Data describing labour market dynamics: Can we do better?

This is a slightly shortened version of a paper prepared for the 44th plenary session of the Conference of European Statisticians, held in June 1996.

Labour market statistics are dominated by data on stocks, levels and net changes. Data on dynamics – gross flows, and longitudinal data including transitions between labour market states – are under-developed and under-exploited, in spite of appearing to be highly relevant inputs to employment policy.

There are many sources and methods of assembling data on labour market dynamics: surveys of individuals and households – using recall questions; rotation sample designs; cohort and panel surveys; establishment surveys; and analyses of registers and administrative records of persons and establishments. They can be used separately or in combination, including incorporation in a comprehensive labour accounting system. Each source and method has relative advantages and disadvantages.

Obstacles to better development and use of data on dynamics include: lack of awareness of existing data among users; finance constraints; problems of articulation with the familiar stock figures; out-of-date information; and difficulties in presenting the data in a user-friendly way.