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1 7/21/2015 GHANA LIVING STANDARDS SURVEY 6 (GLSS 6) KEY FINDINGS: LABOUR FORCE REPORT 2 7/21/2015 Outline of presentation • Introduction • Current activity status • Employment • Labour underutilization • Inactivity • Summary 3 7/21/2015 Introduction The overall development of a country is based on the production of goods and services. Critical to the production process is the human capital of the country. We need to know how many people are employed, unemployed and economically not active. A Labour Force Survey is yet to be conducted in Ghana. 4 7/21/2015 Objective In order to obtain statistical information on the labour market, the Ghana Statistical Service (GSS) included the labour force module in the GLSS6. The main objective of the survey was to collect comprehensive data based on current activity status and the characteristics of the population aged 15 years and older. Provide up-to-date information for assessing the labour force situation. 5 7/21/2015 Concepts and definitions • Work Work refers to any economic activity performed that contributes to economic production of goods and services. One is considered employed if worked (for at least one hour within the reference period). • Unemployed Refers to persons currently without work and are “potentially” available to take up work: - available but not seeking - seeking but not available - not seeking, not available but want work 7/21/2015 6 Concepts and definitions (cont’d) • Economically active or labour force A person is considered as economically active if he/she was either employed or unemployed; otherwise the person is economically not active. • Labour underutilization A more comprehensive measure than the unemployment rate. 7 7/21/2015 Labour force framework 7/21/2015 8 CURRENT ACTIVITY STATUS 9 7/21/2015 About 8 in 10 of the population 15 years+ are economically active 100 • Males are more 90 likely than females to be economically active. 80 • Those in rural areas are more likely than those in urban areas to be economically active. 88.2 84.9 77.3 79.6 74.7 70 Percent 60 50 40 30 20 17.8 22.7 25.3 20.4 15.1 10 0 Male Female Economically active Urban Rural Total Economically not active 10 7/21/2015 EMPLOYMENT 11 7/21/2015 Three-quarters (75.4%) of the population 15 years and older are employed. 80 81.6 78.3 73.0 70 75.4 69.9 Percent 60 50 40 30 20 10 0 Male Female Urban Rural Total 12 7/21/2015 Activity rate is highest for the 25-44 year olds Urban Age group Ghana Accra Other (GAMA) Urban Rural All Rural Rural Rural Coastal Forest Savannah All 15 - 24 52.3 29.1 42.6 39.7 53.0 64.1 72.6 65.9 25 - 44 89.9 84.5 88.6 87.5 88.8 94.4 92.5 93.1 45 - 64 89.5 80.6 88.1 86.3 89.3 95.4 89.4 92.9 65+ 56.9 33.9 49.1 46.2 52.1 66.0 68.0 64.8 All 75.4 66.0 71.1 69.9 73.9 82.4 83.0 81.6 13 7/21/2015 About 12 million persons 15 years and older were employed Number employed (thousands) Locality type Total Male Female Ghana 12,039.7 5,783.0 6,256.7 Urban 5,861.4 2,773.2 3,088.2 Rural 6,178.4 3,009.8 3,168.5 14 7/21/2015 One-quarter (25.2%) of the employed population had no education and 57.2% had up to BECE. 35 33.2 30 Percent 25 25.2 24.0 20 17.6 15 10 5 0 No education Less than MLSC/BECE MLSC/BECE Secondary or higher 15 7/21/2015 About 68.7% of the employed population were in vulnerable employment 60 50.5 • 78.4% females are in vulnerable employment • 58.3% males are in vulnerable employment 50 46.4 41.9 40 32.5 27.9 30 22.5 20 16.4 13.2 10 6.9 5.5 2.4 • Employees form 22.5% 22.3 6.2 2.9 2.6 0 Male Employees Contributing family workers Female Employers Apprentice and others All Own account workers 16 7/21/2015 Employment by industry 80 71.1 70 64.4 Agriculture Industry 60 Services 48.2 50 47.3 Percent 44.7 41.4 40.9 40 34.0 30 20 18.8 16.8 18.7 17.8 14.4 11.3 10.2 10 0 Urban Rural Male Female All 17 7/21/2015 Workers engaged by the agriculture sector worked for less hours in a week 80.0 69.7 70.0 57.0 60.0 Percent 50.0 48.5 43.0 42.4 40.0 30.0 30.3 24.8 23.2 20.0 10.0 0.0 1-30 hrs 1-40 hrs Agriculture Industry 41+ hrs Service 57.6 18 7/21/2015 Other working conditions Condition Male Female Both sexes Had written contract with employer 38.7 37.0 38.1 Oral/verbal contract 38.0 38.2 38.1 Receive any retirement pension 31.5 26.6 29.9 Trade union available at work place 30.1 26.5 28.9 38.5 18.0 31.6 Paid maternity leave 5.9 9.9 7.3 Both sick and maternity leave 4.4 19.4 9.4 Paid holidays 40.8 37.3 39.6 Any social security 30.5 26.3 29.1 Subsidized medical care 21.2 16.4 19.6 Entitled to: Paid sick leave 7/21/2015 19 LABOUR UNDERUTILIZATION A measure which attempts to provide a more comprehensive view of underutilized labour in the labour force. - Captures mismatches between the demand and supply of labour due to insufficient labour absorption. - Signals situations of unmet need for employment within the population. 7/21/2015 20 What goes into the measurement? *Time-related underemployment *Unemployment * Potential labour force: - actively seeking but not available - available but not seeking - not seeking, not available but want employment 21 7/21/2015 Unemployment rate is 5.2% and higher for females and among urban dwellers 7 6.5 6 • Youth Rate (%) unemployment rate is 5.5 percent (Female=5.7%; Male=5.2%). 5 5.5 5.2 4.8 3.9 4 3 2 1 0 Male Female Urban Rural Ghana 22 7/21/2015 Unemployment rate is highest in Upper East and lowest in Brong Ahafo In Central and Upper West regions, unemployment rates are higher for males than females. Region Western Central Greater Accra Volta Eastern Ashanti Brong Ahafo Northern Upper East Upper West Total Male Female Total 5.1 6.2 5.6 5.5 3.9 4.6 6.9 7.4 7.2 2.9 3.6 3.3 2.5 5.9 4.3 4.6 4.7 4.6 2.5 3.4 2.9 3.2 5.9 4.6 10.5 11.0 10.8 8.8 6.5 7.6 4.8 5.5 5.2 7/21/2015 23 Time-related underemployment One-third (33.3%) of the employed persons are underemployed. Of the underemployed persons, 50.6 percent are self-employed and more than one-third (35.0%) are contributing family workers. Persons engaged in agricultural activities (61.5%) are more likely than those in non-agricultural activities (38.5%) to be underemployed. 24 7/21/2015 Composite labour underutilization rate is 47 percent 60.0 • For more • Pressure on the labour market 51.5 50.0 47.0 42.1 38.2 40.0 Percent comprehensive assessment of inadequate employment. 55.6 30.0 20.0 10.0 0.0 Male Female Urban Rural Total 25 7/21/2015 INACTIVITY 26 7/21/2015 About 3.2 million (20.5%) persons 15 yrs and older are economically not active Sex/ locality 15 - 24 25 - 44 45 - 64 65+ Total 947,254 94,688 80,231 191,903 1,314,076 1,111,363 328,861 168,250 339,154 1,947,628 Urban 1,357,896 301,464 173,135 286,068 2,118,563 Rural 700,721 122,085 75,346 244,989 1,143,141 2,058,617 423,549 248,481 531,057 3,261,704 Sex Male Female Locality Total 27 7/21/2015 Education/training (54.5%) is the main reason for inactivity 80 Percent 70 60 50 68.2 54.5 45.4 40 30 20 10 20.4 14.5 5.6 15.4 12.7 8.8 9.29.49.1 Too old/young Unable to work 5.5 3.1 1.6 6 8.1 2.5 0 Education/training Household duties Both sexes Male Female Retirement Other 28 7/21/2015 Urban dwellers are more likely than rural dwellers to be in school/training 60.0 50.0 57.0 49.8 Percent 40.0 Urban Rural 30.0 20.0 15.4 12.8 17.0 13.6 10.5 10.0 6.9 6.1 5.5 4.1 1.3 0.0 Education/training Household duties Too old/young Unable to work Retirement Other 29 7/21/2015 Summary About 75 percent of the population 15 years and older are employed, majority of whom are engaged by Agriculture (44.7%) and Services (40.9%). About two-thirds (68.7%) of the working population are in vulnerable employment (own contributing family workers). account workers and The working population is dominated by people with little (up to BECE) or no education (82.4%). 7/21/2015 Summary… 30 Most of the working population work under poor conditions (no written contract with employer; low earnings; not entitled to paid leave, social security, etc.) Even though unemployment rate (5.2%) is low, more than one-third of the working population are underemployed. The composite measure of labour underutilization is 47.0 percent. Compared to males, females are the disadvantaged for most of the indicators. There is the need for strategies to transform the economy. 31 21 July 2015 Thank you