Tanzania Jobs Diagnostic
Tanzania has just entered a phase of growing dependency rates that will put pressure on job creation so that the larger number of dependents do not fall into poverty. However, the new millions of jobs that will be needed in the next decade is only...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/170991552463583254/Jobs-Diagnostic-Tanzania http://hdl.handle.net/10986/31384 |
| Summary: | Tanzania has just entered a phase of
growing dependency rates that will put pressure on job
creation so that the larger number of dependents do not fall
into poverty. However, the new millions of jobs that will be
needed in the next decade is only part of the challenge. It
is important to create better jobs. An economy that produces
plenty of good jobs is the most direct way to continue the
trajectory toward lower poverty rates. Challenges to
creating more and better jobs for the poor and vulnerable
groups stem from both labor demand and supply issues. On the
demand side, large firms in a few sectors dominate. Possibly
because of that dominance, micro and small firms find it
difficult to grow and provide new jobs. Firms’ relatively
restricted market access may also be a crucial factor in
explaining comparative low productivity and employment.
Trade expansion and a well-connected economy would address
issues of comparative low-productivity and employment. On
the supply side, urban areas have high unemployment. In
rural areas, underemployment is on the rise. The fall in
unemployment rates may be largely explained by discouraged
workers withdrawing from the labor force. Where there is
willingness to work—like with women and young
workers—disparities in the access to quality employment is
an obstacle. Finally, the rise in educational attainment was
insufficient to address labor market challenges likely due
to the fall in the quality of education. The objective of
the Jobs Diagnostic (JD) is to identify the main challenges
to job creation and to improve the quality and inclusiveness
of employment. The JD is a data-driven exercise that looks
at macroeconomic and demographic factors, as well as labor
supply and demand to pinpoint the main constraints for a
jobs-rich growth path. The fact that JDs are data-driven
allows for international comparisons based on standardized
datasets.The JD covers three main areas: macro and
demographic trends, labor supply, and labor demand. The
first section looks at the relationships between employment
growth, labor productivity, and economic growth to set the
macro context to later examine labor supply and demand. The
second section cover labor supply. It aims to identify
trends in labor supply to understand the population’s needs
for employment, the unemployment challenges,
underemployment, and waged and informal employment. These
trends include working-age population (WAP), labor force,
and inactivity. Once identified, international comparisons
are based on a global harmonized household database
(International Income Distribution Dataset— ‘I2D2’). The
labor supply section in JDs employs a set of harmonized
variables that are comparable across countries and time. The
third section covers labor demand. It aims to identify the
links between sectoral productivity, size, age, and other
characteristics to assess the constraints for employment
growth, productivity, and wages. Firm-level datasets such as
Enterprise Surveys, (which allow for some international
benchmarking), or censuses of enterprises are used to do
this. The demand for labor is derived from the production of
goods and services by entrepreneurs to meet the demand for
products in an economy. The analysis also highlights who
gets the jobs created in the economy and what variables
determine earnings and employment. A JD analyzes a country’s
economic transformations in relation to other experiences.
There are three important aspects of such transformation:
Structural transformation (the movement of labor across
sectors); Spatial transformation (or “urbanization”; the
movement of labor across places); and Organizational
transformation (or “formalization”; the movement from
informality to formal work, and from self to waged
employment). A JD also identifies the characteristics of
individuals that can access jobs in the economy, and those
who are left behind. |
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