Page 43 - U4SSC Collection Methodology for Key Performance Indicators for Smart Sustainable Cities

Collection Methodology for Key Performance Indicators for Smart Sustainable Cities

Dimension Economy
Sub-Dimension Productivity
Category Employment
KPI Name Unemployment Rate
KPI No. EC: P: EM: 1C Type: Core Type: Structural

Definition / Percentage of the total city labour force that is unemployed
Description

Rationale / Unemployment is a measure of economic health. Rising unemployment signals a
Interpretation / weak economy with slow growth and low spending. Central banks often set
Benchmarking national targets. For instance, the target of 5-7% unemployment rate in North
America would be unacceptable in Japan where 3% is the norm; and would be
unrealistically optimistic for Greece which has a 23% unemployment rate.
The term “unemployed” includes all persons of working age who are:
a) without work during the reference period, i.e. not paid employment or self-
employment;
b) currently available for work, i.e. were available for paid employment or self-
employment during the reference period; and
c) seeking work, i.e. specific steps were taken in a specified recent period to seek
paid employment or self-employment.
For purposes of international comparability, the period of job search is often
defined as the preceding four weeks.
A declining trend and lower values are considered positive.
Source(s) ILO. Guidelines for producers and users of statistical and legal framework
indicators. Retrieved from < http://www.ilo.org/wcmsp5/groups/public/---
dgreports/---integration/documents/publication/wcms_229374.pdf>

Methodology Calculate as:
Numerator: Total number of the city labour force that is unemployed.
Denominator: Total number of the city labour force.
Multiply by 100
As an alternative, and where available, government statistics can be directly
reported instead of calculating the indicator value.
Unit Percentage
Data Sources / The preferred official national data source for this indicator is a household-based
Relevant labour force survey. The population census and/or other household surveys with an
Databases appropriate employment module may also be used to obtain the required data.
Unemployment registers can serve as instruments to collect data on
unemployment levels.
As an example, these registers are commonly used in many EUROSTAT Member
States to supplement the information obtained in quarterly labour force surveys.
SDG Reference(s) SDG Indicator 8.5.2: Unemployment rate by sex, age group and people with
disabilities.

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