The first dimension, employment, is divided into three sub-dimensions: opportunities for work, income security and employment security.

The first sub dimension, employment opportunities, is defined both positively and negatively. In a positive sense, the sub-dimension refers to labor force participation rate. In a negative sense, the sub-dimension refers to unemployment and youth unemployment. The latter is widely viewed as an important policy issue for many countries, regardless of their stage of development.

The second sub dimension, income security and equity, refers to the notion of an “adequate living wage” and is measured using indicators of average monthly wages and GDP per capita. Included in this sub dimension is also the idea of wage distribution, or in other words income equality, by use of the gini coefficient.

The third sub dimension, employment security, refers to the stability and security of work, or in other words, the absence of fear of employment loss. This dimension is operationalized through the indicators own-account workers defined as self-employed without hired employee, and contributing family workers, defined as an unpaid form of labor where compensation usually comes indirectly through family income, e.g. family business . These groups of workers often have informal work arrangements, and hence they are more likely to lack stability and security of work.

Legal base and framework (employment):

Article 23.1 of the Universal Declaration of Human Rights (1948) states that: “Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment”. Article 6 (part 3) of the International Covenant on Economic, Social and Cultural Rights (ICESCR) (1966), states that “The States Parties to the present Covenant recognize the right to work, which includes the right of everyone to the opportunity to gain his living by work which he freely chooses or accepts, and will take appropriate steps to safeguard this right. The steps to be taken by a State Party to the present Covenant to achieve the full realization of this right shall include technical and vocational guidance and training programmes, policies and techniques to achieve steady economic, social and cultural developments and full and productive employment under conditions safeguarding fundamental political and economic freedoms to the individual”. Other relevant legal documents: ILOs Termination of Employment Convention (No. 158) – employment shall not be terminated unless there is a valid reason for doing so.