1 ise workshop – tanzania, 27 sep – 02 october 2009 informal sector employment and informal...
TRANSCRIPT
1ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Informal sector employment and
informal employment in South Africa
Yandiswa Mpetsheni
Executive Manager: Labour Statistics
Statistics South Africa
28 September 2009
2ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Presentation Outline
• Objective of the presentation
• Sources of informal sector employment in South Africa– October Household Survey– Labour Force Survey – Quarterly Labour Force Survey
• Survey of the employers and self-employed
• Informal employment
3ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Objective of the presentation
To discuss how informal sector employment and informal employment are measured in South
Africa
4ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Sources of data and periodicity
1. October Household Survey (OHS) 1994 – 1999 (annual)
2. Labour Force Survey (LFS) 2000 – 2007 (March, September)
3. Quarterly Labour Force Survey (QLFS) from Jan 2008 to date – Quarterly frequency
4. Survey of Employers & Self-employed (three year frequency)
5ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Scope and coverage
• Surveys household based
• Coverage: 30 000 dwelling units
• Reporting levels: National and provincial
6ISE Workshop – Tanzania, 27 Sep – 02 October 2009
October Household Survey (OHS)
7ISE Workshop – Tanzania, 27 Sep – 02 October 2009
October Household Survey
• Formal/Informal sector definition was based on registration of the business entity.
• Question used to compute informal sector employment was as follows:
– Do you consider your work/business to be formal or informal
8ISE Workshop – Tanzania, 27 Sep – 02 October 2009
October Household Survey
•1994 – 1996 : formal/informal distinction only for employers and self employed persons.
• 1997 – 1999 : same questions asked of everyone employed
OHS definition of the informal sector was based on the registration of the business entity
9ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Challenges with OHS definition
•Registration concept not clear for some respondents
•Definition difficult for employees who did not know if the businesses they were employed in were registered
• Self- perception question was used to measure the formal/informal sector employment and thereby there was no objective criteria.
10ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Labour Force Survey(LFS)
11ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Labour Force Survey
Formal/Informal self-perception plus the following questions:
• Size: Asked of all employed • From 2000: UIF, Location• VAT registration
LFS used the self-perception question on the informality of the business to measure the informal sector
12ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Challenges with LFS definition
• Self- perception question was used to measure the formal/informal sector employment.
• Employees did not always know if business they were working in was registered or not.
• The registration concept was not clear as it included any registration (eg medical associations, VAT, etc)
13ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Quarterly Labour Force Survey (QLFS)
14ISE Workshop – Tanzania, 27 Sep – 02 October 2009
QLFS
• Informal sector comprises:– Employers, own-account workers and persons
working unpaid in their household business ( where the business is not registered for VAT or income tax)
– Employees (not registered by their employers for income tax and working in establishments of less than 5 employees)
15ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Employed
Employers; Own-account; Working unpaid
in hhold business
Registered for VAT or Income tax
No
Informal sector
Employees
Income tax deducted by employer
No
Size of establishment less than 5 employees
Yes
The informal sector in the QLFS
16ISE Workshop – Tanzania, 27 Sep – 02 October 2009
What informed the choice of objective measure
• Need to be clear of what registration comprised (VAT registration and income tax registration)
•Consistent with the establishment register
• Need to use an objective criteria rather than self perception in defining the informal sector.
17ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Survey of employers and the self-employed (SESE)
18ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Survey of Employers and the Self-Employed
Two-stages:
1. LFS questionnaire (2001, 2005) - All employed persons
2. QLFS questionnaire (2009 and every 3 years thereafter)
3. SESE questionnaire:
Persons operating a business(es) with or without a partner
AND the business not registered for VAT (annual turnover of R1 mil or more)
• Report on individuals and the characteristics of their businesses
19ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Questions in SESE
• Location of the business premises
• Set of accounts
• Access to finance
• Employees (paid/unpaid, earnings)
• Expenditure
• Profit/turnover
20ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Informal employment
21ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Informal employment
• First published in 2008
• Done on quarterly basis through the QLFS
22ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Definition
• Informal employment comprises
•all persons employed in the informal sector,
•all persons helping unpaid in a household business,
•all persons employed in private households and
• employees in the formal sector who are not entitled to any of the following benefits: medical aid from the employer, contribution to pension by employer and a written contract.
23ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Informal Employment
Informal sectorEmployers, own-account,
employees
Informal employment*
Helping unpaid in their household business
Employed:
Market production activities
Employed in private households
: - Entitled to medical aid or
- Contribution to pension - written contract
* Excludes employers and own-account workers who are in the formal sector that do not have either medical aid or pension plans.
Formal Sector Employees
No
24ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Questions asked
• Pension or retirement fund
• Paid leave
• Contribution to UIF
• Medical aid access
• Written contract
25ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Informal employment results
Apr-Jun 2008 Jan-Mar 2009 Apr-Jun 2009
Employed (Both sexes) 100.0 100.0 100.0
Formal employment 59.4 61.2 62.3
Informal employment 35.8 33.6 32.7
Other employment 4.8 5.1 5.0
Employed (Women) 100.0 100.0 100.0
Formal employment 55.6 57.9 59.2
Informal employment 41.2 39.1 37.8
Other employment 3.3 3.0 2.9
Employed (Men) 100.0 100.0 100.0
Formal employment 62.4 63.9 64.8
Informal employment 31.6 29.3 28.5
Other employment 6.0 6.8 6.7
26ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Apr-Jun
2008Jan-Mar
2009Apr-Jun
2009
Total employment 100.0 100.0 100.0
Formal sector (Non-agricultural) 68.6 69.3 70.0
Informal sector (Non-agricultural) 17.0 15.8 15.8
Agriculture 5.8 5.4 5.3
Private households 8.6 9.5 8.9
Formal and Informal Sector employment
27ISE Workshop – Tanzania, 27 Sep – 02 October 2009
Questions?