via Zim employment goals regress 19 November 2014 by Victoria Mtomba
ZIMBABWE is regressing in achieving the goals of employment due to de-industrialisation and the informalisation of the economy, a study conducted by Zimbabwe Economic Policy Analysis and Research Unit (Zeparu) has shown.
Speaking at the launch of the report yesterday, Labour and Economic Development Research Institute of Zimbabwe (Ledriz) director Godfrey Kanyenze said Zimbabwe had not been able to resolve the dual and enclave nature of the economy inherited at independence where the burden of creating employment lay in the formal sector, which at independence accounted for only 20% of the labour force of one million persons.
The report is titled The Nexus Between Growth, Employment and Poverty in Zimbabwe: the Economics of Employment Creation”.
“We are moving from high productive sectors such as manufacturing to low productive sectors, but under normal circumstances one should move from low to high productive sectors. More of our workers have moved to unsustainable work situation 84% of our employment is now in the informal sector which is regression,” Kanyenze said.
“We have a huge task that people need to enjoy the right to work. We must come up with the transition from informality to formality so that people enjoy the benefits of work.”
Kanyenze said the recovery of the economy was resource-driven mainly by mining and agriculture yet the experiences of emerging economies such as India, China and others that were more successful, in reducing poverty over relatively short periods of time was that they underwent a more rapid structural transformation whereby new and more productivity activities emerged.
“In the case of Zimbabwe structural regression has been experienced as de-industrialisation and informalisation of the economy accelerated. Thus, not only did the quantum of employment decline, but also its quality,” he said.
The study was conducted by Zeparu and Ledriz.
Speaking at the same event, Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Japhet Moyo said the structure of the economy remains unsustainable due to the de-industrialisation and informalisation of the economy.
“We continue to experience increased company closures, retrenchments and according to the National Social Security Authority 10 companies have been closing every month since January 2014,” he said.
Moyo said the lack of investment in infrastructure plant and machinery, high cost of doing business had rendered the economy highly uncompetitive.
Moyo said for a long time the Zimbabwe market had failed to absorb people in the formal sector.
“We have very educated people doing odd jobs and that is not a good situation,” he said.
He said business would be affected by the prevailing political situation hence the need for Zanu PF to put its house in order.
“Business will be affected by politics because of internal fights in Zanu PF. The ruling party has to put their house in order so that we don’t come here to waste money and time.”
The country’s unemployment level is at 11%, according to the national statistical agency, though independent economists say the figure is above 80%.
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