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Thirty percent population underutilized: Labor survey

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(Updated with details)



KATHMANDU, Aug 10: Technically 97.9 percent of the country´s population is employed. But are they getting sufficient work? No, a recent study concluded.



Due to fading employment opportunities amid slackening economic activities in the country, almost one-third of the total workforce has remained underutilized -- which means they are not getting sufficient works, revealed a crucial survey conducted by the government. [break]



  • Unemployed rose to 2.1% from 1.8% nine years ago

  • Agricultural employment dropped to 73.9%

  • 30% of the household receives remittance

  • 57.9% household has radio and 33.2% has TV

  • 3.1% has computer, 28.3% has mobile



A year-long Nepal Labor Force Survey 2008, which was conducted for the first time in the country incorporating four components -- unemployment, involuntary part-time work (time-related underemployment), inadequate earnings and skill mismatch -- across the country, showed 30 percent of the total population aged 15 and above is underutilized.



The survey, conducted in 15,976 households selected through 800 Primary Sampling Units (PSUs), stated that 38.2 percent male and 22.8 percent female of the total population under the age group are under unutilized.



The survey was conducted by Central Bureau of Statistics (CBS) in collaboration with United Nations Development Program (UNDP) and International Labor Organization (ILO). According to the ILO´s definition, those engaged in economic activities for at least in hour in a week are termed employed.



“We have found that the underutilized population in urban areas is almost double that in rural area, as many people in rural areas are engaged in agricultural works,” said Bikash Bista, deputy director general of the CBS, presenting the survey findings.



The survey also showed 49 percent of urban and 26.9 percent of rural population was underutilized. It also showed that unemployment rose to 2.1 percent of the total population from 1.8 percent in 1998/99.



Unemployment rate is highest among the 25-29 age group in male, while the rate is highest in 30-44 age group among females.



Likewise, the working hours for underutilized population have increased to 6.7 percent of the total working hour from 4.1 percent in the nine-year period.



Given the less employment opportunities in the country, 8.1 percent of the total population is employed with inadequate earnings whereas 13.2 percent of the total population is suffering from skills mismatch.



Of the total population over the age of 15, only about 83 percent is estimated to be active in economic activities.



Though the agriculture sector has remained a dominant employer, population employed in this sector has dipped to 73.9 percent from 76 percent over the period, as non agriculture sector offered more employment opportunities.



“Dependence on agricultural sector is decreasing with the rise of non-agriculture sector, which employs 26.1 percent of the total population, up from 24 percent recorded in the study conducted in 1998/99.



The study also revealed that 66.8 percent of the total population works 40 hours or more a week, 19.5 percent works for 20 hours to 39 hours, 11.6 percent works less than 20 hours a week, while 2.1 percent has no work at all.



The survey also concluded that 30 percent of the total households surveyed were receiving remittance from their family members. According to Bista, each household receives an average remittance of Rs 65,755 per year. Of the total remittance flow, 16.8 percent comes from within the country, whereas remittance sent by migrant workers makes up the remaining.



Qatar, Malaysia, Saudi Arabia, India and the UK are the major contributors in remittance, with Qatar leading the pack with the contribution of 21.3 percent of total remittance flow.



prabhakar@myrepublica.com



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