STRENGTHENING SOCIAL PROTECTION

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1 STRENGTHENING SOCIAL PROTECTION Comments on Enhancing Employment Opportunities and Employability Background : The Target Group Informal sector workers in remote infrastructure poor areas Children of these workers Unemployed Youth (Educated, unskilled unemployable and not willing to take up available jobs) Disabled Elders By D.L. Kumaradasa Additional Secretary Ministry of Labour Relation & Foreign Employment Effective Policies for Management of social risks Helping the poor and the vulnerable to get better returns to labour through Job creation Equitable access for Jobs Access to adequate training Women According to the labour force survey data majority of the unemployed are living in rural area. Table 01 Sex All Residential Sectors Urban Sector Rural Sector Both Sexes % Male % Female % Labour Market Trends Source: Labour Force Survey 2005 Key Labour market trends and out comes have been discussed quit extensively. How ever, I would like to add an Industry Occupational Matrix in order to understand the demand for employment in the formal sector and another table on demand for employment by main occupational categories both in local and foreign sectors, prepared according to a newspaper advertisement survey conducted by Labour Market Information Unit. The reference period is from Nov to April 2006.

2 Table : 2. Matrix Of Main Occupational Categories & Industries By Selected Sectors (Private, Government & NGO) Industry Main Occupational Category Others 13 Legistrators,Senior Officials and Managers A B C D E F G H I J K L M N O P Q No Total 37 Professionals 13 Technicians and Associate Professionals Clerk Service Workers and Shop and Market Sales Workers Skilled Agricultural and Fishery Workers Craft And Related Workers Plant and Machine Operators and Assemblers Elementry Occupations 11 Management Trainees And Other Trainees Total Industry Classification Source: Labour Market Information Unit, Ministry of Labour Relations and Foreign Employment A Agriculture, Hunting and Forestry B Fishing C Mining and Quarring D Manufacturing E Electricity, Gas and Watter Supply F Counstruction G Wholesale and Retail Trade H Hotels and Resturant I Transport, Storage and Communication J Financial Intermediation K Real Estate, Renting and Business Activities L Public Administration and Defence:Compulsory Social Activities M Education N Health and Social Work O Other Community, Social and Personnal Service Activities P Private House Holds with Employed Persons Q ExtraTerritorial Organizations and Bodies No Industry Not Identified Table : 3. Total Job Demand By Main Occupational Categories Local Sub Main Sectors Foreign Informal Private Government NGO Total Occupation Categories Total Others Legistrators, Senior Officials and Managers Professionals Technicians and Associate Professionals Clerk Service Workers and Shop and Market Sales Workers Skilled Agricultural and Fishery Workers Craft And Related Workers Plant and Machine Operators and Assemblers Elementary Occupations Management Trainees And Other Trainees Total Source: Labour Market Information Unit, Ministry of Labour Relations and Foreign Employment

3 Table 03 shows that there is a high demand for craft and related workers, Plant & machine operators and Assemblers and for other elementary occupations. The highest number of jobs are created in the informal sector. These job are mostly for the target group in question Creating a Flexible Labour Market Creating a flexible labour market is important to encourage more investment to create job opportunities in the formal private sector and for the introduction of new technologies etc. to enhance productivity. Labour laws are rigid. Firing cost are high. Retrenchment of employees is difficult. How ever there are provisions relating to retrenchment in the Industrial Disputes Act. Although the said provisions are not made use of presently by the employers. TEWA deals with retrenchment but under coverage of termination. Even with the present frame work of labour laws in certain sectors retrenchment is taking place at a sizeable volume. Wage setting o There are Wage differentials between public, formal, private and the informal sectors. o Lack of equal opportunities push workers in to the informal sector. o The challenge we face today is to create more employment opportunities to the unemployed in the formal private sector. Therefore, Action should be taken to develop and formalize the informal sector organizations. A survey should be conducted to identify the development needs of this sector

4 Enhancing labour supply. Reduced educational prospects and access to training for children of informal sector workers due to high cost, low perceived benefits, poverty etc. Introduce open schools or night schools and non formal education and training centers. NGOs and INGOs should be encouraged to provide these services in collaboration with the Ministry of Education and the Ministry of Skills Development. The educational and training needs can be identified in the process of developing the informal sector organizations. Employment assistance Centers should be established at DS Division level to provide information, guidance, counseling etc. on vocational training, self employment, paid employment opportunities and to provide other required services in order to empower the job seekers. As there is a high demand for craft related workers in the foreign labour markets, training opportunities should be organized including language and other soft skills etc. to prepare the unemployed persons for foreign labour markets. ( See the Annexure on foreign employment mismatch )

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