Transcript Slide 1

Highlights on the Integrated Labour
Force Survey (ILFS), 2006
Outline
i. Background information
ii. Objectives
iii. Key Indicators of the Labour Market (KILM)
Background information
 The 2006 ILFS was the fourth survey of its kind to be
conducted by the Tanzanian government in
collaboration with development partners and other
stakeholders
 The ILFS was implemented on behalf of the
government by the National Bureau of Statistics
(NBS) in collaboration with the Ministry of Labour,
Employment and Youth Development
 This survey was funded by by the government of
Tanzania through Ministry of Planning, Economy and
Empowerment (MPEE), Poverty Eradication Division in
collaboration with development partners
General Objective
 The 2006 ILFS was conducted so as to meet the
monitoring data needs of cluster one of the National
Strategy for Growth and Reduction of Poverty (NSGRP)
or MKUKUTA in respect of growth and reduction of
income poverty
Specific Objectives
 Specifically the survey was to provide up-to-date data
needed by the government and other stakeholders on
human economic activities, and particularly those
related to:i. the informal sector and its magnitude,
ii. unemployment,
iv. underemployment,
iv. child labour and
v. time use.
Key Indicators of the Labour
Market (KILM), 2001 to 2006
Something
wrong with my
labour market?
KILM, 2006 - Questions
• What types of economic activities are people engaged in?
• What is the size and composition of the labour force?
• How many people are without work and are available for work?
• What types of inequalities exists In terms of :• employment by sex?
• earnings?
• education?
• Are earnings keeping pace with cost of living?
• How are youth and women faring in the labour market?
• How many hours do people work and how much do they earn
for this work?
Integrated Labour Force Survey
(ILFS), 2006
Key
Indicators
Labour
Market
of the
KILM 1: Labour Force Participation Rate
(LFPR)
•The LFPR measures the proportion of the country’s
working age population that engages actively in economic
activity, either by working (employed) or not working but
available for work (unemployed)
•An indication of the relative size of the supply of labour
available for production of goods and services in the
country
KILM 1: Labour Force Participation Rate
(LFPR)
Uses:
Development of human resources and in making
projections of the future supply of labour
-Training needs
- Expected working labour force
To understand the labour market behaviour of different
categories of the population
-Youth
- Women
KILM 1: Trend of LFPR for pop. 15+ from
2000/01 to 2006 by sex
91
90
89.8
90.5
LFPR for males has
slightly increased
89.6
88.8
89
88.3
88
87
Overall LFPR
increased by
1.3% points for
the past 5 years
86.9
86
85
2000/01
2006
Male
Female
Total
KILM 1: Trend of LFPR for pop. 15+ from
2000/01 to 2006 by Area
LFPR in rural areas
slightly decreased
92
91
90.8
89.6
90
88.3
88
86.6
86
84
82
80
79.4
78
76
74
72
2000/01
2006
Urban
Rural
Total
KILM 2: Employment to population ratio
• Is the proportion of an economy’s working age population
that is employed
• A person, of a specified age, is considered employed if
during a specified brief period of one week was in: Paid employment (employees) or
 Self – employment (employers, own – account
workers, contributing family workers)
Use:
Provides information on the ability of an economy to
create jobs
KILM 2: Employment to population ratio
for pop.15+ by sex (national definition)
82
80.8
80
79.4
79.2
77.6
78
76.8
There is slight
increase for the
past five years
76
74.4
74
72
70
2000/01
Male
2006
Female
Total
KILM 2: Employment to population ratio
for pop.15+ by area (national definition)
100
86.3
90
Creation of jobs is
declining in rural areas
76.8
80
67.0
70
60
84.0
53.6
50
40
30
20
10
0
2000/01
2006
Urban
Rural
Total
79.2
KILM 3: Status in employment
• Distinguishes between four categories of the total
employment, i.e.
a) Wage and salaried workers (also known as paid
employees)
b) Self- employed workers (non agriculture)
c) Contributing family workers (also known as unpaid
family workers) and
d) Agriculture
Use:
shows the structures of employment amongst the four
categories
KILM 3: Percentage of the total employed
pop.15+ by status (national definition)
Agricultural
workers takes a
larger share in the
total employment
100.0
90.0
84.1
80.0
67.2
70.0
60.0
50.0
40.0
30.0
20.0
10.0
8.4
10.5
6.1
10.9
11.4
1.4
0.0
2000/01
Paid Employees
Self -employed
2006
Unpaid workers
Agriculture
KILM 4: Employment by sector
• Divides employment into six broad groupings of economic
activities:1) Central and local government
2) Parastatal organization
3) Agriculture
4) Private informal sector
5) Private other sector
6) Household duties
Use:
shows the structure of employment amongst sectors,
which can also be used for measurement of progress
towards MDG- Goals
KILM 4: Percentage of the total employment
by sector 15+ (national definition), 2006
Private others
sector, 8.6
Private informal
sector, 10.1
Household
duties, 3.1
Central and
local
government, 2.6
Public Sector is
the least
employer with
only 3.0% of the
total employed
persons
Parastatal
organization, 0.4
Private Sector
Employs more
than the Public
Sector, with
18.7% of total
employed
persons
Agricultural Sector employs more than
75% of the total employed persons
KILM 5: Hours of work
• Gives an overall picture of the time that the
employed devote to work activities for both:-
1) Usual hours
2) Current hours
KILM 5: Average usual hours of work per week on
main activity 15+ (national definition), 2006
Contributing
family
Those who work
on their
members
own farm usually
usually spend
spend
less
than
40
hours
about 40 hours on on
average
average
working working
per weekper week
Own farm, 40
Unpaid, 38
Paid
employment,
57
Self
employed,
55
Paid employees
and self-employed
persons usually
spend more than
40 hours on
average working
per week
KILM 5: Average current hours of work per week on
main activity 15+ (national definition), 2006
Farmers and Contributing family members
spend less than 40 hours on average
working per week
Own farm, 30
Unpaid, 30
Paid
employment,
53
Self
employed,
50
Paid employees
and self-employed
persons spend
more than 40 hours
on average
working per week
KILM 6: Employment in the Informal
Sector
• Gives the ratio between the number of persons employed
in the Informal Sector and the total number of employed
persons
Use:
It shows the structure and distribution of employment
between formal and informal economy
KILM 6: Percentage of the total employment 15+ in
the informal economy by sex, (national definition)
14
Males are more employed in the Informal Sector than females
12
11.5
10.1
10
8
8.8
7.7
Share and number
of persons
employed in the
Informal Sector has
almost doubled
6.4
6
5.1
4
2
0
2000/01
Male
2006
Female
Total
KILM 6: Percentage of the total employment 15+ in
the Informal Sector by area, (national definition)
Urban Informal Sector employs more people
than in rural areas
35
30
27.9
25.5
25
20
15
10.1
10
5
6.4
4.5
2.8
0
2000/01
Urban
2006
Rural
Total
KILM 7: Unemployment rates
• Three definitions of employment and unemployment have
been used in Tanzania since the 2000/01 Integrated
Labour Force Survey in an attempt to reflect the real
labour market situations of the local labour market.
a) International strict definition
b) Relaxed International definition and
c) Tanzania definition
KILM 7: Unemployment rates
• Internationally, unemployment includes all persons who
during a specified references period (e.g. one week) were;
a) without work i.e. were not in paid employment or self
employment
b) Currently available for work,
c) Seeking work.
• However, ILO allows relaxation of definition to exclude
seeking work criterion
KILM 7: Unemployment rates
• Relaxed International definition includes all persons who
during a specified references period (e.g. one week) were;
a) without work i.e. were not in paid employment or self
employment
b) Currently available for work (whether seeking for work or
not)
• But, in real sense both definitions do not suit developing
countries labour market situations since some persons are
marginally attached to their employment
KILM 7: Unemployment rates
• Thus, National definition of unemployment includes all
persons who during a specified references period (e.g. one
week) were;
a) without work i.e. were not in paid employment or self
employment
b) Currently available for work,
c) Working but marginally attached to their employment
Unemployment Rate:-
Unemployment rate is the proportion of unemployed
persons to the labour force (Employed + Unemployed)
KILM 7: Unemployment rates
Uses of unemployment rate indicator:
 Provides the broadest indicator of the Labour market
situation in economies such as measurement of unutilized
labour supply and performance of the economy
KILM 7: Trend of Unemployment rates for
pop. 15+ by sex, (national definition)
Despite the
decreasing trend of
unemployment rate
for females,
the female rate is still
higher than for males
15.0
14.5
14.4
14.0
13.5
13.0
13.0
12.6
12.5
12.0
11.6
11.7
11.5
11.0
10.7
10.5
10.0
2006
2000/01
Male
Female
Total
KILM 7: Trend of Unemployment rates for
pop. 15+ by area, (national definition)
Although urban
unemployment
rate has
decreased but is
still higher than in
rural areas
40.0
35.0
32.6
30.0
25.0
22.6
20.0
13.0
15.0
10.0
11.7
7.9
7.5
2000/01
2006
5.0
0.0
Urban
Rural
Total
KILM 7: Unemployment rates and the Gross
Domestic Product (GDP)
14.0
13.0
12.0
11.7
10.0
8.0
6.7
5.7
6.0
4.0
2000/01
GDP
2006
Unemployment rate (National Definition)
Gap between
Unemployment
rate and the GDP
decreases as the
GDP increases.
KILM 8: Youth unemployment
• Two definitions of youth have been used
a) Persons in the age group 15-24 years have been used for
comparison with other countries; and
b) Persons in the age group(15-35 years) is in accordance
with the national definition of youth
KILM 8: Trend of Youth (15-24yrs)
unemployment rates (national definition)
Despite the sharply
decreasing trend of
youth unemployment
rate for females,
the female youth rate
is still higher than for
youth males
19
18.2
18
17
16.5
16
15
15.4
14.9
14.8
14.3
14
13
2000/01
Male
2006
Female
Total
KILM 8: Trend of Youth (15-35yrs)
unemployment rates (national definition)
18
Despite the
decreasing trend of
youth unemployment
rate for females,
the female youth
unemployment rate is
still higher than for
youth males
17.4
17
16
15.9
15
14
14.1
14.3
13.4
13
12.3
12
11
2000/01
Male
2006
Female
Total
KILM 9: Long term unemployment
•Measures the duration of unemployment (one year or more),
that is, the length of time that an unemployed person has
been without work and looking for work
KILM 8: Percentage of the long –term unemployment
to the total Unemployed person 15+
(National definition)
25
There are more females in long term unemployment than males for the past five
years
21.9
21.8
20
20
17.9
17.5
15
Long term
unemployment
decreased for
the past five
years
13.0
10
5
0
2000/01
Male
2006
Female
Total
KILM 10: Time – related
under employment
• Gives the number of employed persons who worked less
than normal working hours (40 hours) per week and
available for more work
Uses: Reflects underutilization of the productive capacity of the
employed population
 It relates to an alternative employment situation in which
persons are willing and available to engage
KILM 10: Percentage of the time related
under-employed persons to the labour force 15+
(national definition)
Males are more underemployed than females for the past five years
8.0
7.0
7.3
6.5
6.5
6.9
5.7
6.0
There is slight
increase of
under-employed
persons for the
past five years
5.0
5.0
4.0
3.0
2.0
1.0
0.0
2000/01
Male
2006
Female
Total
KILM 11: Inactivity rates
• Refers to those who are not engaged in any productive
activity and are not available for work during the reference
period of the survey
• Reasons for a person to be classified as not economically
active:-
a) Such person may be occupied in caring for family
members,
b) may be retired,
c) sick or disabled or attending school, and believe no jobs
are available or may simply not want to work
KILM 11: Inactivity rates for pop.15+
years by sex
Despite the decreasing trend of inactive rate for females,
the inactive rate for female is still higher than for males
14
13.1
11.7
12
11.2
10.2
10.4
9.5
10
The rate of
inactive
persons has
slightly
decreased for
the past five
years
8
6
4
2
0
2000/01
Male
2006
Female
Total
KILM 11: Inactivity rates for pop.15+
years by area
There is large
decrease of inactivity
rate in urban areas for
the past five yeas, but
the rate is still higher
than in rural areas
25
20.6
20
15
13.4
11.7
10
9
9.2
2000/01
2006
5
0
Urban
Rural
Total
10.4
KILM 12: Education attainment and
illiteracy
• Reflects the level and distribution of the knowledge and
skills base of the labour force i.e. human capital formation
which is essential for development in general
KILM 12: Percentage of illiterate person
15+ in the labour force by sex
Illiterate for female in the labour force is decreasing but is higher than that of males
50
45
41.1
40
36.4
32.6
35
28.7
30
25
23.6
Proportion of
illiterate persons in
the labour force
has slightly
decreased for the
past five years
20.5
20
15
10
5
0
2006
2000/01
Male
Female
Total
KILM 12: Percentage of illiterate person
15+ in the labour force by area
There are more than twice Illiterate persons in the labour force in rural areas as compares to urban areas
45
40
37
35
32.6
35
28.7
30
25
20
15.9
15
12.1
10
5
0
2000/01
Urban
2006
Rural
Total
KILM 13: Average direct wages and
salaries in Tanzanian shillings
• Wages and salaries are substantial form of income,
accruing to a high proportion of the economically active
population
Use: Essential in evaluating the living standards and
conditions of work and life of workers in the economy
KILM 13: Average direct wages and salaries
of paid employees 15+ (‘000’) by sex
On average, males earn more than females
120
110
100
90
80
70
60
50
40
30
20
10
0
106.3
98.5
79
55.7
51.3
40.5
2000/01
Male
2006
Female
Total
The average
direct
wages and
salaries of paid
employees has
almost doubled
for both male and
females in the
past five years
KILM 13: Average direct wages and salaries
of paid employees 15+ (‘000’) by area
On average, paid employees in urban areas earn twice as much as paid employees in rural areas
140
122.3
120
98.5
100
80
69.4
66.4
60
40
51.3
32.2
20
0
2000/01
Urban
2006
Rural
Total
THANK
Y O U !