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 :-

• 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?

• employment by sex?• earnings?• education?

Key

Indicators of the

Labour

Market

Integrated Labour Force Survey(ILFS), 2006

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:

To understand the labour market behaviour of different categories of the population

-Youth

- Women

Development of human resources and in making projections of the future supply of labour

-Training needs

- Expected working labour force

89.8

86.9

88.888.3

89.6

90.5

85

86

87

88

89

90

91

2000/01 2006Male Female Total

KILM 1: Trend of LFPR for pop. 15+ from 2000/01 to 2006 by sex

LFPR for males has slightly increased

LFPR for females has

increased by 1.9% pointsOverall LFPR increased by1.3% points for the past 5 years

79.4

86.6

91 90.889.6

88.3

72

74

76

78

80

82

84

86

88

90

92

2000/01 2006

Urban Rural Total

KILM 1: Trend of LFPR for pop. 15+ from 2000/01 to 2006 by Area

Larger increase of LFPR is

noted in urban areas

LFPR in rural areas slightly decreased

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)

79.4

74.4

77.676.8

79.2

80.8

70

72

74

76

78

80

82

2000/01 2006

Male Female Total

There is slight increase for the past five years

Higher increase is noted for

female

53.6

67.0

86.3 84.076.8 79.2

0

10

20

30

40

50

60

70

80

90

100

2000/01 2006

Urban Rural Total

KILM 2: Employment to population ratio for pop.15+ by area (national

definition)Creation of jobs is declining in rural areas

Creation of jobs is more

noted in urban areas

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)

Use:

shows the structures of employment amongst the four categories

c) Contributing family workers (also known as unpaid family workers) and

d) Agriculture

8.4 10.56.1

67.2

10.9 11.4

1.4

84.1

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2000/01 2006

Paid Employees Self -employed Unpaid workers Agriculture

KILM 3: Percentage of the total employed pop.15+ by status (national definition)

Share of agricultural workers decreased for the past 5 years

Agricultural workers takes a larger share in the total employment

KILM 4: Employment by sector

• Divides employment into six broad groupings of economic activities:-

1) Central and local government 2) Parastatal organization

Use: shows the structure of employment amongst sectors, which can also be used for measurement of progress towards MDG- Goals

3) Agriculture

4) Private informal sector 5) Private other sector

6) Household duties

Private others sector, 8.6

Household duties, 3.1

Central and local

government, 2.6

Parastatal organization, 0.4

Private informal sector, 10.1

KILM 4: Percentage of the total employment by sector 15+ (national

definition), 2006

Agricultural Sector employs more than 75% of the total employed persons

Public Sector is the least employer with only 3.0% of the total employed persons

Private SectorEmploys more than the Public Sector, with 18.7% of 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

Self employed,

55Unpaid, 38

Paid employment,

57

Own farm, 40

Paid employees and self-employed persons usually spend more than 40 hours on average working per week

Contributing family members usually spend less than 40 hours on average working per week

Those who work on their own farm usually spend about 40 hours on average working per week

Self employed,

50Unpaid, 30

Paid employment,

53

Own farm, 30

KILM 5: Average current hours of work per week on main activity 15+ (national definition), 2006

Paid employees and self-employed persons spend more than 40 hours on average working per week

Farmers and Contributing family members spend less 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)

7.7

5.1

8.8

6.4

10.1

11.5

0

2

4

6

8

10

12

14

2000/01 2006

Male Female Total

Share and number of persons employed in the Informal Sector has almost doubled

Males are more employed in the Informal Sector than females

25.527.9

2.84.5

6.4

10.1

0

5

10

15

20

25

30

35

2000/01 2006

Urban Rural 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

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

Unemployment Rate:-

Unemployment rate is the proportion of unemployed persons to the labour force (Employed + Unemployed)

• 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

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)

10.7

12.6

11.711.6

14.4

13.0

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

2000/01 2006

Male Female Total

Total unemployment rate decreased

Despite the decreasing trend of unemployment rate for females, the female rate is still higher than for males

32.6

22.6

7.9 7.5

13.0 11.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2000/01 2006

Urban Rural 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

6.7

11.7

5.7

13.0

4.0

6.0

8.0

10.0

12.0

14.0

2000/01 2006

GDP Unemployment rate (National Definition)

KILM 7: Unemployment rates and the Gross Domestic Product (GDP)

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)

14.3

15.414.914.8

18.2

16.5

13

14

15

16

17

18

19

2000/01 2006

Male Female Total

Youth unemployment rate decreased

Despite the sharply decreasing trend of youth unemployment rate for females, the female youth rate is still higher than for youth males

12.3

14.3

13.4

14.1

17.4

15.9

11

12

13

14

15

16

17

18

2000/01 2006

Male Female Total

KILM 8: Trend of Youth (15-35yrs) unemployment rates (national definition)

Youth unemployment rate decreased

Despite the decreasing trend of youth unemployment rate for females, the female youth unemployment rate is still higher than for youth males

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)

17.5

21.9 21.820

17.9

13.0

0

5

10

15

20

25

2000/01 2006

Male Female Total

Long term unemployment decreased for the past five years

There are more females in long term unemployment than males for the past five years

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)

6.5

5.0

6.5

5.7

6.97.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2000/01 2006

Male Female Total

There is slight increase of under-employed persons for the past five years

Males are more underemployed than females for the past five years

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

10.2

13.1

11.211.7

10.49.5

0

2

4

6

8

10

12

14

2000/01 2006

Male Female Total

The rate of inactive persons has slightly decreased for the past five years

Despite the decreasing trend of inactive rate for females,the inactive rate for female is still higher than for males

20.6

13.4

9 9.2

11.710.4

0

5

10

15

20

25

2000/01 2006

Urban Rural 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

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

23.6

41.1

36.432.6

28.7

20.5

0

5

10

15

20

25

30

35

40

45

50

2000/01 2006

Male Female Total

Proportion of illiterate persons in the labour force has slightly decreased for the past five years

Illiterate for female in the labour force is decreasing but is higher than that of males

15.9

12.1

3735

32.6

28.7

0

5

10

15

20

25

30

35

40

45

2000/01 2006

Urban Rural Total

KILM 12: Percentage of illiterate person 15+ in the labour force by

areaThere are more than twice Illiterate persons in the labour force in rural areas as compares to urban areas

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

55.7

40.5

79

51.3

98.5106.3

0

10

20

30

40

5060

70

80

90

100

110

120

2000/01 2006

Male Female Total

The average direct wages and salaries of paid employees has almost doubled for both male and females in the past five years

On average, males earn more than females

69.4

122.3

32.2

66.4

51.3

98.5

0

20

40

60

80

100

120

140

2000/01 2006

Urban Rural Total

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

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