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STS463 Noraliza M.A. et al.



                                Labour supply statistics: Challenges and way
                                                   forward
                                Noraliza Mohamad Ali, Nur Layali Mohd Ali Khan
                                          Department of Statistics Malaysia

                  Abstract
                  From the perspective of labour supply, Labour Force Survey (LFS) has been
                  conducted in Malaysia since 1972 to cover selected regions in the country.
                  Since  1982,  the  coverage  has  been  extended  to  produce  national  annual
                  estimates of labour force statistics. With economic and social developments
                  and transitions nationally and globally, the frequency and disaggregation was
                  further improved to quarterly and later monthly estimates at national and state
                  levels.  Ever  since  the  inceptions  of  the  LFS,  concepts,  definitions  and
                  classifications  has  been  reviewed  and  adopted  accordingly  with  the
                  recommendations  of  the  International  Labour  Organisation  (ILO)  and  best
                  practices of other National Statistical Offices. Considering the frequency of
                  disseminations  of  LFS  statistics,  at  times,  the  information  has  been  overly
                  utilised  and  has  been  the  subject  of  misinterpretation  when  used  as  a
                  replacement or proxies to other unavailable labour market the statistics of
                  labour  supply  through  household  approach  to  cater  and  complement  the
                  other dimensions of labour market statistics.

                  Keywords
                  Labour Force Survey; Labour statistics; Labour market information; Labour
                  market dynamics

                  1.  Introduction
                      Sound  evidence-based  policy  making  relies  on  comprehensive
                  demographic, economic and social statistics. As much as the well-being of an
                  economy  is  evaluated  through  the  shift  in  the  population  structure  and
                  changes  of  the  social  landscape,  labour  plays  an  important  part  in
                  understanding  the  world  of  work,  such  as  the  relationship  between
                  employment and growth, wage formation, the importance of human capital,
                  migration  and  labour  market  regulations  (ILO,  2013).  Bean  (2018),
                  International Labour Organisation (ILO) (2017a) and KPMG Economics (2016)
                  perceived labour statistics as the fundamental fragment of any labour market
                  information  system  which  is  in  turn  very  critical  for  research  and  policy
                  formulation.
                     ILO (2017a) defined labour statistics as groups of official statistics relating
                  to work, productive activities, workers, the characteristics of the labour market


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