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 collectionSection I: Data collection

The Integrated Labour Force SurveyThe 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 SectorInformal Sector

Tanzania defn of informal sector :Tanzania defn of informal sector :

Adopted from the 15Adopted from the 15thth ICLS in 1993 ICLS in 1993 and modified to suit the Tanzania and modified to suit the Tanzania situation (excluding agric.)situation (excluding agric.)

Data Analysis (IS)

Features of Informal SectorFeatures of Informal Sector

Is considered as a subset of household Is considered as a subset of household enterprises or unincorporated enterprises enterprises or unincorporated enterprises owned by householdsowned by households

Are not separate legal entities Are not separate legal entities independently of the households or independently of the households or households member that own them.households member that own them.

Data Analysis (IS)

Features (cont..)Features (cont..)

Are not separate legal entities Are not separate legal entities independently of the households or independently of the households or households member that own them.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..)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………............................ 1Less than 10 (employees).... 210 and above (employees) .. 3Don’t know............................. 4

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........................................................... 1NO............................................................................2YES, Order Book/record .......................................3Sales book/records................................................4Accountancy book ................................................5Final accounts for Business year......................... 6

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…………..…..1NO……….…..…...2Don’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

  Male Female Total

Main job 927,452 754,932 1,682,383

Secondary job 1,121,063 1,007,387 2,128,450

Total 2,048,515 1,762,319 3,810,833

Males Females Total11.5 8.8 10.1

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

Male Female Rural Urban Total

2001 8.4 2.9 2.4 19.9 5.6

2006 10.4 3.8 3.0 19.8 7.0

END OF PART TWOThank you for Listening

James E. MbongoNational Bureau of Statistics, Tanzania