Tanzania’s Employment Challenge A Presentation to the Development Partners’ Group 8 January 2007

Content 1.Employment Situation 2.Government Objectives and Targets 3.Ongoing Initiatives in Tanzania 4.Growth, Poverty and Employment Nexus 5.The Decent Work Agenda 6.Entry Points for DPG action

Labour Force Survey of 2001 Total population: 32.8 million Labour force: 17.8 million

Employment by Sector 1990/ /01

Government Objectives  MKUKUTA: Cluster 1 (economic growth), goal 1 (sound economic management), operational target 1.2 (reduce unemployment from 12.9% in 2001 to 6.9% in 2010);  MKUZA: Cluster 1 (economic growth), goal 3 (reduce income poverty), operational target 3.1 (reduce unemployment from 7% in 2005 to 4% in 2010

Magnitude of the challenge

Ongoing Initiatives 1.The ongoing integrated Labour Force Survey (results expected during 2007); 2.The national Employment Policy (awaiting approval by Cabinet); 3.Design of a comprehensive Employment Strategy (MoL/UNDP/ILO), in consultation with regional authorities, the private sector, and civil society. 4.The “One million jobs” promise, backed by a budget allocation of 1 billion TSh per region; 5.Elaboration of Tanzania’s first National Employment Report, and launch of the National Employment Week (January 2007); 6.Joint ILO/UNICEF initiative on youth employment; 7.Joint UN programme on agricultural and private sector development for youth employment (ILO, UNDP, FAO, UNIDO and WFP).

The Nexus between Growth, Employment and Poverty Reduction Economic growth Rate of poverty reduction The “employment lever”

The Decent Work Agenda The ILO defines Decent Work “as full and productive employment exercised in conditions of freedom, equity, security and dignity”. The Decent Work Agenda has four pillars:  Employment: the principal route out of poverty is productive work and income;  Rights: any form of employment must observe the fundamental principles and rights at work;  Protection: basic social protection is indispensable to secure employment and income;  Dialogue: workers, employers and government must work together in shaping economic and social policies. At the country level, the Decent Work Agenda is implemented through Decent Work Country Programmes

Decent Work: A Global Goal  2004: The AU Extraordinary Summit of Heads of State and Government on Poverty and Employment adopts a declaratiln and a lan of action on the basis of the DWA.  2005: the UN World Summit Outcome document recognizes the centrality of employment for poverty reduction;  2006: The ECOSOC High Level Segment adopts a Ministerial Declaration on full and productive employment;  2006: the European Commission adopts a communication entitled “Promoting Decent Work for all – the EU contribution to the implementation of the Decent Work Agenda in the world”.  2006: ILO’s tripartite constituents in Asia and in the Americas launch “Decent Work Decades”

Entry points: Policy Level  Recognize the centrality of employment for poverty reduction in development frameworks (MKUKUTA, JAST, UNDAF etc.)  Evaluate all policy and investment decisions in light of their job creation potential, and focus on labour-intensive programmes and value chains;  Create a conducive environment for private sector development and community-based initiatives;  Improve infrastructure.

Entry Points: Institutional level  Establish efficient labour market institutions (employment services etc.);  Strengthen, extend and generalize social dialogue through appropriate laws, rules and institutions;  Extend social protection through an adequate mix of formal institutions, community-based schemes, and cash transfers.  Improve governance in and of the informal economy;  Address market failures, such as monopoly situations.

Entry Points: Micro level (supply)  Invest in people: universal basic education, demand-oriented vocational training, modernized apprenticeship systems, private-public partnerships for professional training;  Facilitate self-employment through entrepreneurship training, micro-finance schemes, better market access, appropriate safety nets, and organization building (associations, SACCOs, shared service cooperatives etc.);  Improve productivity to raise incomes.

Entry points: Micro level (demand)  Invest in manufacturing and agro- processing (bio fuel?) to provide alternatives to small-scale agriculture;  Chose labour-intensive technologies and value chains;  Develop non-traditional sectors, such as the creative industries and traditional knowledge systems;  Focus on local economic development and community-based ventures;  Develop export markets;