TOTAL HOURS WORKED

11.26 Definition:

Total hours worked represent the aggregate number of hours actually worked as an employee or self-employed during the accounting period, when their output is within the production boundary.

Because of the broad definition of employees which covers persons temporarily not at work but with a formal attachment, and part-time workers, the ESA recommends that the appropriate measure for productivity calculation is not a head count but total hours worked.

Total hours worked is the preferred measure of labour inputs for the system.

11.27 In accordance with the norms established by the International Labour Organisation (Tenth International Conference of Labour Statisticians), total hours actually worked cover:

  1. hours actually worked during normal working hours;
  2. hours worked in addition to those worked during normal working hours, and generally paid at higher rates than normal rate (overtime);
  3. time which is spent at the place of work on tasks such as preparing the site, repair and maintenance work, the preparation and cleaning of tools, and the making-out of receipts, invoices, records of the length of time worked and other reports;
  4. idle time spent at the place of work waiting or standing by because, for example, of temporary lack of work, the breakdown of machinery or accidents, or time spent at the place of work during which no work is done but for which payment is made under a guaranteed employment contract;
  5. time corresponding to short periods of rest at the work place, including refreshment breaks.

11.28 On the other hand, hours actually worked do not include:

  1. hours which are paid but not worked, such as paid annual holidays, public holidays, or sick-leave;
  2. breaks for meals;
  3. time spent travelling between home and the place of work, even when paid (construction workers). However, such travel organised in employers' time is included in hours of work.
11.29 Total hours worked is the aggregate number of hours actually worked during the accounting period in employee and self-employment jobs within the economic territory:
  1. including work outside the economic territory for resident employer institutional units who have no centre of economic interest there;
  2. excluding work for foreign employer institutional units who have no centre of economic interest within the economic territory.
11.30 Many surveys of enterprises record hours paid not hours worked.

In those cases, hours worked have to be estimated for each job group, using whatever information is available about paid leave, etc.

11.31 For business cycle analysis, it may be useful to adjust total hours worked by adopting a standard number of working days per year.