Labor Underutilization Research Articles

Deciphering the Factors Influencing Labour Underutilization Between Women and Men in West Java, Indonesia

Deciphering the Factors Influencing Labour Underutilization Between Women and Men in West Java, Indonesia

Revealing the unseen: The 21st ICLS statistical standards on the informal economy

Informality is widespread globally, with many workers and enterprises lacking formal arrangements. Effective statistics on the informal economy are essential for policy development, improving working conditions, and promoting decent work. Over the past 30 years, the establishment of statistical standards on informality has helped countries better measure and understand the informal sector and informal employment. Recent revisions to these standards, driven by evolving statistical labour standards and growing national experience, have led to a new resolution on informal economy statistics. Adopted at the 21st ICLS in 2023, this resolution offers a comprehensive framework for defining and measuring informality. It introduces concepts such as informal productive activities, the informal economy, the informal market economy, and informal work, setting the structure and boundaries for informality statistics. By integrating the 19th ICLS resolution on work, employment, and labour underutilization and the 20th ICLS resolution on work relationships, including ICSE-18, the new standards align with previous resolutions, promoting coherence in labour statistics. The resolution includes improved definitions of the formal and informal sectors, household own-use production and community sector, and formal and informal employment, enhancing data quality and harmonization across countries. Overall, the 21st ICLS resolution significantly enhance countries’ capacity to produce harmonized, policy-relevant statistics on the informal economy, aiding efforts to formalize it.

Use it or lose it: The problem of labour underutilization among immigrant workers in Canada

AbstractCanada is widely recognized as a desirable destination for new immigrants and all levels of governments are generally supportive of ambitious immigration targets set to help meet labour demand. Canada's immigration system is based primarily on human capital, selecting the world's most highly skilled newcomers. However, immigrants to Canada have often faced difficulty in attaining labour market outcomes commensurate with their knowledge and experience. In this analysis, we examine the paradox apparent in the Canadian immigration system—the selection criteria attract highly educated and skilled workers, yet many are not able to find employment opportunities that match their abilities—through the lens of the Labour Utilization Framework. Using data from the Canadian Labour Force Survey for the years 2006–2019 inclusive, we explore five different dimensions of skill underutilization or brain waste: involuntary part‐time work, minimum wage work, unemployment, over‐education (i.e., underemployment), and worker discouragement. Our results suggest that on all dimensions of labour underutilization measured in the study, immigrants are overwhelmingly at a disadvantage relative to their Canadian‐born, non‐Indigenous counterparts. We discuss the ethical implications of immigrant brain waste for both individuals and society and conclude by suggesting some possible policy responses to improve the utilization of immigrant talent in Canada.

Impacts of Trade Flows on Household Welfare During Covid-19 Pandemic: Evidence from OECD Countries

While there are studies examining the relationship between COVID-19 policies and international trade, there is still limited evidence examining the relationships between international trade and household welfare during the COVID-19 pandemic. To fill this gap, this study examined the presupposed associations between international trade and household welfare in OECD countries. The study applies the fixed effects regression method to analyze panel data compiled from the UN COMTRADE and the OECD Social and Welfare Statistics databases. The findings reveal that international trade flows show significant associations with various aspects of household welfare indicators including unemployment rate, labor underutilization rate and household savings. Furthermore, the results show that the COVID-19 pandemic had significant effects on labor underutilization, household consumption, and household savings. Policy recommendations are addressed based on the key findings.

Working, yet not working: Assessing labour underutilization in India

Labour market responses to past business downturns across countries have been ambiguous and paradoxical, including both pro‐ and counter‐cyclical reactions. In the absence of adequate social safety nets, including unemployment insurance, counter‐cyclical employment rates could signal distress rather than productive employment opportunities. Juxtaposing household employment‐ unemployment data with the recommendations of the 19th International Conference of Labour Statisticians on labour underutilization, this article critiques existing data on underemployment in India and calls for the review of data collection methods to better inform labour market policies.

Creative Class in Türkiye: New Job Prospects

This paper covers a comprehensive study of the creative class in Türkiye in terms of new job prospects. Nowadays, creativity is one of key skills necessary for future jobs. People, who have creative and innovative thinking, generate original ideas and produce unique products, form a special stratum of society called creative class. Creative class professionals include scientists, teachers, artists, models, social media influencers, etc. This article is intended to outline the specifics of new type of workers’ lifestyle which implies comfortable living conditions known as “quality of place.” In order to clarify how ready Türkiye is for the development of the creative class, the state of the labor market is analyzed. It has been revealed that the Turkish labor market is characterized by both strengths (e.g. large population, a large share of the youth, increase in labor productivity) and weaknesses (e.g. labor underutilization, limited female labor participation, lack of skills). People mainly work in agriculture, industry, service sector and construction. These characteristics outline the basis for the rise of the creative class and the emergence of new careers in Türkiye. Correspondingly, this research is aimed at analysis and assessment of factors, circumstances and preconditions for the emergence of the creative class in Türkiye as well as determining the creative class job opportunities. The methodology of the study is founded on exploring new and potential jobs that will be required by the future. The article presents a framework for the assessment of the creative class in Türkiye based on the standard measures of job quantity, as well as job quality and labor market inclusiveness. The paper proposes the vision of how Türkiye can drive talent transformation and upskill its workforce in order to satisfy demand for innovative type of workers and take advantage of new opportunity. This study provides a unique and vital contribution to ongoing discussions about the significance of the creative class for employment highlighting the universalized assumptions concerning the position of these professionals in the Turkish economy.

Underutilisation of Labour: Underemployment and Skills-Mismatch in Turkey

Underutilisation of Labour: Underemployment and Skills-Mismatch in Turkey

Unemployment and underemployment are causes of suicide.

Epidemiological studies indicate that labor underutilization and suicide are associated, yet it remains unclear whether this association is causal. We applied convergent cross mapping to test for causal effects of unemployment and underemployment on suicidal behavior, using monthly data on labor underutilization and suicide rates in Australia for the period 2004-2016. Our analyses provide evidence that rates of unemployment and underemployment were significant drivers of suicide mortality in Australia over the 13-year study period. Predictive modeling indicates that 9.5% of the ~32,000 suicides reported between 2004 and 2016 resulted directly from labor underutilization, including 1575 suicides attributable to unemployment and 1496 suicides attributable to underemployment. We conclude that economic policies prioritizing full employment should be considered integral to any comprehensive national suicide prevention strategy.

Information and communication technologies and employment in developing countries: Effects and transmission channels

This study analyzes the effect of ICT adoption on employment in developing countries. The empirical analysis covers 70 developing countries over the 1996–2017 period. To better characterize the labor market framework in developing countries, the empirical analysis incorporates the impact of ICT adoption on underemployment and labor underutilization. Using panel data techniques, the results show that ICT adoption increases employment, underemployment, and labor underutilization in developing countries. The main transmission channels identified are FDI inflows, human capital, and economic openness. As the main policy implication, policymakers in developing countries should intensify investments in the ICT sector and develop policies conducive to FDI inflows, human capital development, and economic openness to address employment issues.

DECODING THE CHALLENGES OF PROMOTING DECENT WORK IN RURAL AND URBAN LABOR MARKETS

The current study explores that the quality of life is intensely influenced by our living environment, including access to education, healthcare, employment, and culture. Living in rural or urban areas has distinct effects on the local labor market, including the sector and occupation composition, working arrangements, and education requirements. However, 56% of the total population of the world resides in urban and 44% in rural areas, it is essential to consider the distinct conditions and labor market characteristics of both settings when analyzing socioeconomic development. Research shows significant differences in labor force participation, labor underutilization, and employment quality between rural and urban areas. Sustainable development and decent work present different challenges in each setting, emphasizing the need for directed policies and more research sought at progressing workers' conditions universally. The COVID-19 pandemic has also affected both rural and urban areas, making it necessary to monitor and address the evolving situation in both settings for an inclusive recovery. Overall, recognizing the conditions of all labor force and the differences between rural and urban labor markets this research has produced policies recommendations for both urban and rural market employments opportunities for achieving decent work for all.

Theoretical Concept of Labor Underutilization - How to Optimize Labor Demand?

In the traditional approach, labor underutilization are equated with unemployment, and its size is determined by the number of unemployed or the unemployment rate. Currently, however, this concept is beginning to be interpreted much more broadly. Because employees can also be a source of labor underutilization in enterprises. The main aim of the article is to analyze and evaluate the theoretical concept of labor underutilization. There are different theoretical approaches to explaining the emerging labor underutilization in enterprises. Sources of labor underutilization can be time-related underemployment, the mismatch skills and labor demand and the need to labor hoarding during economic slowdown. Each of them is guided by separate assumptions and research questions, but ultimately they create theoretical concept of labor underutilization.

The Great Resignation in the United States: A Study of Labor Market Segmentation

During 2021 and 2022, many news media outlets have reported that millions of workers in the United States have been quitting their jobs in record numbers. In a global economy rebounding from the economic downturn caused by the Covid-19 outbreak and demanding more workers, a high rate of resignations has exacerbated labor shortages and may be aggravating unemployment and underemployment rates if many workers are not participating at all in the labor force or only working part time. Many reasons have been offered to explain this ‘Great Resignation’ including high day care costs for working parents that may in turn be causing the trend of lower female labor force participation; the supposed ‘liberating’ experience of not working at all or to work from home instead of having to work from one’s usual work place during the Covid-19 quarantine/lockdown periods; stagnant/low wages and greater job tenure uncertainty which make working less attractive and more stressful; and the feeling by many of not wanting to work further for bad bosses or management who create bad work environments so that resignation becomes a means of escape from such conditions. This article analyses data of US labor trends since 2003 and demonstrates that resignations have been trending upward in the US aggregate economy and that quit rates mostly have been trending higher within many US industries. These phenomena can be explained by the concept of labor market segmentation, high unemployment, and underemployment rates that exist even in good economic times in some industries, minority group composition within industries, wage stagnation, and type of managerial supervision. Some of these same factors help to explain labor under-utilization greater than national/aggregate rates within these industries as well.

Potential labor force in Russian regions: GRP production loss estimate

The paper presents an assessment of losses in the production of gross regional product from underutilization of labor in the regions of the Russian Federation. The analysis was carried out on the development of 1 employed person, losses in GRP production were calculated on the basis of the number of potential labor force according to the Rosstat Labor Force Surveys for 2021. In our country, the number of potential labor is decreasing, in the structure of potential labor, the largest number of inactive population is observed in a group of people who are not looking for work, but are ready to start work. It is noted that there remains a significant regional differentiation in the production of 1 employed and the number of potential labor. Analysis of losses in GRP production from the non-use of potential labor showed that the greatest losses are characteristic of regions with a relatively high unemployment rate.

Методология оценки ресурсов труда Республики Коми

The article considers the social and labor relations that have developed in the new Russia, indicators characterizing the labor market, employment of the population and participation of the labor force in labor activity. A novelty in labor market analysis is the assessment of labor underutilization (the combined measure of unemployment and potential labor force). The original statistical material and its analysis on economic activity and employment of the population are given; on labor participation and labor underutilization; distribution of labor resources by type of economic activity and occupation; gender differentiation of employed by groups of occupations. The purpose of the study is to reveal the transformation of social and labor relations in the post-Soviet period. The methodology for assessing the employment of the population and labor force participation in labor activity is considered. It is concluded that in the XXI century there will be significant changes in employment, it is expected that more people will work outside organizations than in companies; working remotely will become the norm. The article will be useful to specialists in the field of labor market and employment.

Employment Outcomes for Men and Women Following an Economic Downturn: Labour Underutilisation in Australia

In Australia, as elsewhere, there has been continuing interest in understanding questions regarding unequal employment opportunities. While aggregate patterns provide a useful overview, it is insightful to consider employment outcomes across segmented markets. One such segmented market is between men and women, where it is widely understood that labour market engagement opportunities will differ. This paper provides an investigation of these uneven labour market outcomes. It presents an analysis of labour underutilisation for men and women using panel data, taking account of both individual-level supply-side factors together with the strength of the local labour market (demand side) and the performance of the broader macroeconomic environment. The result is an analysis that accounts for the impact of changing macroeconomy, local labour market conditions and men and women's employability assets.

Political instability and youths unemployment in sub‐Saharan Africa

AbstractThe main objective of this study is to analyze the effect of political instability on youths unemployment in sub‐Saharan Africa. Particular interest is devoted to the channels through which political instability affects youths unemployment. The empirical analysis covers a sample of 23 countries for the period 2000–2016. To better characterize the labor market framework in sub‐Saharan Africa, the empirical analysis incorporates the impact of political instability on youths underemployment and labor underutilization. Using panel data techniques, the results show that political instability increases youths unemployment, underemployment, and labor underutilization in sub‐Saharan Africa. The main transmission channels identified are foreign direct investment, domestic investment, gross domestic product, government spending, human capital, and labor market flexibility. The findings confirm the investigated hypothesis. As the main policy implication, policymakers in sub‐Saharan Africa should resolve political instability as a priority toward addressing youths unemployment.

Multidimensional poverty and types of impoverished counties in Gansu province of China

Gansu province, considered as one of the poorest provinces in China, faces great challenges in fighting against poverty. This study highlights the importance of studying multidimensional poverty in Gansu province. The Multidimensional Poverty Indices of 75 poverty-stricken counties in Gansu province are measured quantitatively. The main driving factors of poverty are identified through the construction and application of a multidimensional poverty measurement system, classifying the impoverished counties into several categories. This study provides a scientific basis for formulating effective policies to achieve sustainable poverty reduction and high-quality development in the region after 2020. The results show that: (1) more than half of the poverty-stricken counties in Gansu province have a degree of multidimensional poverty that is below the median poverty level, with regional variations; (2) the main factors driving poverty in these counties include shortages in water and land resources, educational disruptions, undesirable medical conditions, and the underutilisation of labour, which show spatial variations; and (3) these poverty-stricken counties are categorised into four types: counties with fragile ecological environments and insufficient natural resources, counties with undesirable socio-economic conditions, counties with unfavourable conditions in development, and counties with relatively balanced development conditions. Finally, this paper proposes policy recommendations to achieve stable poverty alleviation based on different types of impoverished counties.

ПОТЕНЦИАЛЬНАЯ РАБОЧАЯ СИЛА СОВРЕМЕННОЙ РОССИИ: СОЦИАЛЬНО-ДЕМОГРАФИЧЕСКИЙ ПОРТРЕТ И УРОВЕНЬ ОБРАЗОВАНИЯ

The study aims to determine the scale and socio-demographic characteristics of the potential labor force in the Russian labor market. The object of the study is the unemployed persons who want to get a paid job, but due to circumstances are limited in their search or desire to start it. The paper is based on new approaches to the study of economic inactivity of the population, enshrined in the “Resolution on Statistics of labor activity, Employment and Labor Underutilization” (ILO, 2013). For the analysis of statistical data, the author applies the methods of logical analysis and mathematical statistics. The results of the study showed that the size of the potential labor force in Russia is comparable to the scale of general unemployment. In the course of the research, the main sociodemographic characteristics of this population group were identified, indicating a high level of its human potential and, accordingly, the feasibility of developing measures to involve this category of the population in economic activity, since its representatives are balanced across all working ages, have a relatively high level of professional education (more than half graduated from an academic institution), low gender and inter-settlement asymmetry. The empirical basis of the study was the data of the Sample Labor Force Survey (LFS) conducted by Rosstat in 2010-2021. The author concludes that Federal executive authorities can use the research materials in developing state employment policy and academic institutions to prepare students and postgraduates in the “Labor Economics” specialty.

Impact of the Coronavirus Pandemic on Labor Market

The coronavirus pandemic has affected all spheres of society, including a significant impact on labor markets. The article presents a statistical analysis of trends in the Russian labor market in the context of the spread of coronavirus infection in 2020 and in the first half of 2021. On average, in 2020, the number of people employed in the economy field decreased by almost 2%, respectively, the number of unemployed increased by 25%. Within 2020, the peak of unemployment growth occurred in the third quarter of 2020, when the decline in the number of employed reached 1,9 million people, and the increase in the number of unemployed – 1,5 million people. At the same time, the unemployment rate increased to 6,4%, i.e. by almost a half compared to the corresponding period of 2019. Starting from the fourth quarter of 2020, the recovery of the Russian labor market began. By July 2021, the unemployment rate had dropped to 4,8%. Such serious transformations of the Russian labor market required an analysis of the dynamics and structure of employment in various sections: by type of economic activity, by subjects of the Russian Federation, by gender, by age groups, by place of residence. Along with this, the authors compared the indicators of the unemployment rate, which was calculated using two methods used in Russian statistical practice. An international comparison of the unemployment rate for 2020–2021 was carried out. The indicators characterizing the underutilization of labor, including the number and level of potential labor, are considered. The dynamics of wages in 2019–2021 is considered. Special attention is paid to the analysis of the situation with workers’ wages at the most acute moment of the crisis – in April 2020.

An Analysis of Underemployment among Young Graduates: The Case of a Higher Education Institution in South Africa

Labour markets have undergone vast transformations over the last few years. There are arguments that employment and unemployment measures have not been adequate in understanding the complexities of labour markets. Research on labour underutilisation has focused on one side of the spectrum, which is just about the scarcity of jobs. However, there is more to the labour market than just scarcity of jobs, and many researchers believe unemployment is not a complete measurement of unused labour capacity, which is why this study aimed to investigate the existence of underemployment from the perceptions of young graduates themselves. In this regard, the definition of young people entailed those younger than 35 years as officially defined in South Africa. The study employed a primary data method of data collection in which an online survey was used to collect the necessary data from the alumni database of a South African university. The study used binary logistic regression to determine factors that contributed to or influenced underemployment status. The main findings indicated that underemployment was rife according to age, where younger graduates (20–29 years) were more likely to be underemployed compared to their more mature counterparts; that is, those in the 30–34 age category, with non-White graduates most likely to encounter underemployment compared to their counterparts. This study resulted in important findings that carry significant policy implications and recommendations that may be crucial in correcting the current employment mismatches in the South African graduate labour market.