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STS463 Siti Asiah A. et al.
                      Labour Account was brought up as early as 1980s, as a result of discussions
                  at international level concerning the linkages of labour statistics with other
                  areas  of  statistics  namely  social  and  demographic  statistics  and  economic
                  statistics as organized by the System of National Accounts (SNA) (Hoffmann,
                  2000).  This was developed into logical framework for obtaining the key labour
                                            th
                  market variables during 15  International Conference of Labour Statisticians
                  (ICLS) in 1993 (Buhmann et. al, 2002). In addition, labour account provides a
                  time series of estimates of the number of employed persons, number of jobs,
                  hours  worked  and  income  earned  for  each  industry  in  one  coherent
                  framework.
                      Several countries are at different stages of developing labour account such
                  as Australia, Denmark, the Netherland and Switzerland. Australia has benefited
                  from  the  development  of  labour  account  for  instance,  it  has  resulted  in
                  consistent estimates of key labour market variables over time. For the first
                  time, statistics on total number of employed persons for Australia is available
                  from the industry perspective in a time series. This could be used to better
                  assess  policy  changes  targeting  a  particular  industry,  providing  a  more
                  complete picture of the number of people impacted by the change (Australian
                  Labour Account Fact Sheet 6, 2018).
                      In  order  to  ensure  that  a  country  is  able  to  manage  labour  supply
                  efficiently,  countries  should  carefully  measure  the  labour  market  situation
                  through  reliable  data.  Thus,  considering  all  benefits  mentioned  above,
                  Malaysia is planning to develop labour account based on data collection by
                  DOSM  and  others  agencies  as  well  as  from  administrative  records.  Labour
                  account offers a framework to bring together Malaysia’s labour market data
                  from multiple statistical sources into coherent and consistent set of labour
                  statistics which consist of four components namely filled job, employment,
                  labour cost and hours of works.

                  2.  Methodology
                      The ILO lists six key elements in labour statistics which are i) employed
                  persons  and  jobs;  ii)  unemployed  and  underemployed  persons;  iii)  job
                  vacancies;  iv)  hours  of  work  and  full-time  equivalents;  v)  income  from
                  employment and labour costs; and  vi) organisation of the labour market i.e.
                  statistics on collective labour agreements, industrial disputes and trade-union
                  memberships (Australian Labour Account, 2018).
                      At  present  there  is  no  international  standard  for  developing  labour
                  account. However, the ILO has documented a guideline comprising four basic
                  steps in the development of labour account involved statistical integration.
                  First,  is  definition  of  the  model  and  the  identity  equation.  Second,  is
                  harmonization  of  definitions  and  classifications  in  source  statistics,



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