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Deepening Integration in SADC - Fes-botswana.org

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6.18 Analysis of Labour Market Trends<br />

I t is estimated that Mozambique has a total work force of<br />

approximately 9.6 million persons, of which an estimated 56%<br />

correspond<strong>in</strong>g to 520,000 are employed are <strong>in</strong> the formal sector. 95%<br />

of the total labour force depends on the <strong>in</strong>formal sector for its<br />

subsistence, while an estimated, both public and private sectors. In<br />

the formal sector, large enterprises dom<strong>in</strong>ate <strong>in</strong> terms of employment,<br />

while small enterprises (1-9 employees) account for a great majority<br />

of registered enterprises (IMF Country Report, 2002).<br />

Almost one quarter of all jobs <strong>in</strong> the formal sector are found <strong>in</strong><br />

trade/commerce, while some 40% are engaged <strong>in</strong> government services<br />

such as education, health and general public adm<strong>in</strong>istration. Agriculture<br />

dom<strong>in</strong>ates the <strong>in</strong>formal sector. With the exception of large companies<br />

<strong>in</strong> partnership with foreign <strong>in</strong>vestors, employment tends to be<br />

stagnat<strong>in</strong>g <strong>in</strong> the private formal sector. However, some sub-sectors<br />

show signs of growth, for example, construction, tourism, process<strong>in</strong>g<br />

of forestry products, and manufactur<strong>in</strong>g of certa<strong>in</strong> specialised items.<br />

Overall, the Mozambican workforce is very poorly educated and has<br />

limited skills. Half of the population has no education at all or only<br />

basic literacy skills, while slightly above 40% has primary education.<br />

Merely 7.5% has achieved secondary or tertiary education and only<br />

0.5% of the population has a post secondary degree. Access to<br />

education system is highly unequal with significantly less chances for<br />

girls and people who dwell <strong>in</strong> the rural areas (IMF Country Report,<br />

2002).<br />

In term of demand characteristics, Table 22 <strong>in</strong>dicates that the<br />

Mozambican economy of GDP has undergone quite substantial<br />

structural changes as a result of the rapid growth. Most remarkably is<br />

the relative decl<strong>in</strong>e of the agriculture sector, which cont<strong>in</strong>ues to provide<br />

livelihood to two thirds of the population. Its share of GDP fell from<br />

30 to less than 20% between the mid-n<strong>in</strong>eties and 2001. The<br />

manufactur<strong>in</strong>g sector is not very diversified with food/beverages<br />

account<strong>in</strong>g for 38% of the production, and alum<strong>in</strong>ium production<br />

(especially Mozal) for another 23%. Other important manufactur<strong>in</strong>g<br />

sub-sectors, such as textile/garment and footwear tend to be stagnat<strong>in</strong>g<br />

(IMF Country Report, 2002).<br />

116

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