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

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Observation

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Articles 1 to 3 of the Convention. Formulation and implementation of an active employment policy and coordinated with the poverty reduction strategy. Inclusive consultations. The Committee notes with interest the adoption of the Zambia Decent Work Country Programme 2020-22 (DWCP), which was developed with the participation of a broad range of actors, including workers’ and employers’ organizations. The DWCP includes among its key priorities enhancing economic diversification with a view to creating more and better jobs opportunities for all, particularly young persons, women and persons with disabilities, with a focus on key economic sectors and the rural economy. In this regard, it envisages the adoption of measures to improve the policy environment to facilitate pro-employment growth, such as the adoption of the National Employment and Labour Market Policy (NELMP). The Committee further notes that the DWCP Steering Committee, comprising technical experts from the Government, social partners, and other stakeholders, will be responsible for monitoring the timely delivery of DWCP interventions. Moreover, the Government reports that in 2022 K25.7 million (US$1.6m) per constituency were allocated to the Constituency Development Fund (CDF), 60 per cent of which was allocated to community projects related to youth and women economic empowerment; 20 per cent to secondary school and 20 per cent to skills Development Bursaries. With regard to labour market trends, the Committee observes that, according to the 2021 Labour Force Survey (LFS), the labour force participation rate was 36 per cent (44 per cent for men and 28.3 per cent for women), the employment-to-population ratio was 31.5 per cent (39 per cent for men and 24.3 per cent for women), and the unemployment rate was 12.5 per cent (11.4 per cent for men and 14.1 per cent for women). The Committee requests the Government to provide updated information on the status of the adoption of the National Employment and Labour Market Policy (NELMP). It also requests the Government to provide updated information on the nature and the impact of the specific measures adopted within the framework of the Zambia Decent Work Country Programme 2020-22 (DWCP), as well as of all other active labour market measures relevant to the creation of opportunities for decent, productive and sustainable employment. Moreover, the Committee requests the Government to provide up-to-date information illustrating the situation and trends of the active population, employment, unemployment and underemployment, disaggregated by age and sex. Lastly, the Committee requests the Government to provide concrete examples of the manner in which account is taken of the opinions and experiences of the social partners in the development, implementation and review of employment policy measures and programmes and their coordination with other economic and social policies.

Informal economy. The Committee observes that, according to the DWCP, unemployment and underemployment continue to be a major challenge especially among young persons, women, and persons with disabilities, mainly due to inadequate attention to the informal economy. According to the LFS 2021, 65 per cent of the employed were in the informal economy, while only 35 per cent were in the formal economy. The agricultural sector has the highest share of informal employment (89.2 per cent). Recognizing the difficulties associated to the fact that a very large proportion of the labour force in Zambia is employed in the informal economy, the Committee wishes to stress that employment policies play a significant role in promoting transitions from the informal to the formal economy by addressing the factors that drive individuals and enterprises to operate informally. As such, when properly designed and implemented, they can play a catalytic role in accelerating the transition from the informal to the formal economy, leading to more inclusive, productive, and resilient labour markets by creating an enabling environment that encourages formalization, while also providing targeted support to facilitate the transition process. Specific examples showing how employment policies can promote transitions from the informal to the formal economy include measures aimed at: (i) reducing administrative burden and red-tape; (ii) strengthening and extending social protection as a means to enrol enterprises and their workers; (iii) promoting access to finance and business development services, including access to credit and training, as these are often lacking for informal enterprises; (iv) enhancing labour market placement and intermediation and skills development services; (v) raising awareness and promoting formalization; (vi) tailoring policies to specific sectors and occupations as the informal economy is not monolithic, and informalization patterns vary across sectors and occupations; (vii) promoting dialogue and collaboration among all relevant stakeholders for effective policy formulation and implementation; (viii) monitoring and evaluating policy impacts as this is crucial to assess policy effectiveness in promoting transitions from informality to formality. The Committee therefore wishes to draw the Government’s attention to the possibility to mobilize the potential of recently launched ILO tools such as the Employment Policy Design Lab, which was created as a space to showcase approaches, tools and good country practices that can support policymakers develop and implement more effective employment policies compliant with ILO standards in this subject area. In view of the above, the Committee requests the Government to provide detailed information on the nature and the impact of the programmes and measures implemented to facilitate workers’ transition from the informal to the formal economy, particularly in the agricultural sector.In this respect, the Committee also draws the Government’s attention to the comprehensive guidance provided in the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

Promotion of micro, small and medium-sized (MSME) enterprises. The Committee notes that the DWCP envisages the adoption of measures to review the policy, legal and regulatory framework (PLRF) governing the business development arena as it relates to the informal economy, specifically promoting access to affordable finance and productive resources, including titled land, and creating awareness among target groups of the support services available to them for growth-oriented entrepreneurship. The Government reports that, in 2021, the Zambian Development Agency (ZDA) provided entrepreneurship and enterprise development services to 4,079 MSME, which created 6,334 jobs. The Government adds that the ZDA contributed to the formalization of 172 MSME (57 in the agricultural sector), representing a 23.74 per cent increase to the previous year. In addition, the Business Development Services (BDs) provided support to 4,079 MSMEs, 51 per cent of which were owned exclusively by women, 47 per cent by young persons and 2 per cent by persons with disabilities. In addition, grants were provided to 135 projects (45 per cent for women and 19 for young persons) by the Citizens Economic Empowerment Commission. The Committee wishes to stress that creating a favourable environment for the emergence of sustainable micro, small and medium sized enterprises represents a key component for effective formalization strategies and decent work and productive employment creation. It therefore requests the Government to continue to provide detailed information on the initiatives taken or envisaged to support micro, small and medium-sized enterprises and to promote the creation of sustainable jobs through micro and small enterprises. The Committee also requests the Government to provide information on the status of the revision of the policy, legal and regulatory framework (PLRF) governing business development.

Article 2.Labour market information. The Committee notes from the DWCP, development planning does not achieve required results for key target groups, especially women and those groups of population in vulnerable situations, because it is not adequately informed by the necessary data that would improve design and targeting. In this context, the DWCP includes among its goals enhancing data collection and reporting on labour market disaggregated data by social groups (gender, rural-urban, persons with disabilities and persons living with HIV) for improved labour market analysis of vulnerable groups. In this regard, it envisages the development of the Labour Market Information System and the strengthening of gender sensitive labour market information data collection. Underlining the importance of a labour market data collection system for informed policy-making and determining the best-suited measures to be adopted to attain the objectives of the Convention and to review the efficiency of those measures regularly, the Committee requests the Government to indicate the measures taken or contemplated to improve the labour market information system and to indicate in particular the manner in which collected data are used to formulate, implement and review employment policy measures. It also requests the Government to provide information on the status of the development of the Labour Market Information System.

Sectoral development strategies. The Committee notes the information provided by the Government regarding the projects implemented in the agricultural, aquaculture, agro-processing and mining sectors to address the disparities in levels of employment among provinces as well as between urban and rural areas. The Government refers, among others, to the implementation of the Cashew Infrastructure Development Project (CIPD) with the financial support of the African Development Bank (ADB) to enhance the cashew industry and contribute to economic growth and food security in the Western province. The CIPD will generate approximately 6,000 full time jobs (3,000 of which will be for women in rural areas and 1,000 for young persons), particularly farmers and processors. The Government also refers to the implementation of the Aquaculture Enterprise Development Project, which is aimed at enhancing production and productivity in the aquaculture subsector to promote economic diversification, food security and sustainable employment generation in Siavonga, Chipepo, Bangwelu, Kasempa, Rufunsa and Mungwi. The Government reports that, in the framework of the project, 40,500 have been employed in the aquaculture subsector, 50 per cent of which are women. Other projects implemented include the Zambia Mining and Environmental Remediation Improvement Project (ZMERIP) (2017-22) funded by the World Bank (WB), which includes a subcomponent “Livelihood Program” aimed to provide access to income generation and environmentally safe livelihoods for women and unemployed youth living in areas that were affected by past mining activities. The ZMERIP targets the communities living in Chingola, Kabwe, Kitwe and Mufulira municipalities. Lastly, the Government reports that, according to the monitoring on the performance of MSEME carried out by ZDA in 2021, the manufacturing sector created the highest number of jobs, followed by the agriculture and mining sectors. The Committee requests the Government to continue to provide information on the nature and the impact of the measures taken to promote productive employment and improve the quantity and quality of employment opportunities in the rural, manufacturing, mining and other growth sectors. Noting with regret the absence of information requested in this regard, the Committee also reiterates once again that the Government provide information on the involvement of representatives of persons working in the sectors in the development and implementation of sectoral policies and strategies.

Impact of HIV and AIDS workplace wellness policies. The Committee notes that the Government refers to the continuation of the implementation of the National Aids Strategic Framework (NASF) 2017-2021, which provides a framework for the implementation of evidence-based HIV and AIDS programmes. The Government also indicates the establishment of the legal obligation for employers to adopt a HIV/AIDS policy to provide support and protection to workers living with HIV. The Government adds that, as a result, less cases of discrimination of employees in the workplace due to their HIV status have been recorded.

Education and vocational training. Youth employment. The Committee notes from the 2021 LFS report that, in 2021, 2,033,232 young persons aged 15 to 35 years were in employment (43.2 per cent in the informal sector). Of the total employed young persons, 62.4 per cent were men and 37.6 per cent women. The Committee also that notes that employed young persons whose highest level of education attained was secondary (grades 8–12) had the highest percentage share at 59.6 per cent, while those with no education or that attended up until the nursery had the lowest share of the employed young persons (0.1 per cent). The Committee notes that the DWCP envisages the adoption of measures to improve the development of skills with a view to increasing productivity and employability among young persons, especially in the informal economy, key economic sectors and rural areas. In particular, it envisages the revision of the Apprenticeship Act of 1964 to align it to the labour market dynamics and of the Action Plan on youth empowerment programmes. The Committee notes, nonetheless, the Government’s indication that challenges in the Technical Education, Vocational and Entrepreneurship Training (TEVET) system remain, including high rates of dropouts, the absence of enough learning opportunities, the low participation of the private sector in the provision of TEVET, the mismatch between the technology in the TEVET institutions and the one used in the industry and the slow review of the curricula to match the fast-changing technology. In this respect, the Government indicates that measures have taken to increase access to and participation in TEVET, such as the construction of new trades training institutes (TTIS) and youth resource centers, the introduction of the two-tier system to increase access to skills training and equip secondary school learners with practical skills acquisition and lifelong learning with a view to enhancing their employability. Moreover, a training levy was introduced to promote the participation of the private sector in the provision of TEVET. The Government also indicates the implementation of the Youth Skills Empowerment Programme, which provides entrepreneurship skills to young people to enable them to participate in Constituency Development Fund (CDF) projects. The Committee requests the Government to provide detailed information, including disaggregated statistical data, on the nature and extent of the activities undertaken by TEVET and on their impact. It reiterates its requests to the Government to continue to provide updated information on the measures taken to update and enhance the vocational education, guidance and training system in order to ensure that education and training courses are designed and delivered to meet the demand on the labour market for skills in the various economic sectors. Finally, in the absence of the information requested in this regard, the Committee once again asks the Government to indicate whether the social partners and representatives of groups affected were consulted with regard to updating and enhancing of the vocational education, guidance and training system.