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Roundtable on Managing for Development Results Hanoï, 5-7th February 2007

Using Household Surveys to Measure Employment and the Informal Sector in Africa. Roundtable on Managing for Development Results Hanoï, 5-7th February 2007. Jean-Pierre CLING, François ROUBAUD IRD, DIAL http://www.dial.prd.fr. Introduction. A striking paradox:

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Roundtable on Managing for Development Results Hanoï, 5-7th February 2007

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  1. Using Household Surveys to Measure Employment and the Informal Sector in Africa Roundtable on Managing for Development Results Hanoï, 5-7th February 2007 Jean-Pierre CLING, François ROUBAUD IRD, DIAL http://www.dial.prd.fr

  2. Introduction A striking paradox: • Labour is the main source of income in Africa, especially among the poor… • …But employment issues (diagnosis, link to poverty, policies, etc.) are hardly addressed in PRSPs (UNECA). One reason: lack of information (data & analysis).

  3. Lack of data: a consequenceDoes Africa come last or second for youth (15-24) unemployment rate ?

  4. Questionable academic wisdom • High & increasing unemployment rates (esp. Youth) • High rigidities of labor markets • Increasing weight of the informal sector

  5. Introduction I. The state of labour statistics in African countries II. DIAL’s 1-2-3 Surveys III. Some innovative results on African labour markets IV. Using household surveys for monitoring & evaluation Conclusion

  6. I. The state of labour statistics in African countries • Labour market indicators are available in very few Sub-saharan African (SSA) countries. (ILO/LABORSTAT presents unemployment rates for only 10 countries). • When they exist, differences in definitions, coverage, time-period and data sources make labor indicators hardly comparable across countries and across time periods. • Worst, developing countries specificities, particularly in SSA, are not taken into account.

  7. The need for specific surveys on employment & the informal sector: • Traditional labour market indicators need to be enlarged and adapted to less developed countries (esp. Africa). • A regional approach is much needed.

  8. II.DIAL’s 1-2-3 Surveys Identical survey methodology. Internationallly accepted labour market concepts (ILO) and harmonized nomenclature comparable indicators The experience in Africa so far: Surveys carried out simultaneouly in seven main West Sub-saharan African cities (AFRISTAT/NSOs). Continous 1-2-3 survey in Madagascar since 1995. National surveys carried out in RD Congo (2004) and Cameroon (2005) Survey conducted in Bujumbura, Burundi (2006)

  9. The 1-2-3 Survey

  10. 1-2-3 Survey characteristics in Africa Sources : 1-2-3 Surveys, Phase 1, 2001/2003, National Statistical Institutes, AFRISTAT, DIAL, authors’ calculations.

  11. Capacity building: • West Africa (2001-2004) -44 support missions - 7 regional seminars (AFRISTAT, Bamako) • Cameroon (2005-2006) -7 support missions - training seminar (DIAL, Paris) • RD Congo (2005-2007) - 8 support missions - training seminar (AFRISTAT, Bamako) - participation to the ADP

  12. III. Some innovative results about African labour markets Unemployment Average WAEMU unemployment rates (ILO definition) = 11,4 %. 12,5% (Douala) 14,7% (Yaoundé) 15% (Kinshasa) Average unemployment rates according to enlarged definition (including high percentage of discouraged workers) = 16 % 16% (Douala) 18% (Yaoundé) 24% (Kinshasa) LDCs’ specificity: unlike developed countries, unemployment rates increase with education level On average for 7 WAEMU big cities, less than 8% for those who never went to school vs. 17% for those with higher education.

  13. Figure 1: Youth and adult urban unemployment rates Sources : 1-2-3 Surveys, Phase 1, 2001/2003, National Statistical Institutes, AFRISTAT, DIAL. DIAL’s calculations.

  14. Underemployment and employment quality • Working hours : 47,5 hours per week (higher in informal sector) 46h in Douala, 48h in Yaounde and 46h in Kinshasa • Underemployment rate (67% on average in WAEMU); 3 components : - visible underemployment: working less than 35h against their will (14%) (14% Douala; 10% Yaounde; 25% Kinshasa) • invisible underemployment : more than half of occupied active population (55%) earn less than minimum wage (37%-38% Douala and Yaounde; 44% Kinshasa) • unemployed

  15. In WAEMU: 70-80% of employment; In Yaounde: around 60% Figure 2 : Informal sector & employment* in Yaoundé (% of total employment) Informal sector weight *Informal employment = workers without labour contract or wage slip Sources : Enquêtes 1-2-3, phase 1, sept agglomérations UEMOA, PARSTAT(2001-2002), Cameroun (2005), RDC Kinshasa (2004)

  16. IV. Using surveys for monitoring & evaluation • Monitoring indicators (PRSPs) • Use available data to analyse policy impact • Integrate policy concerns into the survey design.

  17. Conclusion: • Mainstreaming employment in PRSPs • Putting in place household surveys to measure employment and the informal sector • Integrating employment surveys in NSDS • Investment in analysis & research.

  18. Merci!

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