Ukraine - Unemployment Rate

Indicators of economic activity, employment, and unemployment are sourced from sample population (household) surveys on economic activity (further referred to as Labour Force Survey).

The methodology of LFS is consistent with the current ILO and EU methodology and definitions of the basic indicators for economic activity of the population.

The ILO unemployed are persons aged 15 to 70 (registered and unregistered at the State Employment Service) who meet the following three conditions:  

1. were without work (gainful employment)
2. were actively seeking a job or were trying to set up their own business during the last 4 weeks prior to the survey, i.e. were making steps during the four weeks in order to find a gainful employment or be employed at their own enterprise
3. were available to work during the recent two weeks, i.e. to start working to get wages or be employed at their own enterprise.

The category of the unemployed also includes the persons who were not seeking a job because they have already found it and reached an agreement on the start of work during a certain period of time and undergo training by an assignment of the State Employment Service.

Ukraine is now excluding the temporarily occupied territories, the Autonomous Republic of Crimea and the city of Sevastopol.

Classification

• The unemployed by age group
  The age of respondents is taken into account at the moment of data collection according to the LFS program.
• By type of economic activity
  The distribution of the unemployed previously employed is done according to the main job (occupation) on the basis of the Classification of Types of Economic Activity (CTEA) that is harmonized with the EU Statistical Commission 's Classification of Types of Economic Activity (NACE, Rev.1, modification 7). The data on type of activity are derived from respondents by filling in an enquiry form (questionnaire) which sets the groups for types of activity.
• By occupation
  The distribution of the unemployed population by occupation is done on the basis of Classifier of Occupations approved and put into effect according to Decree 375 of the State Committee on Technical Regulation and Consumption Policy of December 26, 2005.

Scope of the data

Geographical coverage: Geographically the whole area of the country is covered, except the first and the second zones of radio contamination that happened as a result of the Chernobyl nuclear power station disaster.
Population coverage: Persons covered by the survey include the resident population aged 15 to 70 years living in households.

All types of economic activity are covered.

All occupations are covered.

Exceptions to coverage

• Geographical coverage:  the first and the second zones of radio contamination that happened as a result of the Chernobyl nuclear power station disaster are not covered.
• Population coverage: excluded are:

• pupils and students of all education institutions which have temporarily moved and live in other locations and are subject to questioning by place of training; 
• persons at compulsory military service (excluding persons on retraining) and professional military personnel (resided in military compounds); persons who are in jails, persons who are permanently reside at hostels, houses for the aged, etc.
• persons who are away from their households at the time of questioning and  are not expected back during the next 12 months.

Recording basis

Reference period: the reference week (from Monday to Sunday) that includes the 15^th day of the month is used for measuring unemployment.

The questioning of the population is done during the third ten day period of each month from 21 to 30 (31) day (inclusive). 

Source data collection programs

Sampling:

The unemployment indicators are derived from the LFS that has been conducted by the state statistics offices since 1995. In 1995/1998 the survey was carried out just once a year, in 1999/2003 each quarter during the last month of each quarter, and since 2004 it is conducted on a monthly basis by the SSCU.

The objective for the conduct of the survey is to obtain information about the composition and structure of the labor force, measure employment and the population activity trends as well as identify the real level of unemployment which incorporates the general supply of labor and is used a an important indicator to analyze the current situation in the country's economy. The survey data permit to estimate the real volumes of and changes in labor supply on Ukraine's labor market, and analyze its development trends.

Source data statistical techniques

Design and sample size

To conduct the LFS, during 2004/2008 the nationwide territorial probability sample for non institutional households was produced.  The general size of the monthly survey on economic activity comprises 18.5 thousand households. The questioning incorporates all household members aged 15-70 (inclusive).

The compilation of the sample is based on the procedure for the stratified multi-staged selection.

The procedure to compile the sample population consists of the following stages:

1. exclusion of areas that cannot be surveyed
2. exclusion of the population not subject to surveying
3. stratification of the total population
4. selection of the first stage territorial units 
5. selection of the second stage territorial units
6. selection of households

When designing the territorial sample, out of the whole territory of Ukraine the rural settlements (village councils) located within the exclusion zone (zone I) and the absolute (compulsory) evacuation zone (zone II) which were radio polluted due to the Chernobyl nuclear power station disaster are excluded. Accordingly, the population residing in this area is also excluded from Ukraine's population and the relevant regions.

The institutional population (the military, those in prisons, those permanently residing in hostels, houses for the aged, etc.) is excluded from the population strength.

The stratification of the total population is done to adequately reflect the main features of the administrative and territorial units within the sample, and ensure the selection of the household population that is homogenous by the main characteristics. Accordingly, within each Ukraine region, the following strata are distinguished: city councils with the population of 100 thousand and more, town and village councils with the population less than 100 thousand and administrative districts in rural areas (urban population of districts is not included into strata for rural areas). The sample size is split by stratum proportionally to the population.

The compilation of household sample in rural areas is done using the two components: sample directly for the survey of population's economic activity and sample for household survey of agricultural activity. At present, when designing the sample survey of households' agricultural activity, the selection of village councils is done proportionally to land areas.

To select the secondary territorial units of sample that serve as sample basis, data from the 2001 All-Ukrainian Population Census have been used.

Since 2004, the sample employs the new household rotation scheme where each selected household should be questioned 6 times. The questioning over the period of 3 months – break for 9 months – the questioning over the period of 3 months. The monthly sample population of households is 18.5 thousand.

Data collection and processing

The processing of data from the sample survey of the population's (households') economic activity is based on the following stages:

• logical and arithmetical checking of the quality of the obtained inquiry forms
• coding the selected responses and entry of enquiry forms into electronic databases
• indicators aggregation at regional level and their logical validation
• generalization and checking of the survey databases at the national level 
• computation of weight coefficients and the derived estimates of indicators that are disseminated over the total population aged 15-70
• development of indicators showing the quality of information and its representativeness for different uses
• reconciliation of data from the sample survey with the relevant indicators obtained from other sources of information
• tables to be produced for publications and relevant analytical materials

There is no seasonal adjustment of data.

Data are revised if there are changes in methodology, program to conduct the survey and basing on the population census data.

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