#1Measuring the Informal employment in Bangladesh Regional Workshop on MAP on Decent work in ASIA 28-30 June 2010 Bangkok, Thailand Kabir Uddin Ahmed Deputy Director Bangladesh Bureau of Statistics#2. ● Outline of Presentation Bangladesh at a glance System of Official Statistics in Bangladesh Key findings from LFS 2005-06 Informal Sector Survey (ISS) 2009-10 Methodology of the ISS survey Challenges#3Bangladesh NERAL Rangpur BHUTAN Вкаптарика INDIA BANGLADESH Rajnagar Ganges Rājshāhi Jamuna INDIA DHAKA Nārāyanganj Barisal Khulna Kālpi Chittagong MYANMAR Bangladesh, officially the People's Republic of Bangladesh is a country in South Asia. ➤It is bordered by ➡India on three sides (east, west,south). ➡ Myanmar to the southeast. ➡the Bay of Bengal forms the southern coastline. Bay of Bengal#4System of Official Statistics in Bangladesh Ministry of Planning (Hon' able Minister) Statistics Division (Secretary) - - Bangladesh Bureau of (Director General) Statistics Agriculture Wing (Director) - Census Wing (Director) Computer Wing (Director) Demography and Health Wing (Director) FA and MIS Wing (Joint Director) Industry and Labour Wing Field Offices (Director) National Accounting wing (Director) Regional Statistical Office (23) Upazilla Statistical Office (489) - · Bangladesh Bureau of Statistics, the NSO of Bangladesh Centralized in the Bangladesh Bureau of Statistics (BBS). Established in 1974 under the Ministry of Planning. Comprises 7(seven) functional wings and 2-tyre field offices. (Statistical Officer) (Statistical Officer)#5Labor Force Profile: Bangladesh, 2005-06 Labor Force Frequency Percentage* Characteristic Employed 47,356,591 95.68 Employee 6,566,414 13.27 Employer 130,095 0.26 Self-employed 19,844,562 40.09 Unpaid worker 10,267,496 20.74 Wage worker 10,548,024 21.31 Unemployed 2,137,672 4.32 In labor force 49,494,263 100.00 * percent to total labor force#6Informal employment Profile Frequency Distribution of Workers in Bangladesh, Area By Nature of Employment, Division and Locality Nature of Employment Formal Total Informal Division Chittagong 1,415,581 7,782,386 9,197,967 Dhaka 2,483,181 12,211,304 14,694,485 Variable Estimate Khuha 488,485 5,069,714 5,558,199 Employed 47,356,591 Rajshahi 763,399 10,202,852 10,966,251 Unemployed 2,137,672 Barisal 355,552 3,029,563 3,385,115 Labor Force Sylhet 312,383 3,242,190 49,494,263 3,554,574 Total 5,818,582 41,538,009 47,356,591 Locality Rural Urban SMA 2,899,327 931,116 1,988,139 33,232,904 36,132,231 Nature of employment % 4,223,014 5,154,130 Informal 87.71 4,082,092 6,070,230 Total 5,818,582 41,538,009 47,356,591 Formal 12.29#7LFS 2005-06: Mean wage by industry Taka 9000 Mean Wage, by Industry: Formal vs Informal 8000 7000 6000 5000 4000 3000 2000 1000 0 formal ☐ informal التالس Agri Fishing Mining Mfg EGW Const WRT Hotels TCS Other Comm Industry#8LFS 2005-06: Mean wage by sex Taka 7000 Mean Wage by Gender ■ Male 6000 □ Female 5000 4000 3000 2000 1000 0 ALL Formal Informal#9Informal Formal Financial intermediation Distribution of workers in selected industries by nature of employment Percentage Distribution of Workers in Selected Industries in Bangladesh, By Nature of Employment Public administration Education Agri/hunting/forestry Fishing Mining/quarrying Construction Private households#10RETA 6430: Measuring the Informal Sector • Asian Development Bank (ADB) - Measuring the Informal Sector - Three countries - Armenia, Bangladesh, Indonesia - Inception workshop conducted in September 2008 Contribute to the increase in evidence-based policy making for poverty reduction - - - By helping NSOs acquire a sound strategy for collecting data on the informal sector - By exploring the processes to integrate informal sector data into national accounts data compilation framework By studying the links between poverty and the informal sector#11RETA 6430: Measuring the Informal Sector . Develop a unifying definition of the informal sector Formulate an integrated data collection methodology Design implementation strategy and tools for data collection, processing and analysis#12ISS: in a nutshell • Inception workshop • · : September 2008 Memorandum of Understanding: 2009 Development of Master sample: 2009 · Data collection · Manual editing and coding · . : April - May 2010 : June 2010 Data Processing and analysis: July-September 2010 Workshop on major findings : October 2010 . Report : December 2010#13. Why Informal sector survey 2009-10 In general, there is very limited data on the informal sector - In a country, what is the informal sector's contribution to economic growth? What is the trend? Is it increasing? Where data is, or becomes available ... - - How are these being analyzed? and made available for policy use? How to make these internationally comparable? Limited comparable data on the informal sector (employment, contribution to GDP)#14General design strategy Phase 1 Expanded Labor Force Survey Households/Individuals HUEM Screening Module Phase 2 HUEMS Survey Production Units (HUEMs)#15- - MIXED SURVEY APPROACH The sampling strategy for the HUEM Survey incorporates a mixed survey approach. First Phase: Expanded LFS (includes questions about informal employment and screening questions to identify HUEMS) Second Phase: HUEM Survey (possible sampling strategies: (i) all HUEMs identified in phase 1 are interviewed; or (ii) sub-sampling is implemented#16Data Collection methodology Phase I: HUEM Phase II: + identification Labor Force Survey + module HUEM Survey Informal employment + module IS enterprise identification module Informal employment and employment in the informal sector Poverty status Policy-related issues Informal sector GDP Employment Capital formation Policy-related issues#17HUEM identification Household Enterprises Producing at least some goods & services Producing goods & services for market for own final use Non-agricultural Agricultural Goods Agriculture, Services Paid domestic forestry, fishing services Formal sector Formal sector Other activities Owner occupied dwelling Household Unincorporated Enterprises with some Market Production (HUEMs) services#18Development of new Master Sample Sampling Frame the EAs were used as PSUs; small EAs were merged the geographic divisions serve as survey domains Survey Domain Sample Size 1500 PSUs, 20 HH/PSU were sampled Stratification Urbanity; proportion of HH whose main source of income is agriculture; and proportion of HH whose dwellings were made of strong materials Sample Selection uniform selection probabilities within domain are maintained#19Development of new Master Sample Division Number of PSUs Barisal 182 Chittagong 246 Dhaka 370 Khulna 210 Rajshahi 314 Sylhet 178 Total 1500#20Selection of PSUs by Division in Phase-1 & Phase-2 Rural Urban Total Division 1 2 3 4 1 2 Phase 1(LFS) Barisal 42 38 39 37 15 11 182 Chittagong 50 47 46 40 36 27 246 Dhaka 65 58 63 58 67 59 370 Khulna 41 44 41 42 22 20 210 Rajshahi 69 67 69 63 25 21 314 Sylhet 39 40 39 38 11 11 178 Total 306 294 297 278 176 149 1500 Phase 2 Barisal 42 38 13 12 15 11 131 Chittagong 50 47 15 13 36 27 188 Dhaka 65 58 21 19 67 59 289 Khulna 41 44 14 14 22 20 155 Rajshahi 69 67 23 21 25 21 226 Sylhet 39 40 13 13 11 11 127 Total 306 294 99 92 176 149 1116#21Identification of Informal sector & Informal employment To Identify Informal sector: Household unincorporated enterprises with less than 10 persons engaged in the activity/establishment and - without complete set of accounts#22Identification of Informal sector & Informal employment The informal workers were surmised to be: all those who identified themselves to be unpaid family workers, irregular paid workers, day laborers in agriculture/non-agriculture, domestic workers, and paid/unpaid apprentices; all workers employed in the personal household sector; paid employees working in the formal sector and are NOT paid weekly or monthly; paid employees working in personal establishments and "others" sectors; and employers, self employed workers, and "other" workers employed in businesses with NO written accounts and/or are NOT registered with the proper authorities.#23SI Inclusion & exclusion of issues in ISS: Bangladesh considerations Description of Issues 1 HUEMs that are located outside the PSU 2 LFS is not linked to HIES, to determine poverty status in the expanded LFS (Form-1) to enable employment poverty analysis 3 HUEMS that are identified by employees- because these HUEMS are also owned by households who also have a chance of being selected. Included Questions included Excluded 4 Agriculture sector Included 5 Secondary job Included 6 Professional/technical persons Excluded#24Challenges Concepts and definitions are new; Survey approach (mixed) is new; Excessive workload for the enumerators; Provide incomplete/misleading data#25THANK YOU ALL