2010年-世界发展银行全球_Cape_Verde___Initial_Assessment_of_the_Formal_Labor_Market_46页_1mb

Cape Verde: Initial Assessment of the Formal Labor Market

Core Content

This report provides an initial assessment of the formal labor market in Cape Verde, highlighting the challenges of persistent unemployment despite strong economic growth. It explores the structure of the labor market, employment trends, wage dynamics, and the impact of unemployment on poverty and social well-being.

Main Points

Economic Overview

• Economic Transition: Cape Verde has successfully transitioned from a centrally planned to a market economy over the last 25 years, leading to robust economic growth and a reduction in poverty.
• Economic Growth: Real GDP growth averaged 7% from 2004 to 2007, peaking at 10.8% in 2006. This growth has translated into higher per capita income and improved living standards.
• Poverty Reduction: Poverty rates have declined significantly, from 49% in 1988-89 to 27% in 2007. However, disparities remain between urban and rural areas, with rural poverty at 30% compared to 12% in urban areas.
• Income Sources: Approximately 64% of household income in Cape Verde comes from wages, emphasizing the importance of employment in economic well-being.

Unemployment Trends

• High Unemployment Rate: The national unemployment rate was 18.3% in 2006, with some islands experiencing significantly higher rates, such as Santo Antão (27.1%) and São Vicente (24.9%).
• Youth Unemployment: Unemployment is particularly acute among young people (15-24 years), with 41.8% unemployed in 2007.
• Gender Disparity: Female unemployment was higher than male unemployment (25.7% vs. 18.2%).
• Urban vs. Rural: Urban unemployment (22.8%) is slightly higher than rural unemployment (20.0%), though both areas face significant challenges.
• Underemployment: About 15.7% of the employed work part-time, and 24.1% work less than 35 hours per week.

Labor Market Dynamics

• Job Creation vs. Destruction: Job creation is substantially above job destruction, indicating positive net employment growth.
• Regional Disparities: Unemployment rates vary significantly across islands, with some islands showing better labor market performance than others.
• Convergence Trends: There is a trend toward convergence in labor market outcomes across islands, suggesting the emergence of a more integrated national job market.
• Informal Sector: The informal sector remains relatively large and may be growing, contributing to high unemployment and underemployment rates.

Factors Affecting Unemployment

• Income Support from Family: A significant proportion of unemployed households receive income from family members, which may reduce the urgency to seek formal employment.
• Wage and Productivity: There is a correlation between wage levels and productivity, with public and private sector workers showing different levels of productivity.
• Wage Premium: A public sector wage premium may affect labor market outcomes, potentially influencing the decision of workers to remain in the informal sector.
• Demographic Factors: While demographic differences are unlikely to be the main cause of regional unemployment disparities, they still play a role in shaping labor market outcomes.

Key Information

Tables and Figures

• Table 1-1: Macroeconomic indicators from 2004 to 2012, including GDP growth and poverty rates.
• Table 1-2: Poverty trends from 2001-02 to 2007, showing regional and socio-economic disparities.
• Table 1-3: Employment by age group and island, highlighting the distribution of the labor force.
• Table 1-4: Unemployment rates and labor force participation rates by island.
• Table 1-5: Reasons for unemployment, with "no work available" being the most common.
• Table 1-6: Duration of decision to stop looking for employment by island.
• Table 1-7: Duration of unemployment by island.
• Table 1-8: Sources of income for the unemployed by island.
• Table 1-9: Proportion of unemployed who sought employment by island.
• Figure 1-1: Unemployment by city in 2007.
• Figure 1-2: Relationship between income support from family and willingness to search for work.

Authors and Contributors

• Task Team Leader: Alvaro González
• Labor Market Specialist: David S. Kaplan
• Acknowledged Institutions: Instituto Nacional de Estatística (INE), Instituto do Emprego e Formação Profissional (IEFP), and the Inter-American Development Bank.

Conclusions

• Persistent Unemployment: Despite economic growth, unemployment remains a major challenge, particularly among the young and in certain islands.
• Regional Disparities: Disparities in unemployment rates across islands suggest potential labor market rigidities and regional economic imbalances.
• Policy Implications: The government recognizes the need for employment generation as central to poverty reduction. Addressing labor market rigidities and improving job creation in less dynamic regions is essential for long-term economic and social development.