The Scottish Abstract of Statistics No 26,1998

6 labour market

The workforce

6.1 The Labour Force Survey (LFS) is the largest regular household survey conducted in the UK. The concepts and definitions used in the LFS are agreed by the International Labour Organisation (ILO) - an agency of the United Nations. The definitions are used by European Union member countries and members of the Organisation for Economic Co-operation and Development.

Brief definitions of the terms used in table 6A1 and 6D1 are :

Economically active : The economically active population are those who are either in employment or ILO unemployed.

Economically inactive : The economically active population are not in employment, but do not satisfy all the criteria for ILO unemployment. The term includes those in retirement.

In employment : People aged 16 or over are classed as in employment (as an employee or self-employed) by the LFS, if they have done at least one hour of paid week prior to the LFS interview or if they have a job that they are temporarily away from (e.g. on holiday).

ILO unemployed : The ILO definition of unemployment covers people who are : not in employment, want a job, have actively sought work in the previous 4 weeks and are available to start work within the next fortnight; or out of work and have accepted a job which they are waiting to start in the next fortnight.

Employment statistics

6.2 Brief definitions of terms used in tables 6B1, 6B2, 6B3 and 6B4 are as follows:-

civilian workforce jobs : employee jobs , self-employment jobs, and participants on work-related Government training programmes.

employee jobs : a count of civilian jobs of employees paid by employers who run a PAYE scheme. Participants in Government employment and training schemes are included if they have a contract of employment. HM Forces, homeworkers, and private domestic servants are excluded. Individuals holding 2 jobs with different employers will be counted twice.

self-employment jobs : these jobs relate to those who, in their main employment, work on their own account, whether or not they have any employees. Second occupations classified as self employed are also included for those who are employees in their main job.

work-related Government training programmes : those participants on Government programmes and schemes who, in the course of their participation, receive training in the context of a workplace but are not employees, self-employed or HM Forces.

6.3 Since 1971, censuses of employment have provided detailed statistics of employee jobs covering virtually the whole economy. The only sectors excluded are HM Forces, employees in private domestic service, and the self-employed. To avoid duplication of enquiries, the figures for agriculture are based on the results of the Agricultural Census. The Census of Employment is conducted under the provision of Statistics of Trade Act 1947, by postal enquiry to addresses where employers hold their pay records (pay points). Employers are asked to show the numbers of their employees and the business activity for each address where they have employees. The census was biannual between 1987 and 1995. In 1993, a full census was conducted. In 1995 the Annual Employment Survey (AES) replaced the census of employment.

6.4 Between census dates, quarterly estimates of employee jobs are produced from sample surveys of employers. These estimates are provisional, and may be revised when the results of the next Annual Employment Survey become available.

6.5 The figure for the number of civil servants, in table 6B5, are for non-industrials working in Scotland, excluding casual or seasonal staff (normally recruited for a short period only, and normally for not more than 12 months). The figures are affected by classification changes. For example, from 2 January 1985 the Royal Ordnance Factories were incorporated as a Companies Act company, and are no longer included in the civil servants manpower count. The statistics are derived from departmental returns to HM Treasury.

6.6 The numbers employed by local authorities, in table 6B6, are obtained from the Joint Staffing Watch returns. These returns cover the total employment in all the services for which local authorities are responsible, except those employees whose cost is directly reimbursed by central government (e.g. those employed under the Youth Training Scheme, who are recorded separately on the table).

Industrial disputes

6.7 Industrial dispute statistics in table 6B7 only relate to disputes connected with terms and conditions of employment. Stoppages involving fewer than 10 workers or lasting less than one day are excluded except where the aggregate of working days lost exceeded 100. Workers involved and working days lost relate to persons both directly and indirectly involved (out of work although not parties to the dispute) at the establishments where the disputes occurred. People laid off and working days lost elsewhere, owing for example, to shortages of supplies, are not included.

Claimant Count unemployment statistics

6.8 Over the past few years several changes have affected the claimant count unemployment figures, so that the changes in the "unadjusted" numbers recorded as unemployed must be interpreted with caution. A consistent series (on the basis of current definitions) is provided by the seasonally adjusted figures for adult unemployment. This series takes account of the estimated effects of all the changes. The Office for National Statistics publication ‘Labour Market Trends’ gives details of these in the November 1995 issue.

Vacancy statistics

6.9 A vacancy is defined as a job notified by an employer to local Jobcentre offices or Careers Service which is unfilled at the date of the monthly count. (Only about a third of all vacancies are notified to Jobcentres). Vacancies created by employers for self-employed people to do contract work are included.