Highlights on the Integrated Labour Force Survey ILFS, 2006

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Highlights on the Integrated Labour Force Survey
(ILFS), 2006
Outline

• Background information

• Objectives

• Key Indicators of the Labour Market (KILM)

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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

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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

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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-

• the informal sector and its magnitude,

• unemployment,

• underemployment,

• child labour and

• time use.

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Key Indicators of the Labour Market (KILM), 2001
to 2006
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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?

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Integrated Labour Force Survey (ILFS), 2006
Key Indicators of the Labour
Market
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KILM 1 Labour Force Participation Rate (LFPR)

• The LFPR measures the proportion of the countrys
• 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

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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
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KILM 1 Trend of LFPR for pop. 15 from 2000/01
to 2006 by sex
LFPR for males has slightly increased
Overall LFPR increased by 1.3 points for the
past 5 years
LFPR for females has increased by 1.9 points
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KILM 1 Trend of LFPR for pop. 15 from 2000/01
to 2006 by Area
LFPR in rural areas slightly decreased
Larger increase of LFPR is noted in urban areas
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KILM 2 Employment to population ratio

• Is the proportion of an economys 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

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KILM 2 Employment to population ratio for
pop.15 by sex (national definition)
There is slight increase for the past five years
Higher increase is noted for female
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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
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KILM 3 Status in employment

• Distinguishes between four categories of the
  total
• employment, i.e.

• Wage and salaried workers (also known as paid
  employees)

• Self- employed workers (non agriculture)

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

• Agriculture

Use

• shows the structures of employment amongst the
  four
• categories

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KILM 3 Percentage of the total employed pop.15
by status (national definition)
Agricultural workers takes a larger share in the
total employment
Share of agricultural workers decreased for the
past 5 years
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KILM 4 Employment by sector

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

• Central and local government

• Parastatal organization

• Agriculture

• Private informal sector

• Private other sector

• Household duties

Use

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

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KILM 4 Percentage of the total employment by
sector 15 (national definition), 2006
Public Sector is the least employer with only
3.0 of the total employed persons
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
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KILM 5 Hours of work

• Gives an overall picture of the time that the
• employed devote to work activities for both-

• Usual hours

• Current hours

20
KILM 5 Average usual hours of work per week on
main activity 15 (national definition), 2006
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
Paid employees and self-employed persons usually
spend more than 40 hours on average working per
week
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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
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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

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KILM 6 Percentage of the total employment 15 in
the informal economy by sex, (national definition)
Males are more employed in the Informal Sector
than females
Share and number of persons employed in the
Informal Sector has almost doubled
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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
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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.

• International strict definition

• Relaxed International definition and

• Tanzania definition

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KILM 7 Unemployment rates

• Internationally, unemployment includes all
  persons who
• during a specified references period (e.g. one
  week) were

• without work i.e. were not in paid employment or
  self employment

• Currently available for work,

• Seeking work.

• However, ILO allows relaxation of definition to
  exclude
• seeking work criterion

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KILM 7 Unemployment rates

• Relaxed International definition includes all
  persons who
• during a specified references period (e.g. one
  week) were

• without work i.e. were not in paid employment or
  self employment

• 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

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KILM 7 Unemployment rates

• Thus, National definition of unemployment
  includes all
• persons who during a specified references
  period (e.g. one
• week) were

• without work i.e. were not in paid employment or
  self employment

• Currently available for work,

• Working but marginally attached to their
  employment

Unemployment Rate-

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

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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

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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
Total unemployment rate decreased
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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
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KILM 7 Unemployment rates and the Gross Domestic
Product (GDP)
Gap between Unemployment rate and the GDP
decreases as the GDP increases.
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KILM 8 Youth unemployment

• Two definitions of youth have been used

• Persons in the age group 15-24 years have been
  used for comparison with other countries and

• Persons in the age group(15-35 years) is in
  accordance with the national definition of youth

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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
Youth unemployment rate decreased
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KILM 8 Trend of Youth (15-35yrs) unemployment
rates (national definition)
Despite the decreasing trend of youth
unemployment rate for females, the female youth
unemployment rate is still higher than for youth
males
Youth unemployment rate decreased
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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

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KILM 8 Percentage of the long term
unemployment to the total Unemployed person 15
(National definition)
There are more females in long term unemployment
than males for the past five years
Long term unemployment decreased for the past
five years
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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

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

• Such person may be occupied in caring for family
  members,

• may be retired,

• sick or disabled or attending school, and believe
  no jobs are available or may simply not want to
  work

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

44
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
Proportion of illiterate persons in the labour
force has slightly decreased for the past five
years
45
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
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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

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KILM 13 Average direct wages and salaries of
paid employees 15 (000) by sex
On average, males earn more than females
The average direct wages and salaries of paid
employees has almost doubled for both male and
females in the past five years
48
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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