CMNT_TITLE

Employment Policy Convention, 1964 (No. 122) - Zambia (RATIFICATION: 1979)

Other comments on C122

Observation

Direct Request

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Articles 1 and 2 of the Convention. Active employment policy and poverty reduction strategy. The Committee notes the replies provided by the Government in September 2011 to its 2010 observation. The Government indicates that it adopted a multidimensional approach to job creation and poverty reduction through the broader policy framework provided by the Sixth National Development Plan (SNDP) for the period 2011–15. The SNDP’s goal is to achieve sustained economic growth and to reduce poverty. Through the SNDP, the Government will seek to implement measures aimed at enabling an environment for job creation by targeting employment generation in both rural and urban areas. Given the strategic importance of employment in national development, the Government resolved to mainstream employment within the macroeconomic policy framework. The Committee also notes the measures envisaged by the Government in the framework of the Decent Work Country Programme (DWCP) 2007–11. These aim, inter alia, to promote employment through labour market measures targeting the informal sector, promote social dialogue, enhance the capacity of employers’ and workers’ organizations to participate effectively in macroeconomic issues, strengthen the regulatory and legislative framework for employment policies, promote productivity and improve working conditions for migrant workers. The Government indicates that the social partners have been involved in consultations on employment policies through the Employment and Labour Sector Advisory Group (ELSAG), the Tripartite Consultation Labour Council (TCLC), the National Social Security Reform Implementation Committee and the Technical Committee on Labour Market Information System. The Committee invites the Government to provide in its next report information on the impact of the active labour market measures taken to promote full, productive and freely chosen employment, particularly within the framework of the Sixth National Development Plan. It also requests the Government to provide information on how employment is being mainstreamed in its macroeconomic policy framework. Please also provide information on the impact of the employment promotion activities carried out under the DWCP.

Sectoral development strategies. Rural sector. The Government indicates that all plans for economic sectors have been designed in a manner meant to maximize employment creation and poverty reduction. The Committee notes that 80 per cent of the rural population is involved in agricultural activities. The Government has prioritized budgetary support to the rural sector. The Government’s strategy to promote full employment in the rural sector focuses on supporting smallholder and out-grower schemes, developing a more efficient input and output marketing system and encouraging the formation of viable farmer organizations and cooperatives. Some 683 billion Zambian kwacha (ZMK) were earmarked for this sector in 2011 and ZMK766.4 billion in 2012 (approximately US$126.7 million and US$142 million, respectively) to promote capacity building and to provide incentives to farmers, thereby resulting in increased exports with high foreign exchange earning potential. The Government indicates that investment and job creation in agriculture are also promoted through creating synergies between large and small-scale producers through institutional arrangements including out-grower schemes like the Zambia Sugar and Kaleya Smallholder Scheme, and through opening up farm blocks such as the Nansanga farming block in the Central Province. The Committee invites the Government to provide information on the impact of the measures taken to promote productive employment and improve the quantity and quality of employment opportunities in the rural sector. It would also welcome receiving information on the involvement of representatives of those working in the rural sector on the development and implementation of rural employment policies.

Manufacturing sector. The Committee notes that the manufacturing sector’s contribution to total employment increased from 1.3 per cent in 2005 to 3.2 per cent in 2008. The Government hopes to continue attracting Foreign Direct Investment in the sector by providing an appropriate legal framework to safeguard foreign and local investment and by enhancing the provision of tax and other incentives. The Committee invites the Government to provide information on the impact of the contribution of the manufacturing sector to employment generation.

Mining sector. The Committee notes that the mining sector constitutes a major part of GDP growth (9 per cent), foreign exchange (70.3 per cent) and formal employment (8.5 per cent). According to the DWCP, the mining sector was badly hit by the global crisis to the extent that almost 10,000 jobs were lost. The Government indicates that in order to create employment in this sector, it has encouraged foreign investment and has established new large- and small-scale mines. The increased investment in the mining sector led to an increase in copper production by 17.7 per cent in 2010. The Committee invites the Government to provide information on the impact of the extractive industries to employment generation.

Article 2. Collection and use of employment data. The Government recalls that the country has a system of collecting, analysing, collating and using employment data. But, this system is not fully developed. The Central Statistics Office undertakes quarterly employment inquiries. The Committee notes that one of the priorities of the DWCP is to create public awareness on labour and employment matters and to enhance decision making. In this regard, the Government has started the process of strengthening the Ministry of Labour and Social Security (MLSS) labour market information system (LMIS) to ensure the availability of reliable and relevant information and user-friendly dissemination of this data. The Committee notes that according to the 2008 Labour Force Survey (LFS), out of the 5,003,871 economically active persons aged over 15 years representing 75 per cent of the working age population, 4,606,846 were reported to be employed (68.6 per cent); 4,095,508 persons (89 per cent) were in the informal economy while 511,338 (11 per cent) were in formal employment. The unemployment rate was 7.9 per cent (397,000 persons) with higher rates in urban areas (18 per cent). The Committee invites the Government to report on the measures taken to improve the LMIS and to enhance the mechanisms to link labour market information to employment policy decision making. It also requests the Government to include in its next report updated statistical data disaggregated by age and sex, and other relevant data concerning the size and distribution of the labour force, the nature and extent of unemployment and underemployment and trends therein.

Measures for workers infected with HIV. The Government recalls that HIV and AIDS pose a major challenge to achieving infrastructural and human development in the country with a prevalence rate of 14.3 per cent in 2010 (decreased from 16.9 per cent in 2005). The Government indicates that the labour market practice has been that employers develop workplace policies based on the ILO code of practice on HIV/AIDS. A study conducted in 2010 indicated that over 500 organizations adopted HIV/AIDS workplace policies. It was envisaged that 520 organizations would have policy frameworks by 2012. The Government indicates that it included a proposed chapter on HIV/AIDS in the Employment Act, which encourages all enterprises to respond effectively to HIV/AIDS in the workplace. The Government is also involved in developing a national HIV/AIDS workplace policy, which is expected to be concluded by the end of 2012. The Committee invites the Government to provide further information on the development of the national HIV/AIDS workplace policy and how it takes into consideration the effects of HIV and AIDS on employment generation.

Youth employment. The Government indicates that a total of 15,566 young persons were trained against the target of 6,000. Some 79,043 young persons were trained in leadership skills. The Government further reports that it provided over ZMK5 billion (approximately US$927,000) in its 2010 budget for the Youth Development Fund, which is aimed at financing youth entrepreneurship initiatives. The Committee notes that according to the 2008 LFS, 14 per cent of the youth labour force (1,479,527 persons) was unemployed. It also notes that one of the priorities of the DWCP is providing more and better jobs for the youth. The Committee requests the Government to supply in its next report disaggregated data on young persons obtaining lasting employment following their participation in training programmes.

Education and vocational training. The Government indicates that education and skills development play a critical role in employment creation and socio-economic development. According to the 2008 LFS, 7.1 per cent of the employed persons (326,651 persons) and 3.4 per cent of the unemployed persons received skills training. In total, 75.8 per cent of the trainees were male while 24.2 per cent were female. The Committee invites the Government to provide in its next report information on the measures taken, in consultation with the social partners, to enhance the education and training system to ensure that education and training courses satisfy and are aligned with the labour market demand for skills in the various economic sectors.

Promotion of small and medium-sized enterprises and women’s entrepreneurship. The Government indicates that it is in the process of developing an appropriate policy framework for promoting small and medium-sized enterprises. Key strategies implemented for this purpose include the enactment of the Citizens Economic Empowerment Act, the establishment of the Empowerment Fund under the Citizens Economic Empowerment Commission (CEEC), the constitution of the Youth Development Fund and capacity building for women entrepreneurs. The Government reports on the implementation of activities that promote and strengthen local trade preference and reservation schemes in public procurement. The Committee invites the Government to include in its next report information on measures taken to support the establishment of small and medium-sized enterprises and their results in terms of stimulating employment. It also invites the Government to include information on the impact of measures taken to promote women’s entrepreneurship.