Expert Meeting on New Labour Market D ata Sources PARIS21 Labour Market Observatory

1. REPÚBLICA DE MOÇAMBIQUE MINISTÉRIO DO TRABALHO, EMPREGO E SEGURANÇA SOCIAL Direcção Nacional de Observação do Mercado do Trabalho Expert Meeting on New Labour Market Data Sources PARIS21 Labour Market Observatory Mozambique Paris, June 2018

2. 1. Labour Market Observatory Background 2. Role and function of LMO 3. Objectives 4. Key sources of information • 5. Key Indicators (KLMIs) 6. Data Audit (Demand and Supply) 7. Outputs 7. LMO Key Challenges

3. Background information • Mozambique population : 27,128,530 inhabitants (51,7% and 48,3%); • Employment Rate: 67,5% (male 68,3 and female 66,2%); • Employment based on area of residence: (urban 55,7% and rural 74,0%); • Unemployment Rate: 21,6% ( urban 27,4% and rural 18,9%); • Level of education versus unemployment: In every 100 economically active persons with secondary school level and more, at least 31 were unemployed; • Labour market information is not properly shared and used to improve policy-making, particularly with regard to demand and supply variables; • Resources are continuously spent on the supply-side with scant regard to the demand-side.

4. The role and function of Mozambique LMO: • In 2006 the Government introduced the Integrated Vocational Training Reform Program (TVET); • The TVET Reform Program chiefly dealt with the need to reverse the prevailing supply-side policy and focus on market demand for skills and thus the importance of the Labour Market Observatory. The National Skills Development Authority and the Labour Market Observatory are key advisory bodies in labour market development policy. The Role of LMO: • Collect labour market data, including but not limited to government policies, private and public investments, school graduates, international best practices etc on: Skills Demand • Information on kills needs and interventions; Skills Supply • Advise government and decision-makers on education and training on market needs.

5. Objectives of LMO • The ultimate goal of LMO is to: • facilitate a better flow of information on employment opportunities with a view to improve the capacity of the government and the private sector to forecast, develop and implement an employment policy based on reliable employment, skills development and dynamic socioeconomic data analysis. • Provide tools that facilitate the development and improvement of employment opportunities through a better labour market regulatory framework and a better match between employment and skills development to create jobs in the private sector, self-employment and other income generating activities.

6. Key Sources of Information • Ministry of State Administration and Public Service; • Ministry of Education and Human Development; • Ministry of Science , Technology, Higher Education and Vocational Training; • Ministry of Mineral Resources and Energy; • Ministry of Trade and Industry; • Provincial Directorates of Labour/Labour Centers ; • National Statistics Institute (INE); • Agency for Investment Promotion and Exports(APIEX); • National Institute for Social Security (INSS) (number of contributors by sector of activity and average wages by sector of activity);

7. Proposed KLMIs Selection of KLMIs was based on three criteria: • Relevance • Data availability • Comparability at international and regional level • For the first phase, 12 indicators have been selected: • Rate of activity (sex, age, active population) • Employment rate (employment/population ratio) • Employment by occupation (sex, self-employed…) • Weight of employment by sector (primary, secondary, tertiary) • Part-time workers (sex, etc.) • Hours of work • Unemployment rate • Youth unemployment rate • Weight of long term unemployment • Unemployment rate by level of qualifications • Underemployment rate • Rate of inactivity

8. Data Audit What needs to be done: Data audit on the demand side, for example: • Change in the stock of job vacancies, • Skills gaps identified by employers among currently employed workforce • Hard to fill vacancies; Turnover of personnel Outcomes • Changes in industry average earnings (%) • Changes in occupational wages (%) • Retirement of workers from the labour force Data Audit on the supply side, for example: • Enrolment/graduation rates at tertiary/TVET; enrolment/graduate Outcomes • Change in employment rate • Proportion of unemployed graduates • Labour market outcomes of graduates

9. LMO Outputs • Quarterly Bulletin A resumé of information on the performance of the main indicators in the economy from key suppliers of labour market data (currently most information is from administrative sources) • Annual Report It develops a structural analysis of major outcomes of employment generation in the economy, reporting on stock of formal employment for the year, compared to previous year, in different sectors and locations (provinces, districts and municipalities). The report makes use of indicators , same used for bulletins. • Data Base Quantitative information (statistical information and socieconomic indicators) and qualitative information (studies and technical reports on labour and skills related matters).

10. LMO Key challenges • Set up and manage a Labour Market Information System. There is a consultancy that is developing our platform . So far ther bulk of information is administrative in nature and it lacks consistency compared to surveys and track-studies. • Develop and publish a national skills and employability reports on regular and recurring basis, electronically; • Develop and maintain a network of statistical data suppliers linked to major sectors of the economy with impact on labour market, smoothing the gathering of periodic information on employment and skills. This is the key challenge in the whole process of improving statisticall systems as at sectoral level capacity weaknesses persist to collect, process and analyse data based on statistical procedures and methodologies. • Systematize statistical information on employment and vocational training; and explore data from the payroll (Folha de Relação Nominal)compiled annually by employers, which is one of the sources to assess the magnitude of the formal sector. • Develop and produce quantitative and qualitative indicators caracterizing the labour market; • Carry out Labour Force Survey (LFS) and Household Budgets Surveys

11. Response to the identified challenges • The challenges elicited some important responses, includingfrom some cooperating partners such as: Support from African Development Bank to acquire IT equipment for data platform that enables production of reports on the structure of the labour market and the economy (database system, content management system); • Recruitment of a labour economist with strong IT component to assist in attaining key deliverables, namely data development, future skills demand and supply, IT development and capacity building (LMO physical architecture); • Capacity building of the Labour Market Observatory staff. • Convening a meeting of the major sources of information to discuss amongst other the digital platform for data processing and reporting, as well as the relevant indicators and secure their commitment to feed the platform.

12. Thank you “Inform and communicate Better on Labour Market” Paris, June 2018