || 0.7 % HU || 71 || 0.7 % || || TR || 131 || 0.2 % MT || 7 || 1.6 % || || EU27 || 1 626 || 0.3 % || || || || TOTAL || 1 837 || 0.3 % Official surveys, such
as the EU-LFS, use probability sampling. This makes it possible to quantify
sampling errors that can be expressed in terms of confidence intervals. The
table below provides the estimates and 95 % confidence intervals reached
for the four main indicators on aggregated EU-27 level. For example, the
interval 215.5 – 216.5 covers the true value of employed persons with a 95 %
probability. 95 % confidence interval of the main
LFS indicators for the EU27 (2010) Number of employed (million) || Number of unemployed (million) || Rate of unemployment (%) || Average number of hours worked (hrs) 216 ± 0.5 || 22.9 ± 0.2 || 9.6 ± 0.1 || 37.3 ± 0.1 These intervals correspond to the precision
requirements set in Council Regulation (EC) No 577/98. As regards non-sampling errors, Eurostat
and participating countries regularly monitor relevant sources of non-sampling
errors (non-response, proxy interviewing). Participating countries report the
main causes of errors to Eurostat on an annual basis, along with the methods
applied nationally to reduce them. A summary is published in the annual quality
report of the EU-LFS[10]. 3.2. Timeliness and punctuality The timeliness of
statistics is defined as the time gap between the reference period and the
availability of data for users. For the EU-LFS, this time span depends on the
time Member States need to conduct and process the survey, then to send the
results to Eurostat, and for Eurostat to process, validate and publish the
results. Council Regulation
(EC) No 577/98 states that Member States have to deliver data to Eurostat
within 12 weeks of the end of a reference quarter. Eurostat validates the
national datasets as soon as they are received. The chart below shows the time
span between the end of the reference quarter and the availability of data for
Eurostat’s users for the period 2008-2010, compared to the last year covered by
the previous report (2007). This shows that timeliness of LFS data has
improved consistently over the period examined. In 2007, Eurostat published 90 %
of Member State datasets 16 weeks after the end of the reference quarter. By
2010, this ratio was reached two weeks earlier. Building on this improvement,
Eurostat is now able to announce the dates of publication of its main quarterly
indicators for Member States and the EU aggregates. Because there is a target
publication date, Eurostat can measure the punctuality of statistics, defined
as the time lag between the release date announced and the actual release date.
Eurostat has consistently met its publication date deadlines since the LFS
release calendar was introduced. The timeliness of LFS data is also a key
point for estimating monthly unemployment rates. As soon as national data are
processed by Eurostat, they are used in the compilation of the next monthly
unemployment rate calculation. The monthly unemployment rate is published
approximately 31 days after the end of the month. 3.3. Accessibility and clarity Eurostat disseminates EU-LFS statistics in
several ways. The main tool is Eurostat’s online database, offering more than
350 tables of detailed EU-LFS data. Headline Europe 2020 indicators are also
published in a specific section of the website[11].
These tables cover only the most important LFS results. Eurostat produces other
combinations of EU-LFS variables as tailor-made tabulations on demand. LFS microdata are also highly relevant for
scientific purposes. More and more researchers from universities, research
institutes and national statistical institutes across Europe and
beyond request LFS microdata. Eurostat has been providing this microdata free
of charge since 2011. Access is granted in accordance with the terms set
out in Commission Regulation (EC) No 831/2002[12]
to ensure the protection of survey respondents' personal data. The
datafiles, consisting of individual records, are ‘anonymised’ to
prevent unlawful disclosure of personal data. Detailed documentation (metadata) is
provided to users through various dissemination channels. General information
is disseminated for the public at large on the LFS section of the Eurostat
website[13].
Specific information on the content and quality of statistics is described in
the metadata attached to each table in the database. Finally, more advanced
methodological documentation is provided in specialised publications (e.g. the
annual quality report, and a publication on the characteristics of national
surveys, etc.). 3.4. Comparability The EU-LFS draws on a high degree of
harmonisation of concepts, definitions, classifications and methodologies.
Regulation (EC) No 377/2008 defines a common coding scheme, ensuring that all
participating countries use the same variable definitions. Common
classifications are used (e.g. NACE for economic activity, ISCO for
occupations) and whenever these classifications are revised, Eurostat ensures that
all countries taking part coordinate implementation. In addition, common
explanatory notes provide detailed guidelines on the purpose, coding and
implementation by national statistical institutes. Methodological issues are
discussed in a dedicated working group, the Working Group on Labour Market
Statistics, which fosters the exchange of experience and common practices among
all participating countries. To ensure that the measurement of
unemployment is harmonised across all countries participating, Commission
Regulation (EC) No 1897/2000[14]
lays down an operational definition of unemployment, as well as principles to
be followed for formulating the survey questions on labour status. The
definition of unemployment is consistent with International Labour Organisation
(ILO) standards, which were adopted by the 13th and 14th International
Conferences of Labour Statisticians. This ensures that EU-LFS statistics are
comparable to those from other countries, especially those of other OECD
members. Countries regularly improve the LFS, either
in its methodology or processes. If such improvements lead to breaks in LFS
data, the national statistical institute involved informs Eurostat. Significant
breaks are documented and labelled in Eurostat publications. Eurostat publishes
a special dataset called ‘LFS main indicators’, in which past series are
adjusted for possible breaks and occasional data gaps are filled. 3.5. Coherence Coherence between population estimates
based on EU-LFS and from demographic statistics is an important aspect of
overall quality. Being a sample survey, the EU-LFS's results are calculated
from the responses of a sub-set of the population. The responses are then
benchmarked against the entire population. The data for population are based on
the best estimates available at the time (broken down by sex and age groups
to improve the accuracy of the procedure). In principle, this
benchmarking procedure ensures coherence between EU-LFS and demographic
statistics. Differences may, however, occur under exceptional circumstances.
For instance, every 10 years, new population census results become
available. If a new census yields figures that differ from
previous population estimates, a past series may have to be revised. If so, the
revision policy for demographic statistics and EU-LFS may differ
as regards length and timing, constrained by the availability
of detailed information on the population for the 10 years between
censuses. As regards coherence of unemployment
estimates, many countries also publish statistics on the number of persons registered at the public employment office and looking for work. The LFS unemployment figures and the number of registered job
seekers differ because of the different nature of the data collected. While the
EU-LFS draws on a harmonised methodology to survey households as regards their
employment activities and availability for work, the public employment offices'
administrative records comprise an exhaustive list of individuals registered
and eligible for unemployment benefits. As the criterion to be registered
depends on national social policies, statistics on registered job seekers are
not comparable across countries nor over time. Another area in which statistical coherence
is important concerns the estimation of employment, which can be provided both
from LFS and from national accounts. Estimates are not necessarily the same.
This is due to differences in methodologies (the concepts and coverage of the
population are not identical), but also to different compilation processes. National accounts are compiled by comparing
and combining all relevant data sources available in a country, taking the best
from each source so as to obtain a comprehensive result. They also seek
coherence between employment and production (GDP). The LFS is one data source in that process,
as well as business surveys, employment registers or social security registers.
The consistency between LFS and national accounts has been addressed by the
Labour Market Statistics Working Group. Eurostat monitors the differences
between the two estimates, and several national statistical institutes have analysed
the causes and the size of the differences. In some cases, they have published
reconciliation tables between the two datasets. All in all, national accounts are judged to
be more suitable for measuring employment levels, employment growth and
industry breakdowns. LFS is more suitable for measuring participation
in the labour market (i.e. employment and unemployment rates, activity rates,
etc.), or for analysing the situation of specific socio-economic groups in the
population (e.g. by age, gender or educational level). 4. Initiatives to further
improve the Labour Force Survey 4.1. Task
Force on the quality of the LFS and follow-up actions In 2007, Eurostat and the Member States
launched a quality review of the EU-LFS. A Task Force was set up to identify
possible weaknesses, and to recommend appropriate actions for all dimensions of
the quality framework for ESS statistical output. In its final report (2009)[15], the Task Force formulated over
40 recommendations for improving the design, organisation and conduct of the
survey. The recommendations vary in terms of complexity, scope, resource
implications and the time needed for implementation. Participating countries
assessed themselves against the recommendations, and in 2010, each defined a
national action plan to implement the recommendations. Progress on this is assessed
regularly by the Labour Market Statistics Working Group. 4.2. Developing new statistical
products One way to extend the use of LFS results is
to improve the use of the microdata available, for instance, by providing users
with new indicators. For example, there are now new indicators to supplement
the unemployment rate. Unemployment, as defined by the ILO,
requires three conditions to be fulfilled simultaneously: not
having worked even for one hour in the reference week; active
job search; availability
for work. Many people only partially meet these
requirements, so they are not considered as unemployed in the unemployment
statistics. To provide indicators on these specific groups, and hence a richer
picture of unmet labour demand, Eurostat and the national statistical
institutes of the Member States have developed definitions of three new
indicators. One indicator concerns underemployment and the other two look at specific
situations of joblessness with some attachment to the labour market. Data on these
groups were first published in 2011. Another example is the new indicator on
young people who are neither in employment nor in education/training (NEET).
This is relevant for monitoring young adults at risk of being left behind by
society. It combines information about education and about the labour market,
both derived from EU-LFS data. Another request that users made concerns statistics
on labour market dynamics. This is information about transitions between labour
statuses, for instance, on how many people became unemployed or found a job over
a specified period. This makes it possible to identify groups that have a better
chance of finding a job, or vulnerable groups more at risk of remaining
unemployed. Meeting this data need with the EU-LFS is
not straightforward, as the survey was originally designed to gather stock
information (e.g. number of unemployed persons at a given point in time), rather
than capturing flows. Flow estimates are, however, possible, though they are
not as accurate as stock estimates and need to meet certain conditions. In most
participating countries, the LFS is designed as a rotational panel, that is, where
the same person is interviewed several times in consecutive quarters. This
design enables the LFS to derive indicators on labour market transitions. Some
countries regularly publish this kind of data already, using this panel aspect
of the LFS. Action is needed to enable the same to be
done at EU level. First, participating countries that do not have a rotational
panel need to design a system on these lines. Second, the rotational patterns
differ between countries, and more harmonisation is preferable. Finally, some
remaining methodological challenges need to be overcome, such as the
consistency needed between stock-data and flows. In collaboration with Member
States, Eurostat is working on the prerequisites needed for the EU-LFS to
produce labour dynamics statistics in the future. 4.3. The LFS in a modernised
system of social statistics Building on the Commission's 'Communication
on the production method of EU statistics: a vision for the next decade'[16], an initiative to modernise
European social statistics has been launched. In the 2011 Wiesbaden Memorandum[17], a strategy was set out to
make this concrete. It was agreed that, while maintaining high quality
standards, efficiency gains in the production of social statistics were
essential; and that to achieve these, joint progress towards a common
architecture for European social statistics was necessary. The main aims of the
strategy are to: improve
the sampling frames; streamline
social surveys; make
more use of new and existing data sources, particularly administrative sources. Modernising the organisation of social
statistics will also have an impact on the Labour Force Survey. Making more use of new technologies will
also be important in this strategy. In the case of social statistics, using the
internet to collect data appears to be a promising way to improve the
efficiency of data collection and to maintain the good will of respondents. Several
countries are carrying out projects in this area. To stimulate international
collaboration and develop common tools, a joint ESS project[18] was launched in 2012. The LFS
will be the pilot survey for this project. Finally, Eurostat is currently
evaluating LFS ad hoc modules. Each year, an ad hoc module on varying topics is
included in the LFS. The process of compiling it could be made more efficient
and the quality of the results improved. One possible approach would be to
introduce a system of repeating modules, selected from a shortlist
of modules, with the possibility to also respond to emerging policy needs.
This would enable better monitoring of topics on a multi-annual basis. 5. Conclusion Eurostat monitors compliance with the legal
basis. The Commission considers the implementation of Regulation (EC) No 577/98
to be satisfactory. Member States are fully or almost fully complying with the
Regulation. Open issues are discussed with Member States, and, if necessary,
action plans are jointly defined. The overall quality of the EU-LFS is good. The European Statistical System is making
efforts to introduce ongoing improvements in EU-LFS processes and methods, and has
kept up the momentum despite a difficult environment, with scarce resources and
deep budget cuts. A review of EU-LFS methodology is under way to adapt to changes
in user needs and to new challenges (e.g. improved timeliness requirements,
estimates on labour market transitions).This work will be part of the overall
modernisation of social statistics. [1] OJ L 77, 14.3.1998, p. 3. [2] Commission Regulation (EC) No 2104/2002 (OJ L 324,
29.11.2002, p. 14), Regulations (EC) No 1991/2002 (OJ L 308, 9.11.2002, p. 1), (EC)
No 2257/2003 (OJ L 336, 23.12.2003, p. 6) and (EC) No 1372/2007 (OJ L 315,
3.12.2007, p. 42) of the European Parliament and of the Council. [3] The ESS is the partnership
between the European statistical authority, which is the European Commission
(Eurostat), and the national statistical institutes and other national
authorities responsible in each Member State for the development, production
and dissemination of European statistics. [4] OJ L 114, 26.4.2008, p. 57. [5] Participating countries are the 27 Member States,
Iceland, Norway, Switzerland, Croatia, the Former Yugoslav Republic of
Macedonia and Turkey. [6] The ad-hoc modules in 2008, 2009 and 2010 were: 2008: Labour market situation of
migrants and their immediate descendants 2009: Entry of young people into
the labour market 2010: Reconciliation between work
and family life. [7] See Council Decision
2011/308/EU of 19 May 2011 on guidelines for the employment policies of the
Member States, OJ L 138, 26.5.2011, p. 56. [8] See Principal European Economic Indicators — A
statistical guide, Eurostat 2009. [9] Defined as the ratio of the sample size (the number
of sampling units in the sample) and the population size (the total number of
sampling units in the target population). [10] http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-RA-12-021. [11] http://epp.eurostat.ec.europa.eu/portal/page/portal/europe_2020_indicators/headline_indicators. [12] OJ L 133, 18.5.2002, p. 7. [13] http://epp.eurostat.ec.europa.eu/portal/page/portal/employment_unemployment_lfs/introduction. [14] OJ L 228, 8.9.2000, p. 18. [15] Task Force on the quality of the Labour Force Survey
— Final report, Eurostat 2009. [16] COM(2009) 404 of 10 August 2009. [17] http://epp.eurostat.ec.europa.eu/portal/page/portal/pgp_ess/0_DOCS/de/DGINS2011_memorandum.pdf
[18] ‘Data collection for social surveys using multiple
modes’.