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Tanzania Jobs Diagnostic

Author

Listed:
  • Carly Petracco
  • Javier Sanchez-Reaza

Abstract

Tanzania has just entered a phase of growing dependency rates that will put pressure on job creation so that the larger number of dependents do not fall into poverty. However, the new millions of jobs that will be needed in the next decade is only part of the challenge. It is important to create better jobs. An economy that produces plenty of good jobs is the most direct way to continue the trajectory toward lower poverty rates. Challenges to creating more and better jobs for the poor and vulnerable groups stem from both labor demand and supply issues. On the demand side, large firms in a few sectors dominate. Possibly because of that dominance, micro and small firms find it difficult to grow and provide new jobs. Firms’ relatively restricted market access may also be a crucial factor in explaining comparative low productivity and employment. Trade expansion and a well-connected economy would address issues of comparative low-productivity and employment. On the supply side, urban areas have high unemployment. In rural areas, underemployment is on the rise. The fall in unemployment rates may be largely explained by discouraged workers withdrawing from the labor force. Where there is willingness to work—like with women and young workers—disparities in the access to quality employment is an obstacle. Finally, the rise in educational attainment was insufficient to address labor market challenges likely due to the fall in the quality of education. The objective of the Jobs Diagnostic (JD) is to identify the main challenges to job creation and to improve the quality and inclusiveness of employment. The JD is a data-driven exercise that looks at macroeconomic and demographic factors, as well as labor supply and demand to pinpoint the main constraints for a jobs-rich growth path. The fact that JDs are data-driven allows for international comparisons based on standardized datasets.The JD covers three main areas: macro and demographic trends, labor supply, and labor demand. T
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Suggested Citation

  • Carly Petracco & Javier Sanchez-Reaza, 2018. "Tanzania Jobs Diagnostic," World Bank Publications - Reports 31384, The World Bank Group.
    • Handle: RePEc:wbk:wboper:31384
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    References listed on IDEAS

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