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

Introduction Rationale of informal sector/employment  Tanzania economy is largely informal, the informal sector has a significant contribution to GDP and employs quite a big proportion of Tanzanians of whom mostly are informally employed  Understanding their magnitude and other characteristics will help the policy planners to understand the situation and plan for betterment of this sector

Integrated Labour Force  It is a household based Survey (private HHs)  Covers the whole country  It is conducted in a period of twelve months

ILFS METHODOLOGY  A three-stage sampling technique was used  The sampling was based on the National Master Sample (NMS) that covers Tanzania Mainland and Zanzibar  A simple random sampling technique was adopted at the first stage of sample design to determine representative samples of villages (140) and EAs (244) in rural and urban areas respectively

ILFS METHODOLOGY  The second stage involved random selection of 80 households in each selected village and 30 households in each selected urban EA  The third stage of sampling which involved random selection of households to form representative samples of 20 and 30 households in each selected village and urban EA respectively

ILFS MODULES  Household Characteristics  Labour Force  Informal Sector  Child Labour  Time Use

INFORMAL SECTOR Questions administered in the informal sector  Type of employment i.e paid employee, self employed (non-agric with and without employees), Unpaid family helper (non- agric.), Unpaid family helper (agric.), On your own farm or shamba  Name and location of the place (establishment)  Type of main production /service produced /rendered by your company /business [ISIC]

INFORMAL SECTOR  Type of enterprise:- Central Government Local Government Parastatal Political party Partnership Registered Non Governmental Organization Religion Organization Co – operative - Registered International/Regional organization Group one

INFORMAL SECTOR  Type of enterprise:- (cont…) Household -Fetching water/ collecting firewood Other household economic activities Co – operative - Unregistered Private own account Private Sector employed Partnership Un-Registered Other private, specify Group two Group three

INFORMAL SECTOR  The number of people paid by working in enterprise on continuous basis  Information on whether the enterprise keeps any written records or accounts  Composition of accounts, i.e 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

INFORMAL SECTOR INFORMAL BUSINESS OWNERS  Time when was the business started  Reasons for conducting the kind of business they operate  The place where they conduct their present business  Information on where the business operated all year around

INFORMAL SECTOR INFORMAL BUSINESS OWNERS (cont…)  Loan access or credit for business purposes in the last 12 months  Source of loan/credit i.e Relative or friend, rotating savings & credit group, co – operative, business association, NGO, donor project, private money lender, middle person/agent, supplier, government institution, bank or financial institution, social security scheme and other sources

INFORMAL EMPLOYMENT Information Collected  Type of main production or service produced or rendered the company or business  Working status  paid employee, self employed (non-agric with and without employees), Unpaid family helper (non-agric.), Unpaid family helper (agric.), On your own farm or shamba

INFORMAL EMPLOYMENT Information Collected (cont…)  Type of work contract  Permanent  Casual Oral Written  On contract  Not applicable  Coverage of social security schemes e.g. (NSSF, PPF, LPF, ZSSF, FETC

Challenges: Data collection  Periodicity of data collection  Can only provide national estimates, estimates of informal sector/employment at lower level is impossible

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

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

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 (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)

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