1. Emprego e Criação de Empregos em Moçambique L OUISE F OX B ANCO M UNDIAL S EMINÁRIO SOBRE C RESCIMENTO, T RANSFORMAÇÃO E C RIAÇÃO DE E MPREGOS 9-11 DE FEVEREIRO DE 2011, M APUTO, M OÇAMBIQUE

2. Key points  Mozambique is at a very early stage in the labor force transition. Action is needed now to avoid backsliding. But creation of wage and salary jobs will not be enough  To reduce poverty, Mozambique needs policies and programs to support people in creating their own mixed farm and non- farm livelihood strategies.  Low levels of education of the labor force are big constraint, esp. with respect to competitiveness  3 part strategy:  increase investment in labor intensive businesses to absorb entrants with secondary education (labor demand)  develop programs in rural and urban areas to support households to create productive non-farm businesses  accelerate improvements in labor productivity in agriculture (rural and urban areas)

3. Since 2003, data show little change in the structure of (primary) employment

4. Most of the recent change has happened to women, and in urban areas

5. High valued added growth sectors had modest employment growth

6. Primary employment hides story of changes in household livelihoods - multiple activities and sources of income

7. Education determines opportunities. The legacy of civil strife - Mozambique’s labor force is much less educated than its neighbors

8. Tanzania’s employment transition Tanzanian education levels higher in all types of employment Non-farm jobs grew fastest in recent period (av. annual growth)

9. Ghana’s labor force transitioning out of agriculture to nonfarm Percent of Households with HEs by Consumption Quintile

10. Shared growth requires a better educated labor force. Mozambique’s twin challenge: produce more secondary school graduates and make sure more kids complete primary.

11. What policies would support the transition to higher productivity livelihoods?  In urban areas:  Increase the growth of private wage and salary jobs by improving the business environment for labor-intensive sectors (e.g. garments) so that it could absorb up to 15 percent of the new entrants. But do not put all eggs in this basket. (or money)  For most of the urban labor force, introduce programs to support start-ups and improver productivity of self employed (household enterprise) sector  Financial services access combined with financial literacy training, basic skills for those who lack them, apprenticeship for technical skills, creation of suitable markets and industrial workplaces  Orient curriculum in EP1-2 toward these skills so school leavers are better prepared  Urban agriculture is relevant: programs to bring high value food crops to urban consumers

12. What policies could support transition to higher productivity livelihoods?  In rural areas  Support increases in on-farm incomes to bring cash into communities  Actively develop the self-employment (household enterprise) non-farm sector  Increase connectivity (access to markets) and infrastructure  develop household enterprises (same as in urban areas)  develop local market infrastructure, associations