Transferable competencies, informal labour market conditions and informal employment for secondary school graduates in Kigoma district, Tanzania

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Date

2021

Journal Title

Journal ISSN

Volume Title

Publisher

Sokoine University of Agriculture.

Abstract

The majority of the workforce from all walks of life worldwide are engaged in informal employment. Over 75 per cent of the workforce in Tanzania is in the informal employment. However, secondary school graduates are the majority among the unemployed population compared to other categories of graduates despite the existence of employment opportunities in the informal sector. In addition, informal employment for secondary school graduates in Tanzania has attracted little research interest despite its potential in absorbing the majority of secondary school graduates. The current study was conducted in Kigoma District in Tanzania with the aim of determining the influence of transferable competencies, informal labour market conditions, employability, and personal circumstances on informal employment among secondary school graduates. A cross-sectional survey was employed to collect data from a sample of 338 (out of the 396 expected) secondary school graduates, who graduated between 2008 and 2018. In addition, Focus Group Discussions (FGD) and Key Informants Interviews (KIIs) were carried out for data collection. Statistical Package for Social Science (SPSS) was used to analyse quantitative data. Principal Component Analysis and Reliability tests for internal consistence were used to ascertain the explanatory and outcome scale constructs. The study used descriptive and inferential statistics (binary logistics) to assess the influence of explanatory variables on the dependent variable (informal employment). The findings show that, there are differences in transferable competencies between urban and rural respondents. Also, the findings show existence of different ways in which the informal labour market conditions are perceived. Transferrable competencies; interpersonal relationship, entrepreneurship and self-efficacy were statistically significantly different and ranked higher for urban secondary school graduates with an effect size > 0.1 exceptiii for farming which ranked higher for rural areas. On informal labour market, the results show that informal labour market accessibility, social capital, and legal framework for secondary schools in urban areas differed significantly from similar variables for secondary schools in the rural areas. On the choices of informal employment, the findings show that the leading choices for urban areas were fish industry palm processing transportation, trading, accommodation and food vending. Others included mechanics, hairdressing, and street vending. On the other hand, the leading choices for rural areas were agriculture, trading, fish industry, palm processing, and transportation. From the binary logistic regression, which was employed to determine the effect of transferable competencies and informal labour market conditions on employment status, the results show that 12 out of the 17 variables were significant. The empirical findings show that expanding informal labour market accessibility, financial capital especially for start-ups, social capital, market friendly labour, and legal framework have influence on increasing informal employment. In addition, self-efficacy, interpersonal relations, entrepreneurship, farming, age, place of living, and sex had an impact on chances of informal employment acquisition. Lastly, gender inequality is present in transferrable competencies, the way the informal labour market impacts individuals and in the informal employment acquisition. The determined variables from transferable competencies, informal labour market conditions, and personal circumstances have some influence on the opportunities of informal employment. Furthermore, those living in the urban areas are advantaged compared to those living in the rural areas in in relation to employment opportunities. Therefore, the local and central government authorities are advised to provide enablers of employment for this group through the provision of transferable competencies. Also, setting specialised areas for informal employment such as garages and markets, the provision of grants and low interest loans to raise their financial capital and support impartial job searches to assist those with poor social capital and to reduce extreme andiv cumbersome labour related regulations to encourage employment. Lastly, the central and local government authorities should encourage NGOs dealing with income generating activities, the private sector, and individuals to undertake commercial farming in rural areas to absorb unemployed secondary school graduates in the rural areas.

Description

PhD - Thesis

Keywords

Transferable competencies, Graduates, Labour market, Informal employment, Secondary school graduates.

Citation