The Labour market in the EU second quarter

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The Labour market in the EU – second quarter 2020 Impact of COVID-19 measures

The Labour market in the EU – second quarter 2020 Impact of COVID-19 measures

Summary Data collection was disrupted, but high data quality could be maintained in most

Summary Data collection was disrupted, but high data quality could be maintained in most countries despite the measures to contain COVID-19, which forced countries to collect data by phone rather than in person. • Relatively stable unemployment rates are due to • the definition of unemployment: actively searching, available to work; • labour regulations, and active government measures to keep people in employment. • Overall labour market slack has jumped, and employment has fallen; • Large transitions from unemployment and employment into economic inactivity; • Absences from work increased dramatically, reaching (another) record high; • Total actual hours worked in the main job fell below levels observed in the financial and debt crises.

Data collection • 10 countries collected more interviews in 2020 Q 2 than in

Data collection • 10 countries collected more interviews in 2020 Q 2 than in 2019 Q 2; • 6 countries collected about the same amount of interviews in 2019 Q 2 and 2020 Q 2; • Only 1 country collected less than 80% of interviews in 2020 Q 2 in comparison to 2019 Q 2. • In 14 countries, face-to-face interviews were forbidden during the whole quarter; • In 20 countries, the share of phone interviews increased considerably; • In 5 countries, the share of online interviews increased considerably.

Data processing • German data: technical problems have limited data collection since the beginning

Data processing • German data: technical problems have limited data collection since the beginning of 2020, 2020 Q 2 in addition affected by COVID-19 measures. • The indicators shown in the press release have been estimated using additional survey data from the German micro-census. • For other data tables German data is not published, but taken into account for the calculation of EU/EA aggregates. • More information can be found here. • Challenges in seasonal adjustment of data, particularly for temporary absences from work.

Definitions • Employed persons are all persons who worked at least one hour for

Definitions • Employed persons are all persons who worked at least one hour for pay or profit during the reference week or unpaid for a business owned by a member of the family, or were temporarily absent from such work. • Unemployed persons are all persons who: • - are without work; • - are available to start work within two weeks; • - and have actively sought employment at some time during the previous four weeks.

Definition of labour market slack • Labour market slack is the sum of unemployed

Definition of labour market slack • Labour market slack is the sum of unemployed persons, plus: • Underemployed part-time workers: persons working part-time who wish to work additional hours and are available to do so. • Persons seeking work but not immediately available: persons neither employed nor unemployed who are actively seeking work during the last 4 weeks but not available for work in the next 2 weeks • Persons available to work but not seeking: persons neither employed nor unemployed who want to work, are available for work in the next 2 weeks but are not seeking work.

Labour market transitions • Labour market transitions show the movements of individuals between the

Labour market transitions • Labour market transitions show the movements of individuals between the labour market statuses of employment, unemployment and economic inactivity. • Transitions help to understand interpret the developments in the stock of each indicator. • Transition rates describe the share of persons in a labour market status transitioning to another one from one quarter to the next, in percentage of the initial status. • More information on labour market transitions can be found here.

40. 0 Transition rates from unemployment to inactivity, and from employment to inactivity, EU

40. 0 Transition rates from unemployment to inactivity, and from employment to inactivity, EU (excl. DE) 35. 0 4. 5 4. 0 30. 0 3. 5 25. 0 3. 0 20. 0 2. 5 2. 0 15. 0 1. 5 10. 0 5. 0 Transitions from unemployment to inactivity, in % of unemployment 2020 Q 1 (left axis) 1. 0 Transitions from employment to inactivity, in % of employment 2020 Q 1 (right axis) 0. 5 0. 0 2010 Q 2 2010 Q 3 2010 Q 4 2011 Q 1 2011 Q 2 2011 Q 3 2011 Q 4 2012 Q 1 2012 Q 2 2012 Q 3 2012 Q 4 2013 Q 1 2013 Q 2 2013 Q 3 2013 Q 4 2014 Q 1 2014 Q 2 2014 Q 3 2014 Q 4 2015 Q 1 2015 Q 2 2015 Q 3 2015 Q 4 2016 Q 1 2016 Q 2 2016 Q 3 2016 Q 4 2017 Q 1 2017 Q 2 2017 Q 3 2017 Q 4 2018 Q 1 2018 Q 2 2018 Q 3 2018 Q 4 2019 Q 1 2019 Q 2 2019 Q 3 2019 Q 4 2020 Q 1 2020 Q 2 0. 0

Absences from work • Absences from work: persons absent from work are considered as

Absences from work • Absences from work: persons absent from work are considered as employed if there is a formal attachment to the job. This can be for example the continued receipt of wage or salary, AND an assurance of a return to work (or an agreement as to the date of return) following the end of the contingency. Persons can be absent from work due to a number of reasons, among which holidays, own illness, and temporary lay-offs. • Lay-offs are classified as employed if they have an assurance of return to work within a period of 3 months or receive 50% of their wage or salary from their employer.

Layoffs in the EU and the US • Temporary lay-offs are always counted as

Layoffs in the EU and the US • Temporary lay-offs are always counted as unemployed by the Bureau of Labour Statistics, while they are counted as employed (following the ILO recommendation more closely) by Eurostat. • Increase in unemployment in the US in March and April 2020 were almost exclusively due to these temporary lay-offs, and explain the decrease in unemployment in May and June, as some federal states have started to ease their restrictions, and furloughed persons came back to work. • See Sorrentino (2000), for full discussion of differences in definitions.

week 1 week 2 week 3 week 4 week 5 week 6 week 7

week 1 week 2 week 3 week 4 week 5 week 6 week 7 week 8 week 9 week 10 week 11 week 12 week 13 week 14 week 15 week 16 week 17 week 18 week 19 week 20 week 21 week 22 week 23 week 24 week 25 week 26 week 27 week 28 week 29 week 30 week 31 week 32 week 33 week 34 week 35 week 36 week 37 week 38 week 39 week 40 week 41 week 42 week 43 week 44 week 45 week 46 week 47 week 48 week 49 week 50 week 51 week 52 Absences from work by calendar week, EU (in millions, age group 20 -64 – experimental data) 70 60 50 40 30 20 10 0 2018 2019 2020

Where to find the data https: //ec. europa. eu/eurostat/database

Where to find the data https: //ec. europa. eu/eurostat/database

Where to find more information The press release Statistics Explained pages on COVID-19 impact

Where to find more information The press release Statistics Explained pages on COVID-19 impact on the labour market Statistics Explained pages on the EU-LFS Dedicated section on COVID-19 Dedicated section on the labour market

Keep in touch ec. europa. eu/eurostat Media requests: eurostat-mediasupport@ec. europa. eu EU_Eurostat General user

Keep in touch ec. europa. eu/eurostat Media requests: [email protected] europa. eu EU_Eurostat General user support: @EU_Eurostat. Statistics https: //ec. europa. eu/eurostat/help/support (multilingual) For EU institutions: [email protected] europa. eu

Thank you © European Union 2020 Unless otherwise noted the reuse of this presentation

Thank you © European Union 2020 Unless otherwise noted the reuse of this presentation is authorised under the CC BY 4. 0 license. For any use or reproduction of elements that are not owned by the EU, permission may need to be sought directly from the respective right holders.