THE EXPLANATIONS OF NEW REGULATIONS IN HOUSEHOLD LABOUR FORCE SURVEY (1) Turkish Statistical Institute carried out the household labour force survey, forming the basis of labour market data sources, since 1988 according to the International Labour Organization’s norms and standards. Additionally, the European Union Statistical Office (Eurostat) standards are also followed since 2004. A- NEW REGULATIONS (2) The new regulations for Household Labour Force Survey were carried out with the period of February 2014 within the framework of the European Union criteria. These are; i. ii. iii. iv. v. (3) i. Household labour force survey to be implemented in every week of the year, Change of the sampling design, Taking into account the basis of a new administrative division, The use of new population projection estimates, Changing in the job search duration used for unemployment criteria. These changes were given below in detail. Household labour force survey to be implemented in every week of the year (4) Applied to the present labour force survey while taking account one week reference period starting Monday ending Sunday transition to the new regulations (52 weeks) as the reference period for the survey of the whole weeks of the year was implemented continuously. Thus, labour force information is being questioned for the entire week of the year, increasing the representativeness of the survey and getting better seasonality were aimed. (5) Eurostat proposed and how should be implemented labour force sample survey for the "continuous survey" application with The European Council Regulation 577/98 of March 1998 on "the organization of a labour force sample survey in the Community". Council Regulation 1991/2002 and October 2002 constantly poll the application for member states to the European Union since 2003 mandates. Continuous survey application 577/98 Council Regulation is defined in the following way: (6) Survey should produce quarterly and annual estimates, The reference weeks are spread uniformly throughout the whole year, The reference weeks should be 13 weeks for quarters and 52 weeks for the year, The interview normally takes place during the week immediately following the reference week. The reference week and the date of the interview may not be more than five weeks. In accordance with these explanations, continuous survey application considers whole weeks of the year. 52 weeks a year with the implementation of labour force surveys every week are taken into account in the reference period started instead of fixed 1 reference period. With this new practice; it is shown in the diagram below, the number of reference weeks are taken into account are 13 weeks (4 +5 +4 =13) in each period, while in old application only 3 weeks reference period covered. Number of Weeks (Old-New Application) Old Application Month ii. New Application Number of Reference Weeks January 1 February 1 March 1 Number of Reference Weeks 4 I. Quarter (February) I. Quarter (February) 5 March 4 April April 1 4 May 1 June 1 4 July 1 4 August 1 5 Septembe rOctober 1 4 1 4 Novembe rDecember 1 5 1 4 Total 12 52 II. Quarter 5 March April II. Quarter Change of the sampling design (7) Household labour force survey to be implemented in every week (continuously) of the year has required the creation of a new sample design. (8) Two-stage stratified cluster sampling method was used in Household Labour Force Survey. Between two consecutive periods and the two consecutive years in the same period of 50% based on addresses conflicts to ensure rotation design formed and 8 sub-samples were used in each period. In the sample design, the sample size of each application in the period is equally distributed to the weeks. As of 2014, the quarterly survey sample size is 44 thousand households. The determination of sample size is based on the European Council Regulation numbered 577/98. This does not make a significant difference in the number of annual total sample size, but the sample sizes of Nomenclature of Territorial Units for Statistics (NUTS) Level 2 (26 zone) has led to differences. (9) Along with the new arrangement, the forecast period is determined based on the moving 13 weeks to coincide with every three-month period instead of moving the last three months. The quarterly results based on the new regulations will give the estimates on the basis of Turkey, the estimates on basis of NUTS Level 1 (12 regions) and Level 2 (26 regions) will be achieved by yearly estimates. 2 iii. Taking into account the basis of a new administrative division (10) The new series in the household labour force survey’s sampling design and frame are based on the law called "The Law of Establishment of Greater Municipality in Thirteen Provinces and Twenty-Six District Municipality” from 2014 which is valid under the new administrative division. Number of Settlements and Population in Old and New Administrative Division Old Administrative Division Number of settlement Total Urban (20 000 +) Rural (20 000 -) Population New Administrative Division Rate of Number of population settlement (%) Population Rate of population (%) 37 230 75 627 384 100.0 19 587 75 627 384 100.0 376 54 705 188 72.3 509 65 414 107 86.5 36 854 20 292 196 27.7 19 078 10 213 277 13.5 Source: 2013 Address Based Population Registration System Results (11) Because of the villages united with greater municipalities in the province, the significant differences in the distribution of urban and rural areas have emerged. As it is seen from the table, while 36 thousand 854 settlements in the rural areas for the old administrative division has dropped to 19 thousand 78 in the new administrative division. According to the older administrative division, the urban population rate was 72.3%, in the new administrative division has risen 86.5%. (12) According to the analysis, it was observed that the new administrative division has a significant impact on the household results. This effect is connected to especially the urban and rural areas indicators. This old structure has eliminated the comparability with the urban and rural settlements. We are working on new definitions of urban and rural areas, until these studies concluded, the results will only be given as Turkey's total labour force indicators, urban and rural areas results will not be released.. iv. The use of new population projection estimates (13) The results of Household Labour Force Survey are weighted according to population projections. Turkish Statistical Institute has renewed population projections using the most recent population in 2013. (14) The results of the most important effects on the new projections have been observed in the urban-rural distribution and population aged 65 years and over. According to the 2008 population projections, the rate of urban areas was realized as 68% and the rural areas was realized as 32% for the year 2013 used in the current household labour force, in new population projections because of changing base year and the new administrative division, the urban rate is estimated 86.5%, rural rate is estimated 3 13.5%. These situations have been caused employment figures significant change with a high rate sectors in rural areas. The increase in the population aged 15 years and over, a significant portion (about 80%) also occurred in the population aged 65 years and over. This has affected the population “not in the labour force”. v. Changing in the job search duration used for unemployment criteria (15) One of the changes in the labour force indicators is the job search duration used in unemployment criteria. The reference period is considered "the last four weeks" including reference period instead of the "last three months" (16) In the previous application, the results of unemployment are given according to the definition for persons not employed during the reference period using at least one channel for seeking a job during the last three months and available to start work within two weeks. In the new application, the results of unemployment are given according to the definition for persons search job "last four weeks" and use at least one search channels and start work within two weeks determined "unemployed". (17) With these changes made in the job search duration, European Union member countries’ same period of unemployment criteria has been taken into account. B- IMPACT OF NEW REGULATIONS ON LABOUR FORCE INDICATORS (18) New regulations in household labour force survey such as new survey design, field application, changing job search duration criteria, differences of new population projections and new administrative division lead to differentiation in series and eliminate comparability with the previous series. (19) A pilot study taken as the reference period of 52 weeks was conducted simultaneously with current household labour force survey during the year 2013 to predict this differentiation what extent and how it would be and in order to offer comparable labour force data to users in a series. Time series on the basis of labour force indicators is revised and provided until January of 2005 by using these simultaneous pilot study results. (20) The revised basic labour market indicators are such as labour force, unemployed, the labour force participation rate, employment rate, unemployment rate, non-agricultural unemployment rate, the youth unemployment rate, population not in the labour force, agriculture, industry, construction and services sectors. Those series will be given until 1988 with retrospective estimates when the series come to the new series’ seasonal structure particularise, retrospective series shall be revised. (21) As a result of pilot application, using particularly the 2014 administrative division and differentiation in urban strata of the population structure were affected the deviation of quarterly data, but it was observed that this deviation stayed in confidence intervals. Accordingly, the series is expected to take a certain time to stabilize because of the fluctuations in quarterly data can be observed. Depending on these fluctuations and stabilization of series, retrospective revision of labour force series may be back on the agenda. 4 (22) When the previous quarterly results were given by Turkey, urban and rural areas, after the new regulations, the results will be published only for Turkey. C- FORECASTING METHOD (23) Discrepancy, due to definition, administrative division and survey implementation differences between Household Labour Force Survey (LFS) and the Continuous Household Labour Force Survey (CLFS), affect comparability in the basic labour force indicators. The indicators produced from CLFS results in order to ensure comparability over time, taking into account LFS results, the basic labour market indicators have been calculated retrospectively by using the statistical and econometric methods until January of 2005. (24) In the process of calculating backward, the differences in definitions between LFS and CLFS are reflected in CLFS indicators by using micro-method. (25) Population and the administrative division differences between LFS and CLFS have been corrected by using the "Seasonal Interpolation" method. In this method, seasonal effects are also covered in addition to conventional interpolation method. (26) “Model-Based Linking" method has been used in order to correct implementation differences between LFS and CLFS. This approach is essentially linking Growth Rate by using model-based linking factor. Linking series by using linking factor obtained from single corresponding period reflect irregular and seasonal patterns into historical series. By this reason results are biased. 5
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