Subnational governments play a critical role in the provision of public services and infrastructure across OECD and EU nations. These entities are responsible for a significant proportion of public-sector employment, highlighting their importance in the overall workforce. However, there has been a notable lack of comprehensive and comparable data regarding the employment characteristics within these subnational governments.
In response to this knowledge gap, the OECD and the European Commission have collaborated to establish the Subnational Public Employment (SUBEMP) Pilot Database. This innovative tool provides valuable insights into subnational public employment across 26 countries in the OECD and EU regions.
This pilot project is part of a broader collaboration with the EU-DG REGIO, launched in 2021, under the initiative “Strengthening Analytical Frameworks and Data on Subnational Government Finance and Public Employment”. In addition to the SUBEMP database, this partnership includes the development of databases on regional and municipal fiscal data (REGOFI and MUNIFI). By addressing these interconnected areas, the OECD and the EU aim to provide robust evidence and deepen the understanding of how subnational public employment relates to fiscal decentralization across OECD and EU countries. The ultimate goal is to empower subnational governments to perform their delegated responsibilities more effectively while ensuring seamless coordination with other levels of government.
The report, Subnational Public Employment in OECD and EU Countries opens by explaining the methodology for collecting subnational public employment data, outlining the key steps in developing the Pilot SUBEMP database, and highlighting important methodological insights gained during the process. It then presents a comprehensive analysis of the current state of subnational public employment across OECD and EU countries. Finally, Chapter 4 delves into the potential applications of the database and proposes the next steps for broadening its scope and utility.
Why the SUBEMP Database Matters?
The SUBEMP Pilot Database was designed to provide granular data on subnational public sector employees. This data serves as a crucial tool for governments to understand the workforce’s structure and effectiveness in delivering public services. The project also aims to identify potential gaps in human resources management at the subnational level, helping shape policies that enhance public sector performance.
The database is the result of a collaborative effort involving 26 countries (including federal and unitary systems) and covers data spanning from 2018 to 2023 depending on each country. This information provides a comprehensive overview of subnational public employment, examining seven key dimensions: gender, age, education, employment conditions, occupation, working hours, and the policy areas in which employees operate (e.g., healthcare, education, and public safety).
Key Findings from the SUBEMP Database
- Staff Expenditure Trends. Staff expenditures represent at least 20% of total regional and municipal government expenditures for the majority of the 35 countries with available data. On average, subnational staff expenditure accounts for 30.3% of municipal budgets and 23.3% of regional government budgets. Education and health sectors dominate this expenditure, with education representing 34% and health 15% of total staff costs in 2021, on average for 32 OECD and EU countries.
- Gender Representation. One of the most striking patterns is the high proportion of women in the subnational public sector workforce, particularly in Nordic countries. Finland, Sweden, and Denmark show exceptionally high female representation—up to 81.7% in Finland. In contrast, countries like Costa Rica, Chile, and Mexico exhibit lower female representation, with municipalities in Costa Rica reporting only 28.8% female employees.
- Demographic Distribution. The database also reveals demographic patterns that vary across municipalities and regions. Smaller municipalities tend to have a higher ratio of public employees per capita, with countries like Finland and Denmark seeing up to 100 public employees per 1,000 inhabitants at the municipal level, while others, such as Italy and Korea, report significantly lower figures.
- Educational Attainment. Educational levels among subnational employees show considerable variation. In countries like Portugal and Costa Rica, a significant percentage of municipal employees hold graduate-level degrees. However, Nordic countries such as Finland, Sweden, and Denmark have much lower percentages of graduate-level education, highlighting differences in training and competency requirements.
- Employment Conditions. The study also delves into employment conditions. Most subnational employees are full-time, though countries like Germany and Italy have a notable percentage of part-time workers. Employment security and benefits play a significant role in many countries, with civil service laws ensuring job security in places like France, Portugal, and Malta.
Methodological Challenges and Innovations
The project faced significant hurdles, from inconsistent definitions of public employment to privacy constraints. However, the OECD addressed these issues by:
- Standardizing Definitions: Developing a taxonomy of public employment to ensure comparability across countries.
- Collaborative Data Collection: Engaging with national statistics institutes and international organizations to harmonize methodologies.
- Enhancing Transparency: Encouraging countries to adopt best practices in data dissemination, such as open-access platforms in Chile and Estonia.
Policy Implications and Future Directions
- Enhancing Subnational Governments’ Effectiveness
The SUBEMP database provides detailed employment data, enabling policymakers to identify and address gaps in the capacity of subnational governments to deliver public services effectively. - Advancing Gender Equality and Workplace Diversity
By offering insights into gender representation, the database helps policymakers promote equal opportunities and foster more inclusive and balanced workplaces at the subnational level. - Broadening Research and Data Coverage
Future updates to the database could include information on outsourced personnel and track trends over time, providing a more comprehensive understanding of subnational public employment and its evolving dynamics.
Conclusion:
The SUBEMP Pilot Database underscores the importance of understanding the subnational public sector’s workforce composition in ensuring effective service delivery. As governments across the OECD and EU continue to adapt and refine this tool, we can expect to see more data-driven policy solutions that enhance public sector performance and responsiveness to the needs of citizens. By shedding light on workforce characteristics, employment conditions, and financial allocations, this initiative is paving the way for a more informed, efficient, and equitable public sector.
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Explore the full report for more information. OECD (2024), Subnational Public Employment in OECD and EU Countries: Takeaways from the SUBEMP Pilot Database, OECD Regional Development Studies, OECD Publishing, Paris.
