Division of international labor comparisons
Encyclopedia
The International Labor Comparisons Program (ILC) of the U.S. Bureau of Labor Statistics (BLS) adjusts economic statistics
Economic statistics
Economic statistics is a topic in applied statistics that concerns the collection, processing, compilation, dissemination, and analysis of economic data. It is also common to call the data themselves 'economic statistics', but for this usage see economic data. The data of concern to economic ...

 (with an emphasis on labor statistics) to a common conceptual framework in order to make data comparable across countries. Its data can be used to evaluate the economic performance of one country relative to that of other countries and to assess international competitiveness.

Precursors of the International Labor Comparisons Program

The first commissioner of the Bureau of Labor Statistics
Bureau of Labor Statistics
The Bureau of Labor Statistics is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics. The BLS is a governmental statistical agency that collects, processes, analyzes, and...

, Carroll Wright, began the BLS tradition of international comparisons. He sent members of his staff to Europe to collect information on foreign labor force trends. In 1898, BLS published a report that compared wages in the United States to those in Europe and in 1902 it published a report that described labor conditions in Mexico.

In 1915, the first issue of the Monthly Labor Review
Monthly Labor Review
The Monthly Labor Review is published by the U.S. Bureau of Labor Statistics. Issues often focus on a particular topic. Researchers outside of the BLS are welcome to submit articles.- History :...

, the Bureau’s research journal, contained articles on employment and various other economic indicators in foreign countries. In the late 1940s, BLS assisted in the implementation of the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 by developing international comparisons of labor productivity
Labor productivity
Workforce productivity is the amount of goods and services that a worker produces in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity can be measured for a firm, a process, an industry, or a country...

 and providing technical assistance to European governments for developing their own productivity statistics.

Founding of the current program

BLS formed the current international comparisons program in the 1960s as the importance of foreign trade and interest in international competition
Competition
Competition is a contest between individuals, groups, animals, etc. for territory, a niche, or a location of resources. It arises whenever two and only two strive for a goal which cannot be shared. Competition occurs naturally between living organisms which co-exist in the same environment. For...

 grew. The first study published by the program was an evaluation of the comparability of unemployment rates undertaken in response to a 1961 request by the Committee to Appraise Employment and Unemployment Statistics. In 1963, the program began to publish trends of labor productivity
Labor productivity
Workforce productivity is the amount of goods and services that a worker produces in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity can be measured for a firm, a process, an industry, or a country...

 and unit labor costs for the manufacturing sector. In the mid-1970s, the program published level comparisons of Gross Domestic Product per Capita and by 1980 levels of hourly compensation (wages and benefits) in the manufacturing sector.

Recent developments

Over time, the program expanded its coverage of labor indicators and countries. In addition to the aforementioned labor indicators, the program began to publish a number of related indicators, such as average annual hours, exchange rates, and consumer price indexes
CPI
A consumer price index is a measure of the average price of consumer goods and services purchased by householdsCPI may also stand for:*Central Port Injection, see fuel injection...

. Further, the program originally covered only selected developed countries. As developing countries became more important to U.S. trade, the program expanded its coverage to include selected emerging economies in Asia, Eastern Europe, and Latin America.

In addition, the program produced a number of special international studies on topics, such as compensation and employment in China
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...

, youth labor markets, and family structures. The current program has also shown commitment to international cooperation. ILC aided the International Labor Organization (ILO) in developing the Key Indicators of Labor Market (KILM), a compilation of fundamental measures of labor market conditions.
ILC also provided KILM with data on hourly compensation.

In 2009, the name of the program was changed from the Division of Foreign Labor Statistics to the International Labor Comparisons Program.

Statistical Reporting

ILC prepares internationally comparable labor indicators that can be used to assess economic and labor market performance of one country relative to that of other countries and to evaluate the competitive position of different countries. The comparisons primarily cover industrialized countries and increasingly also developing countries.

Labor force, employment, and unemployment

ILC produces annual data for labor force
Labor force
In economics, a labor force or labour force is a region's combined civilian workforce, including both the employed and unemployed.Normally, the labor force of a country consists of everyone of working age In economics, a labor force or labour force is a region's combined civilian workforce,...

, employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

, and unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...

 measures in 10 countries.
Monthly and quarterly seasonally adjusted unemployment rates and employment indexes are also available.
Foreign country data are adjusted to the U.S. definitions used by the U.S. Current Population Survey
Current Population Survey
The Current Population Survey is a statistical survey conducted by the United States Census Bureau for the Bureau of Labor Statistics . The BLS uses the data to provide a monthly report on the Employment Situation. This report provides estimates of the number of unemployed people in the United...

.

Hourly compensation (wages and benefits)

ILC’s hourly compensation series presents labor costs adjusted for cross country comparability for 36 countries.
Hourly compensation refers to employers’ total expenditure on labor per hour worked, and includes wages and salaries, direct benefits, and contributions to social security
Social security
Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:...

 schemes.
The ILC compensation series covers all employees and production workers in manufacturing and 22 sub-manufacturing industries, such as apparel, motor vehicles, and computer and electronics.

Productivity and unit labor costs

ILC produces internationally comparable data on productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...

, calculated as output per hour worked; unit labor costs, calculated as hourly compensation per unit of output; and related measures. The data cover the manufacturing sector and, for selected series, also the whole economy for 17 countries.

Gross Domestic Product (GDP) per capita and per hour

ILC’s produces internationally comparable data on Gross Domestic Product per Capita, Gross Domestic Product per Hour, and related measures for 19 countries.
The data are adjusted to U.S. dollars using purchasing power parities (PPPs).

Consumer prices

ILC publishes Harmonized Indexes of Consumer Prices (HICP) that are internationally comparable
and also compiles CPI
CPI
A consumer price index is a measure of the average price of consumer goods and services purchased by householdsCPI may also stand for:*Central Port Injection, see fuel injection...

 data from national statistical offices. Although the national CPIs presented are not comparable across countries, they are adjusted to the same base year for all countries.
In addition, ILC published an article that analyzed harmonized indexes of consumer prices.
Indicator Main Statistics Related Statistics Annual Coverage Country Coverage Sector Coverage Frequency of Publication
Labor Force  Labor force participation rates by sex and women’s share of the labor force Labor force levels and working-age population by sex 1970–present 10 Total economy Annual
Employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...

 
Employment-population ratios by sex and distribution of employment by sector Employment levels by sector and working-age population by sex 1970–present 10 Total economy Annual, monthly (Employment indexes only)
Unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...

 
Unemployment rates by sex and by age Unemployment levels 1970–present 10 Total economy Annual, monthly (Unemployment rates only)
Hourly Compensation Labor costs per hour Wages and direct benefits 1975–present 37 Manufacturing, sub-manufacturing industries Annual
Labor Productivity
Labor productivity
Workforce productivity is the amount of goods and services that a worker produces in a given amount of time. It is one of several types of productivity that economists measure. Workforce productivity can be measured for a firm, a process, an industry, or a country...

 
Output per hour Output, hours, employment 1950–present 19 Manufacturing Annual
Unit Labor Costs Labor cost per output Compensation 1950–present 19 Manufacturing Annual
GDP  GDP per capita and GDP per hour Purchasing Power Parities, exchange rates 1960–present 19 Total economy Annual
Price Indexes Consumer price indexes 1950–present 16 Total economy Annual, monthly
Harmonized Price Indexes  Harmonized indexes of consumer prices 1996–present 8 Total economy Annual, monthly

Research and Special Studies

ILC publishes articles on international subjects in the Monthly Labor Review
Monthly Labor Review
The Monthly Labor Review is published by the U.S. Bureau of Labor Statistics. Issues often focus on a particular topic. Researchers outside of the BLS are welcome to submit articles.- History :...

. Topics have included
employment
and compensation in China
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...

, compensation in India
Economy of India
The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity . The country is a part of the G-20 major economies and the BRICS, in addition to being partners of the ASEAN. India has a per capita GDP of $3,608 as per 2010 figures, making it...

, labor markets for youth,
and hours worked. The program publishes an annual chartbook of international labor comparisons.

China

ILC and Judith Banister coauthored articles on manufacturing employment and compensation in China
Economy of the People's Republic of China
The People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...

.

See also


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