PURPOSE: to provide the Commission with the tools to prepare socio-economic analyses linking wages from the main job with labour characteristics, for all Member States.

LEGISLATIVE ACT: Regulation (EC) No 1372/2007 of the European Parliament and of the Council amending Council Regulation (EC) No 577/98 on the organisation of a labour force sample survey in the Community.

CONTENT: in order to carry out the tasks assigned to it, the Commission requires data on the ranking of wages by socio-economic characteristics and also in relation to different forms of paid employment, which are essential to analyse and understand the labour market and the changes taking place in the structure of the labour force.

The Community Labour Force Survey is essentially the first and most authoritative reference source for labour market information in the European Union. Information on wages, as a fundamental variable to explain labour market behaviour, should be a standard element of this survey in order to allow for a more complete analysis of labour markets.

As regards the transmission of results, the Regulation stipulates that within twelve weeks of the end of the reference period, the Member States shall forward to Eurostat the results of the survey, without direct identifiers. It also states that where administrative data are used to supply data corresponding to the survey characteristic "wages from the main job", that data may be forwarded to Eurostat within twenty-one months of the end of the reference period.

Consequently, the Council has adopted this Regulation amending Council Regulation 577/98 and introducing wages from the main job as a compulsory variable in the Labour Force Survey.

ENTRY INTO FORCE: 23/12/2007.

The European Parliament adopted the report by Mr. Jan ANDERSSON (PES, SE) approving amendments to the report amending Council Regulation (EC) No 577/98 on the organisation of a labour force sample survey in the Community. The Parliament endorsed the amendments tabled by the committee responsible. (For a summary of the amendments, please refer to the summary of 08/05/2007).

In adopting the report, at first reading, drafted under the codecision procedure by Mr. Jan ANDERSSON (PES, SE), the Committee on Employment and Social Affairs approved amendments to the report a mending Council Regulation (EC) No 577/98 on the organisation of a labour force sample survey in the Community.

The main amendments put forward by the committee are as follows:

- the measures necessary for the implementation of Council Regulation (EC) No 577/98 on the organisation of a labour force sample survey in the Community should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission;

- a programme of ad hoc modules covering several years shall be laid down annually in accordance with the regulatory procedure specified in Article 8(2);

- t he definitions, edits to be used, codification of variables, adjustment of the list of survey variables made necessary by the evolution of techniques and concepts, and a list of principles for the formulation of the questions concerning the labour status, shall be laid down in accordance with the regulatory procedure specified in Article 8(2);

- data corresponding to the survey characteristic 'wages from the main job' can be forwarded to Eurostat within 21 months of the end of the reference period when administrative data are used to supply this information.

PURPOSE : to introduce wages from the main job as a compulsory variable in the Labour Force Survey, and amend Council Regulation 577/98/EC on the organisation of a labour force sample survey in the Community.

PROPOSED ACT : Regulation of the European Parliament and of the Council.

CONTENT : f ollowing the mid-term review of the Lisbon Strategy in 2005, the Commission planned a complete revision of the governance of the European Employment Strategy so as to maximise synergies between national measures and Community action. Information on wages and their determinants are a key element to monitor economic, employment, education and gender equality policies, and will contribute to the evaluation of the new social agenda 2005-2010.

Accordingly, the Commission needs information on the structure and distribution of earnings in the Member States by socio-economic characteristics and also in relation to the different forms of paid employment. This information is essential in order to analyse and understand the labour market and the changes taking place in the structure of the labour force. The advantages of having data on wages and salaries in relation to other employment characteristics are widely recognised. The Labour Force Survey (LFS) is the first and most authoritative reference source for labour market information and therefore wages, as a fundamental variable to explain labour market behaviour, should be included as a compulsory variable in this survey to allow a more complete analysis of labour markets.

Council Regulation 577/98/EC introduced income as a new survey characteristic for which labour force survey data should be provided. However, because of the sensitivity of this kind of information, it was introduced only as an option, to allow Member States to test the feasibility of collecting this kind of information in a labour force survey, to ascertain the best way of doing so without increasing the general non-response rate, and to check the quality of the information collected. About half the Member States are now collecting wages in the LFS with satisfactory results and best practices for data collection have also been identified.

The value of collecting this information for policy purposes is widely recognised and a full coverage of the EU is needed. However certain Member States demand a simplification of the previous optional variable, in order to start the data collection and others can only include the variable in their LFS regular questionnaire if there is a legal obligation to provide this information.

Therefore, this proposal deals with amending Council Regulation 577/98 and introducing wages from the main job as a compulsory variable in the LFS. Its principal aims are:

- to change the optional status of this survey characteristic;

- to limit the information to be provided on income to "wages from the main job";

- to allow Member States a time-limit of 18 months to transmit the data. To avoid extra burden, several Member States have asked to use administrative data as the basis for the provision of these data. Using administrative data means that data transmission will take longer. The Commission accepted this situation, which is reflected in the proposal.

PURPOSE : to introduce wages from the main job as a compulsory variable in the Labour Force Survey, and amend Council Regulation 577/98/EC on the organisation of a labour force sample survey in the Community.

PROPOSED ACT : Regulation of the European Parliament and of the Council.

CONTENT : f ollowing the mid-term review of the Lisbon Strategy in 2005, the Commission planned a complete revision of the governance of the European Employment Strategy so as to maximise synergies between national measures and Community action. Information on wages and their determinants are a key element to monitor economic, employment, education and gender equality policies, and will contribute to the evaluation of the new social agenda 2005-2010.

Accordingly, the Commission needs information on the structure and distribution of earnings in the Member States by socio-economic characteristics and also in relation to the different forms of paid employment. This information is essential in order to analyse and understand the labour market and the changes taking place in the structure of the labour force. The advantages of having data on wages and salaries in relation to other employment characteristics are widely recognised. The Labour Force Survey (LFS) is the first and most authoritative reference source for labour market information and therefore wages, as a fundamental variable to explain labour market behaviour, should be included as a compulsory variable in this survey to allow a more complete analysis of labour markets.

Council Regulation 577/98/EC introduced income as a new survey characteristic for which labour force survey data should be provided. However, because of the sensitivity of this kind of information, it was introduced only as an option, to allow Member States to test the feasibility of collecting this kind of information in a labour force survey, to ascertain the best way of doing so without increasing the general non-response rate, and to check the quality of the information collected. About half the Member States are now collecting wages in the LFS with satisfactory results and best practices for data collection have also been identified.

The value of collecting this information for policy purposes is widely recognised and a full coverage of the EU is needed. However certain Member States demand a simplification of the previous optional variable, in order to start the data collection and others can only include the variable in their LFS regular questionnaire if there is a legal obligation to provide this information.

Therefore, this proposal deals with amending Council Regulation 577/98 and introducing wages from the main job as a compulsory variable in the LFS. Its principal aims are:

- to change the optional status of this survey characteristic;

- to limit the information to be provided on income to "wages from the main job";

- to allow Member States a time-limit of 18 months to transmit the data. To avoid extra burden, several Member States have asked to use administrative data as the basis for the provision of these data. Using administrative data means that data transmission will take longer. The Commission accepted this situation, which is reflected in the proposal.