Payroll to Population Employment Metric Introduced
Below are comments from Gallup Chairman and CEO Jim Clifton introducing Gallop’s “Payroll to Population” metric. Clifton notes that “of the 5 billion people age 15 or older, 3 billion want a good job, but there are only 1.2 billion of them to go around — so there’s a shortfall of more than 1.8 billion good jobs.”
The Right Global Employment Metric: Payroll to Population
Wednesday, September 5, 2012
Through our World Poll, Gallup learned that what everyone wants the most is a good job. This is the will of the world, and nothing outranks it: not the desire for family, peace, religion, or anything else.
A good job, as defined by Gallup, is one that is 30+ hours a week for an organization from which employees receive a real paycheck. What’s not a good job is work that’s informal or some form of menial self-employment.
In what is perhaps the world’s most pressing problem today, of the 5 billion people age 15 or older, 3 billion want a good job, but there are only 1.2 billion of them to go around — so there’s a shortfall of more than 1.8 billion good jobs.
I tell you all of this because most existing forms of employment data aren’t helpful at identifying and tracking this severe problem. That’s because those data lump the lousy jobs together with the good ones. This means that when you look at many countries’ unemployment figures — including those reported by the U.S. Bureau of Labor Statistics — the percentage seeking employment appears artificially low because the lousy jobs get counted as jobs — but they’re not good jobs at all.
Do you think Guatemala’s unemployment rate is really 4%? Or that Iran’s is 15%? Our data suggest the real unemployment rates are much, much higher.
To read the full essay, please click here: http://thechairmansblog.gallup.com/2012/09/the-right-global-employment-metric.html