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EMPLOYMENT & LABOUR

          

 


According to the Quarterly Labour Force Survey conducted by the Department of Census and Statistics, the labour force at the end of the third quarter of 2000 was estimated at 6.7 million, showing a labour force  participation rate of 49 per cent. The share of employment in labour force continued to increase, reaching 92 per cent in 2000 compared with 84 per cent in 1990. The private sector remained the major contributor to employment generation as its economic activity grew faster.  Manufacturing, agriculture, trade and hotels, finance, insurance and real estate and construction were the major areas of employment generation. According to the Board of Investment of Sri Lanka (BOI), about 41,000 new employment opportunities were generated through BOI approved projects in 2000.
 

Employment in the public sector increased in 2000 by about 36,000 (3.2 per cent) mainly due to recruitment of university graduates and increases in Samurdhi workers, defence personnel and teachers. Meanwhile, employment in semi-government institutions increased marginally by about 1 per cent to around 300,000 in 2000. However, the share of public sector employment in total employment further decreased to 13.6 per cent in 2000 from 14.4 per cent in 1999. This declining trend in public sector employment is attributed to faster growth in employment opportunities in the private sector and on-going restructuring programmes in public sector institutions.

The share of the public sector (government and semi-government) in total employment has been declining due to the ongoing privatisation and restructuring programmes of semi-government institutions and a faster expansion of the private sector. This trend reversed somewhat in 1999. According to the Labour Force Survey of the Department of Census and Statistics, the share of the public sector in total household employment had declined from 21 per cent in 1990 to 14 per cent in the third quarter of 1999. However, the share of public sector employment increased to 14.5 per cent during the first three quarters of 1999, compared with 14 per cent during the first three quarters of 1998. According to the annual employment survey conducted by the Central Bank, employment in the public sector covering the central government, provincial and local governments and semi-government institutions such as corporations and boards. is estimated at 1,120,000 persons in 1999, an  increase of 3 per cent over the previous year. Of the total increase in 1999 amounting to around 29,224, nearly 10,000 were graduates recruited under the Graduate Training Programme. Employment in government institutions in 1999 was 822,000, an increase of 4 per cent from 1998. Employment in semi-government institutions declined by about 1 per cent to 298,000 in 1999.

Unemployment
The unemployment rate, which had declined from 15.9 per cent in 1990 to 8.9 per cent in 1999, further declined to 7.7 per cent in 2000. The female unemployment rate still remains higher than the male unemployment rate, but it is declining at a somewhat faster rate. Unemployment was high among youth with higher education, reflecting the need for educational reforms. 

Unemployment Rate by Age Groups, %

                                                     (Percentage of Labour Force)
Period Age Groups
15-19  20-29  30-39  40-49  50 & above  All
1990 40.1  30.3  8.4  4.0  2.1  15.9
1994 40.7  24.5  7.6  2.5  1.2  13.1
1995 60.5  31.7 8.0  2.9  0.4  12.3
1997 34.0  21.9  5.2 1.7  0.6 10.5
1998(a)  27.4  19.8  5.3  2.1 0.7  9.5
1st Quarter 27.3  21.7  5.5  3.3  1.0  10.6
2nd Quarter 25.4  20.7  5.3  1.6  0.5  9.5
3rd Quarter 30.3  18.9  4.4  1.6  1.1  9.1
4th Quarter 26.6  17.8  6.0  2.0  - 8.8
1999(b)  29.0  18.8  4.5  1.4  1.0  8.8
1st Quarter 25.5 20.2  4.0  1.1  0.8  8.6
2nd Quarter 29.5  17.3  4.2  1.7  1.4 8.5
3rd Quarter 32.0  18.9  5.3  1.3  0.8  9.1

(a) Average for four quarters
(b) Average for three quarters
Source : Department of Census and Statistics

Unemployment Rate by Level of Education, %

                                                     (Percentage of Labour Force)
Period No Schooling Grade 0-4/ Year 1 -5 Grade 5-9/ Year 6-10 GCE(O/L)/ NCGE GCE(A/L)/ HNCE and Above All
1990 3.3  5.1  17.2  23.9  29.4  15.9
1994 2.6  5.0  13.0  19.6  23.7  13.1
1995 1.8 3.4  12.8  18.4  20.0  12.3
1997 2.0  2.4  10.6 15.9  19.3  10.5
1998(a)  0.7  2.4  9.4  14.4  17.6  9.5
1st Quarter 0.1  2.9  12.0  15.8  14.9  10.6
2nd Quarter 0.4 1.9  9.1  14.4  18.9  9.5
3rd Quarter - 2.5  9.2  12.9  16.9  9.1
4thQuarter 2.3  2.4  7.4  14.4  19.6  8.8
1999(b) 0.5  1.9  8.4  12.9 17.4  8.8
1st Quarter 0.1 1.7 8.0 12.4  19.6  8.6
2nd Quarter 1.1 1.7 8.2 12.5  15.8 8.5
3rd Quarter 0.3 2.2  9.1  13.8 16.9  9.1

(a) Average for four quarters
(b) Average for first three quarters
Source: Department of Census and Statistics

Foreign Employment
Foreign employment placements secured through registered sources were around 166,000 in 2000 compared with around 178,000 in 1999, reflecting a temporary slow down due to two Ramazan festival periods in 2000. The Sri Lanka Bureau of Foreign Employment (SLBFE) has continued to provide a number of support facilities for registered migrant workers and their families. The share of
employment placements through licensed agents increased to 76 per cent in 2000 compared with 68 per cent in 1999.

According to the Sri Lanka Bureau of Foreign Employment (SLBFE), employment placements abroad rose significantly from 160,000 in 1998 to 178,000 in 1999. The total number of Sri Lankan workers abroad is estimated to be around 788,000, of whom nearly 90 per cent were employed in countries in the Middle East. Saudi Arabia, Kuwait, and United Arab Emirates were the principal countries, which attracted workers from Sri Lanka. In recent years, more than 150,000 Sri Lankan workers have departed each year for foreign employment through registered sources. During the 1994-1999 period, nearly 882,000 foreign employment placements were secured for Sri Lankan workers. Foreign employment placements in 1999 were 178,052, an increase of 18,236 compared with 159,816 placements in 1998. As earlier, the majority of placements were in the category of unskilled labour (inclusive of housemaids) which accounted for nearly 73 per cent of total placements in 1999. Housemaids accounted for about 49 per cent of the total foreign employment placements in 1999. The majority of placements in 1999 (65 per cent) consisted of female workers.

Foreign Employment
Item 1995 1996 1997 1998 1999(a)
Employment Placements  172,489  162,576  150,283  159,816  178,052
By Source
Licensed Agents 118,692  115,446  115,043  112,539  120,218
Other 53,797  47,130  35,240  47,277  57,834
By sex           
Males 46,021  42,112  37,552  53,867  62,949
Females 126,468  120,464  112,731  105,949  115,103
By Manpower Category
Housemaids 113,860  110,479  99,429  85,349  87,191
Skilled Labour  27,165  24,447  24,578  31,787  37,145
Unskilled Labour 23,497  21,735  20,485  34,109  43,153
Other 7,967  5,915  5,791  8,571  10,563
Licensed Employment Agencies (Year End) 477 464 520 385 500
Number of Training Centres
By SLBFE 12 15 15 17 20
By Private Agents - 22 22 28 29

(a) Provisional
Source : Sri Lanka Bureau of Foreign Employment