1. EMPLOYMENT & INFORMAL SECTOR STATISTICS IN ETHIOPIA
Yaounde,
September 14-16,2011
Mrs. Aselefech Abera
&
Mr. Teshome Adno

2. 1. 1. General Objectives of the 2003 Informal Sector Survey
The major objectives of the survey were to obtain the number of establishments and their spatial distribution classified by various characteristics (e.g. kind of activity, type of workplace)
Information on the number of persons engaged in the informal sector by socio-demographic and other characteristics.
to generate data on output, value added, operating surplus and capital equipment of the informal sector enterprises;
To generate data for an in put for National account.
27 November 2018
CSA & MoFED

3. 1.2. Definition of Informal Sector in Stand alone survey
The Informal Sector here is defined as household type establishments/activities:-
i. which are mainly engaged in marketed production and
ii. which are not registered companies or cooperatives and
iii. which have no full written book of accounts and
iv. which have less than 10 persons engaged in the activity and
v. which have no license.
Therefore, for this survey an establishment/activity is considered to be informal if it meets the aforementioned all the six criteria.
27 November 2018
CSA & MoFED

4. 1.3. Definition of Informal Sector in NLFS and UEU Module Survey
For this surveys the Informal Sector is defined as household type and all hhs were asked to respond whether their enterprise engaged in has:
a) business/enterprise license; or
book of account that show the monthly income statement and balance sheet
c) The number of persons engaged in the enterprise should be less than 10 employees/workers.
How ever, the last criteria has been excluded since 2009 based on the ILO recommendations.
27 November 2018
CSA & MoFED

5. 1.4. Survey Coverage
The two surveys are limited only to urban centers.
Category I: 9 Regional capitals and two city administration regardless of their population size and 5 major towns with population size 100,000 and above.
Category II: 74 other urban centers were selected and included.
A total of 535 EA’s and 15,442 hhs with Informal Sector operators were planned to be covered, of which 97.4% were covered.
27 November 2018
CSA & MoFED

6. 1.5. Sample Design
For the purpose of this survey, urban areas of the country were categorized in to major towns and other urban centers.
A stratified two stage cluster sampling was implemented in:
Category I:
First Stage: selection of EA’s using Probability proportional to their size (PPS), size being the no. of hhs that obtained from census.
Second stage: From each EA’s 30 hhs with one or more operator were systematically selected from the fresh list of hhs.
27 November 2018
CSA & MoFED

7. 1.5. Sample Design(Cont’d)
Category II: A stratified three stage cluster sampling was adopted.
First stage: Other urban centers were selected using PPS, the size being the number of hhs obtained from the 2007 population and housing census.
Second stage: Selection of EA’s using PPS.
Third stage: 30 hhs with a minimum of one informal sector operator were systematically selected from the fresh list of hhs.
However, in LFS UEU did not employ screening of operators but administer questions to all hhs members just to identify the respodents working in ISS
27 November 2018
CSA & MoFED

8. 1.7. Types of information collected in Stand alone survey
Information was collected on:
demographic characteristics of Informal Sector ,operators,
Informal Sector establishments/activities,
capital,
production and sales,
expenditures,
employment,
problems and future plans and
income/debt .
27 November 2018
CSA & MoFED

9. 1.6. Identification of Informal sector
The following screening criteria were used to identify during the listing of households:
i. At least one member of the household must be engaged in productive activity.
ii. Employment status of the owner of the activity must be either an employer or a self operated activity,
iii. The establishment/activity shall not be a corporate type of enterprise,
iv. The establishment/activity should not keep a complete book of accounts,
v. Number of persons engaged (if any) including the operator must be less than 10.
vi. the establishment/activity should not be registered by any legal authority which gives licenses.
27 November 2018
CSA & MoFED

10. 1.8. Types of Data on Informal Sector Module Survey in NLFS and UEUS
Book of account
License
Number of persons engaged in the enterprise or business.
Usual time in the ISS.
Types of agreement.
The types of problems encountered.
27 November 2018
CSA & MoFED

11. 1.9. The 2003 Stand Alone ISS Verses the NLFS and UEUS Module Survey
Type
Stand alone ISS
LFS & Module ISS
Survey approaches
Stand alone Survey
Mixed Survey based on HHS and establishment
Questionnaire administered to all operators
Module survey questionnaire attached to NLS and UEUS
Questionnaire administered to all hhs members
Definition
Marketed production
Registration
License
No. of employees
Book Account
1999 & 2005 NLFS:
2009 & 2010 UEUS:
27 November 2018
CSA & MoFED

12. 1.9. The 2003 Stand Alone ISS Verses.. . Cont’d
Type
Stand alone ISS
LFS & Module ISS
Survey Methodology
Used to apply two and three Stage cluster sampling to select urban &EA’s and SSM to select hhs.
The same
Coverage
Urban area only
NLFS = Uraban &Rural
UEUS = only urban areas
Listing of hhs
First, administer question to identify operators through listing of hhs for the study.
First, records all hhs and used as a frame to select 30 hhs for the study
1.9. The 2003 Stand Alone ISS Verses.. . Cont’d
27 November 2018
CSA & MoFED

13. 1.9. The 2003 Stand Alone ISS Vreses .. . Cont’d
Type
Stand alone ISS
Module ISS
Objectives
Generate data on the no. of establishment those engaged in the ISS
Generate data on the no. of persons those engaged in the ISS
Collection of Data on Income
Collect data on income from the establishment engaged in the ISS
Collect data on wage/earnings from paid employees
27 November 2018
CSA & MoFED

14. 1.9. The 2003 Stand Alone ISS Verses .. . Cont’d
Type
Stand alone ISS
LFS & Module ISS
Data gap
No data from all hhs members about their engagement in the ISS
No data on self employment
No data about Establishment
National Planning and Strategy
Plan to collect data on Micro and Small Scale/MSS/ enterprise instead of ISS during the next 5 years period
Plan to collect data on NLFs every 5 years and UEUS every year
Challenges
No enough resource to conduct Stand alone ISS since 2003
No enough resource to conduct labour force survey at lower level of administration
1.9. The 2003 Stand Alone ISS Verses .. . Cont’d
27 November 2018
CSA & MoFED

15. 1.10. Main Data user MOLSA MoFED MoE MoH
Ministry on commutation and transportation
Employers Federation
Confederation for Trade Union
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CSA & MoFED

16. 1.11. LFS out put and the reporting level
National labour force survey conducted every 5 years (1999, 2005)
Urban employment and unemployment survey coducted every year ( conducted in 2003, 2004, 2006, 2009, 2010, 2011).
ISS was attached as a module in all serves and reported only for urban areas.
MSE plan coduct efor the next two years instead of Informal sector survey.
27 November 2018
CSA & MoFED

17. 1.12. Government Strategy and Policy for ISS
Enhance the Micro and Small Scale enterprise through the providing credited finance.
The main objective of the Gov’t are :
To generate income for the poor family.
To cerate employment opportunity.
To reduce unemployment in the country.
To develop rural areas to reduce rural urban migration and in turn Informal employment.
To encourage to be organized those in the ISS in order to provide, working place, license and financial support.
27 November 2018
CSA & MoFED

18. The Incorporation of Informal Sector into The National Accounts
Is the Informal sector included in the national accounts?
Answer: Yes
Do we use informal sector two surveys of the CSA?
No?
Why ?
May be we didn’t want to bother ourselves to distinguish between formal and informal sector at the time.
It doesn’t include the formal sector
We haven’t done institutitional sector accounts and SUT(Supply and Use Table), & I_O tables yet though planning to do in the five year project.
27 November 2018
CSA & MoFED

19. The Incorporation of Informal Sector into The National Accounts(cont’d)
Then how do we incorporate into national Accounts?
Answer: Using one or combination of various CSA surveys. Namely
1. The National Labor
force Survey(extensively used)
This survey comprises both the formal and informal sector separately and together. It provides the number of person engaged in a specific sectors categorized by ISIC( international Standard for Industrial Classification)
27 November 2018
CSA & MoFED

20. The Incorporation of Informal Sector into The National Accounts(cont’d)
2. Population & housing Census results which again provides economically active population and number of persons engaged in an economic activity and also total population of a particular geographical area for consumption. 3. Distributive and Service trade Surveys 4. Small Scale and Cottage Industry surveys 5. Quarrying surveys 6. Household Income ,Consumption and Expenditure surveys which provides per capita consumption of a product or service 7
27 November 2018
CSA & MoFED

21. The Incorporation of Informal Sector into The National Accounts(cont’d)
It is also possible if effort is made to separate out the informal sector from that of formal in terms of value added and employment This can be achieved by using the labour force survey and pin pointing the owners and operators of the business. This ownership is by Government , corporations, plc, partnership, share companies, and individual ownership ( mainly of informal sector) .Owner operators, and unpaid family workers are also informal
27 November 2018
CSA & MoFED

22. The Incorporation of Informal Sector into The National Accounts(cont’d)
Govm’t Owned
Corporations
Share companies
PLC
Partnership
HH, unincorporated
Owner occupied dwellings X
Domestic Services with Employed Person
And others
27 November 2018
CSA & MoFED

23. The Incorporation of Informal Sector into The National Accounts(cont’d)
All the sectors have informal sector including agriculture and the financial sector (especially in 2008 SNA production boundary extension). However , the public administration and defense sector entirely is operated by government
27 November 2018
CSA & MoFED

24. The Incorporation of Underground economy into The National Accounts
The very common one especially in Africa is the illegal border trade with neighboring countries, which not only underestimates the import and export of the country but also the trade value added and the products produced.
27 November 2018
CSA & MoFED

25. Suggestions
Please offer your comments/suggestions if any to improve the incorporation of informal sector in the national accounts statistics
27 November 2018
CSA & MoFED

26. Thank You
27 November 2018
CSA & MoFED