1. Introduct(i)on and background

1. Internat(i)onal standards for labour stat(i)st(i)cs serve two ma(i)n purposes: to prov(i)de up-to-date gu(i)del(i)nes for the development of nat(i)onal off(i)c(i)al stat(i)st(i)cs on a part(i)cular top(i)c; and to promote (i)nternat(i)onal comparab(i)l(i)ty of the result(i)ng stat(i)st(i)cs. Per(i)od(i)c rev(i)s(i)on and update of these standards are needed to ensure that they adequately reflect new developments (i)n labour markets (i)n countr(i)es at d(i)fferent stages of development, and that they (i)ncorporate (i)dent(i)f(i)ed best pract(i)ces and advances (i)n stat(i)st(i)cal methodology so as best to meet emerg(i)ng pol(i)cy concerns.

2. The current (i)nternat(i)onal standard for stat(i)st(i)cs on work relat(i)onsh(i)ps (i)s the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (ICSE-93), adopted (i)n 1993 as a resolut(i)on of the 15th Internat(i)onal Conference of Labour Stat(i)st(i)c(i)ans (ICLS). It prov(i)des f(i)ve substant(i)ve categor(i)es and def(i)nes the w(i)dely used d(i)st(i)nct(i)on between self-employment and pa(i)d employment. Its rev(i)s(i)on was mandated (i)n 2013 at the 19th ICLS (i)n order to address a w(i)de range of concerns.

3. A central concern (i)s that the f(i)ve substant(i)ve categor(i)es def(i)ned (i)n ICSE-93 do not prov(i)de suff(i)c(i)ent (i)nformat(i)on to adequately mon(i)tor the changes (i)n employment arrangements that are tak(i)ng place (i)n many countr(i)es and are not suff(i)c(i)ently deta(i)led to mon(i)tor var(i)ous forms of non-standard employment. A var(i)ety of new, or non-standard, arrangements that a(i)m to (i)ncrease flex(i)b(i)l(i)ty (i)n the labour market are also generat(i)ng a need for stat(i)st(i)cal (i)nformat(i)on to mon(i)tor the (i)mpact of these arrangements on workers and the funct(i)on(i)ng of the labour market. Some of these arrangements change the balance of econom(i)c r(i)sk between workers and enterpr(i)ses and are lead(i)ng to uncerta(i)nty about the boundary between self-employment and pa(i)d employment. 

4. An (i)mportant focus of work to rev(i)se ICSE-93 was therefore to develop proposals that w(i)ll support the prov(i)s(i)on of more comprehens(i)ve and (i)nternat(i)onally comparable stat(i)st(i)cs on the growth of non-standard forms of employment. Non-standard employment may (i)n some cases be voluntary and have pos(i)t(i)ve outcomes for both workers and employers. In other cases, however, (i)t (i)s assoc(i)ated w(i)th job and (i)ncome (i)nsecur(i)ty. It may also “pose challenges for enterpr(i)ses, the overall performance of labour markets and econom(i)es as well as soc(i)et(i)es at large”.¹

5. Non-standard employment refers to employment arrangements that dev(i)ate from the “standard employment relat(i)onsh(i)p”, understood as work that (i)s full t(i)me, (i)ndef(i)n(i)te, formal, and part of a subord(i)nate relat(i)onsh(i)p between an employee and employer. Nonstandard employment arrangements (i)nclude:

• emporary employment, such as through f(i)xed-term contracts, casual or da(i)ly work and some forms of on-call work; 
• part-t(i)me and on-call work;
• mult(i)-party employment arrangements such as labour h(i)re, d(i)spatch, and brokerage, temporary agency work and subcontracted labour supply; and
•  “Dependent self-employment” when dependent workers have contractual arrangements of a commerc(i)al nature.

6. Wh(i)le part-t(i)me work (i)s cons(i)dered to be a form of non-standard employment, the prov(i)s(i)on of stat(i)st(i)cs on part-t(i)me and on-call work are covered to a large extent through ex(i)st(i)ng standards for the measurement of work(i)ng t(i)me and work(i)ng t(i)me arrangements adopted by the 18th ICLS (i)n 2008. There are no current standards for stat(i)st(i)cs on the other types of non-standard employment. The 15th ICLS resolut(i)on does prov(i)de adv(i)ce on “the poss(i)ble stat(i)st(i)cal treatment of part(i)cular groups” (i)nclud(i)ng those related to temporary employment, casual work and dependent self-employment. Th(i)s adv(i)ce (i)s not formally part of the class(i)f(i)cat(i)on of ICSE-93, however.

7. To ass(i)st (i)n the development of proposals to replace ICSE-93, the ILO establ(i)shed a work(i)ng group compr(i)s(i)ng producers and users of labour and econom(i)c stat(i)st(i)cs from nat(i)onal government agenc(i)es (i)n all reg(i)ons, (i)ntergovernmental agenc(i)es, and workers’ and employers’ organ(i)zat(i)ons. Th(i)s group met four t(i)mes from May 2015 to September 2017. To w(i)den the consultat(i)on process and obta(i)n feedback on the proposals developed by the work(i)ng group, the ILO also conducted a ser(i)es of preparatory Reg(i)onal Meet(i)ngs of labour stat(i)st(i)c(i)ans, (i)n all reg(i)ons of the world from late 2016 and throughout 2017. These meet(i)ngs focused on both relevance to the reg(i)onal context and techn(i)cal feas(i)b(i)l(i)ty of the proposed new standards. Opportun(i)t(i)es for test(i)ng of the proposals were (i)dent(i)f(i)ed (i)n several countr(i)es and test(i)ng (i)s ongo(i)ng. 

8. The outcome of th(i)s development and consultat(i)on process (i)s a ser(i)es of proposals to replace ICSE-93 w(i)th a su(i)te of stat(i)st(i)cal standards and class(i)f(i)cat(i)ons. A central element (i)s a rev(i)sed Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (ICSE-18). It (i)ncludes ten categor(i)es to allow better (i)dent(i)f(i)cat(i)on of workers w(i)th non-standard employment arrangements (i)nclud(i)ng those w(i)th f(i)xed-term and w(i)th casual and short-term contracts of employment, to address concerns about both the blurr(i)ng of the boundary between pa(i)d employment and self-employment and to measure the growth of dependent selfemployment. 

9. The need for better stat(i)st(i)cs on var(i)ous d(i)mens(i)ons of non-standard employment (i)s also prov(i)ded through a ser(i)es of cross-cutt(i)ng var(i)ables and categor(i)es, wh(i)ch prov(i)de more deta(i)led (i)nformat(i)on on the degree of stab(i)l(i)ty and permanence of the work. They cover top(i)cs such as durat(i)on of contract, mult(i)-party employment arrangements, and job dependent soc(i)al protect(i)on. A new Internat(i)onal Class(i)f(i)cat(i)on of Status at Work (ICSaW18) extends ICSE-18 to cover all forms of work. The proposals are (i)ntegrated by a conceptual framework for stat(i)st(i)cs on work relat(i)onsh(i)ps wh(i)ch def(i)nes the key concepts, var(i)ables and class(i)f(i)cat(i)on schemes (i)ncluded (i)n the new standards.

10. These standards are proposed (i)n the form of a draft resolut(i)on concern(i)ng stat(i)st(i)cs on work relat(i)onsh(i)ps, prov(i)ded (i)n the append(i)x to th(i)s report, to be rev(i)ewed and amended as necessary and cons(i)dered for adopt(i)on by the 20th ICLS.

Structure of the report

11. The report cons(i)sts of s(i)x chapters. Th(i)s f(i)rst chapter presents background (i)nformat(i)on on the rev(i)s(i)on work and the demand for stat(i)st(i)cs on employment relat(i)onsh(i)ps, an outl(i)ne of the proposed new standards and approach to data collect(i)on and an overv(i)ew of the current relevant standards. The rema(i)n(i)ng chapters are (i)ntended to serve as a gu(i)de to the draft resolut(i)on. Chapter 2 descr(i)bes the conceptual framework and model that underp(i)n the proposed class(i)f(i)cat(i)ons and stat(i)st(i)cal var(i)ables (i)ncluded (i)n the new standards. Chapter 3 d(i)scusses the proposal for a rev(i)sed Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment, wh(i)le Chapter 4 covers the proposal for a new ICSaW-18. Chapter 5 (i)s concerned w(i)th the proposed cross-cutt(i)ng var(i)ables. Chapter 6 concludes the report by br(i)efly d(i)scuss(i)ng the sect(i)ons of the resolut(i)on deal(i)ng w(i)th data sources and future work. 

12. The report and draft resolut(i)on have been adapted from a more deta(i)led paper on the conceptual framework for stat(i)st(i)cs on work relat(i)onsh(i)ps, wh(i)ch was developed and progress(i)vely updated (i)n consultat(i)on w(i)th the work(i)ng group. An updated vers(i)on of the conceptual framework paper, as well as gu(i)del(i)nes for data collect(i)on, w(i)ll be prov(i)ded as room documents dur(i)ng the 20th ICLS. 

Uses of stat(i)st(i)cs on work relat(i)onsh(i)ps

13. Stat(i)st(i)cs on the relat(i)onsh(i)p between the worker and the econom(i)c un(i)t (i)n wh(i)ch, or for wh(i)ch, the person works, (i)nclud(i)ng stat(i)st(i)cs (i)n wh(i)ch jobs are currently class(i)f(i)ed by status (i)n employment, are needed for a w(i)de var(i)ety of purposes (i)n both econom(i)c and soc(i)al analys(i)s. They prov(i)de (i)nformat(i)on on the nature of the econom(i)c r(i)sk and author(i)ty that (i)nd(i)v(i)duals exper(i)ence at work, and on the strength and nature of the attachment of workers to the econom(i)c un(i)t (i)n wh(i)ch they work. In stat(i)st(i)cs on employment they prov(i)de an (i)nd(i)cator of the prevalence of unstable or (i)nsecure employment s(i)tuat(i)ons. 

14. Changes (i)n status (i)n employment d(i)str(i)but(i)ons may reflect the (i)mpact of econom(i)c cycles on employment (i)n h(i)gher r(i)sk, lower (i)ncome, less secure jobs. For example, an (i)ncrease (i)n self-employment as a percentage of total employment may occur when workers who lose jobs (i)n pa(i)d employment engage (i)n var(i)ous forms of self-employment. 

15. Econom(i)c and labour market pol(i)cy analysts use stat(i)st(i)cs on status (i)n employment to assess the (i)mpact of self-employment and entrepreneur(i)al(i)sm on employment and econom(i)c growth and to evaluate government pol(i)c(i)es and proposals related to econom(i)c development and job creat(i)on. 

16. Stat(i)st(i)cs class(i)f(i)ed by status (i)n employment are (i)mportant for the (i)dent(i)f(i)cat(i)on of wage employment and (i)ts d(i)str(i)but(i)on and for the product(i)on and analys(i)s of stat(i)st(i)cs on wages, earn(i)ngs and labour costs. In some countr(i)es they are needed to est(i)mate revenue from soc(i)al contr(i)but(i)ons and ass(i)st (i)n determ(i)n(i)ng the level of contr(i)but(i)ons to be pa(i)d.

17. In soc(i)al stat(i)st(i)cs, status (i)n employment (i)s an (i)mportant explanatory var(i)able (i)n (i)ts own r(i)ght and (i)s used as an (i)nput var(i)able (i)n the product(i)on of stat(i)st(i)cs on (i)nformal employment and on the soc(i)o-econom(i)c status of persons and households. 

18. Data class(i)f(i)ed by status (i)n employment also prov(i)de an (i)mportant (i)nput to nat(i)onal accounts. The (i)ncome der(i)ved from employment of employees (i)s treated (i)n the System of Nat(i)onal Accounts (SNA) as compensat(i)on of employees, whereas the remunerat(i)on of the self-employed (i)s treated as m(i)xed (i)ncome. 

19. Stat(i)st(i)cs on work relat(i)onsh(i)ps are needed to prov(i)de (i)nformat(i)on on the extent of author(i)ty, dependence and econom(i)c r(i)sk exper(i)enced by var(i)ous groups of pol(i)cy concern (i)n own-use product(i)on of goods and serv(i)ces, (i)n volunteer work and (i)n unpa(i)d tra(i)nee work, as well as (i)n employment. These groups (i)nclude but are not l(i)m(i)ted to women and men, young people, ch(i)ldren, m(i)grants and ethn(i)c m(i)nor(i)t(i)es. They can prov(i)de (i)mportant (i)nformat(i)on to support the assessment of the econom(i)c and soc(i)al cond(i)t(i)ons of these var(i)ous groups.

20. Reflect(i)ng these d(i)verse uses, stat(i)st(i)cs on employed persons or jobs by status (i)n employment, and on other var(i)ables related to the stab(i)l(i)ty and permanence of work relat(i)onsh(i)ps, are w(i)dely collected (i)n household-based collect(i)ons such as Labour Force Surveys, soc(i)al surveys and populat(i)on censuses as well as (i)n employer surveys. They may also be comp(i)led from adm(i)n(i)strat(i)ve records (i)f these have been adapted for stat(i)st(i)cal purposes. Stat(i)st(i)cs on work relat(i)onsh(i)ps (i)n other forms of work may also be comp(i)led from such sources, or from spec(i)al purpose data collect(i)ons, depend(i)ng on relevance and pr(i)or(i)t(i)es (i)n the nat(i)onal context. 

21. The development and use of a cons(i)stent and coherent system of stat(i)st(i)cal standards for work relat(i)onsh(i)ps, (i)nclud(i)ng on status (i)n employment, w(i)ll therefore fac(i)l(i)tate more mean(i)ngful compar(i)sons of data from d(i)fferent sources (for example, household surveys w(i)th employer surveys or adm(i)n(i)strat(i)ve sources where coverage may be l(i)m(i)ted to employees). The adopt(i)on, (i)n add(i)t(i)on to the class(i)f(i)cat(i)on of status (i)n employment, of a class(i)f(i)cat(i)on of status of worker cover(i)ng all forms of work, as well as a comprehens(i)ve set of standard var(i)ables and categor(i)es cover(i)ng var(i)ous aspects of the stab(i)l(i)ty of work arrangements, should prov(i)de more relevant, deta(i)led, harmon(i)zed and coherent stat(i)st(i)cs w(i)th the a(i)m of better sat(i)sfy(i)ng th(i)s w(i)de range of analyt(i)cal and pol(i)cy needs. 

Overv(i)ew of the Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (ICSE-93)

22. ICSE-93 class(i)f(i)es jobs w(i)th respect to the type of expl(i)c(i)t or (i)mpl(i)c(i)t contract of employment between the job holder and the econom(i)c un(i)t (i)n wh(i)ch he or she (i)s employed. The follow(i)ng f(i)ve substant(i)ve categor(i)es are spec(i)f(i)ed (i)n add(i)t(i)on to a s(i)xth category: “Workers not class(i)f(i)able by status”:

• Employees.
• Employers.
• Own-account workers.
• Members of producers’ cooperat(i)ves.
• Contr(i)but(i)ng fam(i)ly workers

23. Wh(i)le the self-employed are not def(i)ned as a substant(i)ve group (i)n ICSE-93, the groups are def(i)ned w(i)th reference to the d(i)st(i)nct(i)on between “pa(i)d employment jobs” and “selfemployment jobs”. The last four groups l(i)sted above form the self-employed. The structure of ICSE-93 can thus be represented as follows:

• Pa(i)d employment jobs:
  • Employees.
• Self-employment jobs:
  • Employers.
  • Own-account workers.
  • Contr(i)but(i)ng fam(i)ly workers.
  • Members of producers’ cooperat(i)ves.
• Workers not class(i)f(i)able by status.

24. The f(i)nal group, “Workers not class(i)f(i)able by status”, (i)ncludes “those for whom (i)nsuff(i)c(i)ent relevant (i)nformat(i)on (i)s ava(i)lable and/or who cannot be (i)ncluded (i)n any of the preced(i)ng categor(i)es”. S(i)nce th(i)s group does not relate to any observable phenomenon, (i)t (i)s proposed to delete th(i)s category from the new standards and to replace (i)t w(i)th gu(i)del(i)nes on the treatment of m(i)ss(i)ng or (i)nsuff(i)c(i)ent data.

25. The ICSE-93 also prov(i)des adv(i)ce on “the poss(i)ble stat(i)st(i)cal treatment of part(i)cular groups” that are relevant for analys(i)s of the changes that are tak(i)ng place (i)n the labour market and could potent(i)ally sat(i)sfy some of the unmet needs for stat(i)st(i)cs. Some of the groups represent subcategor(i)es of one of the spec(i)f(i)c ICSE-93 categor(i)es. Others may cut across two or more of these categor(i)es. It suggests that accord(i)ng to nat(i)onal requ(i)rements, countr(i)es may need and be able to d(i)st(i)ngu(i)sh one or more of the groups and may also create other groups. The adv(i)ce prov(i)ded covers the follow(i)ng groups:

• (a) owner-managers of (i)ncorporated enterpr(i)ses; 
• (b) regular employees w(i)th f(i)xed-term contracts;
• (c) regular employees w(i)th contracts w(i)thout l(i)m(i)ts of t(i)me;
• (d) workers (i)n precar(i)ous employment;
• (e) casual workers; 
• (f) workers (i)n short-term employment; 
• (g) workers (i)n seasonal employment; 
• (h) outworkers; 
  • (⁢(i)) contractors; 
  • (j) workers who hold expl(i)c(i)t or (i)mpl(i)c(i)t contracts of “pa(i)d employment” from one organ(i)zat(i)on, but who work at the s(i)te of and/or under (i)nstruct(i)ons from a second organ(i)zat(i)on wh(i)ch pays the f(i)rst organ(i)zat(i)on a fee for the(i)r serv(i)ces;
• (k) work gang (crew) members;
• (l) employment promot(i)on employees;
• (m) apprent(i)ces or tra(i)nees;
• (n ) employers of regular employees; 
• (o) core own-account workers;
• (p) franch(i)sees;
• (q) sharecroppers;
• (r) communal resource explo(i)ters; 
• (s) subs(i)stence workers. 

26. These groups are not organ(i)zed (i)nto a coherent class(i)f(i)catory framework, however, and the adv(i)ce prov(i)ded (i)n ICSE-93 resolut(i)on (i)s not def(i)n(i)t(i)ve about the treatment of some of the groups. For example, owner-managers of (i)ncorporated enterpr(i)ses and contractors may be class(i)f(i)ed as employees or as self-employed workers accord(i)ng to nat(i)onal c(i)rcumstances. As a result, (i)nternat(i)onal compar(i)son and analys(i)s of trends related to the m(i)x between pa(i)d employment and var(i)ous categor(i)es of self-employment are comprom(i)sed, s(i)nce nat(i)onal pract(i)ces are not cons(i)stent. 

27. Based on the d(i)scuss(i)ons at the 19th ICLS, among members of the work(i)ng group and dur(i)ng the reg(i)onal consultat(i)ons, the def(i)n(i)t(i)ons and stat(i)st(i)cal treatment of several of these groups were (i)dent(i)f(i)ed as major (i)ssues that needed to be addressed (i)n the rev(i)ew of ICSE-93. In many cases these part(i)cular groups reflected var(i)ous types of employment arrangements that nat(i)onal stat(i)st(i)cal agenc(i)es found d(i)ff(i)cult to f(i)t (i)nto any of the f(i)ve substant(i)ve categor(i)es. 

Impact of the 19th ICLS resolut(i)on concern(i)ng stat(i)st(i)cs of work, employment and labour underut(i)l(i)zat(i)on

28. The 19th ICLS resolut(i)on concern(i)ng stat(i)st(i)cs of work, employment and labour underut(i)l(i)zat(i)on (19th ICLS resolut(i)on I) adopted (i)n 2013, updated the prev(i)ous (i)nternat(i)onal standards relat(i)ng to stat(i)st(i)cs of the econom(i)cally act(i)ve populat(i)on, employment, unemployment and underemployment (13th ICLS, 1982) and related gu(i)del(i)nes. It (i)ntroduced the f(i)rst (i)nternat(i)onal stat(i)st(i)cal def(i)n(i)t(i)on of work and a number of features that are part(i)cularly relevant for the rev(i)s(i)on of ICSE-93, (i)nclud(i)ng: 

• (a) a more ref(i)ned concept and def(i)n(i)t(i)on of employment that focuses on work for pay or prof(i)t to serve as the bas(i)s for the product(i)on of labour force stat(i)st(i)cs; 
• (b) a comprehens(i)ve framework for work stat(i)st(i)cs that d(i)st(i)ngu(i)shes between employment and other forms of work, (i)nclud(i)ng own-use product(i)on work, volunteer work, and unpa(i)d tra(i)nee work; 
• (c) operat(i)onal def(i)n(i)t(i)ons and gu(i)del(i)nes to enable comprehens(i)ve measurement of part(i)c(i)pat(i)on and t(i)me spent (i)n forms of work other than employment, part(i)cularly product(i)on of goods for own f(i)nal use, prov(i)s(i)on of serv(i)ces for own f(i)nal use, and volunteer work. 

29. The 19th ICLS resolut(i)on notes that the standards should serve to fac(i)l(i)tate the product(i)on of d(i)fferent subsets of work stat(i)st(i)cs for d(i)fferent purposes as part of an (i)ntegrated nat(i)onal system that (i)s based on common concepts and def(i)n(i)t(i)ons. Th(i)s object(i)ve (i)s equally relevant for the new standards that w(i)ll replace ICSE-93. 

30. The spec(i)f(i)c elements of the 19th ICLS standards that are most relevant to the rev(i)s(i)on of ICSE-93 are the reference concepts for work stat(i)st(i)cs, (i)nclud(i)ng the def(i)n(i)t(i)on of work (i)tself, and the def(i)n(i)t(i)ons of each form of work.

The concept of work

31. Accord(i)ng to the 19th ICLS, work compr(i)ses any act(i)v(i)ty performed by persons of any sex and age to produce goods or to prov(i)de serv(i)ces for use by others or for own use. It excludes act(i)v(i)t(i)es that do not (i)nvolve the product(i)on of goods or serv(i)ces (for example, begg(i)ng and steal(i)ng), self-care (for example, personal groom(i)ng and hyg(i)ene) and act(i)v(i)t(i)es that cannot be performed by another person on one’s own behalf (for example, sleep(i)ng, learn(i)ng and act(i)v(i)t(i)es for own recreat(i)on). 

Forms of work

32. F(i)ve mutually exclus(i)ve forms of work are (i)dent(i)f(i)ed for separate measurement. These forms of work are d(i)st(i)ngu(i)shed on the bas(i)s of the (i)ntended dest(i)nat(i)on of the product(i)on (for own f(i)nal use; or for use by others, (i).e. other econom(i)c un(i)ts) and the nature of the transact(i)on ((i).e. monetary or non-monetary transact(i)ons and transfers), as follows:

• (a) own-use product(i)on work compr(i)s(i)ng product(i)on of goods and serv(i)ces for own f(i)nal use;
• (b) employment work compr(i)s(i)ng work performed for others (i)n exchange for pay or prof(i)t;
• (c) unpa(i)d tra(i)nee work compr(i)s(i)ng work performed for others w(i)thout pay to acqu(i)re workplace exper(i)ence or sk(i)lls; 
• (d) volunteer work compr(i)s(i)ng non-compulsory work performed for others w(i)thout pay;
• (e) other work act(i)v(i)t(i)es.²

Al(i)gnment of the framework for work stat(i)st(i)cs w(i)th the System of Nat(i)onal Accounts (SNA)

33. The concept of work and the forms of work were al(i)gned w(i)th the SNA so as to ensure that all act(i)v(i)t(i)es w(i)th(i)n the SNA product(i)on boundary could be separately (i)dent(i)f(i)ed and captured (i)n stat(i)st(i)cs comp(i)led accord(i)ng to the new standards. The 19th ICLS resolut(i)on I notes that:

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Own-use product(i)on of goods, employment, unpa(i)d tra(i)nee work, a part of volunteer work and “other work act(i)v(i)t(i)es” form the bas(i)s for the preparat(i)on of nat(i)onal product(i)on accounts w(i)th(i)n the 2008 SNA product(i)on boundary. Own-use prov(i)s(i)on of serv(i)ces and the rema(i)n(i)ng part of volunteer work complete the nat(i)onal product(i)on accounts, that (i)s, beyond the 2008 SNA product(i)on boundary but (i)ns(i)de the General product(i)on boundary.³
{{/(i)nfo}}

The relat(i)onsh(i)p between the forms of work and the product(i)on boundar(i)es def(i)ned (i)n the SNA (i)s shown (i)n f(i)gure 1. All the act(i)v(i)t(i)es w(i)th(i)n the SNA product(i)on boundary were counted as employment accord(i)ng to the old standards for labour stat(i)st(i)cs and were therefore w(i)th(i)n the scope of ICSE-93. 

F(i)gure 1. Forms of work and the System of Nat(i)onal Accounts 2008

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Issues addressed (i)n the rev(i)s(i)on of ICSE-93

35. Based on the d(i)scuss(i)ons at the 19th ICLS and among members of the work(i)ng group, the follow(i)ng key (i)ssues were (i)dent(i)f(i)ed as the most (i)mportant to be addressed (i)n rev(i)s(i)ng ICSE-93:

• (a) the extens(i)on of the new stat(i)st(i)cal standards to cover all forms of work spec(i)f(i)ed (i)n the 19th ICLS resolut(i)on I and to reflect the narrower def(i)n(i)t(i)on of employment def(i)ned (i)n that standard;
• (b) the need for an overarch(i)ng conceptual framework to ensure coherence between the var(i)ous class(i)f(i)cat(i)ons and var(i)ables spec(i)f(i)ed (i)n the new standards and between the var(i)ous doma(i)ns of soc(i)al, labour and econom(i)c stat(i)st(i)cs, and to fac(i)l(i)tate the prov(i)s(i)on of harmon(i)zed stat(i)st(i)cs from d(i)fferent sources and doma(i)ns;
• (c) the relevance and usefulness of ma(i)nta(i)n(i)ng a d(i)st(i)nct(i)on between pa(i)d employment and self-employment as a d(i)chotomous pa(i)r of aggregate categor(i)es, g(i)ven the w(i)de range of analyt(i)cal uses of these categor(i)es and the (i)ncreas(i)ng number of types of employment arrangement that do not f(i)t comfortably (i)nto e(i)ther category;
• (d) the boundary between self-employment and pa(i)d employment, part(i)cularly w(i)th respect to work(i)ng propr(i)etors of (i)ncorporated enterpr(i)ses and dependent workers who have contractual arrangements of a commerc(i)al nature; 
• (e) appl(i)cab(i)l(i)ty of the standards to (i)nformal employment s(i)tuat(i)ons, espec(i)ally (i)nformal employees;
• (f) the (i)dent(i)f(i)cat(i)on of workers (i)n var(i)ous non-standard forms of employment such as casual, short-term, temporary and seasonal employees, and workers on zero-hours contracts;
• (g) the need for gu(i)del(i)nes on data collect(i)on, quest(i)onna(i)re des(i)gn, der(i)vat(i)on and adaptat(i)on of the standards for nat(i)onal use;
• (h) the (i)dent(i)f(i)cat(i)on and stat(i)st(i)cal treatment of var(i)ous spec(i)f(i)c types of worker (i)nclud(i)ng:
  • apprent(i)ces, tra(i)nees and (i)nterns; 
  • entrepreneurs;
  • wage and salary earners;
  • fam(i)ly workers;
  • domest(i)c workers;
  • homeworkers and outworkers;
  • members of producers’ cooperat(i)ves;
  • workers w(i)th mult(i)-party employment arrangements, (i)nclud(i)ng those engaged
  • by labour h(i)re agenc(i)es or temporary employment agenc(i)es.

36. It would be d(i)ff(i)cult, w(i)th(i)n a s(i)ngle class(i)f(i)catory framework, to prov(i)de a set of mutually exclus(i)ve categor(i)es that would allow the (i)dent(i)f(i)cat(i)on of all of these groups and sat(i)sfy the numerous and very d(i)fferent purposes for wh(i)ch stat(i)st(i)cs on the employment relat(i)onsh(i)p are requ(i)red. It was agreed therefore to develop a set of proposals to replace ICSE-93 w(i)th a su(i)te of standards for stat(i)st(i)cs on the relat(i)onsh(i)ps between workers and the econom(i)c un(i)t for wh(i)ch they work, rather than (i)ncorporat(i)ng a number of overlapp(i)ng concepts and character(i)st(i)cs (i)n a s(i)ngle complex class(i)f(i)cat(i)on. 

Outl(i)ne of the proposed new standards

37. The draft resolut(i)on concern(i)ng stat(i)st(i)cs on work relat(i)onsh(i)ps a(i)ms to promote the coherence and (i)ntegrat(i)on of stat(i)st(i)cs from d(i)fferent sources on mult(i)ple character(i)st(i)cs of work relat(i)onsh(i)ps, by prov(i)d(i)ng: 

• (a) an overarch(i)ng conceptual framework for stat(i)st(i)cs on work relat(i)onsh(i)ps wh(i)ch def(i)nes the key concepts, var(i)ables and class(i)f(i)cat(i)on schemes (i)ncluded (i)n the new standards for stat(i)st(i)cs on work relat(i)onsh(i)ps;
• (b) a rev(i)sed Internat(i)onal Class(i)f(i)cat(i)on of Status (i)n Employment (to be des(i)gnated ICSE-18);
• (c) an Internat(i)onal Class(i)f(i)cat(i)on of Status at Work (ICSaW-18) as a reference class(i)f(i)cat(i)on cover(i)ng all forms of work;
• (d) a set of cross-cutt(i)ng var(i)ables and categor(i)es that support the der(i)vat(i)on and analys(i)s of the status at work categor(i)es; 
• (e) operat(i)onal concepts, def(i)n(i)t(i)ons and gu(i)del(i)nes for the collect(i)on and comp(i)lat(i)on of stat(i)st(i)cs on status (i)n employment and the cross-cutt(i)ng var(i)ables.

38. The rev(i)sed ICSE-18 compr(i)ses ten categor(i)es wh(i)ch may be aggregated accord(i)ng to two alternat(i)ve class(i)f(i)cat(i)on structures. The f(i)rst structure, based on the type of author(i)ty that the worker exerc(i)ses over the econom(i)c un(i)t for wh(i)ch he/she works, prov(i)des categor(i)es at (i)ts top level for “dependent” and “(i)ndependent workers”. The second structure, based on the type of econom(i)c r(i)sk to wh(i)ch the worker (i)s exposed, creates a d(i)chotomy between “workers (i)n employment for pay” and “workers (i)n employment for prof(i)t”. Th(i)s (i)s s(i)m(i)lar to the trad(i)t(i)onal d(i)st(i)nct(i)on between pa(i)d employment and self-employment. 

39. The ICSE-93 categor(i)es of employers, own-account workers, contr(i)but(i)ng fam(i)ly workers and employees have been reta(i)ned (i)n the proposed ICSE-18. The aggregate categor(i)es (i)n the ICSE-18 structure based on the type of author(i)ty are therefore qu(i)te s(i)m(i)lar to the ICSE93 categor(i)es. In add(i)t(i)on, the rev(i)sed ICSE (i)ncludes four subcategor(i)es of employees, separate categor(i)es for owner-operators of corporat(i)ons and a separate category for dependent contractors. 

40. A separate category for workers (i)n producers’ cooperat(i)ves has not been reta(i)ned (i)n ICSE18, as the number of persons reported as employed (i)n th(i)s ICSE-93 category (i)s very small (i)n almost all countr(i)es. Many countr(i)es do not use th(i)s category (i)n the(i)r nat(i)onal stat(i)st(i)cs.⁴

41. The proposed new category of “dependent contractors” refers to “workers who have contractual arrangements of a commerc(i)al nature to prov(i)de goods or serv(i)ces for or on behalf of another econom(i)c un(i)t, are not employees of that econom(i)c un(i)t, but are dependent on that un(i)t for organ(i)zat(i)on and execut(i)on of the work or for access to the market.”. They may e(i)ther prov(i)de labour to others wh(i)le hav(i)ng contractual arrangements s(i)m(i)lar to self-employment or else they own and operate a bus(i)ness w(i)thout employees but do not have full control or author(i)ty over the(i)r work. Th(i)s new category (i)s needed to prov(i)de (i)nformat(i)on on the group of workers frequently referred to as the “dependent selfemployed”, wh(i)ch was one of the most (i)mportant object(i)ves of the rev(i)s(i)on work.

42. The proposed ICSaW-18 (i)s an extens(i)on of the class(i)f(i)cat(i)on of Status (i)n Employment to cover all forms of work, (i)nclud(i)ng own-use product(i)on work, volunteer work and unpa(i)d tra(i)nee work, as well as employment. Its purpose (i)s to allow the product(i)on of conceptually cons(i)stent stat(i)st(i)cs on d(i)fferent populat(i)ons and from d(i)fferent sources, rather than to be used (i)n (i)ts ent(i)rety for the comp(i)lat(i)on of stat(i)st(i)cs from any part(i)cular survey. The categor(i)es (i)n ICSaW are def(i)ned (i)n such a way as to allow the prov(i)s(i)on of separate stat(i)st(i)cs on act(i)v(i)t(i)es w(i)th(i)n and beyond the SNA product(i)on boundary. 

43. The class(i)f(i)cat(i)ons accord(i)ng to status are complemented by a set of cross-cutt(i)ng var(i)ables and categor(i)es wh(i)ch prov(i)de def(i)n(i)t(i)ons and categor(i)es for types of arrangement that cut across several status categor(i)es. Many of these var(i)ables are regularly (i)ncluded (i)n most Labour Force Surveys but are not covered by (i)nternat(i)onally agreed stat(i)st(i)cal standards. The proposals therefore seek not only to prov(i)de more relevant and deta(i)led stat(i)st(i)cs on status (i)n employment but also to promote greater harmon(i)zat(i)on, coherence and (i)nternat(i)onal comparab(i)l(i)ty of stat(i)st(i)cs on var(i)ous aspects of the contractual and other cond(i)t(i)ons (i)n wh(i)ch work (i)s performed.

Ma(i)n d(i)fferences between the proposed  new standards and ICSE-93

44. The proposed new standards have a w(i)der scope than ICSE-93, s(i)nce the overall framework can be appl(i)ed to all forms of work def(i)ned (i)n the 19th ICLS resolut(i)on I, whereas ICSE-93 (i)s restr(i)cted to employment as def(i)ned by the 13th ICLS. Some of the proposed new class(i)f(i)cat(i)ons and var(i)ables apply to all forms of work whereas others are restr(i)cted to a s(i)ngle form or to certa(i)n forms of work. 

45. Wh(i)le the proposed ICSaW (i)ncludes categor(i)es relevant to all forms of work, the proposed ICSE-18 (i)s appl(i)cable to employment as def(i)ned by the 19th ICLS. It (i)s therefore narrower (i)n scope than ICSE-93. 

46. The ICSE-18 (i)s generally more deta(i)led than ICSE-93 and (i)ncludes ten categor(i)es at (i)ts most deta(i)led level, compared to the f(i)ve (i)n ICSE-93. Some of the concepts def(i)ned (i)n ICSE-93 as “part(i)cular groups” for opt(i)onal use at nat(i)onal level are covered by new categor(i)es (i)n ICSE-18, (i)nclud(i)ng owner-operators of corporat(i)ons, dependent contractors and subcategor(i)es of employee. S(i)nce members of producers’ cooperat(i)ves are no longer (i)dent(i)f(i)ed as a separate category (i)n the rev(i)sed ICSE, the owner-operators of enterpr(i)ses that are members of producers’ cooperat(i)ves w(i)ll generally be class(i)f(i)ed e(i)ther as employers, or as (i)ndependent workers w(i)thout employees, as appropr(i)ate. The “crosscutt(i)ng” var(i)ables and class(i)f(i)cat(i)on schemes proposed (i)n the new standards were not (i)ncluded (i)n ICSE-93 but do reflect some of the ICSE-93 “part(i)cular groups”, or the stat(i)st(i)cal needs underly(i)ng them. More deta(i)led (i)nformat(i)on about the d(i)fferences between ICSE-93 and ICSE-18 (i)s prov(i)ded (i)n Chapter 3.

Gu(i)del(i)nes for data collect(i)on and measurement approach

47. A major cr(i)t(i)c(i)sm of ICSE-93 (i)s the absence of gu(i)dance on methods and approaches to collect data on status (i)n employment and on work relat(i)onsh(i)ps more generally. Reflect(i)ng th(i)s concern and to ensure the stat(i)st(i)cal feas(i)b(i)l(i)ty of the proposals, data collect(i)on gu(i)del(i)nes have been developed and tested (to the extent poss(i)ble) (i)n parallel w(i)th the conceptual development work. They w(i)ll prov(i)de gu(i)dance on the collect(i)on of stat(i)st(i)cs on work relat(i)onsh(i)ps (i)n Labour Force Surveys, as well as on the use of reduced sets of quest(i)ons (i)n stat(i)st(i)cal collect(i)ons where the fully deta(i)led categor(i)es are not collected. Such data collect(i)ons could (i)nclude household surveys, the populat(i)on census, employer surveys and adm(i)n(i)strat(i)ve collect(i)ons.

48. The approach proposed for the collect(i)on of stat(i)st(i)cs on status (i)n employment (i)n household surveys bu(i)lds on ex(i)st(i)ng common pract(i)ce by ask(i)ng an (i)n(i)t(i)al quest(i)on to allow respondents to self-(i)dent(i)fy based on the categor(i)es “self-employed”, “employee”, “fam(i)ly worker” and “tra(i)nee”. Depend(i)ng on the response to the (i)n(i)t(i)al quest(i)on, respondents are d(i)rected to d(i)fferent streams of quest(i)ons to allow the (i)dent(i)f(i)cat(i)on of dependent contractors, class(i)f(i)cat(i)on to more deta(i)led levels of status (i)n employment and to ver(i)fy the accuracy of the (i)n(i)t(i)al response. Wh(i)le th(i)s approach may (i)ncrease respondent burden and the complex(i)ty of quest(i)onna(i)res, the (i)mportance of collect(i)ng (i)nformat(i)on on status (i)n employment w(i)th an adequate degree of prec(i)s(i)on (i)s w(i)dely acknowledged. Rel(i)ance on self-(i)dent(i)f(i)cat(i)on alone (i)s l(i)kely to result (i)n s(i)gn(i)f(i)cant levels of m(i)sclass(i)f(i)cat(i)on.⁵ Much of the (i)nformat(i)on requ(i)red (i)s already commonly collected (i)n Labour Force Surveys.

1. ^ ILO 2016.
2. ^ “Other work act(i)v(i)t(i)es” (i)nclude such act(i)v(i)t(i)es as unpa(i)d commun(i)ty serv(i)ce and unpa(i)d work by pr(i)soners, when ordered by a court or s(i)m(i)lar author(i)ty, and unpa(i)d m(i)l(i)tary or alternat(i)ve c(i)v(i)l(i)an serv(i)ce, wh(i)ch may be treated as a d(i)st(i)nct form of work for measurement (such as compulsory work performed w(i)thout pay others).
3. ^ ILO 2013c.
4. ^ The reasons for not reta(i)n(i)ng a separate category for members of producers’ cooperat(i)ves are d(i)scussed (i)n more depth (i)n Chapter 3.
5. ^ Abraham, K. et al. 2017, Bon(i)n, H. and R(i)nne, U., 2017.