TANZANIA, THE UNITED REPUBLIC OF SADC WORKSHOP ON INFORMAL SECTOR AND INFORMAL EMPLOYMENT National Bureau of Statistics, Tanzania and Ministry of Labour

Contents  Introduction Section I: Data collection  The Integrated Labour Force Survey  Informal Sector Module  Informal Employment  Challenges

Contents Section II: Data analysis and interpretation  Informal Sector  Informal Employment

SECTION II

Data Analysis (IS) Informal Sector Tanzania defn of informal sector : Adopted from the 15 th ICLS in 1993 and modified to suit the Tanzania situation (excluding agric.)

Data Analysis (IS) Features of Informal Sector  Is considered as a subset of household enterprises or unincorporated enterprises owned by households  Are not separate legal entities independently of the households or households member that own them.

Data Analysis (IS) Features (cont..)  Are not separate legal entities independently of the households or households member that own them.  Do not have a complete set of accounts  May or may not employ paid labour and the activities may be carried out inside or outside the owners’ home

Data Analysis (IS) Features (cont..)  All or at least some of the goods or services of the business have to be produced for sale  Comprises informal own-account enterprises as well as enterprises of informal employers  Enterprises rendering professional or business services (e.g. doctors, teachers, lawyers, etc) are included if they meet the requirements of informal own-account

Data Analysis (IS) Criteria used to derive the formal or informal sector  Respondents in group one, are considered in formal sector  Those responded group two are in informal sector  Respondents in group three were subjected to further diagnosis…

Data Analysis (IS) Qn. Number of people paid by working in your/this enterprise on continuous basis? None……… Less than 10 (employees) and above (employees).. 3 Don’t know  If the answer code = 1, are considered in informal sector  If the answer code =3, are considered in formal sector Answer code 2 and 4 goes to further probing…

Data Analysis (IS) Qn. In order to be able to monitor the activities of the Enterprise, do you /does your employer keep any written records or accounts? I Don’t know NO YES, Order Book/record Sales book/records Accountancy book Final accounts for Business year  If the answer code = 1 or 2, are considered in informal sector  If the answer code >=3, are subjected to further probing…

Data Analysis (IS) Qn. Do the accounts show all of the following Balance sheets of assets and liabilities, Investment/ withdraw of capital by the Business Owner(s), withdrawals of income by the Business Owner(s), earnings Retained within the Business as saving? YES…………..…..1 NO……….…..…...2 Don’t know……...3  If the answer code = 1, are considered in formal sector  If the answer code >=2, are considered in informal sector

Data Analysis (IS) Magnitude of Informal sector in Tanzania MaleFemaleTotal Main job927,452754,9321,682,383 Secondary job1,121,0631,007,3872,128,450 Total2,048,5151,762,3193,810,833 MalesFemalesTotal

Data Analysis (Informal Emplo) Tanzania defn. of Informal employment (It is still under discussion) Tanzania used a job based concept of Informality (adopted from ICLS 2003) with regard to status in employment and the National definition of informal sector

Data Analysis (IE) Criteria for informal employment:  Contributing family workers (agriculture and non-agriculture)  Own-account workers on own farm or shamba  Paid employees and self-employed workers (non-agriculture, with or without employees) in the informal sector or household production units

Data Analysis (IE) Criteria for formal employment:  All paid employees and self-employed workers (non-agriculture, with or without employees) in the formal sector (defined ealier)

Data Analysis (IE) Formal Employment in Tanzania- Provisional Results MaleFemaleRuralUrbanTotal

END OF PART TWO Thank you for Listening James E. Mbongo National Bureau of Statistics, Tanzania