Differences due to integration:
· National accounts integrate information from many sources. All sources available (including LFS) are assessed and subsequently the best way of integrating them is decided. Each source may shed light on a part of the economy. Some countries make very minor use of LFS in national accounts.
The information is combined to provide the most complete and consistent estimate. As a consequence, each individual basic source may provide results that are different from the integrated national accounts estimates.
· In national accounts, employment figures must be consistent with other variables such as output and compensation of employees (i.e. wages, salaries and social contributions). Ensuring consistency between variables may result in adjustments.
Conceptual differences:
· Geographical scope: ESA95 acknowledges two employment concepts depending on the geographical coverage: resident persons in employment (i.e. the so-called national concept of employment) and employment in resident production units irrespective of the place of residence of the employed person (i.e. domestic concept).
The difference between them corresponds mainly to the net number of cross-border workers. The figures in this News Release correspond to the domestic concept.
This concept is more appropriate when examining employment and GDP together. LFS, on the other hand, covers resident households. Hence LFS gives information on the major part of the national concept. This means that LFS data must be adjusted, mainly for cross-border workers, to align with the domestic concept normally used in national accounts.
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