Conclusions - Household shocks and community preferences 109

Population structure and change 25 4 Labour force characteristics SUMMARY. Afghanistan’s labour market has the typical characteristics of a less developed economy: it is dominated by the agricultural sector and performs poorly in providing productive employment and decent work. More than 90 percent of jobs can be classiied as vulnerable employment that does not secure stable and suficient income. The relatively high labour force participation rate of 67 percent might indicate that many people are compelled to ind work for bare household survival. In the case of Afghanistan, the fairly high employment-to-population ratio 62 percent and the modest unemployment rate 7 percent should also be interpreted in the sense that people simply cannot afford to be unemployed. This becomes even more evident in view of the barriers for women to participate in the labour force, with the effect that the overall igures disguise an extremely high male employment-to-population ratio and labour force participation rate of 80 and 86 percent, respectively. Closer examination of the hours worked per week and the shares of the employed and unemployed that are unable to meet the most basic needs, indicates that the dichotomy of employment-unemployment as applied in developed economies is of very limited use in Afghanistan, and should be supplemented by measures of underemployment. The gender disparity of the labour market is also visible in the distribution of the status in employment – showing that 95 percent of working women are in vulnerable employment against 67 percent for men – and in average working hours 30 hours per week for women and 39 for men. Thus, Afghan women face multiple disadvantages on the labour market: fewer work, for less hours and in less secure jobs. For all labour market indicators, the gender gap is especially large in the urban areas. Widespread poverty and inadequate educational opportunities drive many households to send their children looking for work. In total 1.9 million Afghan children aged 6-17 21 percent are employed. According to the formal deinition of child labour, of these children at least 1.2 million 13 percent are performing child labour, thereby jeopardising their health or development. Labour migration is another frequent coping mechanism to escape from poverty. The importance of this strategy is indicated by the fact that 7 percent of all households have a labour in-migrant, 6 percent saw a member leave for work elsewhere and 14 percent had seasonal labour migrants.

4.1 Introduction

The involvement in the production of goods and services is the main livelihood strategy for the vast majority of Afghan households. In a society where pensions and social security benefits are available to only very few and where employment opportunities are scarce, households resort to a variety of employment strategies to escape from poverty. Among others, these include subsistence activities, involvement in low-paid and irregular jobs, child labour and labour migration. One of the major additions to the NRVA 20078 was a number of modules on labour force characteristics. These allow insight into employment strategies and the overall labour market structure of Afghanistan. Section 4.2 describes general labour force characteristics, including labour force participation, employment and unemployment, and Section 4.3 briefly addresses the job characteristics of the employed population. Subsequently, Section 4.4 deals with children engaged in jobs, and more specifically child labour, whereas the final Section 4.5 provides an analysis of labour migration.

4.2 Labour force, employment and unemployment

Due to the very large share of children, less than half of the Afghan population is in the official working age of 16 years and over. Within this working-age population of over 12 million people, one-third four million is inactive and two-thirds Decent work The concept of decent work is central in the work of the International Labour Organization ILO. Decent work sums up the aspirations of people in their working lives – their aspirations for opportunity and income; rights, voice and recognition; family stability and personal development; and fairness and gender equality. It is captured in four strategic objectives: fundamental principles and rights at work and international labour standards; employment and income opportunities; social protection and social security; and social dialogue and tripartism. Labour force characteristics 26 8 million are currently actively engaged in the labour market, either by working or by looking for work. Table 4.1 gives a breakdown by activity status and by sex and age of the working-age population of Afghanistan. Table 4.1 Working-age population, by residence, sex, and by activity status, age in thousands Activity status, age Residence, sex Urban Rural Kuchi National Male Female Both sexes Male Female Both sexes Male Female Both sexes Male Female Both sexes Employed 16-17 45 14 58 239 134 372 21 13 34 304 160 464 18-24 223 44 267 803 426 1,229 21 41 115 1,100 510 1,610 25-39 337 75 412 1,344 947 2,291 113 85 198 1,795 1,107 2,901 40-64 308 67 375 1,113 617 1,730 85 51 136 1,506 736 2,242 65+ 40 4 45 150 32 182 11 4 15 201 40 241 Total 953 203 1,156 3,649 2,155 5,804 304 194 498 4,906 2,553 7,458 Unemployed 16-17 8 7 15 29 34 63 2 1 3 39 42 81 18-24 39 19 59 74 56 130 3 3 6 116 78 194 25-39 22 12 34 70 26 96 3 2 5 95 40 136 40-64 18 5 22 62 26 88 3 2 5 83 33 116 65+ 5 1 6 22 9 31 2 2 4 29 12 41 Total 93 44 136 256 152 408 14 10 24 363 205 568 Inactive 16-17 78 119 197 112 163 275 4 8 12 193 290 484 18-24 105 262 367 157 511 668 3 26 29 265 799 1,065 25-39 17 309 325 56 651 708 3 39 42 76 999 1,075 40-64 28 300 327 102 541 643 7 32 39 136 873 1,009 65+ 56 50 106 140 129 269 13 10 23 209 189 398 Total 283 1,040 1,322 567 1,996 2,563 29 116 145 879 3,151 4,030 Total working-age population 16-17 131 139 270 379 331 710 27 22 49 536 492 1,028 18-24 368 325 693 1,034 992 2,027 80 70 150 1,482 1,388 2,869 25-39 375 396 771 1,471 1,624 3,095 119 127 246 1,965 2,146 4,112 40-64 353 371 725 1,277 1,185 2,462 96 85 180 1,726 1,641 3,367 65+ 101 55 156 312 170 482 26 16 42 439 242 680 Total 1,328 1,287 2,615 4,472 4,302 8,775 347 320 666 6,148 5,909 12,057

4.2.1 Labour force participation

Afghanistan’s labour force – all persons in the working age of 16 and over who are currently active by being either employed or unemployed – amounts to over 8 million people, 5.3 million males and 2.8 million females. The labour force participation rate – the share of the working-age population that is currently employed or unemployed 1 – is a key indicator in the analysis of the human resources available for the production of goods and services and for the projections of labour supply. Comparison of labour force participation for both sexes combined – see Figure 4.1 – show high rates in rural areas and among Kuchi’s respectively 71 and 78 percent. This is typical for less developed economies, in which educational opportunities are few, where most people are engaged in labour-intensive agricultural activities, and where wage earning opportunities are scarce, so that many household members need to work to provide sufficient income. In urban areas, the overall labour force participation is significantly lower 49 percent, indicating opportunities other than employment, such as school attendance see Section 7.3 and perhaps less necessity to work due to lower poverty see Chapter 6. Compared to the region of South Asia and the world at large, the overall labour force participation in Afghanistan is high. _________________________________________________________ 1 For definitions of employed and unemployed, refer to the glossary at the end of this report. Figure 4.1 Labour force participation rate, by residence and by sex Source for South Asia data: ILO 2007 The overall labour force participation rate of 67 percent in Afghanistan conceals large differences by sex and age. Although generally labour force participation is lower for females than for males, in the Afghan economy this gender gap is large. Less than half 47 percent of the working-age females is currently active on the labour market, against 86 percent of males, a gap of 39 percent points. The gap is relatively small in the rural and Kuchi populations respectively 34 and 28 percent points, due to female engagement in agricultural and pastoral activities. However, in urban areas it is as large as 60 percent points because of a very low female labour force participation of 21 percent. The low female participation rates indicate that women are still a significant untapped potential in the country. Underlying causes are a variety of competing demands and barriers for women, such as their care-taking responsibility for children, elderly and the disabled, high fertility, household chores, low educational attainment and restricted mobility. Labour force participation by age group shows a typical inverted U-shape with a peak in the prime working-age spans of 25-39 and 40-64 see Figure 4.2. The pattern for males is more pronounced and at a higher level and than for females. The largest gender gap of 45 percent points is found in the age group 40-64. Figure 4.2 Labour force participation rate, by sex and age Labour force characteristics 27