The Informal Sector and Zambia's Employment Crisis

1980 ◽  
Vol 18 (3) ◽  
pp. 411-425 ◽  
Author(s):  
David M. Todd ◽  
Christopher Shaw

Late in 1979 the Zambian Government unveiled its Third National Development Plan which will guide policies until the year 1984, and this implies that problems of unemployment, particularly in urban areas, will be partly overcome by an expansion of self-employment possibilities.Such was the enthusiasm for the new initiative that the absence of reliable information surrounding it was largely ignored. This article attempts to provide relevant data concerning a number of issues which will be vital in implementing any measures to encourage self-employment in the so-called ‘informal sector’ of the Zambian economy. In particular we shall endeavour to quantify the likely flows into the labour force, particularly from the educational system, the possible growth of formal wage employment in urban areas, and the current size and composition of the informal sector. Finally, conclusions are drawn concerning the possible rôle of this sector in absorbing the unemployed in the plan period.

1994 ◽  
Vol 33 (4II) ◽  
pp. 1357-1370 ◽  
Author(s):  
Sabur Ghayur

The informal sector (IFS) is seen as having the potential to adequately respond to the growing unemployment problem in Pakistan. Easy access, and low skill and investment requirements of a variety of activities in this sector correspond well with the stock and annual additions to the labour force and the available financial resources. This sector is still absorbing a large proportion of the labour force in rural and urban areas. It is also contributing significantly towards developing the skill base of the labour force.1 (see Annex Tables I-III.) Bu~ the fact remains that its development is rather haphazard with the result that the potential which this sector offers remains poorly utilised. Firstly, adequate dis aggregated information on this l sector is stilllackillg. This often results in the undertaking of activities, but, without taking cognisance of market conditions and availability of adequate consumer demand. A number of -such activities, hence, face the risk of failure at the outset.. Secondly, there is a lack of disaggregated information on the stock of the labour force and annual additions to it, and also on employment patterns. This affects support activities, if any, as adequate feedback is not forthcoming on market con,ditions, new entrants into the labour market and the unemployed. Availability of disaggregated information is necessary for undertaking support and development activities for this sector.


2014 ◽  
Vol 17 (5) ◽  
pp. 653-672 ◽  
Author(s):  
Nhlanhla Cyril Mbatha ◽  
Joan Roodt

We began with the premise that South African recent migrants from rural to urban areas experience relatively lower rates of participation in formal labour markets compared to local residents in urban communities, and that these migrants are overrepresented in the informal labour market and in the unemployment sector. This means that rural to urban migrants are less likely than locals to be found in formal employment and more likely to be found in informal employment and among the unemployed. Using perspectives from Development Economics we explore the South African National Income Dynamics Study (NIDS) panel datasets of 2008 and 2010, which only provide a perspective on what has happened between 2008 and 2010. We find that while migrants in general experience positive outcomes in informal labour markets, they also experience positive outcomes in formal markets, which is contrary to expectations. We also find that there are strong links between other indicators of performance in the labour market. Earned incomes are closely associated with migration decisions and educational qualifications (e.g. a matric certificate) for respondents between the ages of 30 and 60 years. The youth (15 to 30 years old) and senior respondents (over the age of 60) are the most disadvantaged in the labour market. The disadvantage is further reflected in lower earned incomes. This is the case even though the youth are most likely to migrate. We conclude that migration is motivated by both push (to seek employment) and pull (existing networks or marriage at destination) factors. For public policy, the emerging patterns – indicative and established – are important for informing strategies aimed at creating employment and developing skills for the unemployed, migrants and especially the youth. Similar policy strategies are embodied in the National Development Plan (NDP), the National Skills Development Strategy (NSDS), etc.


2006 ◽  
Vol 2 ◽  
pp. 222-22
Author(s):  
Mariola Tracz

The goal of this article is to take into consideration the role of the basis of entrepreneurship in the educational system. Author gives particular attention to EU educational strategy, which presumes the entrepreneurship is essential skill for young people to function in the knowledge society and on new job markets. The necessity of promoting the view that the entrepreneurship prepares for self-employment was indicated in European field of education. The entrepreneurship is one of five key subjects, by which European educational system, related to EU project on employment and unemployment, is implemented. Furthermore author presents how important the subject is for the personal and social development of students.


2018 ◽  
Vol 41 (3-4) ◽  
pp. 12-24
Author(s):  
Dipak Bahadur Adhikari

Informal sector plays a crucial role in employing a significant part of the economically active population of Nepal. The Nepal Labour Force Survey(NLFS) - 2017/18 has estimated around 62 percent of people to be currently employed in the informal sector. It is estimated that there are 84.6 percent of the currently employed who are informally employed in all industries as compare to formal employment 15.4 percent in Nepal. Employment is the main source of income of poor people which is still considered to be the most effective vehicle to take them out of poverty. People of rural areas are gradually coming to urban areas. So, economic growth and structural changes are increasingly linked to urbanization process. More people will live in urban settlements than in rural areas. Metropolitan cities of Nepal like Lalitpur can offer the lure of better employment, education, and healthcare and they also contribute disproportionately to the economy of the country. However, rapid urban expansion is often associated with poverty and rapid growth of informal sector urban area.


2001 ◽  
Vol 4 (1) ◽  
pp. 172-203
Author(s):  
C. W. Malan ◽  
M. C. Breitenbach

Youth in South Africa are persons of the ages 14 to 35 and constitute a large part of the potential labour supply and economically active population. The youth are also one of the central focus areas of government and receive priority in national development policies. Very little is known about the role of youth in the economy. The purpose of this article is therefore to explore the position of youth in the South African economy. The survey below will indicate that one of the major problems faced by youth in Africa is the inability to establish a sustainable livelihood. Youth constitute 40 to 65 per cent of the unemployed in African countries, and this figure is rising. This requires alternative policies, in addition to the economic growth policies within the Growth, Employment and Redistribution framework. It has become essential that the scope be broadened for a larger range of solutions.


2016 ◽  
Vol 61 (7) ◽  
pp. 1-15 ◽  
Author(s):  
Bogusław Lasocki ◽  
Małgorzata Skrzek-Lubasińska

The article gives an overview of the definitions of „self-employment” and „self-employed” used both by the Polish and international institutions. Authors present a great ambiguity of the terms used. Due to the growing role of self-employment in the national economy authors postulate a modification of the classification of groups of self-employed and unification of concepts defining this category of work. A proposal for definition of self-employment was submitted for the purposes of Polish official statistics. The authors present the scale of self-employment in Poland in the fourth quarter of 2014 resulting from Polish labour force survey.


2019 ◽  
Author(s):  
Eunice Yorgri ◽  
◽  
Leng Hong ◽  

Urban areas are contributing unprecedentedly in modelling the social, cultural, economic, environmental and physical development of the globe as they are perceived as basket of opportunities to the poor. This phenomenon has undoubtedly resulted in the influx of poor migrants particularly in the global south and consequently causing the proliferation of slums. This is indirectly influencing the growth of megacities due to increasing population amidst limited infrastructure. So far, limited research has been conducted into the role of poor rural migrants in contributing to the growth of megacities. The study also attempted to propose sustainable planning strategies in guiding future urban planning. The case study used both primary and secondary data collection methods. In all, 304 questionnaires were administered in April 2017 (Nima=146 and Old Fadama=158). From the study, 46% of the respondents in Nima hail from the Northern part of Ghana and 14% from the Volta Region. On the other hand, 49% of the respondents in Old Fadama come from the Northern part of Ghana and 22% from the Volta Region. Both Nima and Old Fadama have high figures on migrant population which means a fair contribution to the growth of Accra as a megacity. Therefore, spatial equality through a comprehensive, integrated and universal national development(UND) covering all sectors should be employed. Also, economic opportunities upgrading which is essential for slum and rural communities in Ghana should be considered. Further research on how cities in Ghana are planning towards becoming megacities is prudent.


2018 ◽  
pp. 145-172 ◽  
Author(s):  
Gary S. Fields

The purpose of this chapter is to assess the compatibility between theoretical models of the urban informal sector (UIS) and empirical evidence on the workings of that sector in the context of developing countries’ labour markets. The major point is that, although the UIS is an excellent idea which has served us well in the 1970s and 1980s, there is a need in the next round of research to refine the terminology and the models in light of empirical findings which have come to the fore in the interim. Wage employment or self-employment in small-scale units may be better than or worse than employment in the formal sector. This is not a new point: diversity of earning opportunities and other job characteristics within the informal sector has long been noted. But only recently has this view come to the fore.


2021 ◽  
Author(s):  
Getahun Fenta Kebede

Abstract Ethiopia is one of the rapidly urbanizing countries in Africa and rural-urban migration is the major factor in the urbanization process. Migration is selective and rural youth are more likely to migrate to cities than others. However, the capacity of cities to accommodate the massive influx of migrants by providing formal employment is limited. Consequently, migrants remain marginalized and without access to employment opportunities. The majority are pushed into self-employment in the informal sector with few entrepreneurial skills and no access to affordable finance. Besides, though Ethiopia has shown economic growth, the challenges posed by a fast-growing young population has increased urban inequality, making the youth vulnerable. Despite such challenges, harnessing the benefits of the youth bulge and promoting inclusive development through the promotion of entrepreneurship has become a priority area since 1990s. Although improvements have been made, entrepreneurship programs are unable to reach the unemployed youth and those engaged in informal sector. The objective of this paper is to explore barriers that hinder the youth to formalize informal businesses and to start new businesses. The study followed a qualitative approach. Data were collected through key informant interviews and focus group discussions from four cities-Addis Ababa, Adama, Bahir Dar and Hawassa. The findings show that several bottlenecks including politicization of entrepreneurship, lack of understanding of the nature and demands of the youth; weak instructional systems; low levels of service capacity and inefficiency; lack of entrepreneurship education, youth negligence, and corruption hinder entrepreneurship programs and thereby attaining inclusive development in Ethiopia.


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