A recent survey shows that a very large number of Lao people are self employed, or employed without pay by family, rather than working for businesses or other organisations.
The number of people working in both private and state organisations is still very low despite increased investment and economic growth. According to a 2011 household survey, which was distributed to media at the end of last month, only 174,000 people or 4.33 percent of the total population within the working age group of 15 to 64, work for private companies. A further 11,234 or 0.28 percent work for state-private joint ventures, and 32,039 or 0.80 percent work for state-owned businesses.The results of the survey, which was conducted by the Lao National Statistics Bureau, give the impression that growing private investment and strong economic growth has helped to open up employment opportunities.Economic growth has seen a more than 7.5 percent appreciation over the past few years, largely due to foreign investment in hydropower sector and mining. These investments are not labour intensive, however, so they do not provide large numbers of jobs.A lack of skills is one of the main barriers preventing Lao people from obtaining jobs in the rising number of large investment projects in the country. Some of the projects employ foreign workers as they were unable to recruit domestic workers.
The government has realised the need for education reform and development so it has increased the budget for education in order to supply a sufficiently skilled labour force to meet the growing demand created by foreign investment and economic growth. The latest survey also identifies that 276,974 people, or 6.8 percent of the working age population, work for state agencies. This shows that the
number of people working as state employees is still high compared to other countries.
The survey also shows that about 1.4 million people, or 35 percent of the working population, are self employed. These people own small
businesses such as barber shops and family retail shops, chicken farms and beauty salons.About 1.1 million people or 28.57 percent of the working age population work for their own families without payment, 218,342 or 5.42 percent are home makers, and 558,905 people or 13.87 percent are students.About 110,173 people, 2.73 percent of the working age population, are retired while 61,345 or 1.52 percent are looking for jobs. Some 3,382 people or 0.08 percent did not provide information on their employment status.The Lao National Statistics Bureau conducts annual household surveys which aim to provide data to help the government determine the ideal development policy for the reality of the situation in the country.
Vientiane Times,
January 02, 2013