AN ILO RESEARCH PAPER ON



                              By Siham Ahmed
                     TUCTA, Dar es Salaam, February 2007

List of tables………………………………………………………………………………………ii
Study Objectives and Methodology……………………………………………………………iv
1.0. Background/Introduction                                          1
     1.1Global Youth Employment Trend                                 1
     1.2 National Employment Trends                                   2
        2.1 Labour Force                                              4
        3.1     Youth Employment                                      6
        3.1.1   % of youth employed:                                  6
        3.1.2   Sectors of youth employment                           7
        3.1.3   Youth Employment by Level of Education                7
       3.1.4    Type of youth employment:                             7
       3.1.5    What affects employment levels                        7
4.0 THE CONTEXT OF YOUTH UNEMPLOYMENT                                 8
     4.1     Global Unemployment and Underemployment Trends:          8
     4.2     Levels of Youth Unemployment in Tanzania                 8
     4.2.1   Youth Employment Situation:                              8
     4.2.2   Rural Youth Employment                                   9

     4.2.3 The macro-economic context:                                9
     4.3.1 (Un) employment rate:                                      10
     4.3.2 % of youth economically active and unemployed:             11
5.0 UNDERSTANDING EMPLOYMENT CREATION                                 11

     5.1       The Meaning of Decent Work:                            11
     5.2.      Unemployment and Employment Creation in Tanzania:      12
        TANZANIA                                                      13
        6.1 Microeconomic National Employment Youth Policy            13
        6.1.1 Policy related issues:                                  14
        6.1.2 Youth related organisations:                            14
        6.1.3 Policies which affect youth:                            14
        6.1.4 Details of youth-specific policies and programmes:      15
        6.1.5 How successfully have they been implemented             15
        6.2 Trade Unions Policy on Youth Employment:                  15
        6.2.1 Fundamental Elements of the Trade Union Youth Policy    16
        6.2.3 Promotion of Labour Dignity Principles for the Youth    16
        6.2.4 Programmes of Action of the Trade Union Youth Policy:   16
        6.3    Youth Unemployment-The Gender Dimension                16
        6.3.1 Gender Issues in Employment in Africa:                  16
        6.3.2 Issues for Consideration from a Gender Perspective:     17

         6.3.3   Gender Policy:                                                   18
         6.4     Trade Unions Policy on Gender and Development:                   18
         6.5     Gender Relation Challenges:                                      19
         6.6     Gender Relations within the National Labour Market:              20
         6.7     Gender Mainstreaming:                                            20

    EMPLOYMENT AND POVERTY REDUCTION                           20
7.1      The meaning of Decent Work:                                              20

7.2     Employment As The Sustainable Way Out Of Poverty                          21

8.0      YOUTH EMPLOYMENT CHALLENGES IN TANZANIA                                  22

       9.2 Decent work in the global economy: The ILO approach:                   30
       9.2.1 Trade union organizing is a route out of poverty:                    30
       9.2.2     Trade union organizing in the informal economy                   31
       9.2.3     Collective bargaining and social dialogue help reduce poverty:   31
       9.2.3     Collective bargaining and social dialogue help reduce poverty:   31
       9.2.5     Trade union self-help initiatives against poverty                32
10.0     The Formal/Informal Economy Employment Continuum:                        33
11.0     Concluding Remark                                                        34

List of Tables

Table 1:   Employment Population Numbers and Ratios by Age, Sex and Area 2000/01………………………………………..36
Table 2:   Graphical Presentation of Total Youth Population 15 -24 Years by Age Group
           and Current Employment Status 2000/01…………………………………………………………………………………..36
Table 3:   Total Youth Population 15 -24 Years by Age GROUP, Sex and Current Employment Status 2000/01……………….37
Table 4:   Graphical Presentation of Total Youth Urban Population 15 – 24 Years by Sex and Current Employment Status
Table 5:   General Employment Status of Youth 15 -24 Years by Definition: Labour Force Survey Average, 2000/01………….37
Table 6:   Graphical Presentation of General Employment Status of Youth 15 – 24 Years by Sex: 1990/91 and 2000/01 Labour
           Force Survey…………………………………………………………………………………………………………………….38


ALMPs              -         Active Labour Market Policies
ALRN               -         African Labour Research Network
BVT                -         Baraza La Vijana Tanzania
GDP                -         Gross Domestic Product
HIV                -         Human Immunodeficiency Virus
ICT                -         Information and Communication Technology
ICT                -         Information Communication and Technology
ICT’s              -         Information Communication Technologies
ILFS               -         Integrated Labour Force Survey
ILO                -         International Labour Organisation
LBT                -         Labour- Based -Technologies
LDC’s              -         Least Developed Countries
MDG’s              -         Millennium Development Goals
MSME’s             -         Micro, Small Medium Entrepreneur
NGO’s              -         Non Governmental Organisations
NSRP               -         National Strategy for Growth and Reduction of Poverty
PRSP               -         Poverty Reduction Strategy Paper
PRSP               -         Poverty Reduction Strategy Programme
SIYB               -         Start and Improve Your Business
SME’s              -         Small Medium Entrepreneur
TUCTA              -         Trade Union Congress of Tanzania
VETA               -         Vocational, Education Training Authority


While the proportion of young workers is steadily increasing among the working populations throughout
the world, unemployment, underemployment, exclusion and discrimination continue to plague the youth,
worldwide. For the industrialized countries, unemployment figures are unacceptably high compared to
the actual economic development levels and research shows that young people make up a
disproportionate percentage of the total workforce in these countries. Hence, the transition of the youth
from school or higher learning institutions to the world of work has become increasingly difficult and
budget cut-backs in social security systems are adding to their burden.

While the ILO estimates that sixty million young people are globally unemployed, in Tanzania, existing data
suggests that the gap between youth and adult unemployment rates is even wider than in industrialized
countries. Young women, migrant youth and disabled people are mostly affected by unemployment

Millions of young people are excluded from jobs and their numbers are increasing each year. The
average youth unemployment rate in Tanzania increased by 11 percent from 1991 to 2001. The rate of
youth unemployment is higher among women compared to young men. The deterioration of young
workers’ jobs leads to low pay, part-time and temporary jobs with very little social protection. These
atypical forms of work are multiplying and respond to the increasing demand for flexibility. Millions of
children also continue to be exploited as workers. As rising unemployment among the youth has
currently gained a lot of attention in the realm of development; a deep commitment and concerted action
of the Trade Unions is required, to develop and implement effective programs and policies on youth
employment at national and international level.

This report provides information on the Rural Youth Unemployment in Tanzania; and examines the role
of Trade Unions in addressing the issue. The study also draws major conclusions and policy
recommendations for the government, Trade Unions and other key stakeholders. This report is an output
of a study initiated and funded by the ILO/ACTRAV Geneva, in collaboration with the ILO Office Pretoria-
South Africa.

This study invariably incurs many debts. My most sincere gratitude is extended to the ILO’s Bureau for
Workers Activities for their financial support and Senior Regional Specialist on Workers Activities African
Region Dr. Mohammed Mwamadzingo for the technical support, advice and encouragement. I would like
to extend my sincere thanks to all members of African Labour Research Network (ALRN) who took part
in similar study under this project. A special word of thanks goes to the ILO Area Office Dar es salaam
for their logistic support and assistance. Last but not the least, I would like to thank Mr Beda Ngalapa
who on my behalf prepared and presented papers on Rural Youth Employment to the ILO Workshops

Finally this report will make valuable information for TUCTA and its affiliates on the whole issue of rural
youth employment, which will assist them to come up with appropriate measures to address the


The main aim of the study is to identify effective policies and interventions to combat youth
unemployment and exclusion. The overall objectives of the study are:
    to enable selected national trade union centres to adopt policies towards youth employment,
       with special emphasis on rural areas;
    to formulate policies as guidelines for trade unions in discussions with relevant institutions aimed
       at creating employment for young women and men; and
    to devise strategies for the benefit of governments, employers and other national and
       international development actors in order to overcome loopholes in current rural youth
       employment policies.

The researcher for this study based in Tanzania, undertook a desk study approach to the assignment,
using variety of available data and information regarding the topic in question. Consultations were also
done with Unions’ officials, and some information was collected during the workshop on Youth
Unemployment organised by ILO and the Ministry of Labour, Employment and Youth Development.

The findings in this report are based on an in-depth study of available literature and documentation on
the topic.

According to the terms of reference for the study, the main tasks to be reported in the country study
include the following:

a.    An analysis of the existing macroeconomic employment policy framework in general and those
      governing youth in particular – youth and labour market policy, gender policy, small and medium
      enterprise policy, social protection policy, pro-poor policies related to the informal economy,
      cooperative development and any other local development initiatives

b.    An analysis of available data and studies in the country and in selected sectors, including GDP
      data, population censuses, labour force, household and establishment surveys and wage data.
      Employment characteristics and focus on recent trends in the size and structure of the labour
      force. Trends in real wage rates in rural and urban areas and for different categories, such as
      skilled and unskilled labour, men and women; pattern of labour migration; and relationships
      between poverty, youth unemployment and underemployment.

c.    Discuss the role of trade union in supporting young workers through:
        Education and training, their full participation at all decision-making levels, and the
           integration of young workers’ issues within the trade union movement;
        Establishment of a youth forum within trade unions for the purpose of developing and
           implementing policies on young workers issues and as a platform for action by young
           workers themselves; and
        Facilitation of exchange of information and experiences on trade union action on young

d.    Identify steps undertaken by union towards organising young workers. These steps include to:
         Strengthen capacities of unions, providing proper and adequate services and encourage
            young workers to participate at every union level;
         Undertake comprehensive research within the trade unions to determine the levels of
            membership, representation in leadership structures, and the services that trade unions
            extend to members, which are of direct benefit to young workers;

         Ensure resources are made available for young workers activities, with staff to implement
          policies and carry out activities;
         Follow policy of gender parity when carrying out young workers activities, and ensure that
          they are properly serviced through organising relevant activities; and
         Provide the possibilities for young workers to exchange information and network among

e.   An assessment of the obstacles to employment creation for young workers, with special
     emphasis on the rural areas.

f.   An analysis demonstrating the role of trade unions, youth employment and Decent Work Country

g.   Analysis and appraisal of policy responses in terms of the strategies to be developed for
     employment creation that reduces youth unemployment and underemployment, especially in the
     rural sectors.


Tanzania has experienced strong economic growth over the past few years, but this has not
automatically led to the creation of a significant number of quality jobs. The reasons for this duality are
currently being looked at in more depth, but there are several assumptions and possibilities that can be
explored. The obvious assumption is that the number of job seekers has risen steadily over the years,
and an increased aggregate will show little if any impact in relative terms. Of the yearly influx onto the
labour market of 550-700,000 new job seekers, only 5 – 7 % is absorbed by the formal sector. In
addition, the demand for labour does not grow in a 1:1 relationship as output grows: old technology may
be replaced with modern equipment, and production becomes less labour intensive. A third possibility
may be linked to the limited (internal) supply of skilled labour, with skilled workers from neighbouring
countries absorbed in the local labour market although these numbers may not be significant enough to
skew national unemployment figures. A freeze in public service jobs coupled with the growth of the
informal sector has led to the livelihoods being earned through ways and means that are difficult to
capture in national statistics.

Employment statistics are available from the two major Integrated Labour Force Surveys: 1990/91 and
200/01. A major increase in the size of the economically active population between the two surveys is
the first marked difference to note. In 1990/91 the total labour force in Tanzania was 13,495 million; in
200/01 it had increased to 16,915 million. Agriculture has a share 81% of the total 16.9 million employed.
The remaining private sector is second at 17% with private informal being the largest sub- sector, at
8.5%. Manufacturing is the fourth – biggest employer with 179,000 persons employed, corresponding to
only 1.1% of the total employment. Yet manufacturing contributes with a share of 8.4% of GDP. Overall
40% of children aged 5 – 17 years are engaged in economic activities

Unemployment stood at 2.3 million people (1.3 million women and 1.0 million men) equivalent to 12.9%
of the labour force.    The employment to population ratio (the population of the target population that
is employed) is 76% nationally. This ratio is lower in urban areas (58%) than in rural areas (81%).

From the statistical point of view there are a number of issues that contribute to the worsening
employment situation. First, the country’s total labour force has increase in the past decade by 3.5
million people, and this aggregate will increase further as the number of school leavers and new entrants
to the labour market increases. Second, the measurement of unemployment is, in itself, a complex task
in Tanzania (REPOA 2003). The lack of employment opportunities in rural areas is reflected as
underemployment rather than unemployment, subsistence farming employs a significant amount of the
total labour force, even though work is typically organised at the household levels, among family
members, and with a resulting low income yield. This in turn makes unemployment appear as though it
is an urban phenomenon: similar opportunities to engage in subsistence farming do not exist in the
urban setting.

The youth constitute about 21% of the total population. The government of Tanzania recognize problem
of youth unemployment as most critical among the problems facing the youth. In an attempt to address
youth employment problem the government has articulated youth employment initiatives in its policies
and programme, to mention just few are the PRSP 1 (Poverty Reduction Strategy Paper 1- URT 1998),
The Tanzania Development Vision (2025) – (URT 1999). The NSGRP (National Strategy for Growth and
Reduction of Poverty – MKUKUTA – URT 2005) acknowledge that unemployment is worse among the
youth; hence Cluster I of NSGRP (Growth and Reduction of Income Poverty) stresses development of
affirmative action to create opportunities for youth…. Other policy address youth unemployment is
National Employment Policy, Youth Development Policy and National Employment Creation Programme.

Apart from government policies, Trade Union movement in Tanzania has their own policy and strategies
to address youth problem related to employment and their participation in trade union work.
There are various challenges as regards to youth employment, the most notable one being that of
employability – extent to which the youth can be employed or absorbed. Youth find it difficult to join both
the formal and informal sector. Various difficulties are associated with employability and the access to
employment opportunities among the youth. Such problems include acquisition of education and training
required by the labour market, institutional barriers to labour market entry, as well as the transition from
the school system to the competitive job market. Lack of access to financial and productive resources for
youth to move onto self- employment in the formal and informal sectors. The main characteristics of
theses challenges could be mentioned as:
     A large pool of unskilled or semi-skilled youths
     A growing pool of educated youths who can not be employed due to lack of requisite skills and /
        or can not create self employment
     A disproportionate size of female youths who can not find decent employment or create decent
        self employment opportunities
     Youth employed as temporary workers and/ or as casual labourers; jobs not decent as well.

It is to those challenging dynamics and their responsive targeted interventions addressing to the critical
youth employment situation, policy and practice requirements in Tanzania, with specific reference to the
rural areas and their consequential relationships with the urban centres that the paper addresses. The
discussion further intends to highlight the role of trade unions, in terms of what they do and are able to
assist young people within the rural informal economy to create their own employment for income
generation through decent work efforts and activities. The last part appraises employment policies
responding to and creating strategies for poverty alleviation by dealing with the serious issue of
inadequate conducive environment to promote rural youth employment in the country. We apply, as it
were, the trade union approach in the understanding of employment creation and decent work to
generate income through labour dignity.


Based on the findings the following general recommendations should be made;

     Labour- based –technologies should be promoted as they carry the highest potential in terms of
       generating new jobs for unskilled or semi- skilled workers in rural areas where a large majority of
       the population including youth are based. LBT equally serve as a conduit for the transfer of skills
       and knowledge; promote the use of local resources and existing capacities.
     Improving opportunities to earn a livelihood in non- farm activities may equally appeal to youth,
       steaming the rural– urban migration flow
     Restructuring the financial system to make access to financial service more broad based
       (reaching SME’s and rural areas)
     Improve the business environment for a broad range of investors including MSME’s


A large and perhaps growing number of unemployed youth is one of the most daunting problems
faced by developed and developing countries alike. On average, and almost everywhere, for every
one unemployed adult, two young persons find themselves without a job. The social distress
caused by this situation is well known. The long-term effects of youth joblessness are equally
important. The unemployment spells over a worker's life cycle are related to the ease of transition
between school and work. Furthermore, it is disappointing to observe that the unprecedented
expansion of investment in youth education in many regions of the world is not being matched by
higher employment levels for this population group.

More than 1 billion people today are between 15 and 25 years of age and nearly 40 per cent of the
world’s population is below the age of 20. Eighty-five per cent of these young people live in
developing countries where many are especially vulnerable to extreme poverty.

The large numbers of young women and men who are not working in the country represent a big
global group of would be small scale producers with serious vulnerabilities, due to severe
economic and social uncertainty. Lengthy duration of unemployment and underemployment in their
early life can have serious long-term socio-economic consequences, which in turn, impair their
future employability and compel them to lead a life cycle of poverty. In a way, an inability to find a
job creates a sense of social exclusion and discrimination among the youths who may be attracted
to illegal activities, irresponsibility and ‘crime’ that leads to social insecurity and ‘inviting’
punishment from law enforcers, as it were.

1.1     Global Youth Employment Trend

Global youth unemployment is skyrocketing. The ILO estimates that 88 million young people
throughout the world are unemployed. Over the last decade the number of young people seeking
employment has been increasing. In 1993 the global youth unemployment rate was 11.7 percent.

Today it has reached 14.4 percent. In a number of countries women are for more likely to be
unemployed that men. Unemployment is high in countries with large youth population. In the
Middle East and North Africa there is an acute problem with 26 percent of young men and women
unemployed. In Sub-Saharan Africa the figure is 21 percent.

Another dimension is that, although youth unemployment across the world is alarmingly high, the
figures themselves say little about the nature of work for young men and women. For a good
number of youth the problem is as much as underemployment as unemployment. Young people
make up the bulk of word’s working poor. The ILO estimates that 130 million young people earn
less than US $ per day, though the United Nations world Youth Report (2003) calculates a far
higher figure of 238 million.

The majority of young men and women have found informal economy to be their big employer
where actually they work for unacceptably long hours, in jobs which are lowly paying with poor
quality. In Africa as another example 93% of all new jobs are available in such a unprotected work.
In Latin America, wages in the informal economy are at best half of those in formal sector.

Tens of millions of children are forced to work instead of going to school. An estimated 246 million
children work as child labourers. In this process they are trapped to fall into low quality jobs when
becoming adults. According to UNICEF nearly 70 percent work in precarious and dangerous
condition mines with chemicals or heavy machinery. In Haiti young women working as domestic
servants are particularly vulnerable to sexual abuse and beatings from their employers. Children
are regularly trafficked forced into debt bondage and prostitution. India still has the biggest number
of child workers in work as agricultural workers, domestic servants, textile workers and stone

Young men and women are far more likely than their older colleagues to be exposed to lack of
social and legal protection. Their access to freedom of association and collective bargaining is
severally compromised. Employed on short-term contracts or with no contracts at all, most leave
their protection behind at the factor gates. Millions of young people in developed and developing
countries are engaged in temporary and part time jobs. In Europe, young men and women Italians,
French and Swedes face rates of involuntary part time work over 50 percent. Young women in
particular carry the burden of the insecure labour market confronting widespread discrimination in
education and jobs. Poverty and prejudice robs many girls of the opportunity for a primary
education. HIV and Aids is also having a devastating impact on school enrolment as children have
to accept the dirtiest and most dangerous work to maintain their family survival.

In the last two or more decades, Africa has been confronted with a multidimensional crisis with
several symptoms including drought and famine, floods, wars, HIV/AIDS and various endemic
diseases, and widespread poverty. Underlying all these is the phenomenon of unemployment
which to some observers, is at the core of the problems of the African sub-region (Sarr, 2000). With
respect to employment creation, it was recognized at the Copenhagen World Summit of Social
Development that a major challenge is the design of comprehensive, integrated and coherent
employment policies to facilitate the attainment of objectives. An integrated employment
programme, it was stressed, should comprise four essential elements (ECA 1999):

a)   A policy component;
b)   A mechanism for operationalising, monitoring and coordinating the programme;
c)   An integrated and interconnected set of employment-promoting project proposals; and
d)   Proposals for target groups expected to be the beneficiaries of the programme.

The current situation of employment in Tanzania has much to be desired. Employment sattistica
are available from the two ILFS (i.e. 1990/91 and 200/2001). A major increase in the size of the
economically active population between the two surveys is the first marked difference to note.
Labour force has been growing by an average of 3% per annum. According to the integrated
Labour Force Survey 2001/2002 total Labour Force (age 15 years and above) has increased from
11.2 million in 1990/91 to 17.8 million in 2001. This implies that 650,000 – 700,000 new people
have been entering the labour market each year. Wage and salary employment has been
expanding at a much lower rate estimated at some 30,000 – 40,000 people per annum. That mean
the demand for labour is lagging behind the supply for labour. That leaves the majority of the new
entrants into the labour market with no option other than either being unemployed or entering the

labour market through self employment largely in agriculture and informal economy. Needless to
say here that a good number of new entrants into the labour market are young men and women.
Out of 17.8 million labour forces 15.5 million are employed including self-employment.
Urban labour force is 3.4 million and those of rural are 14.4 million.


According to 2002 Census the current population of Tanzania is estimated at 34.6 million, with
48.8% (16.9 million) males and 51.2% (17.7million) females, and is made up of approximately 6.9
millions households. Average household size has decreased from 5.7 in 1990 to 4.9 in 2000. The
rural population is estimated at 79% of the total population. Out of the total population, 33.6 million
people were in Tanzania Mainland comprising 16.4 million males and 17.2 million females and
984,625 people in Tanzania Zanzibar of which 502,006 were females and 482,619 were males.

Labour force has been growing by an average of 3 per cent per annum. In 1999, it was estimated
to be 16,006,178. Over half of the Labour force is in the age group 15 - 29 and around 80 per cent
lives the rural areas

About 82 per cent of the employed working age population are engaged in agriculture. Most of
them work on small holdings as self employed or unpaid family workers. Although those working
primarily as paid employees are few, involvement in sporadic wage employment is common.

The remaining, private sector is the second at 17%, with private informal being the largest sub-
sector at 8.5%. The private sector has become more important, reflecting the liberalisation efforts,
and the number of people employed in the formal private sector has more than doubled since the
late 1990’s.The informal sector which excludes agriculture in rural areas has been expanding
quickly following the economic reforms and is considered a growing source of employment. On
average, an informal sector operator makes a monthly income which is comparable to the monthly
earnings in the formal private sector and often much higher than the wages paid by government to
its low-skilled workers.

Manufacturing is the 4th biggest employer with 179,000 persons employed corresponding to only
1.1% of the total employed. Yet manufacturing contributes with a share of 8.4% of GDP. Overall
40% of children are engaged in economic activities..
The formal sector comprises the civil service, parastatals and private firms and accounts for about
6 per cent of the employed population. 2.5% of the total employed work in government/ public

Urban and rural sectors face different types of employment problems. In urban areas, outright
unemployment is high, especially among the youth. There is a continuing rural-urban migration
trend, reflecting not only the attractive wage rates in urban areas, but also the limited formal
employment opportunities in rural areas

Judging from the historical trend, employment could grow at 3.0 - 3.5 per cent per year as long as
the economy grows at over 4 per cent per annum. In terms of absolute numbers, an additional
240,000 - 280,000 jobs per year could be generated for the working age group. The absolute
number of unemployment is unlikely to be reduced even if employment grows as high as 3.5 per

cent a year. The perceived joblessness could be worsened especially in urban areas and among
young people where the concentration of unemployment is likely to be intensified.

According to the government reports, the prospects for employment growth vary widely by sector.
For the formal public sector, employment is expected to be at best stagnant. Employment in the
formal private sector on the other hand, is expected to increase faster if the investment climate will
continue to be good. It has been growing at around 9 -10 per cent. However, even if the formal
private sector keeps growing at 9 - 10 per cent employment will increase only by 50,000 - 60,000
per year, which provides opportunities for barely 10 per cent of the yearly new entrants. If the rural
population and economy continue to grow at previous levels, one can expect employment growth
in the range of 2.5 -3.0 per cent. The informal sector is expected to generate around 100,000 new
jobs per annum.

Most of the Tanzanian population will continue to earn their livelihood on rural farms. Although
agricultural employment is likely to keep pace with rural population growth, the quality and quantity
of these opportunities will depend on the level of the rural sector development as a whole.

The scope for job creation in the formal pubic sector is limited. In contrast, economic reforms have
shown positive effects on growth in the formal private sector. These reforms need to be continued
to enhance faster growth.

An improvement in the quality of primary and secondary schools is critical for enhancing
employment prospects. Various kinds of training are needed to reduce the skill mismatch problem.
This can be done by streamlining existing training programmes and improving them to ensure that
training is relevant to the needs of the labour market.

The country’s economy (measured by GDP) has grown from 3.3% in 1997 to 4.9% in the year
2000, and 5.6% in 2001, and macroeconomic performance has responded positively and
consistently to on-going economic reforms (PHDR 2002). Inflation has fallen from an average of
29% in 1990 -94 t0 4.5% in 2002, and the domestic savings (as a percentage of GDP) increased
from 1.6% to 5.9% over the same time period (PHDR 2002). Foreign investment in-flows have
increased from US$ 20 million to US $ 165 million in the past decade.


According to the 2000/01 ILFS, two definitions have been used, the standard definition which
narrows the extent of unemployment and the Tanzania definition which widens the scope of
unemployment. These definitions therefore give different employment results, however in this study
Tanzania definition will be used through out the report.

The results of the 2000/01 Integrated Labour Force Survey revealed that economically active
population is 17.8 million (8.7 million are males and 9.08 million are females) this is an increase of
6.5 million or 58% compared to 1990/91 findings. The employment to population ratio has also
increased from 70% to 76% in the last 10 years, indicating a growing labour force. The annual
growth rate of labour force stand at 5.8% equivalent to 650,000 new labour force entrants into
labour market each year. Out of the total economically active population 15,521,229 were
employed, while 2,306,349 were unemployed. From the results, total unemployment rate was 12.9

percent. Unemployment rate for females was 14.2 percent and that for males 11.6 percent. On the
other hand total underemployment rate stood at 6.1 percent, that for males 6.8 percent and for
females 5.5 percent.

The urban labour force is about 3,425,135 persons of whom 1,653,152 are males and 1,771,984
are females. The labour force for the rural area is about 14,402,443 persons of whom 7,086,558
are males and 7,315,884 are females.

In general terms there were noticeable increases in the number of employed in the private sector
over the decade, especially in urban areas. The ILFS 2000/2001 shows that approximately 2.5% of
the total employed work in government /public institutions. Employment in the public sector
declined between 1990 and 2000 as a result of privatisation of public entities and Structural
Adjustment Programme which particularly affecting urban areas.

There has been a large increase in the number of self-employed (without employees) and unpaid
family helpers, and a significant decrease in the number of self employed with employees
indicating difficulties in sustaining small enterprise, and the increased reliance on family members
to act as unpaid labour in increasingly expensive time.

3.0     Defining the Youth and Employment Categories in Tanzania

Young women and men are not a homogeneous group and they should not be considered as such.
They have different needs, capacities and expectations and are engaged in a wide range of
different employment settings in the country, be they permanent, full-time or part-time work, as well
as casual, temporary or seasonal engagements. These forms of employment may provide entry
points for young workers into the labour market. Unfortunately, there are also too many young
workers who do not have access to decent work. A significant number of youth are
underemployed, unemployed, seeking employment, between jobs or working unacceptable long
hours under informal, intermittent and insecure work arrangements, without the possibility of
personal or professional development.

In Tanzania, both the National Youth Development Policy (revised draft: 2007) and the Trade
Union Youth Employment Policy (2004) define the youth in line with the United Nations (UN)
definition of youth, which has it that a youth is ‘a boy or girl in transition from childhood to
adulthood’, though all the three policies differ in the duration of the transition. To the UN, the
transition is between 15 to 24 years, to the national policy it is 15-35 years and while the unions
accept the UN definition they tend to adopt the 18-35 age years. Such various age groups
packaging and numbering have noticeable differences with regard to the magnitude of youth
employment, unemployment and legality issues in entry points to labour markets and other
responsibilities in the country. Nonetheless, our discussion will use and/or infer to all of them where
the need and meaning require them, while the national policy categorization is taken as a general
definition for the aggregate age group of the youth in the country. Further, throughout the paper,
the terms youth, young people and young women and men are used interchangeably to mean the
people between the 15-35 age group. Henceforth the basic definitions with regard to youth age
groups and employment as understood by the national Employment Policy are as outlined

     Youth:
      Implicit in the National Employment policy is the understanding that a youth is a person in the
      transition period from childhood to adulthood between 15 and 35 years,

     Employed Persons:
      The employed persons comprise all economically active persons above the age of 14, who
      during a specified reference period were either at work performing some work for (i) in cash
      payment or kind or (ii) in self employment performing some work for profit or family gain,

     Under employment :
      Underemployment refers to all persons in paid or self-employment, whether at work or not at
      work, involuntarily working less than the normal duration of work determined for the activity,
      who were seeking or available for additional work during the reference period characterized by
      low income, underutilization of person’s skills, low productivity.

     Unemployment:
      Unemployment is defined as a situation of total lack of work of an individual. It can be viewed
      as an enforced idleness of potential wage earners or self employed persons that are able and
      willing to work, but cannot find work.


According to 2000/01 ILFS youth employment is 4,166,620 persons and youth unemployment as
823,909, a rise in unemployment of up to 377,557 youths which is about 85 percent.
The figure shows that, unemployed female youths have almost doubled.

Out of the total employed population in Tanzania of 16,914,804, employed youths of the ages
between 15 – 24 years constitutes 24.6 percent that is 4,544,176 of the entire employed
population, and these constitute 73.7 percent of the entire youth population. Out of the employed
youth, females are 2,315,070, that are about 51 percent of the total employed youths, and males
are 49 percent of the employed youths. The inactive youth population is 19.1 percent that is
1,175,513 of which 50.7 percent are male youth as shown in Chart 1 (Annex 2) below.
When you look at the urban rural trends of youth employment, comparison between the 1990/91
and the year 2000/01 Labour Force Survey shows that overall youth urban employment has
dropped by 3.1 percent, female employment has risen by 1.7 percent and males’ employment has
dropped by 5.8 percent.
The 2000/01 ILFS shows that the employed rural youths were 3,816,118, which was 25 percent of
the employed rural population of 15,208,747 persons.
Unemployed youths were 162,319, which was 31.81 percent of the total rural unemployed
population of 510,899 persons. Of the unemployed youths, males were 50.58 percent. Thus the
unemployed youths in the rural areas were almost equally divided between males and females.

Most of the youth employment (83 percent) is in the agricultural sector, which is basically rural,
when the youths reach the age of 17 years they migrate to urban centers to look for employment
opportunities. The majority fails to get meaningful employment in the urban areas and after trying
for about 2 years without success, they decide to return to their parents in rural areas and join
employment in agriculture. This factor accounts for increased youth employment in agriculture at
the ages of 20 years. (Refer to table 2). Annex 1 below.

3.1.1   % of youth employed:

86.6% (8% from urban areas and 78.6% from rural areas) of economically active youth aged 10-17
and 84% (13.2% from urban and 70.8% from rural areas) of economically active youth aged 18-34
are employed.

3.1.2   Sectors of youth employment (%):

83% of employed youth are active in private traditional agriculture, 7.4% in the private informal
sector, and 5.4% in NGO, Party, Religious or other private organisations, 3.9% do housework
duties, 0.2% work for the central or local government and 0.1% for parastatals organisations
(2000/01 ILFS).

3.1.3   Youth Employment by Level of Education

Youths who have no education are mostly employed in the private traditional agriculture, which
takes the lead 90.0 percent, followed by the private informal sector 4.4 percent, housework duties
2.1 percent, NGO’s, religious organization etc. 3.47 percent government and parastatals 0.04
percent. The survey data indicate that employment potential for youths without education is mainly
in the private traditional agriculture sector. The situation is about the same for the youths who did
not complete primary education. For those who did not complete primary education 84.8 percent
are employed in private traditional agriculture, 4.45 percent in private informal sector, 7.5 percent in
house work duties, and 3.33 percent in NGO’s, Government, parastatals etc.

For those who did not complete primary education, the survey shows that none was employed in
the government and only 0.04 percent in the parastatals. Even for those who completed primary
education and secondary education and above, the major employment sector is private traditional
agriculture, which as stated earlier accounts for 83 percent, then followed by far by the private
informal sector, which accounts for 7.4 percent of the youth employment. The survey indicates that
development of private traditional agriculture should be a national concern in order to promote
youth employment as well as overall employment.

3.1.4   Type of youth employment:

No data for youth. Overall, 7% of employed were paid, 9% were self-employed, 10% were unpaid
helpers and 74% worked on their own farm. (ILS 2000/01)

3.1.5 What affects employment levels? E.g. education, work experience, government
policies, state of the economy,
The major obstacle to the reduction of youth and general unemployment and underemployment is
the economy of Tanzania. It is mainly based on agriculture in rural areas and there are very few
formal employment activities in the urban centres. Education is deemed very important and there
are a number of education initiatives to increase the skills of the work force, but the economy is not
necessarily able to absorb a more skilled work force. Therefore, education levels only seem to
have a small impact on employment: people with secondary education have an employment rate of
between 16%-26%, while those who have only completed primary school have an employment rate
of 14%. However, the percentage change in the number of unemployed overall between 1990/01
to 2000/01 was 125%. Amongst those people without any education the change was 143.7%,
amongst those with incomplete primary education the change was 90.9%, while for those with
completed primary education the change in the unemployment rate was 113.4%. However,
amongst those people who had secondary education or higher, the percentage change was
287.8%, which indicates that education levels are increasing but that there are no jobs to absorb
this more skilled workforce. Another problem is lack of experience, as 60.4% of all unemployed
have no work experience. Policy often focuses on agriculture, self-employment and less formal job
opportunities, especially for youth, but there is no information about how successful this is.


4.1     Global Unemployment and Underemployment Trends:

The overall global youth unemployment rate has increased since 1994 when the unemployment
rate for young people was 11.7 per cent. In 2004, it increased to 13.8 per cent. In 2015, 660
million young people will either be working or looking for work. The challenge will be greatest in the
regions with the largest expected labour force growth, with sub-Saharan Africa having the highest
forecasted growth of young people at 30 million, or about 28 per cent. Compared to other regions
of the world, Africa has the largest segment of young people in its population, 36.7 percent in 2000
(Curtain, 2000), where young people are estimated to make up more than 50 percent of the
population of most of its countries (Chigunta, 2002) where the female population aged 15-24 is
higher than that of males and that most of the youth aged 15-24 live in rural areas. The population
of sub-Saharan Africa rose from 10.0 per cent in 2003 to 10.1 in 2004. The ILO (2006) estimates
that the largest relative gains from getting youth into decent and productive work would be in sub-
Saharan Africa, with an estimated 12 to 19 per cent gain in GDP.

However, the question of youth unemployment and underemployment can neither be understood
nor divorced from the increasing alarming rate of general unemployment in the worldwide, whose
main cause stems from the absence of job creation, which affects both, youths and adults, though
invariably. Hence, the consequential programme of employment creation, responding to the ever
increasing unemployment situation, should not be to create more employment or jobs for the youth
by displacing adult workers. It should rather be to create more employment that will create more
job opportunities for the larger numbers of the young and older workers. Yet, youth employment
challenges have own dimensions that require specific organised national responses.


4.2.1   Youth Unemployment Situation:

Youth unemployment in the country is concentrated among those aged 20-30 years, the majority of
whom are still in school, whether formal or vocational education, and affects a broad spectrum of
the socioeconomic groups including the less and well educated youth, especially those who come
from poor backgrounds and those with limited education (Chigunta, 2002). Majority of youth in the
country are engaged in informal sector activities as shop assistants, farm hands, clerical
assistants, typists, stewards and cooks in hotels and restaurants, in street trading, casual labour
and illegal activities such as touting, stealing, armed robbery and dealing in prohibited substances
such as drugs, and prostitution. Many of them, male and female, are to be found along the streets
of major cities, selling apples, oranges, telephone cards, telephone handsets, calculators and other
assorted goods.

Only a small proportion of youth are engaged in the formal sector, although most employed young
women are in the informal sector, some of them as skilled hairdressers, dressmakers, petty
traders, etc. Many young women, for lack of better opportunities, are engaged in prostitution in
towns and cities, while others migrate or are trafficked abroad to engage in prostitution. A large
proportion of youth are thus underemployed, working long hours under poor working conditions, for
little remuneration mainly in the informal sector. The quality of jobs available to youth is therefore
important in Africa. However, ICT has become an employment sector for African youth in recent
years. The number of computer shops, Internet service providers and trainers, and phone shops, is
on the increase in urban centres in the country. Most of these are manned by youth, however,
these jobs do not reach the unskilled or the poorest youth and women who lack computer
education. Thus, as in other African countries, employment problem in Tanzania encompasses the
following dimensions:
 Too many youth without necessary qualifications and training for good productive jobs,
 Too few jobs, and
 Too many unproductive jobs with poor remuneration.

4.2.2   Rural Youth Employment
Most of the youth employment (83 percent) is in the agricultural sector, which is basically rural,
when the youths reach the age of 17 years they migrate to urban centers to look for employment
opportunities. The majority fails to get meaningful employment in the urban area and after trying for
about 2 years without success, they decide to return to their parents in rural areas and join
employment in agriculture. This factor accounts for increased youth employment in agriculture at
the ages of 20 years. (Refer to table 12.6)
The 2000/01 ILFS shows that the employed rural youths were 3,816,118, which was 25 percent of
the employed rural population of 15,208,747 persons. Unemployed youths were 162,319, which
was 31.81 percent of the total rural unemployed population of 510,899 persons. Of the unemployed
youths, males were 50.58 percent. Thus the unemployed youths in the rural areas were almost
equally divided between males and females.

The employability of many rural youth is low because they have inadequate and inappropriate
education, so lack the skills, competencies and knowledge to secure and retain productive work
and adapt to changes in the labour market. Although literacy is often thought to be the answer to
youth unemployment, ILO studies show that there is no necessary correlation between literacy and
employment levels. Although youth often have higher literacy rates than their parents, they have
few employable skills. These facts require us to ask what kind of education will benefit rural youth
and help them to achieve empowerment and to find dignified employment at a living wage?

4.2.3 The macro-economic context:
This section focus on the problem of unemployment and underemployment brought about by
economic crisis and instability facing our country since 1970s. The economic crisis caused serious
problem on economic welfare, social stability and human dignity.
• The economic crisis was reflected by the fall in the annual GDP growth rate from 5% to an
    average of 2.6% in the early 1980s, and about 1% in the beginning of the1990s.
• Since mid 1980s the county has embarked on implementing a series of economic reforms which
    in 1990s was plagued again by microeconomic instability and poor economic growth which
    called for adaptation of macroeconomic reforms.
It will facilitate to create more and better jobs, enhance gender equality improve the access to
employment opportunities by all, and generate more decent employment


Youth unemployment in Tanzania is on the increase, as is underemployment. An increasing
number of youth is moving to urban centres like Dar es Salaam, but are unable to find work.
Suggestion that this is due to lack of skills and work experience, but also that the urban Tanzanian
economy is unable to absorb the potential work force.

An area of policy concern is that of complex scenarios and high rates of unemployment and
underemployment of the young women in Tanzania and thus making measurement of
unemployment not a simple one. There are few economic opportunities in rural areas of the
country, reflecting rather as underemployment than unemployment. Unemployment stands at 2.3
million (1.3 million women and 1.0 million men) equivalent to 12.9 percent of the labour force.
Employment to-population ratio (the proportion of the target population that is employed) is 76
percent nationally. The ratio is lower in urban areas (58 percent) than in rural areas (81 percent).
Unemployment is worse among the youth, including the educated youth. Employment opportunities
for people with disabilities are limited and special support for them in the work place is frequently
lacking (URT: 2006).

Young women and men are rightly considered as the greatest and very important asset for the
present and future generations. Their strength in numbers, their ability to learn and acquire new
skills and development qualifies the youth to be a vital group of people who should contribute
enormously to the national economy, given the opportunity. They are therefore, a change agent for
social and economic development as well as technological innovations. The Tanzania national
population and housing census of 2002 showed that there were 11.8 million young women and
men between 15 and 34 years divided into 6.218 and 5.552 millions respectively (Kaale: 2006).

4.3.1   (Un)employment rate:

Tanzania has an economically active population (10 years +) of 17,827,578 (49% male, 51%
female), an increase of 58% since the 1990/91 survey (2000/01 ILFS). The participation rate is
83% in rural areas compared to 68% in urban areas, but 84% of those who are employed work on
their own farms. The 1991 ILFS found that unemployment was 3.6% (Standard/ILO definition) or
10.6% (6.7% males, 15.5% females) (National/Expanded definition). The 2000/01 ILFS found that
unemployment had increased to 5.1% (Standard/ILO definition) or 12.9% (National/Expanded
definition). Unemployment levels are on the increase, mainly because of the increase in urban
unemployment. Unemployment in urban areas increased from 10.6% (Standard/ILO definition) in
1991 to 14.8%.Uurban unemployment in 2000/01 was 32% compared to 8.4% in rural areas, while
Dar es Salaam had an unemployment rate of 46%.

4.3.2   % of youth economically active and unemployed:

ILFS 2000/01 showed youth unemployment rate is about four times the adult unemployment rate
and is growing at double the rate for adult unemployment. According to the National/Expanded
definition, 13.36% of all youth aged 15-24 years are unemployed (11.84% of males and 14.82% of
females in this age group). In the 10-17 year age group, 11.2% of those in rural areas (28.4% of
males and 30.9% of females) and 29.7% in all urban areas (10.6% of males and 11.9% of females)
were unemployed. The unemployment rate for this age group in Dar es Salaam alone was 60.8%
(National/Expanded definition) In the 18-34 year age group, 8.6% of those in rural areas (8.9% of
males and 8.4% females) and 41.4% of those in all urban areas (33.3% of males and 47.7% of
females) were unemployed. The unemployment rate for this age group in Dar es Salaam alone
was 55%. (National/Expanded definition). According to the Standard/ILO definition, 6.4% of youth
aged 10-17 and 6.2% of youth aged 18-34 are unemployed. 10-17 years: 5.5% in rural areas,
16.3% in all urban areas, 40.3% in Dar es Salaam. 18-34 years: 2.7% in rural areas, 22.4% in all
urban areas, 36.4% in Dar es Salaam. It is estimated that between 500,000 and 800,000 youth
annually seek to enter the labour market and youth aged 10 to 34 years now represent 73% of the
unemployed (from about 60% in 1990/01). 27% of all unemployed are between 15-19 years.


5.1     The Meaning of Decent Work:

The term "Decent work" as defined by the ILO (Poverty and Employment in Africa: 2001), is work
which will provide for the health and education of the family, which will ensure their basic security in
old age, adversity and which respects their human rights at work". The primary purpose of this
concept is to highlight the central position and the impact of the full and productive employment of
labour resources that make it possible to provide the members of the labour force an income
sufficient to pull them and their dependents above the poverty line. Hence, the strategy for
achieving decent work involves the simultaneous pursuit of four interrelationship objectives
(TUCTA: 2004):

        Employment creation (in its wider sense including self employment) and incomes
         accruing from employment are the key determinants of level of living for most of the rural
        Respect for fundamental principles and rights at work place that support the goal to
         empower and enable working young women and men in the rural context to exert
         influence within the society and thus enhance the quality of and return to work,
        Comprehensive macroeconomic policies that extend the coverage of social protection
         and attain a higher degree of social economic security through fostering more positive
         attitudes among workers towards economic and technological change,
        Social dialogue among employers and workers, which not only facilitate an equitable
         distribution of the benefits of economic growth but also changes that are needed to keep
         growth on track and to deal with the challenges faced within the market environment.

Decent work for young people would unleash multiplier effects throughout the economies and
societies, boosting investment and consumer demand and ensuring more stable and cohesive
social ties across generations. It would shift young people from social dependence to self-
sufficiency, help them escape poverty and enable them to contribute to society. This is also
enshrined in Millennium Development Goal (MDG) eight with its particular focus on developing
decent and productive employment for youth.

The main function of employment creation under sectoral arrangements in the rural and context is
creating and maintaining an adequate level of aggregate demands, which maintain employment
growth and improve coordination of macroeconomic and other public policies. The government
should then strive to facilitate rural youth-friendly investment policies and pay more attention to
employment outcomes, increase the rate of productive investment by lowering the cost of capital
expenditure through labour intensive mechanisms. In this sense, public investment can have a
more positive multiplier effect on employment and when required, it should be directed to labour-
intensive sectors that will, in turn, attract financial investments to create more and more decent
employment. The focus should be on creating an enabling environment for public and private
investments and enterprise creation, whose commercial elements will then stimulate rural youth

5.2. Unemployment and Employment Creation in Tanzania:

While employment cannot be created directly, it is recognised that labour legislation and regulation,
based on ILO international labour standards, can encourage and provide employment protection
and underwrite increased productivity, which are basic conditions for creating decent work and
productive employment for rural young people. There is consequently, a dire need, on the part of
the government to revamp the rural sector for the benefit of (mainly rural) mainly through a more
appropriate macroeconomic employment policy framework, creating an entrepreneurial culture and
business environment through infusion of entrepreneurial training and sensitisation on the merits of
entrepreneurship. Generating productive employment should be a core development goal as
important as economic growth itself in the implementation of the present government employment
creation programme for the creation of one million jobs between 2006 and 2010.

Work plays an important role in peoples’ lives and rights and it follows therefore that working
conditions, process and enrolment should be safe, healthy, motivating and maintained according to
acceptable international standards. The workers’ rights to work as pronounced by the UN may,
under vulnerable conditions, mean accepting inhuman conditions to survive. The suffering
notwithstanding, such a situation is contrary to the essence of and works against the basic
responsibilities and duties of trade unionism which, in their broadest sense, include:
      Upholding labour dignity and value,
      Protecting workers’ rights and safeguarding labour interests,
      Defending and promoting human and democratic rights;
      Struggling for safe and democratic working conditions and the environment.

The most vulnerable and affected people are the lowly educated and unorganized young women
and men, in their productive and reproductive years, who are the potential members of the trade
unions. Those who appear to be hit hardest by unemployment are left with one of four alternatives,
or a combination of them with regards to employment, namely:
       Remain without work,
       Find some casual wage-earning work,
       Engage in some illicit activity, or
       Start an informal enterprise activity.

As a consequence, young women and men are over represented in the informal economy. This
situation shows that youth are experiencing serious difficulties in the labour market. Yet, youth
unemployment is hitting the most vibrant part of the labour force as young women and men often
bring numerous assets to the labour market in a number of ways, such as:
       Relevant and recent education and training,
       Enthusiasm,
       Hope and new ideas,
       Willingness to learn and be taught,
       Openness to new skills and technology and
       Mobility and adaptability.


A wide range of young people’s social and economic issues can be addressed through
macroeconomic employment policies, programmes and strategies. These include incorporating
employment and poverty considerations into mainstream national policies and legislation to
promote small and medium scale enterprises without compromising quality and cost
competitiveness. Such policies may also helps in:

         Promoting the optimum use of local resources (human, material, financial, intellectual);
         Public procurement, encouraging transparency of public resource allocation;
         Development of public/private partnerships through appropriate contract systems and
         Decent working conditions;

            Gender issues;
            Decentralisation and related institutional reforms.

6.1         Microeconomic National Employment Youth Policy:

There is no specific macroeconomic policy or plan of action on youth employment and
underemployment that is operational in Tanzania, though these are often the root cause of political
instability, civil unrest and crime. Youth issues are being dealt within the National Employment
Policy (2006a) which among other things aims at “stimulating an adequate employment growth in
the economy in order to reduce unemployment and underemployment rates and eventually attain
full, productive and decent employment for all Tanzanians” Government Policy Statement on youth
employment states as follows:

            The Government in collaboration with other stakeholders will constantly review education
             and training curricula to ensure appropriate linkages of the education and training system
             to the labour market,
            The Government will create an enabling environment whereby important inputs for youth
             employment, such as infrastructure, skills training, counselling, capacity building and
             financial services for business start-up, will be made available,
            The Government will, in collaboration with other stakeholders, facilitate the involvement
             of youth in strategies for developing and implementing youth employment programmes
             targeted at poverty reduction for the youth.

However, such a policy framework should have been part and parcel of a comprehensive national
employment policy and programme of action that is incorporated in the employment creation
programme of the government. For, the creation of employment opportunities, specifically for rural
youth should have ranked highest on the agenda of employment crisis and creation, which is
supposed to be a distinct issue that concerns the Ministry of Labour and other Social partners. It
should be put as one of the national development goals and be at the centre of macroeconomic
and social policies rather than being considered only as a cross cutting issue.

6.1.1       Policy Related issues:

6.1.2       Policies which affect youth:

The Ministry of Labour and Youth Development coordinates the National Youth Policy (unable to
obtain copy) of Tanzania in cooperation with other youth-serving ministries and youth
organizations, especially in partnership with the Tanzanian Youth Organization (Umoja Wa Vijana)
and the Tanzanian Youth Council. Other youth-relevant policies include the 1997 National
Employment Policy which advocates strategies for employment promotion and exploitation of
existing wealth as well as the creation of an enabling environment for the private sector, NGOs and
CBOs to effectively participate in employment promotion. The policy provides employment
strategies for the youth, people with disabilities and women, mainly self-employment and work in
the informal sector. It is anticipated that the next revision of the policy will include considerations of
HIV/AIDS. The 1999 National Employment Promotion Services Act aims to provide placements,
vocational guidance, employment counselling, active labour market interventions, labour market

and occupational information, advisory services, self-employment strategies and co-ordination of
training needs, partly through Employment Promotion Agencies. Tanzania's 'Vision 2025' is a guide
for addressing employment challenges and emphasises creative, innovative, high-quality education
in order to respond to development challenges and a culture of self-development and
entrepreneurship, especially amongst youth.
6.1.3 Details of youth-specific policies and programmes:
The 2000 National Employment Policy 2000 provides a framework for guiding long term
employment and human resources deployment activities with a view to attaining full and gender
balanced sustainable productive employment, leading to poverty eradication. The policy is
administered by the Ministry of Labour and Youth Development. The Youth Development Fund
which was launched in 1994 targets youth in the informal sector in order to create self-employment
and reduce youth unemployment. The YDF can be used as a revolving loan fund by youths
involved in self-employment activities. Since its inception, approximately 5,000 youth have
accessed the fund, and roughly a quarter of recipients have been female. During the same period,
MLYD also instigated over 3,000 projects (mainly in agriculture but also in carpentry, animal
keeping, tin smithing, tree planting and fishing) to mobilise youth to participate in the informal
sector. During 1993/94, government also created the National Entrepreneurship Development
Fund which offers support to small and micro-enterprises and industrial co-operatives. The NEDF
promotes youth farmers and livestock keepers since agriculture remains the main source of
income-generating projects which involve youth. In 1994, the national government issued a
directive that all local government authorities must allocate 5% of their revenue for youth
development, mainly in employment and income generating activities. However, according to the
Ministry of Finance most districts ignore the directive and funds have proven to be ineffective in
combating youth unemployment. Many Western bi-lateral and multi-lateral funders support
employment initiatives in Tanzania.

National Strategy for Growth and Reduction of Poverty (NSGRP)
6.1.4 Effects of government policy on youth (un) employment:
Government policy focuses on education and the promotion of entrepreneurship and the informal
sector to combat youth unemployment. However, there are no indications if such initiatives have
been implemented or if they have had any effect on youth unemployment (statistics suggest that
they have not). Other proposed strategies include the development of the agricultural sector,
although this does not appear to be a viable strategy for economic development overall.

6.1.5 Youth related organisations:
On the Tanzanian government website, conflicting references are made to both the Ministry of
Labour and Youth Development and the Ministry of Youth and Sports development (responsible for
Youth Development, Employment and Youth Self-reliance Projects, Vocational Training, and Youth
Organisations). In the 1990s, the major national youth coordinating body in Tanzania was the
Tanzanian Youth Organization (Umoja Wa Vijana Tanzania), which had three affiliates, the Union
of Tanzanian Students, the Secondary School Student Association and the Young Pioneers. The
aim of the organisation was to mobilise and organise the youth of Tanzania to cement national
unity, bring about socialist development, further the liberation struggle in Africa and elsewhere in
the world and to mobilise youth to participate in economic activities. It is uncertain how influential

the Tanzanian Youth Organisation is these days. More recent reports also refer to the Tanzania
Youth Council (Baraza La Vijana Tanzania, (BVT)).


6.1.6 How successfully have they been implemented?
No specific data available. However, there is anecdotal evidence that that the implementation of
policies and programmes in Tanzania is hindered by a lack of co-operation and communication
between departments and ministries and national and local government. Initiatives implemented by
foreign donors generally occur on a small scale and seem to have no widespread impact.

6.2         Trade Unions Policy on Youth Employment:

Nonetheless, the Trade Union Congress of Tanzania (TUCTA) has formulated its own Youth
Employment and Labour Dignity policy (TUCTA: 2005) as a general and strategic macroeconomic
employment generation and integration policy to mainly organise the unorganised youth in the
informal sector and as a tool to reorganise the unions (Affiliates) institutional structures to integrate
them and rejuvenate the trade unions. The policy which can readily be adapted by the Affiliates has
as its principles the following items:

6.2.1       Fundamental Elements of the Trade Union Youth Policy>
            Youth Policy involves Young Workers as Stakeholders,
            Youth Policy retains Development Programmes of Young People,
            Youth Policy concerns all Young Workers,
            Youth Policy opens Opportunities to Young Workers,
            Youth Policy seeks Young Workers Contribution to Union Goals,
            Youth Policy links Work with Education and
            Youth Policy treats Young Workers as Resources.

6.2.3       Promotion of Labour Dignity Principles for the Youth

The aforementioned principal policy elements are hereby expanded as promoters of the rights and
living standards of young workers as well as part of their integration into employment contracts and
consequential commitments, as new young recruits:
        Adaptation Principle ensures that work and its environment is adapted to suit the
           capability of adults as well as young workers,
        Care and Rehabilitation Principle requires that the consequences of occupational and
           work related diseases to young workers who are being mainstreamed into trade unionism
           are minimized,
        General Primary Health Care Principle demands that general health care services for
           young workers, both curative and preventive, are effectively provided,
        Tripartite Principle recognizes key players and basic stakeholders in resolving the
           problems young workers as being the Government, the Employers and the Trade Unions

             themselves, they must all be committed and work jointly within the spirit of tripartite

6.2.4       Programmes of Action of the Trade Union Youth Policy:
            Young Workers Recruitment and Employment Programmes,
            Young Workers Education and Training Programmes,
            Youth Occupational Hazards and Environmental Programmes,
            Youth Remuneration and Social Insurance Programmes,
            Disadvantaged Young People Support Programmes,
            Young Workers and Family Support Programmes,
            Youth Sustainable Development Programmes,

6.3         Youth Unemployment-The Gender Dimension:

This required that there should be a link between employment policies, development needs,
education and human development, and women and development. Special activities are needed
for the employment of women, and that youth employment should also be integrated into
comprehensive national development programmes (ECA 1999).

6.3.1 Gender Issues in Employment in Africa:
There are wide variations in female labour force participation between and within countries in
Africa. Available statistics show that labour force participation rates are lower for women than for
men in every country. For all Africa, female labour force participation rate was 33.8 percent for
females as against 49.7 percent for males in the year 2000. However, official labour statistics do
not adequately reflect women’s activities, especially in rural areas where production systems are
still predominantly household or family based. A great deal of women’s economic activities,
especially for family consumption and unpaid family labour are not reflected in official statistics (ILO

In the rural areas, women are heavily concentrated in agriculture, and within agriculture, in food
production. The proportion of women is nearly always higher than the proportion of men (Katepa-
Kalala, 1999). For several countries, statistics of formal sector wage employment are often
unavailable or not disaggregated by gender. Although an increasing number of women are now
employed in the formal sector, formal wage employment, whether in the public or private sector,
has offered relatively limited employment to women, it is dominated by men. Women are found
mainly at the lower echelons in the formal sector (African Centre for Gender and Development,
2002). The share of women employed in industry is low.

Given limited opportunities in the formal sector, majority of women in the urban areas are self-
employed in the informal sector. The most common entrepreneurial activity for women is retail
trade, including within and cross border trading, others activities include handicrafts, food
processing, services and cottage industries, (ILO, 1997; Okojie, 2000). Women face various
structural constrains on their effective participation in economic activities, they include the following
(ILO, 1997; Katepa -Kalala, 1999; Okojie, 2000; African Centre for Gender and Development,

        Customary laws and norms which impede women to a greater extent than men, from
         obtaining land, credit, productive inputs, education, information, and healthcare.
        The coexistence of multiple laws which create ambivalence (for example, customary and
         statute laws relating to marriage and inheritance).
        Gender bias in access to basic human resource development services such as
         education, training and health (see Table 1 for gender gap in adult literacy rates, and
         Table 2 for youth literacy rates), and
        Time poverty, resulting from women’s multiple and competing reproductive and
         productive responsibilities. These are usually performed without the assistance of labour-
         saving technology, adequate transportation, etc.

In general, women are at a disadvantage in access to and control over productive resources.
Consequently, their economic activities suffer from low productivity and are often poorly
remunerated. Women’s employment has wide implications for households and the community, as
their incomes contribute to family welfare. They should therefore be included as a target for
employment policies.

6.3.2 Issues for Consideration from a Gender Perspective:
In general, there is a need to engender employment promotion programmes. The inclusion of
young women and girls as equal partners in youth development and empowerment programmes is
very essential in overcoming gender imbalances. The question is how can women, and especially
young women who have been marginalized by women’s programmes so far, be mainstreamed into
employment creation programmes to ensure that they are beneficiaries? Suggestions to be
considered include the following:
      Affirmative action approach whereby a specified proportion of beneficiaries of
         mainstream programmes should be women.
      Target women as beneficiaries of programmes for vocational skill development.
      Target self-employment and entrepreneurial development programmes at activities
         involving women, for example, trading, food production and food processing activities.
      Develop gender-friendly appropriate technology to reduce the drudgery of women’s
         domestic and economic activity and enhance their productivity and incomes.
      Provide adult education for women to enhance their access to higher paying occupations.
      Incorporate a women’s unit into all employment creation programmes to cater for the
         interests of women.
      Collaborate with NGOs and CBOs working with women, and development partners.
      Organize sensitization workshops/seminars on the socio-economic impacts of
         unemployment among youth (male and female) and the need to mainstream youth and
         gender concerns into all programmes.
      Train women in business skills and provide access to credit and other financial services.
      Formulate a national employment policy responsive to gender and youth concerns
      .Create jobs for women in dynamic and growing sectors of the economy where
         opportunities in general or prospects for enhancing women’s incomes are bright.
      Provide child-care centers for young working mothers.

6.3.3 Gender Policy:
The government has come up with a unified comprehensive and coherent National Policy on
Gender and Women Development.
Again the trade unions (TUCTA) have policy on Gender and Women Advancement. While the
proprietors of these two policies differ, the issues addresses are somehow similar in that they
agitate for gender mainstreaming in the country and at the work places.

6.4     Trade Unions Policy on Gender and Development:

Concerns of Gender Policy:
The following would be the major concerns of the trade union gender policy:
    Women and girls have limited chances in education, employment and leadership,
    Due to low education attainment and gender discrimination in upbringing, employment and
     occupation, most of the work performed by women in the formal sector is of low status and
     low pay such as office attendant, secretarial etc. Majority of women are in the Informal
     Economy performing unskilled jobs, which are poorly remunerated. Due to their low income
     and limited opportunities, women are forced to send their children to work (child labour) in
     order to supplement family income. Girls are taken out of school to look after the family and
     take care of younger siblings while their mothers are at work,
    The sexual differences in access and ownership of productive forces and resources such as
     land and buildings contribute to women’s low income,
    The limited opportunities for the girl children, where boys are given higher preference in
     education and training make girls grow up with greater constraints and limited choices and
     opportunities, hence failing to meet the need of their families including education and health
     of their children.

Indeed, despite corrective measures in Tanzania that included the Agricultural Policy (1983), the
Structural Adjustment Policies and Plans since 1986 as well as the National Food Self Sufficiency
Programme of 1992 women’s labour productivity has not increased due to:
    Inadequate appropriate technology,
    Women being considered as bad credit risks,
    Low managerial knowledge and entrepreneurship,
    Cumbersome, high costs and lengthy loan procedures,
    Lack of resources to alleviate workload and optimize production,
    Lack of adequate training in agricultural management capacities,
    Subsidies removal from agricultural inputs and manual food processing,
    Lopsided resource distribution and crude farming implements and inputs,
    Lack of extension services in agriculture, livestock, forestry and fisheries,
    Projects being started with political motives and strong welfare approach,
    Insufficient empowerment and sensitization activities into cooperative movements,

6.5     Gender Relation Challenges:

Moreover, when we examine the difference needs, roles, opportunities and challenges between
women and men we discover that there are glaring gender gaps in the activities they do, the

environment they work in, the constraints over productive sources and resources, and participation
in development activities including decision-making powers, capacities and authorities. Priority
areas for concern with regards to treatment of female and male workers in the employment sector
in Tanzania and among trade unions organizations themselves would include:
    Women’s difficult conditions to organize in the informal sector,
    The absence of adequate documentation on sexual harassment and discrimination,
    The high unemployment rate among women compared to men especially with regards to age,
    The relationship between domestic and formal employment, especially in terms of linkages
     between public roles and domestic care,
    The differences availing between women and men with regard to opportunities for improving
     their incomes,
    Infringement of women workers’ organising rights in new economic ventures and avoidance
     of social security benefits,
    Inadequate involvement of women in decision making forums and inadequate adherence to
     gender equality issues in the collective bargaining process.

It stands to reason therefore, to emphasise the fact that the struggle to transform gender relations
will benefit both young women and men by creating an enabling environment for all to realise their
full human potential. Gender equality will also bring visible benefits to society by drawing in half of
the population into productive activity. It cannot however, be realised without political commitment
and conscious strategies to redress unequal power relations between men and women in
organisations like the trade unions and within the following categories:

6.6     Gender Relations within the National Labour Market:
The labour market in Tanzania is still segmented in terms of sex and gender. Socially it is
characterised along sexual division of labour in which women are largely associated with
domesticity and servicing, while men are mainly engaged in the sciences, machinery technology
and decision-making positions. While women concentrate more in the rural informal sector, in low
paid-jobs, and the service sector. They are in bulky within the vulnerable sectors such as domestic
work, farms and the informal economy.

Males, in particular, dominate the ‘lucrative’ upper echelons of the labour market due to the
continual inheritance of education and wage inequities and the perpetual discrimination along
sexism that leads to substantially lower income share by women’s than men. Discrimination also
takes the form of differences in the valuing of men and women’s jobs translating in wage
discrepancy and disparity. In particular, the majority of the unemployed are women also face
considerable hardships in accessing and sustaining their participation in the labour market. The
majority of women have to juggle careers and domestic responsibility such as cooking and taking
care of children. The shortage of childcare facilities and the sexual division of labour in the home
impose serious burdens on women. Maternity leave and pay provisions are also inadequate, and
in some cases even the legislated minimum is not complied with.
Hence, women are less likely to be self- employed (with or without employees) than men, and 75%
more likely to be unpaid helpers in the family business with the earning capacity of 1.9 times less
than their opposite numbers i.e. the men in all sectors of employment.
6.7     Gender Mainstreaming:

At the UN Fourth World Conference on Women (Beijing: 1995) mainstreaming is emphasized in
the Platform for Action with regard to:
    Equitable distribution of the resources, opportunities and benefits of the mainstream
     development process. This requires the integration of equality concerns into the analysis and
     formulation of policies, programmes and projects, with the objective of ensuring that these
     have a positive impact on women and reduce gender disparities.
The inclusion of interests, needs, experiences and visions of women in the definition of
development approaches, polices and programmes and determining the overall development
agenda of rural youth employment creation in Tanzania would benefit a lot from this policy. This
requires strategies to enable both young women and men to formulate and express their views and
participate in decision-making across all development issues. Trade unions promote this in social
dialogue encounters with social and development partners. Gender mainstreaming may require
changes in laws, introduction of gender sensitive policies, and sometimes changing goals,
strategies and actions so that both young women and men in the rural areas can participate and
benefit equally.

7.1     The meaning of Decent Work:
"Decent work" as defined by ILO 2001 (Poverty and Employment in Africa), is work which will
provide for the health and education of the family, which will ensure their basic security in old age,
adversity and which respects their human rights at work".
The primary focus is full and productive employment of labour resources that makes it possible to
provide the members of the labour force an income sufficient to pull them and their dependents
above the poverty line.

The basic rationale for this strategy lies in the positive interrelationship between the four
components of decent work:
(a) Employment (in its wider sense including self employment) and incomes accruing from
    employment are the key determinants of level of living for most of the population.

(b) Respect for fundamental principals and rights at work supports this goal since it empowers
    working men and women to exert influence within the spheres of work and society and thus to
    enhance the quality of and return to work.

(c)   Policies to extend the coverage of social protection contribute greatly to the reduction of
      poverty and to attain a higher degree of social economic security. They also contribute to
      economic performance. By fostering more positive attitudes among workers towards
      economic and technological change.

(d) Social dialogue among employers and workers not only facilitate an equitable distribution of
    the benefits of economic growth but also changes needed to keep growth on track and to
    deal with the challenges faced in market environment.
Many people are employed and offered jobs, which do not really match with their qualifications and
experience; hence they end up in being offered jobs which are not decent e.g. casual labour and
sometimes without good protective gears. The so-called expansion job creation is on jobs, which
are not decent. These are mainly on casual labourers and manual work. Therefore jobs created are
contrary to ILO convention on decent work standards.

There can be no sustainable development that realistically reduces poverty unless people have
productive jobs, and only freely chosen. Productive employment will crate socially secure, stable
and equitable society in the country. .It is therefore, essential to create new jobs through
employment intensive growth that address decent work deficit in the formal and informal economy
and in urban and rural areas, improve the productivity of the working poor and pay greater attention
to equity issues.

Perhaps individuals are considered to be free from poverty when they have work which allows
them to feed themselves, have access to medical care when they are sick, give their children
education and have a decent roof over their head.

In the PRSP, poverty reduction programme emphasis is given to the role of the private sector and
enterprise promotion to achieve high rate of economic growth of 7 - 8%. The PRSP assume that
employment growth is a normal consequence of economic growth. It is such miss-normality where
PRSP did not include employment related indicators in the list of essential indicators. Ironically
what is missing is the link between growth, the decent work and poverty reduction. Employment is
supposed to be a distinct issue that concerns the Ministry of Labour and other Social partners.

Employment should be put as one of the national development goals rather than being considered
only as a cross cutting issue. Employment should willingly be at the centre of macroeconomic and
social policies. In that vein PRSP Policies should include the following strategies:

     To upgrade the informal economy and rural employment through policy linkage to the formal
     To create a conducive legislative and regulatory framework that guarantees promotion and
      protection of employment opportunities to indigenous people.
     To organize workers and employers.
     Improve productivity.
     Provision of support services.
     Access to credit facilities.


The youth employment challenge in Tanzania can be described as that of employability – extent to
which the youth can be employed or absorbed. Youth finds it difficult to join both the formal sector
and the informal sector. (A.Mbelle, 2006)

The nature and extent of youth unemployment problem varies considerably across gender and
geographical division. In general females have the highest unemployment ratios among the youth.
In general, there is increasing income poverty associated with unemployment among youth. The
challenge facing Tanzania is to respond to the needs of school dropouts and educated youth and
meet their aspirations of entry into productive employment.

Various difficulties are associated with employability and access to employment opportunities
among the youth. Such problems include:

         Young men and women face greater stumbling blocks than adults in securing
          productive and decent work, technically this is influenced by a number of factors,
          including the level of and fluctuation in aggregate demand, the employment intensity of
          growth, an enabling regulatory environment for both workers and enterprises,
          education and vocational training outcomes and quality, work experience and
          entrepreneurship options, discrimination and exclusion.
         Low labour demand disproportionately affects young people who are more vulnerable
          to the business cycle. As the results of globalization which has led many governments
          to implement privatization policies which have caused massive retrenchments in the
          country. And in times of economic recession young men and women are more likely
          than adults to become or remain unemployed. They are the first to be retrenched
          during economic downturns reflecting the last in first out (FILO).
         Young men and women often work unacceptably long hours, under informal
          intermittent and insecure work arrangements.

         Because of HIV/AIDS some young men and women are forced to leave schools and
          have to accept the dirtiest and most dangerous work to maintain their family survival.
          More so the HIV/AIDS infection rate among youth is considerably high than for adults.

         Most of the youth work is found in the informal economy both in rural and urban areas.
          They lack adequate incomes, social protection, security and representation.

         Young men and women are in most cases working below their potential, in part-time,
          temporary casual or seasonal employment. They are the most hit by under-

         The availability of data on youth unemployment and a relative absence of information
          on the nature of work youth are doing (part-time, causal seasonal, informal work etc)
          means that the policies have neglected conditions of work.

         Many young men and women are training in skills for which there are little or no
          demand and or are disadvantaged in terms of core skills required in current labour

         Lack of opportunities for work experience, combined with the absence of adequate
          labour market information, vocational guidance and counselling, poor job placement
          mechanism and inadequate demand exacerbate the problem of getting decent job.

Generation of productive employment should be a core development goal focusing at Poverty
Reduction. It should be made a major explicitly goal as important as economic growth itself in the
PRS implementation framework. Employment should be systematically integrated into mainstream
economic, financial and social policies. Emphasis in employment creation should be in respect to
investment policies across all sectors. This can be realized through the following proposed
(a) Promotion of an employment oriented Development policy for Poverty reduction
    Firstly; creating an effective development strategy that aim at Poverty reduction. The strategy
    must encompass incentives for investments from abroad in order to achieve high economic
    growth output and incentives for domestic capital accumulation.
     Tanzania is among the LDCs that suffer from low rates of domestic savings and suffer from
     deficiencies in infrastructure (Physical as well as social) which acts as disincentive for
     Ways and means must be found to influence both the quantum and direction of investment
     for creating jobs that could reduce poverty alongside producing high rate of economic growth.
      There can be a genuine linkage between economic growth, employment and poverty
          reduction only if high rate of economic growth, is coupled with high output elasticity of
          employment to help reduce poverty. It is therefore important to understand how Tanzania
          economic growth is associated with increasing employment elasticity.
      Economic growth must be appropriately employment intensive in the given context of
          resource endowment without sacrificing productivity and efficient considerations. One
          way of making growth strategy efficient as well as poverty reducing would be to promote
          self-employment among the poor by converting them into micro entrepreneurs. This could
          be an efficient growth strategy endogenous to the process of poverty reduction and it
          could enable the pursuit of the dual objectives of growth and poverty reduction without
          having to face the usual trade off.

(b) Creation of Labour Intensive Infrastructure and Investments.
    The labour intensive approach to public investment can create a large number of jobs for the
    marginalized population group and thus fight against poverty and social exclusion. This
    approach can create and promote job creation and enterprise growth through applying
    employment intensive methods to the production of public goods and services. Infrastructure
    projects such as road construction, dams and urban drainage social waste disposal can be a
    source of massive income and employment generation. Long-time jobs can also be created in
    such areas like maintenance, irrigation, open mining etc.

      The labour intensive approach is premised in the fact that the government still retains control
      of the public investment budget and can choose to use it in way that stimulates demand for

      Recommended action to implement labour intensive approach:
       Streamline central and local government procurement and contracting system so as to
         create opportunities.
       Train and form local small-scale groups/contractors in procurement procedures.
       Undertake policy reforms of public institutions entrusted with the development
         infrastructures for employment intensive technology.
       Strengthen local capacity for community contracting.

(c)   Raise the incomes of the Working Poor through Increased Productivity:
      The measures to be taken will depend on the reasons for their low productivity and income,
      which also depend on the type of activity, geographical location and by gender. It is widely
      recognized that the working poor in Tanzania are mostly engaged in urban informal sector
      and rural non-farm and agriculture activities.
      Some of the factors responsible for low productivity, low returns and low wages among
      working poor in Tanzania which worth to be addressed by PRSP includes:
      i)   Type of market and demand for their products
      ii) Relative prices of inputs and output
      iii) Poor Marketing arrangements
      IV) Poor Type of technology used
      v) Low level of education and skills
      VI) Their bargaining power

      Some of the above factors are due to:
         Limited access to finance
         Lack of productive asset
         Poor infrastructures (roads, transport, power, water, etc)
         Exploitative or Coercive external economic relationship (e.g.) with suppliers of assets/
          equipments, inputs and credit, or with purchasers of products).

      Policies and strategies to fight poverty for such people need to be based on a clear
      understanding of such varied factors. It is on such basis where Tanzanian workers urge
      PRSP to properly comprehend such factors in order to come out with a sustainable focused
      intervention which can help to rid Tanzanians from the yoke of Poverty.

(d) Enhancing Human Resources of the Poor:
    (i) Public Provision of basic social services:
        The strategy should be raise to the income of the poor with a view ensuring satisfaction
        of their basic need, for many of the poor may not be in a position to ensure access to
        education and social services. One critical element in a realistic poverty reduction
        strategy should be the public provisioning of basic social services. These as basic

             education and health services, which are important for enhancing the human resources
             of the development of poor.

      (ii)   Improvement and adjustment in the Skills Composition of the Poor:
             The skills of the working poor must adjust to the changes the demand for labour market
             requirements. Thus a dire need to improve and adjust the skill composition of the
             working poor so as to acquire capacity to can compete for employment in a free labour
             market in which the skill composition of demand for labour changes rapidly. Failure to
             do so may easily prevent the poor from benefiting from growth induced increase in
             demand for labour.

             Provide education, training and efficient business development skills as indispensable
             ingredients for successful entrepreneurship development.

(e)     Protecting workers from the effects of privatization and reforms in state owned
        Tanzania is undertaking privatization and reforms of state owned enterprises (SOEs) since
        1990s as part of the overall programme of economic reforms and structural adjustment. Also
        opening up to the global economy (Globalization) and associated reforms has compelled
        Tanzania to abandon its past practice of allowing excess employment in state owned
        enterprises (SEOs). This inevitably leads to increase in open unemployment because the
        rate of shedding excess labour always outpaces the rate of new job creation capacity.

        The documentary sources revealed that since Tanzania started her privatization exercise
        hundreds and hundreds of workers have been retrenched. There were no alternatives
        provided to such retrenched workers rather than condemning them to death. It is against
        such a background where TUCTA recommends the following measures to protect the newly
        unemployed from poverty.

        Proposed Intervention
        Establish some transparent system of social security protection (e.g. unemployment,
        insurance) must replace the past-concealed system of social security through allowing
        excess employment or large state public works programmes in productive capital

        Specially designed employment opportunities for the labour disadvantaged households:

        For the benefit of increased labour demand to filter down to these poor families, special
        opportunities e.g. Sub contracting arrangements linking small enterprises in the formal and
        informal sector that facilitate work for these disadvantaged households is recommended
        near their homes with appropriate incentives. Similar measures are needed to spread the
        benefit of the increased overall demand for labour to remote and isolated communities as
        well as persons disadvantaged by disability arising from other factors such as HIV / AIDS

(f)     Labour market interventions as a means of protecting vulnerable workers and
        strengthening the decent work tool for poverty reduction:

      In a right-based approach to development and poverty reduction, protection, and security for
      workers would be important element. These goals will need to be pursued in such a manner
      that they contribute to raise productivity, output growth and employment thus strengthening
      the decent work tools for poverty reduction. The labour market interventions required
      include the following:

      Interventions related to wages and working conditions
       Minimum standard of safety at work
       Social protection

(g)   Strengthening development of institution in which the working poor are represented
      It is important that, the interests of the working poor be articulated by ensuring their
      inclusiveness by as a starting point out removing barriers to participation and empowerment
      on the basis of gender and social status.

      This is the issue of good governance that leads to consensus on various policies, to yield
      equitable growth and reduces the risk of conflicts. It also brings the issue of alliance building
      with other stakeholders for employment generation and sustainability.
(h)   Provision of Credit Facilities:
      Microfinance schemes have demonstrated an enormous potential of mobilizing domestic
      savings of the rural and urban poor for local level investment. Implicitly there should be
      promotion of village banks, savings and credit cooperatives as well as decentralized
      financial systems, provide facilities such as small scale credit, leasing, guarantees,
      insurance and above all savings to micro enterprises and households that have no access
      to the conventional financial system. Through such initiatives, poor households can ensure
      protecting themselves against illness. Provision of such credit facilities can enable small
      scale enterprises to make investments to sustain and create jobs. The micro decentralized
      credit system can reach the ordinary people, organizes their participation and build on social
      relations of mutual trust. Therefore, develop safety nets at community level.

      Proposed Interventions:
       Promote group based informal savings and credit schemes that will create micro
         enterprises and expand self-employment for many of the working poor.
       Establish legislative regulatory framework for micro finance.
       Strengthen an institutional capacity building that support micro finance schemes.
       Promote collaboration of commercial banks with micro finance institutions.
       Develop micro financial institutions capable of mobilizing savings in rural areas and the
         informal economy.

(i)   Promote Local Cooperatives:
      Promote cooperatives as a measure of helping the poor people to work out of poverty. The
      cooperative have a dual nature as they are both enterprises and associations and they can
      combat poverty in three ways:
       They empower people by enabling the poorest segments of the population to take

          They create job opportunities for those who have skills but no capital.
          They provide protection by organizing mutual help in communities.
       Proposed Interventions:
        Bring/ mobilize small and medium sized enterprises into Cooperatives.
        Establish a conducive legislative, regulatory and institutional framework, which promote
          grassroots cooperatives
        Develop organizational and managerial tools to boost cooperative ownership,
          accountability and effective participation.
        Apply the cooperative concepts to new areas such as shared serVlce cooperative for
          small business.

(j)   Promotion of entrepreneurship, small and micro enterprises
         This approach aim to promote entrepreneurship as a means of employment creation. In
          this approach people receive assistance in the form of training, access to credit and or
          equipment and a broad range of business support services to help them set up their
          own business. Therefore acquire capacity to create their own employment.

(k)   Creation of Conducive Commercial Entrepreneurial Environment for Youths
          The underlying fact is that most unemployed youths do not have either adequate capital
           or commercial knowledge needed to conduct business. Most of them operate without
           business licenses and established premises. Government action is required to ensure
           that youths secure not only adequate training in business operation skills and tools but
           also establish business premises which, when properly organized, could receive
           financial credit. It is on this basis where Workers Union of the opinion that first phase of
           PRSP never bothered to assist the Youth rather living them to be tortured by the market
           forces without creating enabling environment for them.
          Improve productivity in the sector by employing modern farming methods, production
           inputs and reduction of post harvest losses.
          Put in place policies and programmes in the rural areas that will address the current
           rural-urban migration especially among youths. This may mean provisions of essential
           facilities. (E.g. hospitals, schools, water, electricity and transport) to rural areas to
           address the rural - urban migration.
          Improve the marketing of agricultural produce as a way of improving rural incomes.
          Make legal arrangements that allow villagers to own land and later use it as collateral in
           borrowing from financial institutions.
          Provide training on Small Business Development and entrepreneurship skills to the
           informal sector operators.

      Proposed Intervention:
         Youth’s employment policy should be party of a comprehensive national employment
          policy and programme formulation.
         Education and training opportunities must be made available to all young people in both
          rural and urban areas and should focus on the development of skills in strong demand
          on the labour market.
         Vocational training programmes should be strengthened, expanded and formalized.

          The access of young people to credit for enterprise development and self employment
           system should be facilitated through guarantee funds and subsidized interest rates.
          Specific youth employment programmes should be developed in sectors such as
           mining) agriculture) trade) maintenance services and tourism

(l)   Focus on agro based small and medium scale enterprises
      Commercial banks and other financial intermediaries will have to design appropriate ways of
      extending credits to the rural areas by using other means that do not demand rural dwellers
      (and youths for that matter) to posse's collateral security in form of immovable assets.

(n) Policies to Change the Education System
    Making primary school leavers finish school at an age that is advanced enough to allow them
    to be engaged in gainful employment. Currently there are a number of primary school leavers
    who complete school at the age of 13 - 14 years. In this regard they are too young to join the
    labour force.

      Likewise, there is a need for the government to change the current education curricula which
      lay emphasis on passing (theoretical) examinations with the intention of getting formal
      employment. The existing education system has to be replaced by another curriculum which
      encourages the importance of practical skills necessary for self-employment initiatives. This
      requires that, curricula and courses at all levels (primary, secondary, vocational and higher
      learning institutions) be changed in such a way that they give candidates basic skills
      necessary to create self employment. Education and training opportunities must be availed to
      all young people in both rural and urban areas more important should focus on the
      development of skills which are responsive to labour market requirement.

(o) Changes in Attitudes and Culture
    The culture aspects which tend to confine women particularly teenage and young adult
    females to household and unpaid/helper occupations have to be changed. Sensitization and
    awareness education programme is required to change culture and altitudes.

(p) Promote Work Participation
      Proposed Intervention:
       Introduce and strengthen participatory processes in which workers can be involved in
         decision-making organs of their firms, which will allow them to take part in identifying
         priorities for the PRSP and monitoring progress.

(q) Harnessing the Entrepreneurial Power of Women and Youth
    The extra ordinary entrepreneurial of Tanzania women and the tremendous creativity of youth
    constitute an enormous, untapped development potential that if properly used could go a long
    way towards reducing poverty through employment.

      Gender mainstreaming is an integral component in employment creation. Self employment,
      developing a spirit of entrepreneurships among women, access to credit and the creation of
      guarantee funds can be advocated as a way to promote employment among women and
      young people, much should be done to address issues of discrimination equality and equity in
      employment promotion and poverty reduction strategies' and to put in place policies and
      national plans to promote gainful employment for women.

(r)   Draw up legislation to ensure non-discrimination, gender sensitive policy environment
       Promote literacy training education, skills development and training specifically for
         women and the girl child.
       Improve access to credit for enterprise and cooperative development by women.
       Expand job opportunities for women with disabilities. Strengthen career Counselling,
         monitoring and role modelling for women.
       Increase the representation and voice of women through organizational development.

      Proposed Intervention to harness the Entrepreneurial Power of Women:
       Include systematically gender concerns in PRSP and promote organizations representing
         the interests of women in policymaking bodies.
       Make women's contribution to economic and social development transparent through
         gender disaggregated statistics.
       Draw up legislation to ensure non-discrimination, gender sensitive policy environment.
       Promote literacy training education, skills development and training specifically for
         women and the girl child.
       Improve access to credit for enterprise and cooperative development by women.
       Expand job opportunities for women with disabilities. Strengthen career Counselling,
         monitoring and role modelling for women.
       Increase the representation and voice of women through organizational development.

      Proposed Intervention to harness the Entrepreneurial Power of Youth:
      There is no specific policy or plan of action on youth employment. Youth unemployment and
      under employment are often the root cause of political instability, civil unrest and crime. The
      creation of employment opportunities specifically for youth should therefore rank highest on
      the agenda of the NSGRP.

      The funding and targeting of the assistance to youth, access to employment opportunities and
      the elimination of cultural barriers should receive uttermost attention.

      Youth's employment policy should be party of a comprehensive national employment policy
      and programme formulation that is incorporated in the NSGRP.

      Education and training opportunities must be availed to all young people in both rural and
      urban areas more important should focus on the development of skills which are responsive
      to labour market requirement.

      9.2        Decent work in the global economy: The ILO approach:

The ILO-supported project entitled Poverty alleviation for unprotected informal economy
workers through trade union-cooperative joint action (SYNDICOOP), which began
implementation in 2002, includes Kenya, Rwanda, United Republic of Tanzania and Uganda
as its beneficiaries. Now in its second phase of operation, the project seeks to, inter alia,
ensure that trade unions and cooperatives are more systematically integrated into the
participatory process of design and implementation of PRSPs. On their own, individual
workers are powerless. Being organized in trade unions is what makes the difference. Unions
are a way for workers to improve their living and working conditions and those of society at
large. That is why trade unions are vehicles of development. They are a means by which
powerless individual workers become actors in society to fight for social justice in the global
economy and for the eradication of global poverty.

Representing the interests of workers and organizing and giving a voice to workers living in
poverty are key trade union responsibilities. Trade unions have been able to make basic
rights accessible to a broad spectrum of workers, including those at the very bottom of the
income ladder and in the informal economy. Whether it is through the right to social security,
decent wages, quality public services or universal primary education, trade unions have been
able to extend these rights to cover the poorest excluded women and men in society. Trade
unions do not therefore only represent their membership, but speak for society at large.

9.2.1 Trade union organizing is a route out of poverty:
The organizing work of trade unions is one key effort at poverty eradication. The more
organized the workers are, the better they can determine their own destiny, as they best
understand their own economic and political situation. Because trade union networks extend
from the grassroots to the international, concerns of various groups of society are taken into
consideration. Unions were formed to defend the economic and political rights of their
members, their families and society at large. Strong, independent and representative trade
unions are essential to the effective advocacy of workers interests. By grouping together in
unions, the working poor can liberate themselves from attitudes of marginalization and
defeatism. They can move from being victims of exploitation to actors.

9.2.2       Trade union organizing in the informal economy
Organizes hairdressers, beauticians and barbers. The main services are in the form of legal
services for members; drawing its membership from hired drivers, owner-drivers and vehicle
owners, helps secure vehicles for its members on credit as well as negotiating with the
authorities the fees to be paid for operating at road transport terminals. The union also acts
as a conciliator between hired drivers and the owners of the vehicles they operate whenever
a dispute arises.

9.2.3       Collective bargaining and social dialogue help reduce poverty:
Historically, trade unions have ensured equitable redistribution of the gains from economic
growth, reducing poverty amongst the lowest wage earners through their collective bargaining
activities. Genuine social dialogue, based on the respect of freedom of association, has
proven to be a valuable and democratic means to address social concerns. It enables
legitimate, independent and democratic organizations of workers and employers to engage in
collective bargaining, conflict prevention and resolution, promotion of stable participative

development and reinforcement of the role of international cooperation for poverty

Minimum wage fixation is an example of how, through collective bargaining, trade unions help
reduce poverty. The minimum wage is a tool in the fight against poverty, because minimum
wages act as a means of increasing the wages of individuals at the bottom of the pay scale.
They can be used as a means of establishing a social floor, and redistributing the benefits of
economic growth. The extended family is a major beneficiary of minimum wages and so
minimum wages benefit those living in extreme poverty. Minimum wages act as a benchmark
for informal economy wages. They promote pay equity, and when well used, they can also
help fight inequalities. Therefore, through social dialogue, trade unions trigger a virtuous circle
of better wages, higher domestic demand, more investments and more employment
opportunities for the population.

Trade unions can smooth the employer/employee relationship through their actions to enforce
agreements, and by providing channels for employees to voice their grievances. An OECD
study (1996) also shows a positive correlation between union presence and growth.
Moreover, through policy dialogue, trade unions make representations to governments and
international agencies, and campaign for pro-poor policies, monitor them and promote
formulation of alternative ones.

9.2.4        Combating disease and promoting health and safety at work:
The spread of HIV/AIDS, the continued mortality rates due to malaria and the resurgence of
tuberculosis and other infectious diseases are other ugly faces of poverty. Trade unions
around the world have made HIV/AIDS prevention and care a priority area of their work. They
have used their expertise in dealing with occupational health and safety hazards as well as
environmental concerns to fight the pandemic. The value addition of including trade unions in
the fight against HIV/AIDS is that they have closer links to their members, are trusted by
them, and can therefore easily relate to those who are infected. Education, awareness raising
and advocacy have been undertaken by a number of unions. National legislative changes to
reflect anti-discrimination, social protection and the provision of effective workplace strategies
and policies have been encouraged.

Trade unions are also developing partnerships with employers, as is spelt out in the ICFTU-
International Organisation of Employers (IOE) statement entitled .Fighting HIV/AIDS together:
A Programme for future engagement.

9.2.5        Trade union self-help initiatives against poverty
In many countries workers have managed to form and join various types of organization for
mutual support, such as credit unions, cooperatives and other local community organizations.
This involves such initiatives as organizing unemployed youth in the informal economy,
organizing market women and establishing coalitions with peasant associations. These
initiatives include targeted programmes aimed directly at the poor or at the working poor,
involvement in campaigns or collective bargaining in order to defend and promote rights at
work, and policy interaction at national or international levels in order to create the conditions
for poverty eradication and for pro-poor policies.

Solidarity between workers in different parts of the world has enabled them to create lasting
partnerships that have led to campaigns for social justice, human rights observance, fair
trade, debt cancellation and increased ODA, inter alia.

(a)   Gender: There is a need to promote gender mainstreaming in socio-economic policy
      and to secure equal opportunity and treatment for women. Implementing proactive
      targeted policies aimed at eradicating gender discrimination and promoting decent
      employment opportunities for women is another important dimension.

(b)   Social dialogue: A key challenge facing unions is how to promote and institutionalize
      social dialogue over and above traditional industrial relations. Social dialogue to
      determine the pattern of growth, to share the fruits of growth and to negotiate the
      trade-offs necessary for the creation of more dignified jobs is an important challenge
      facing unions.

(c)   The creation of decent jobs: Holistic strategies should be developed based on the
      need to promote faster, sustained and employment-intensive growth so as to
      accelerate the pace of poverty reduction. Active labour market policies must be
      implemented, within the framework of national employment policies, to tackle the
      problem of youth employment. The specific requirements of the informal economy
      need to be dealt with.

(d)   Macroeconomic policy for job creation: Creating the necessary space for country
      owned macroeconomic policy is an urgent challenge. Furthermore, for economic
      growth to have positive poverty outcomes, full employment policies must be placed at
      the centre of these policies.

(e)   Social protection for all: To meet the MDGs, social-sector expenditures in education,
      health, nutrition, water and sanitation have to be scaled up. Governments have to
      regain their responsibility for providing safety nets to workers facing changing
      economic relations and invest in human capital. The extension of social security
      systems to the poorest remains an important challenge.

(f)   Investment in agriculture: Considering the high levels of poverty in rural areas, rural
      development and the creation of productive rural employment must be a cardinal pillar
      of development policy. In this respect, particular attention must be paid to: poor female
      peasant producers and resources should be redirected to them to promote food
      security, a dynamic articulation between peasant agriculture and the rest of the
      economy, improved capacity, skill development, the creation of non-farm productive
      employment activities, micro-financing and providing support for socio-economic
      initiatives and cooperatives.

(g)   Trade for decent jobs and poverty reduction: Making the global trade regime create
      more decent jobs, reduce global poverty and achieve respect for workers’ rights
      remains the central challenge facing many of the WTO Ministerial Conferences. The
      end of the Agreement on Textiles and Clothing underscores once again the danger of
      a race to the bottom without adequate labour, environmental, social and

            developmental safeguards in the WTO multilateral system. Whether it is in respect of
            issues of agriculture and food security, democracy within the WTO, services or
            negotiations on non-agricultural market access, the impact of trade on labour and the
            poor should remain a central concern.

10.0    The Formal/Informal Economy Employment Continuum:

Early entry into the labour market is an accelerated trend in the country where young people stay
for a short duration in education and enter the labour market at younger ages, a fact that leads to
an increase in labour market activity rates for young people. Children between the ages of 10 and
14 are estimated to constitute not below 20 per cent of the labour force. If children and young
people are at work rather than in school, they will grow up with fewer opportunities for decent work.
In turn, this will shape their future life, including decisions on issues such as the establishment of
households, the education of their children, their patterns of consumption, their political
participation and their employment.

A major part of the labour force in the country is found at the bottom end of the informal continuum
which harbours most young women and men who work. But, the informal end of the economy is by
no means a residual economic domain. Most segments in the informal economy have direct or
indirect production, trade or services links with the formal economy. Moreover, informal producers
and traders supply goods and services at affordable prices to low- and middle-income groups of
the formal economy. Outsourcing, subcontracting and flexible employment arrangements are
becoming the typical form of employment instead of being atypical. They are, however, often not
recognised or protected by labour law or covered by social protection.
The main concern is the deficiency of decent work along the continuum. The provision of work in
the informal economy can be seen as a form of low-cost job creation, but it may miss the goal of
creating decent and productive work. Young people require not only jobs, but quality jobs. The
concept of quality jobs is a fundamental part of the ILO’s Decent Work Agenda, which is defined as
providing work in conditions of freedom, equity, security and human dignity. In the informal
economy, there is a high risk of exploitative practices, dangerous to the safety and health of
workers. Moreover, in order to improve the well being of the rural youth for employment aspects
are required, namely:
     Employability: invest in education and vocational training for young people, and improve the
      impact of those investments,
     Equal opportunities: give young women the same opportunities as young men,
     Entrepreneurship: make it easier to start and run enterprises to provide more and better jobs
      for young women and men,
     Employment creation: place employment creation at the centre of macroeconomic policy.

In many developing countries, the chances of young people finding good jobs are minimal and
unemployment benefit schemes are practically nonexistent. In order to survive, young people turn
to the informal economy as their last resort. Young street vendors in the streets are all part of the
informal economy worldwide. It is imperative that young people in the informal sector become
organized. Spurred on by economic necessity, the young workers of the informal economy

organize themselves for various reasons, for example, to facilitate access to credit, create mutual
insurance funds, reduce production costs or fight against eviction threats from local authorities.
Co-operatives, NGOs or unions organizations. The forms young workers choose vary according to
national legislation. Trade unions contribute to the organization of young people by:
    Encouraging the informal economy workers to join trade unions. When informal economy
     workers join a union, they pay token membership fees or, at any rate, fees lower than those
     paid by salaried workers. Given their unsteady incomes, they also have the possibility to pay
     on an irregular basis.
    Helping create and reinforce organizations specifically dedicated to the informal economy (for
     instance, by offering institutional support to workers in their dealings with financial institutions
     or by offering management or workers rights training).

11.0    Concluding Remark

In many developing countries, the chances of young people finding good jobs are minimal and
unemployment benefit schemes are practically nonexistent.
The governments and social partners need to be committed to addressing the rural youth
employment challenge with the involvement of young women and men. Urgent action is required to
enhance the joint involvement of young workers, workers’ organisations and employers of young
workers and their organisations in the development, implementation and monitoring of youth labour
market policies and programmes. Assessing performance against established benchmarks is a
proven method for moving forward. Knowledge about what works and what does not work the
relevance, effectiveness and efficiency of policies and programmes on youth employment could be
compiled and disseminated widely and creatively throughout the country. Tools that support
employers, workers and governments in identifying areas of work where there are gaps in the
application of international labour standards are important and should be developed.

Based on the findings the following general recommendations should be made;

     Labour- based –technologies should be promoted as they carry the highest potential in
       terms of generating new jobs for unskilled or semi- skilled workers in rural areas where a
       large majority of the population including youth are based. LBT equally serve as a conduit
       for the transfer of skills and knowledge; promote the use of local resources and existing
     Improving opportunities to earn a livelihood in non- farm activities may equally appeal to
       youth, steaming the rural– urban migration flow
     Restructuring the financial system to make access to financial service more broad based
       (reaching SME’s and rural areas)
     Improve the business environment for a broad range of investors including MSME’s


Table 1:   Employment Population Numbers and Ratios by Age, Sex and Area – (National Definition)

Table 2:

Chart 1: Graphical Presentation of Total Youth Population 15 – 24 Years by Age Group and Current
         Employment Status (Tanzania Definition) 2000/01

Table 3:   Total Youth Population 15 – 24 Years by Age Group, Sex and Current Employment Status
           (National Definition) 2000/01

                                 Current Employment Status
              Sex/Age Group      Employed Unemployed Inactive       Total
              Male      15-17    631,409 99,010         387,631     1,118,050
                        18-19    554,420 95,259         126,378     776,057
                        20-24    879,759 163,389        82,268      1,125,416
                        Total    2,065,588 357,657      596,278     3,019,522
              Female 15-17       536,018 110,998        370,755     1,017,771

                         18-19   548,294     123,787    96,192      768,272
                         20-24   1,016,721   231,467    112,288     1,360,476
                         Total   2,101,032   466,252    579,235     3,146,519
              Total      15-17   1,167,426   210,007    758,387     2,135,821
                         18-19   1,102,714   219,046    222,569     1,544,329
                         20-24   1,896,480   394,855    194,557     2,485,891
                         Total   4,166,620   823,909    1,175,513   6,166,041

Table 4

Chart 2:   Graphical Presentation of Total Youth Urban Population 15 – 24 Years by Sex and
           Current Employment Status (Standard Definition) 2000/01

                                     Total Youth Urban Population 15 – 24 Years by Sex and Current Employment Status (Standard


                                         350                                                                              Employed   Unemployed
           Urban Youth Popn ('000)







                                                           Male                        Female

Table 5:   General Employment Status of Youth 15 – 24 Years by Definition: Labour Force Survey
           Average, 2000/01

                        Standard Definition                                          National Definition
      Status            Male        Female                             Total         Male        Female     Total
      Employed          2,229,107 2,315,070                            4,544,176     2,065,588 2,101,032    4,166,620
      Unemployed        194,138     252,214                            446,352       357,657     466,252    823,909
      Inactive          596,278     579,235                            1,175,513     596,278     579,235    1,175,513
      Total             3,019,522 3,146,519                            6,166,041     3,019,522 3,146,519    6,166,041
       Unemployment Rate 8           10                                9             15           18        17
       Part. Rate        80          82                                81            80           82        81

Table 6

Chart 3:                     Graphical Presentation of General Employment Status of Youth 15 – 24
                             Years by Sex: 1990/91 and 2000/01 Labour Force Survey



 Youth Popn ('000)   1,500

                      500                                                                           Inactive

                             Male            Female        Male            Female
                               1990/91 Definition            2000/01 Definition


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