Monthly figures on the labour market– October 2020
With this series of fast indicative figures, Statbel wants to map the impact of the Covid-19 crisis on the labour market.
The conclusions of recent months are the following:
- The employment rate decreased in April and May.
- There was an increase in the number of people employed in June and July.
- There was a new decrease in August, although the fact that this decrease is limited to one month can also indicate random sampling fluctuations.
- According to the provisional figures for October, the number of persons employed increases for the second month in a row. The employment rate of people aged 20-64 is consequently slightly higher than last year.
The employment rate of people aged 20-64 increases from 69.9 % to 70.6 %. This is the same figure as in March this year and a slightly higher level than in October last year (chart 1), when 70.1 % of people aged 20-64 had a job. The employment rate increased between September and October this year in roughly equivalent proportions in Flanders and Wallonia, but we see a slight decrease in Brussels (-0.2 percentage point). The employment rate of people aged 20-64 in October is estimated at 61.1 % in Brussels, 75.2 % in Flanders and 65.5 % in Wallonia.
ILO unemployment rate amounts to 6.4 % in October
Since July, the ILO unemployment rate[1] of people aged 15-64 is above 6 %. After a decrease in September, the percentage slightly increased again in October, from 6.2 % to 6.4 %. In October last year, the unemployment rate amounted to 5.1 %.
Between September and October 2020, the unemployment rate only increased in Wallonia. In Flanders and Brussels, Statbel observes a decrease in the unemployment rate.
The number of inactive people decreases for the second month in a row
After a strong increase in the number of inactive people in August, there was a sharp decline in September. In October, the number of inactive people continues to decrease. In October, nearly 4.3 million persons were inactive, that is 35,000 fewer persons than in September this year and 73,000 fewer persons than in October last year. Compared to the previous year, we also see a striking decrease in the number of inactive people among people aged 25-49 and highly-skilled people.
14.2% of people employed did not work or worked less than usual
In October, 14.2 % of persons employed did not work or worked less than usual during the reference week (i.e. the week for which they were interviewed). This percentage is higher than in September this year (13.3 %), but lower than in October last year (14.9 %), which may be due to the fact that the autumn break was in October last year and in November this year. This is confirmed by the figures on the main reasons for not working or working less: last year in October, much more people did not work or worked less because of holidays than this year in October.
From those who did not work during the reference week (393,000 persons), illness the main reason for not working (184,000 persons), followed by holidays (64,000 persons). About 50,000 persons did not work because of temporary unemployment, this is twice as much as in September.
Among the people employed who declared having worked less in the reference week (298,000 persons), holidays are the main reason (66,000 persons). In second place comes temporary unemployment with about 63,000 persons, i.e. an increase of 17,000 persons compared to September. Furthermore, nearly 60,000 persons worked less than usual because of another reason which had to do, according to the respondent, with the coronavirus.
35.2 % of people employed work from home
Since the beginning of the crisis, the percentage of persons employed who sometimes or usually work from home is well above the 30 % (chart 4). In October, just before the second lockdown, this figure was 35.2 %, i.e. 0.8 percentage points more than in September. Yet the percentage of people working from home is still under the level observed in May (39.1 %) and June (37.3 %) this year. Between September and October this year, the percentage increased in particular among employees in the private sector, from 24.8 % to 28.1 %. The percentage of self-employed who sometimes or usually work from home decreases.
In October, 35 % of people working from home indicate that they did it for the first time during the Covid crisis. This percentage is higher for women (40 %) than for men (30.4 %). 42.3 % of people working from home already did it before, but do it more during the Covid crisis and for 22.7 %, the Covid crisis had no impact on the extent of homeworking.
[1] The ILO unemployed are all the people who do not have a job, are actively seeking work and are available to start working within two weeks.
[2] Break in the results in June 2020. The figures until May 2020 are based on a smaller sample and therefore cannot simply be compared with the figures from June 2020 onwards.