Accuracy and reliability
Contact info
National Accounts, Climate and Environment, Economic StatisticsMartin Brandstrup
+45 23 80 57 50
Get as PDF
Employment and Compensation of Employees in National Accounts
The uncertainty in national accounts figures is closely linked to the reliability of the data sources used. Figures for employment, compensation of employees, and hours worked are primarily based on processed statistics derived from administrative registers. These data are compiled and processed within a consistent framework, making the estimates relatively reliable especially for the final structural years. However, minor adjustments are made during the data processing – for instance, to account for the shadow economy, illegal economic activities, and unpaid work. These components are inherently more uncertain, as they are more difficult to measure accurately.
Overall accuracy
No formal uncertainty estimates are available. However, there are uncertainties in the sources used. The main source for the compilation of the National Accounts is the Working Time Accounts, which themselves integrate a range of data sources. The uncertainty related to this is described in section on accuracy and reliability in the documentation of statistics (WTA). In addition, there is uncertainty associated with the processing of the Working Time Accounts, where several adjustments are made to ensure that the labour input figures are comprehensive and comply with ESA 2010. The main uncertainties in relation to these adjustments concern the shadow and illegal economy as well as unpaid hours, which are based on uncertain sources and assumptions. A decomposition of these contributions can be found in a transition tablel.
Sampling error
Not relevant for these statistics.
Non-sampling error
In some cases, the definitions in WTA do not follow the national accounts' definitions, particularly when the activity-based industry classification in the national accounts deviates from the traditional industry classification. This leads to inter alia the transfer of wages, employment, and hours between industry and trade. For the most recent preliminary year, there is greater uncertainty because the figures from the accounting statistics used for these transfers are not yet available. The structure from the latest available year will be used instead. This can have an impact on the productivity.
Quality management
Statistics Denmark follows the recommendations on organisation and management of quality given in the Code of Practice for European Statistics (CoP) and the implementation guidelines given in the Quality Assurance Framework of the European Statistical System (QAF). A Working Group on Quality and a central quality assurance function have been established to continuously carry through control of products and processes.
Quality assurance
Statistics Denmark follows the principles in the Code of Practice for European Statistics (CoP) and uses the Quality Assurance Framework of the European Statistical System (QAF) for the implementation of the principles. This involves continuous decentralized and central control of products and processes based on documentation following international standards. The central quality assurance function reports to the Working Group on Quality. Reports include suggestions for improvement that are assessed, decided and subsequently implemented.
Quality assessment
When the national accounts were based on the definitions in ESA2010, Denmark's national accounts underwent a major revision in September 2014. This involved a thorough examination and quality evaluation of all levels. In 2024 the national accounts has been revised again.
A reasonable accuracy of the national accounts figures is maintained by balancing the national accounts at a very detailed level.
The inaccuracy of the national accounts figures relates to the inaccuracy of the various sources used. In relation to employment, compensation of employees and hours worked, the combination of primary sources consisting of official statistics based on register data and the use of a coherent framework facilitating cross checks help maintain a reasonably accuracy of the figures. In addition, the conceptual consistency and, over time, the uniform adaptation of the sources contribute to reduce the inaccuracy of the national accounts figures. In particular, the combination of the primary sources into a coherent system in many cases uncovers errors, which therefore are not reflected in the final national accounts.
Quarterly figures for employment, compensation of employees and hours worked are primarily based on quarterly trends of the working time accounts (WTA). The WTA-basis underlying the first quarter edition is a preliminary, unpublished version. Tthe revised quarter editions are based on preliminary, published WTA-versions. Inaccuracy of preliminary versions of WTA as well as the adjustment of the statistics to conform to the national account framework will affect the reliability. However, the juxtaposition in the framework of the national accounts contributes to reduce the inaccuracy.
Data revision - policy
Statistics Denmark revises published figures in accordance with the Revision Policy for Statistics Denmark. The common procedures and principles of the Revision Policy are for some statistics supplemented by a specific revision practice.
Data revision practice
The final statistics are published 3 years after the reference year. At the same time preliminary statistics are published for the two subsequent years. The final year and the first preliminary year are based on the final structural years for the Working Hours Account, while the latest preliminary year is based on a forecast of the Working Hours Account.
The quarterly series are revised on a continuous basis. As a principal rule only quarters in the current year are revised. When new annual data is published the quarterly data is revised to ensure consistency with annual data. At the same time quarters of the current year are revised. The first preliminary estimate for the first quarter is based on a data basis where the first two months of the quarter are based on a preliminary internal calculation of the Working Time Account, while the last month of the quarter is a forecast made in connection with the seasonal adjustment (X13-ARIMA-SEATS). The development of national accounts wages, employment and hours worked follows, as a general rule, the development of the Working Time Account for the non-seasonally adjusted figures.