Definition and rationale |
The public sector plays a significant social and economic role. Past estimates suggest the world share of public employment in total world employment is about 30 percent and varies by level of economic development and the role of the State in the production of goods and services. In this context, indicator 7 aims at providing information on the share of youth in public employment in order to improve diagnostics of the labor market challenges faced by youth. The indicator can support governments to identify bottlenecks for employment creation and have grounds for further promotion of youth employment in the private sector.
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Numerator and denominator and method of computation |
| Definition of total public sector employment: it covers all employment of (i) general government sector plus (ii) employment of publicly owned enterprises and companies, resident and operating at (a) central, (b) state (or regional) and (c) local levels of government. It covers all persons employed directly by those institutions, without regard for the particular type of employment contract. |
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(a) The central government units consist in general of a single institution composed of departments or ministries, of autonomous agencies carrying out special functions, and of all non-market Non Profit Institutions (NPIs) which are controlled and mainly financed by public authority. Their fiscal, legislative and executive authority extends over the entire territory of the country. The administration units which provide some services to local residents but which are directly dependent on central units should be an integral part of central government unit.
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(b) The state government units (or regional government units) consist of "state governments which are separate institutional units plus those NPIs that are controlled and mainly financed by state governments". Their fiscal, legislative and executive authority extends to the territory of the "state" (or region) into the country. They are often own autonomous agencies for special functions.
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(c) The local government units are institutional units whose fiscal, legislative and executive authority is generally much less than that of central or state (or regional) governments. They typically provide a wide range of services to local residents and often depend on grants or transfers from higher levels of governments.
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| (i) General government sector: is the total employment of all government units, social security funds and NPIs that are controlled and mainly financed by public authority. |
-The government units carry out government functions and have fiscal, legislative and executive authority, which extend to their competent geographical areas.
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-The Non Profit Institutions (NPIs) are legal entities which are autonomous from government units. They are classified under the general government only if they are non-market, as well as financed and controlled by public authority.
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-The social security funds are "social insurance schemes covering the community as a whole or large sections of the community, and are imposed and controlled by government units". They can operate at each level of government.
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| (ii) Employment of publicly owned enterprises and companies is the employment of all units producing goods or services for the market and which are mainly owned and/or controlled by government units. |
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| Youth in public sector employment indicator is computed as the percentage of youth employed in the total public sector employment as a share of total youth employment. |
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Relevant ICLS resolutions and guidelines / other international classifications |
Institutional units and sectors, pages 102-104 in:
“System of National Accounts 1993, Commission of the European Communities, International Monetary Fund, Organization for Economic Co-operation and Development, United Nations, World Bank, Brussels/Luxembourg, New York, Paris, Washington, D.C., 1993”. |
| http://laborsta.ilo.org/applv8/data/sna93e.html |
| http://www.ilo.org/public/english/bureau/stat/download/wp_pse_e.pdf |
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Sources and data collection |
Household-based labor surveys. |
Comments and limitations |
Limitations: See indicators 1-4. |
