Decrease in the employment rate
As Belgian statistical office, Statbel wants to map the impact of the Covid-19 crisis on the labour market by providing fast, indicative figures. Based on the provisional results from the Labour Force Survey for May, it appears that - despite the fact that workers in temporary unemployment are considered to be employed - the employment rate of people aged 20-64 decreases for the second month in a row. Whereas the employment rate still slightly increased in March, we see in April and May a decrease, from 70.6 % in March to 69.5 % in April and 68.8 % in May. In April and May last year, the employment rate amounted to respectively 71.4 % and 71.5 %. Between April and May this year, the employment rate decreases only among men.
ILO unemployment increases for the first time since the beginning of the health crisis
The ILO unemployment rate of people aged 15-64, according to the definition of the International Labour Office (ILO), amounted to 4.8 % in March. In April, it fell further to 4.3 %, but in May, we see an increase to 5.3 %. However, this percentage is lower than in May last year, when the ILO unemployment rate stood at 5.6 %. Between April and May this year, we mainly see an increase of the unemployment rate of men (from 4.1 % in April to 5.6 % in May). The unemployment rate of women shows a less significant increase, from 4.7 % to 4.9 %.
The number of inactive people who are available but not actively looking for work continues to increase
Some groups of inactive people have characteristics that are very similar to those of ILO unemployed people but they do not meet the three criteria to be considered as ILO unemployed. Three criteria determine if a person is included as ILO unemployed. These criteria must be simultaneously satisfied:
- you have no job
- you are actively looking for work
- you are available to start working within two weeks.
These past months, we notice a sharp increase of the number of people without work, who are available to start working within two weeks but who are not actively looking for work. This concerned 120,000 persons in March. This number went up to 168,000 persons in April and to 176,000 persons in May. In May last year, there were 95,000 persons in this category of inactive people. These may include persons who think there is no job for them, persons who care for children or other dependants, persons who are ill,...
The crisis mainly affects temporary jobs
These past months, the number of employees with a temporary job has decreased. Temporary jobs include interim work, student jobs, contract of limited duration or for a given job, among others. Where in May last year 485,000 persons had a temporary job, this number decreased by more than 100,000 units a year later. The percentage of temporary work compared to the total number of employees amounts in May this year to 9.5 % compared to 9.8 % last month and 11.7 % in May last year.
The average actual working time per week has increased compared to April
Even more than in March, when we were in lockdown in only two out of four reference weeks, the crisis had a significant impact on hours worked in April. In April, more than 44 % of employees had worked less than usual or had not worked at all during the reference week for which they were interviewed. In May, we see a positive impact of the lockdown easing: 33.6 % of employed persons had worked less than usual or had not worked at all.
This translates into an increase in the average number of hours worked per week compared to April.
- In May 2020, employed persons worked an average of 30.9 hours per week in a full-time job and 17.4 hours per week in a part-time job, in what they consider to be their main job.
- This average is higher than in April 2020, where an average of 26.7 hours were worked per week in a full-time job and 14.5 hours in a part-time job.
- It is substantially lower than in May 2019, when a full-time job accounted for an average of 37.9 hours and a part-time job for 21.7 hours.
Temporary unemployment remains the most common reason of absence
The most common reason for not working in May is, like in April, technical or economic reasons (temporary unemployment). In May 2020, an average of about 344,000 employed persons were absent during the entire reference week due to temporary unemployment. This number was 578,000 persons the month before (April 2020). The impact of the reopening of some sectors is therefore clearly visible here.
Temporary unemployment also remains the main reason given for working fewer hours. This is the case for 254,000 persons employed. This number is about 30,000 units lower than in April. 200,000 persons worked less than usual in May with as main reason holidays or leave. This number is more than half as low as in May last year when 420,000 employed persons had worked less for holidays or leave as the main reason.