2007年-世界发展银行全球_Enterprises_Workers_and_Skills_in_Urban_Timor-Leste_45页_446kb

Summary of "Enterprises, Workers and Skills in Urban Timor-Leste"

Core Content

This paper presents the findings of the first urban enterprises survey in independent Timor-Leste, conducted in 2004. It explores the characteristics of urban enterprises, their employment and wage-setting behaviors, and the skills and training needs of urban employers. The study highlights the challenges of developing a sustainable and broad-based employment pattern in a new, low-income, post-conflict nation.

Main Findings

1. Urban Enterprise Landscape

• High Informality: The urban enterprise sector in Timor-Leste is highly informalized, with even "formal" enterprises largely being micro-enterprises.
• Employment Distribution:
  • Formal Enterprises: Almost 72.4% have fewer than 10 workers, 19.1% have 10-20 workers, and only 8% have more than 20 workers.
  • Informal Enterprises: Over 53% have only one worker, 46.9% employ 2-10 workers, and less than 0.5% have more than 10 workers.
• Turnover: Over 93% of informal and 60% of formal enterprises have an annual turnover of under USD 10,000. Most enterprises are small and operate on a limited scale.

2. Employment and Labor Market Characteristics

• High Urban Unemployment: Urban unemployment rates are high, with Dili and Baucau experiencing 20% unemployment.
• Gender Disparities:
  • Male labor force participation is significantly higher (81%) than female (40%).
  • Manual workers are predominantly male, while service workers show a more balanced gender distribution.
  • Women's participation in formal employment is low, likely due to limited access to manual jobs and lower skill levels.
• Youth Unemployment:
  • The youth population is large and growing.
  • Urban youth unemployment is particularly high, with 43% of 15-24 year olds unemployed.
  • Unemployment rates decline with age, reaching 9% for those over 35.
• Skill Shortages:
  • There is a general shortage of skilled workers, with average years of schooling at 4.62 in 2001.
  • Only 4.25% of the population had attended university.
  • Basic literacy, numeracy, and language skills are the most critical needs for employers.

3. Wage and Labor Market Policies

• Informal Minimum Wage Policy: The inherited informal minimum wage policy from the interim administration has had mixed impacts, suggesting the need for caution in future wage policy development.
• Wage Setting:
  • Wages are generally low, with a lack of formal wage-setting mechanisms.
  • The informal nature of the labor market limits the ability of workers to negotiate for better wages.

4. Business Climate and Policy Environment

• Regulatory Environment:
  • Labor regulations are relatively rigid compared to East Asian and Pacific countries.
  • Contract enforcement is a major challenge, with Timor-Leste ranked among the worst performers globally in contract enforcement.
• Business Environment:
  • The time and cost to start a business are high, with an average of 92 days and costs equivalent to 125% of GDP per capita.
  • The business climate is not conducive to formal business growth, which in turn affects employment growth.

5. Policy and Institutional Challenges

• Limited Data: There is a lack of comprehensive labor market data, which hinders policy formulation and analysis.
• Survey Limitations:
  • The survey was short-term and subject to seasonality.
  • It was based on employer perceptions and did not include employee data.
  • Questions were not ranked, leading to potential biases in responses.
• Training Needs: Employers identify a need for short, informal training programs to address skill gaps.

Key Recommendations

• Promote Formal Employment: Given the informal nature of most enterprises, policies should aim to encourage formalization and growth of formal enterprises to create more stable and higher-paying jobs.
• Improve Labor Market Policies: A careful approach is needed in developing wage policies, considering the impact of the informal minimum wage policy.
• Enhance Skills Training: Focus on basic literacy, numeracy, and language skills, with an emphasis on short and informal training programs.
• Strengthen Institutional Frameworks: Develop and enforce labor laws, improve contract enforcement mechanisms, and enhance the business climate to support enterprise growth.
• Support Diversification: As the economy remains highly dependent on petroleum, efforts should be made to diversify employment sources, especially in non-petroleum sectors like the coffee industry.

Conclusion

The study concludes that Timor-Leste's labor market is constrained by a combination of macroeconomic shocks, structural challenges, and an informal business environment. The lack of skilled workers and the dominance of micro-enterprises highlight the need for targeted skills development and supportive labor market policies. The paper emphasizes the importance of addressing these challenges through a mix of macroeconomic and microeconomic strategies to ensure sustainable employment growth.