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Employment Protection Security
Index |
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Definition
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Employment security is protection against loss of income-earning
work. For wage and salary workers, employment security exists when there
is strong protection against unfair and arbitrary dismissal from employment,
and where workers can obtain redress if they are subject to unfair dismissal.
The strength of employment security is also a function of the type of
economy and structure of employment, so that it tends to be stronger where
large-scale firms predominate and where the public sector is large.
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| An employment
security index |
The national Employment Protection Security Index consists of
sets of Input indicators
- policy commitments made by governments - Process
indicators - measures of existing institutions or mechanisms
designed or expected to give effect to policies giving employment security
- and Outcome indicators
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| Input indicators |
- Whether or not the country has ratified the
ILOs Termination of Employment Convention (No. 158), ), which provides
that employment shall not be terminated unless there is a valid reason
for doing so.
- Existence of national legislation on employment
protection, dealing with average notice period prior to redundancy,
severance pay and definition of unfair dismissal.
- Degree of protection on collective redundancies:
based on a national instrument and includes aspects such as the obligation
to consult prior to dismissal, follow administrative procedures, etc.
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| Process indicators
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evaluate workers access to institutions protecting
them from loss of employment or ensuring that legal provisions of employment
security are applied.
- Proportion of workers covered by collective
bargaining agreements
- Statutory existence (or absence) of independent
labour tribunals.
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| Outcome indicators
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relate in principle to
the notion of secure employment, defined as full-time, regular wage or
salaried employment, associated with rights and benefits. Insecure employment
takes in part-time or temporary wage work and various activities covered
by the term "self-employment". Because of lack of data for industrializing
countries, three proxy indicators were selected.
- Share of wage employment in total employment,
- Share of public sector employment in total employment
- Ratio of female to male wage employment to take account of the gender dimension
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| Coverage |
The Employment Security Index covers 99 countries.
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| Clusters |
16 come out as Pacesetters, all of them
in western Europe with the exception of Mauritius. This is because Mauritius
has maintained a relatively large public sector, has an employment structure
with a majority of wage-workers, and has a roughly equal number of men and
women in protected employment.
Twenty-one countries emerge as Pragmatists - the cluster displaying satisfactory
employment security outcomes but scoring less well on the input or process
indicators. In most cases, this is due to non-ratification of ILO Convention
No. 158 (which has an overall ratification rate of 17%) and to below-average
periods of notice of redundancy. This cluster consists mainly of Latin American
countries but also includes some industrialized countries pursuing a liberal
economic policy model, such as the United States and the United Kingdom,
as well as a few from the Pacific region.
Contrary to other forms of insecurity, employment insecurity is not predominantly
associated with the African continent. Countries with overall unsatisfactory
performances, in the Much-to-be-Done cluster, are from all parts of the
world. If we include the Conventionals, two thirds of all countries, and
certainly an even larger proportion of workers, do not have employment security. |
| Additional outputs |
Factsheets:
Security dimensions
Employment Insecurity: Why neither formal nor informal my be best for workers
Skills Insecurity: Why "human capital" will not do
Work Insecurity: Work-related ill health
Income Insecurity: Neglected aspects of poverty and inequality
Weak Collective Voice leaves Workers Insecure: New forms of voice still limited
Labour Market Insecurity: Lost in global statistics
Regional perspective
Africa: Insecurities compound poverty
South and South-East Asia: Economic security exceedss income share
Eastern Europe and CIS: Unpaid wages, lost benefits and concealed unemployment
Latin America and the Caribbean: Lower and most unstable growth intensify
insecurities - Huge majorities favour redistribution and basic security
Economic Insecurities in Rich countries: Western Europe still sets lead,
but slipping
Transversal issues
"Targeting" the Poor is Poor Policy: Support for security and equality strong
Women face more Economic Insecurity
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