Labor market indicator
As a labor market indicator (also labor code ) is called in economics indicators that provide information on the current labor market situation enter a country. The aim is in particular to point out undesirable developments such as B. Underemployment or unemployment or the quality of job placement . In addition, labor market indicators are also used to compare the competitiveness of the production factor labor between different countries.
Measurement of underemployment
The most important indicator for measuring underemployment is the unemployment rate (similar to: unemployment rate). It measures job seekers as a proportion of the labor force potential . The employment rate measures the number of people in employment as a proportion of the population . The participation rate results from the share of employed persons in the potential labor force. Information on the existence of underemployment is also provided by key figures on part-time work . Most of the time, part-time employees are measured as a proportion of the workforce.
Quality of job placement
An important indicator for measuring the quality of job market placement is the number of vacancies . Information on long-term unemployment (such as the share of long-term unemployed among the total unemployed) also provides information about the efficiency of labor authorities. An important basis for an effective job placement is the knowledge of the mediating authority about job seekers. This is the case when the number of registered unemployed roughly equals the number of job seekers. A so-called hidden reserve (also known as hidden unemployment) makes placement more difficult, as does the registration of people who are not willing to work.
Comparison of competitiveness
Indicators that allow comparisons of competitiveness between national economies also belong to the labor market indicators in a broader sense. Important key figures here are, for example, labor productivity (measured e.g. in output per hour worked ) or the frequency of labor conflicts (usually recorded using the number of working days lost by strike per 1,000 employees ). The length of working hours (measurable e.g. via the average annual or weekly working hours of dependent employees) allows conclusions to be drawn about the competitiveness of an economy. Other key figures that are more related to costs are, for example, labor costs or unit labor costs .
Other meanings
Labor market indicators are also of macroeconomic importance for tax collection . Key figures for measuring undeclared work, for example, allow conclusions to be drawn about the loss of tax revenue for the state.