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Sri Lanka Human Development Report 2012.pdf

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CHAPTER<br />

5<br />

Bridging<br />

<strong>Human</strong> <strong>Development</strong> Gaps: Employment and Livelihoods<br />

Access to productive employment is a key element of<br />

human development, as it is the means by which people<br />

reap the benefits of investments in health and education.<br />

When people do not have assets providing adequate<br />

incomes, productive employment remains a key channel<br />

out of poverty, although it may not be sufficient by itself.<br />

The type and nature of employment people can find is<br />

also important. Poor employment opportunities may lead<br />

mainly to social unrest.<br />

While <strong>Sri</strong> <strong>Lanka</strong>’s unemployment rate is relatively low,<br />

employment growth lags considerably behind GDP<br />

Labour Market Performance<br />

There were 8.1 million economically active people in<br />

<strong>Sri</strong> <strong>Lanka</strong> in 2010, 199 comprising roughly half the<br />

population above age 15, for a labour force participation<br />

rate of 53.4 percent. Men were twice as likely to participate<br />

in the labour market as women. 200 The rates for rural<br />

and urban populations were 54.4 and 46.8 percent,<br />

respectively.<br />

For the country as a whole, the unemployment rate was 4.9<br />

percent in 2010, an improvement over the 7.6 percent rate<br />

in 2000. 201 But high unemployment among more educated<br />

Figure 5.1: Unemployment Rate by Education Level, Age Group and Sex, 2010<br />

Note: Total excludes the Northern Province.<br />

Source: Department of Census and Statistics of <strong>Sri</strong> <strong>Lanka</strong> 2010a.<br />

growth, which averaged at least 5 percent from 1990 to<br />

2001. Further, the quality of jobs created has been poor.<br />

This chapter examines the performance of the labour<br />

market in <strong>Sri</strong> <strong>Lanka</strong>, recognizing that outside the Western<br />

Province, most people are dependent upon agriculture for<br />

employment. It then explores ways to improve agricultural<br />

productivity and access to other types of employment<br />

opportunities.<br />

people, youths and women (Figure 5.1), especially outside<br />

the Western Province, is a major concern. Various factors<br />

explain this phenomenon, including the relevance of skills<br />

taught by the education system, differences in the terms<br />

and conditions of employment across sectors, and slow job<br />

creation.<br />

The unemployment rate for people with an A-Level<br />

education and above was 11.6 percent in 2010, more than<br />

sri lanka <strong>Human</strong> <strong>Development</strong> report 2012 81

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