ECONOMIC CHARACTERISTICS

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1 2002 UGANDA POPULATION AND HOUSING CENSUS Analytical Report ECONOMIC CHARACTERISTICS UGANDA BUREAU OF STATISTICS Plot 9, Colville Street P. O. Box 7186 Kampala Tel: Fax: Website: October 2006

2 Recommended Citation Uganda Bureau of Statistics (2002), The 2002 Uganda Population and Housing Census, Economic Characteristics, October 2006, Kampala, Uganda

3 FOREWORD The Uganda Bureau of Statistics supports the Government s results-based agenda by providing statistics needed for planning, monitoring development performance and progress in the implementation of major national development policies and initiatives. The Population and Housing Census is the major source of demographic and social-economic statistics in Uganda. The country has conducted scientific population and housing censuses at intervals of about ten years since The latest such census was conducted in 2002 and was the most comprehensive census ever undertaken in Uganda. This census collected household-based data on population, housing, agriculture, micro and small enterprises as well as community information. The Uganda Bureau of Statistics has published the 2002 Census results in different reports at different times and with varying degrees of detail. The Monograph Series provide more detailed and subjectoriented analyses of the census data which relate the findings to the national development policies and targets as outlined in the PEAP. This Monograph on Economic Characteristics contains information on the activity status, characteristics of the working population and micro and small enterprises. The Bureau is grateful to the many institutions and individuals who participated in the planning and/or implementation of the Census. They include members of the Inter-Institutional Steering and Technical Advisory Committees; District Census Committees; field Staff including Mapping Assistants, Enumerators and Supervisors; the millions of individual respondents who provided the required information; Data Processing staff and the authors of the various chapters of this and other Census reports. The Government of Uganda funded the bigger part of the Census. The Bureau is grateful for this collaboration and also the support from the development partners who funded the other cost of the census operations. Finally, the Bureau appeals to the people of Uganda to make maximum use of the census data as a basis for evidence-based policy debate and design; decision-making at every level of society; investment and business transactions; and for many other purposes. John B. Male - Mukasa EXECUTIVE DIRECTOR ii

4 PREFACE The 2002 Census was conducted with reference to 12 th /13 th September 2002 as the Census Night. During the census, trained enumerators visited every household and collected information on all persons who spent the Census night in the household. Special arrangements were made to enumerate the mobile population as well as those living in institutions. Persons living in IDP camps were enumerated as households and the information was recorded against the areas where they came from. Specifically, persons who spent the Census Night in hotels and lodges were enumerated using a special questionnaire. In addition, the characteristics of Household Heads who were not at home on the Census Night were also recorded. The enumeration was completed within seven days for most areas. UBOS has produced several reports from the census data. In order to increase the utility of the census data, subject specific monographs giving detailed analytical findings of the 2002 Census have been written. These were written by a team of local experts in the different disciplines. In carrying out the data analysis, differentials by sex and rural-urban residence have been studied. Further differentials have been studied with respect to socio-economic characteristics as well as spatial distribution of the population. Also produced is an Abridged Version which contains the summary of findings from all the monographs. This monograph presents the Economic Characteristics (Activity Status, Characteristics of Working Population and Micro and Small Enterprises). The other monographs in series include the following; Volume I: Population size and Distribution Volume II: Population Composition Volume III: Population Dynamics Volume V: Education and Literacy Volume VI: Household and Housing Conditions Volume VII: Gender and Special Interest Groups Where possible, the 2002 Census results are compared with those from previous data sources, mainly the Censuses of 1969, 1980 and 1991, the Uganda Demographic and Health Survey (UDHS) and the Uganda National Household Survey (UNHS) 2002/03. However, these comparisons are limited to national level data only, since disaggregation of data by district or other characteristics for earlier dates could not be obtained. For purposes of presentation of spatial differentials, data are shown for the country s districts as at the time of enumeration. These have been grouped into four regions namely Central, Eastern, Northern and Western. These are statistical groupings of districts without administrative or political considerations. Previous studies have shown that Kampala City has indicators, which are usually very iii

5 different from the rest of the districts. This thus makes the Central region appear to be fairing far better than the other regions. In order to make a fair comparison of the regions, the indicators for Central region are presented in two ways viz including and excluding Kampala City. Prior to this monograph series, six other products were published. These are: i. Preliminary Results giving total population by district and sex, released in October ii. Provisional Results giving total population of administrative areas by sex, released in November iii. Report on the Agricultural Module giving information on household based agricultural activities, released in September iv. Final Results: Main Report giving population and household characteristics based on the final results, released in March v. Post Enumeration Survey Report giving the procedure and findings from the Post Enumeration activity, released in October vi. District Census Report giving district specific population and household characteristics based on the final results, released in November In addition, the Bureau will be producing several other reports as outlined below: i. Administrative Report ii. District-level Analytical Reports iii. Census Atlas iv. Poverty Maps iv

6 TABLE OF CONTENTS TABLE OF CONTENTS...v LIST OF TABLES...vi LIST OF APPENDIX TABLES...vii LIST OF FIGURE...viii EXECUTIVE SUMMARY...ix COUNTRY PROFILE...x CHAPTER 1:..BACKGROUND General Information about Uganda Sources of Data The 2002 Uganda Population and Housing Census...4 CHAPTER 2:..ACTIVITY STATUS Background Working Age Population Labour Force Labour Force Participation Rate Unemployment : Economically Inactive Population : Inactivity rate : Status of Economically Inactive Persons : Economic activity at Community Level : Summary...24 CHAPTER 3:..CHARACTERISTICS OF THE WORKING POPULATION Background Status in Employment Industry Occupation Summary...34 CHAPTER 4: MICRO AND SMALL SCALE ENTERPRISES Background Distribution of MSEs Employment in MSEs Summary...43 CHAPTER 5: POLICY IMPLICATIONS AND RECOMMENDATIONS LIST OF REFERENCES...47 GLOSSARY OF CENSUS TERMS...48 v

7 LIST OF TABLES Table 1.1: Number of Administrative Units by Census Table 2.1: Table 2.2: Table 2.4: Table 2.5: Distribution of the Working Age Population (14 to 64 Years) by Selected Characteristics...10 Distribution of the Labour Force by Selected Characteristics...14 Labour Force Participation Rates by Selected Characteristics...17 Labour Force Participation Rates (LFPR) in selected districts by sex...18 Table 2.6: Unemployment Rate by Socio-economic Characteristics and Sex...19 Table 2.7: Table 2.8: Table 2.9: Economically Inactive Population 14 to 64 Years by Selected Background Characteristics...21 Inactivity rate by age group...22 Reasons for not working Table 2.10: Economic Activities of Communities...23 Table 3.1: Employment Status for selected countries...26 Table 3.2: Table 3.3: Table 3.4: Table 3.5: Table 3.6: Table 3.7: Percentage distribution of employed persons by Selected Characteristics...27 Percentage Distribution of the Working Population by Status in Employment and Socio-Economic Characteristics...28 Working Population Percent distribution by employment categories and Socioeconomic characteristics...29 Percentage Distribution of the Working Population(14 64 Years) by Industry and Sex 30 Employment by sector for selected countries...31 Percentage Distribution of the Working Population (14 64 Years) by Major Occupational Group and Sex...33 Table 4.1: Spatial Distribution of MSEs by Residence and Region Table 4.2:Districts with the highest Proportion of MSE s in Uganda...39 Table 4.4: Distribution of MSEs by Industry Table 4.5:Employment of MSEs by Residence and Region...40 Table 4.5: Distribution of Persons Engaged in MSEs by Industry...42 Table 4.7: Ownership of MSEs by Industry...43 vi

8 LIST OF APPENDIX TABLES Table A1.1: Labour Participation Rates by District and Sex...49 Table A1.1: Labour Participation Rates by District and Sex...51 Table A1.2: Selected Indicators by District...52 Table A1.2: Selected Indicators by District...53 Table A1.3: Distribution of Business Enterprises by District...54 Table A1.3: Distribution of Business Enterprises by District...55 vii

9 LIST OF FIGURES Figure 1.1: Map of Uganda showing the Districts as of September Figure 2.1: Labour Force Framework...9 Figure 2.3: Distribution of Working Age Population by Activity Status...11 Figure 2.4: Distribution of the Labour Force by Age Groups...15 Figure 3.1: Percentage distribution of employed persons by Sector of employment and sex...31 Figure 3.2: Proportion of the Working Population (14 64 Years) who were engaged in Subsistence farming...34 viii

10 EXECUTIVE SUMMARY The Ugandan labour force consists of persons aged 14 to 64 years who were either in employment paid employment, self-employed or unpaid family workers) or were unemployed (without work and available for work). Out of the 12 million persons of working age, 6.7 million (56 percent) were in the labour force. About 70 percent of the working persons were subsistence farmers, with females having a slightly higher percentage (80) compared to males at 63 percent. The census findings showed that about 9 in every 10 persons with no formal education were in subsistence agriculture and the percentage reduced with increased levels of education. The unemployment rate in Uganda was 4.6 percent, with a high urban unemployment rate of 10 percent as compared to 4 percent in the rural areas. The unemployment rate was lowest amongst persons without secondary education (4 percent) and highest amongst those with post secondary education (7.2 percent). At the time of the 2002 Census, there were 1.1 million Micro Small Enterprises (MSE) in the country, employing 1.7 million people. The majority of the MSEs were in the trade sector. ix

11 COUNTRY PROFILE Male Female Total Number ('000) Population ,227 Urban ,981 Rural ,246 Selected Age Groups Children (0-17 years) ,371 Adults Uganda (18 Years and over) ,470 Primary School Age (6-12 years) ,228 Secondary School Age (13-19 years) ,875 Post Secondary School Age (20-24 years) ,113 Working Age Uganda (14-64 years) ,964 Child Labour Age (5-17 years) ,911 Adolscents (10-24 years) ,147 Youth (18-30 years) ,321 Child Bearing (15-49years) ,331 Child Mothers (12-17years) ,798 Aged 10 Years and Over ,483 Aged 50 Years and Over ,887 Older Persons (60 Years and over) ,090 Parental survival ( For Children Below 18 Years) Both Parents Alive ,581 Only Mother Alive ,061 Only Father Alive Both Parents Dead Do not Know Persons with Disabilities (PWDs) All PWDs Physical Hearing problem Sight Problem Speech Problem Mental Retardation Mental Illness Others Some persons had more than one disability, therefore cases do not add up to PWDs Education and Literacy Population aged 10+ and are Literate ,782 Pop Aged 6-12 years and enrolled in School ,509 Pop Aged 10+ and Never been to School ,099 x

12 Male Female Total Number ('000) Economic Activities Pop aged years & Working ,371 Pop aged 5-17 years & Working Marriage And Child Bearing Women Aged 50 years + and Never Married Girls aged years who are mothers Urban Rural Total Number ('000) Households ,043 Male Headed ,880 Female Headed ,164 Average Household Size Source of Livelihood Subsistence Farming ,425 Other ,147 Other Support State of Dwelling Unit Temporary Building Materials ,589 Semi-permanent Building Materials Permanent Building Materials Construction Materials Iron Sheets ,764 Thatch ,171 Brick Walls ,214 Mud and Pole ,492 Cement Screed Rammed Earth ,889 Household Facilities Covered Toilet ,517 Built Bathroom ,742 Built Kitchen ,877 Household Assets Dwelling Unit ,946 Bicycle ,701 Television Radio ,483 Mobile Phone Fixed Phone xi

13 CHAPTER 1: BACKGROUND 1.1 General Information about Uganda Location and Size Uganda is located in East Africa and lies across the equator, about 800 kilometres inland from the Indian Ocean. It lies between South and North latitude, East and East longitude. The country is landlocked, bordered by Kenya in the East; Sudan in the North; Democratic Republic of Congo in the West; Tanzania in the South; and Rwanda in South West. It has an area of 241,038 square kilometers, of which the land area covers 197,323 square kilometres Administration The country was divided into 56 districts at the time of the 2002 Population Census. The districts are sub divided into lower administrative units. These are counties, subcounties, parishes and villages or Local Council 1 (LC 1). Overtime, the numbers of districts and lower level administrative units have continuously increased with the aim of making administration and delivery of services easier. This however, had a negative element in that most of the districts do not have time series data and hence it is not possible to do a trend analysis. The numbers of administrative units at the various census nights since 1969 are given in Table 1.1. Table 1.1: Number of Administrative Units by Census Level of Administrative Unit Census Year District County Sub-county Parish 3,141 3,478 4,636 5,238 In addition, Uganda has a Local Governments System at different levels. These are LC V (District); LC IV (County / Municipality); LC III (Sub County); LC II (Parish); and LC I (Village). The role of the local governments is to implement and monitor government programmes at the respective levels. 1

14 Figure 1.1: Map of Uganda showing the Districts as of September 2002 S U D A N YUMBE MOYO KITGUM N ARUA ADJUMANI KOTIDO PADER GULU NEBBI R.N ile LIRA MOROTO APAC KATAKWI D. R C O N G O L.Albert MASINDI KABERA -MAIDO NAKAPIRIPIRIT HOIMA NAKASONGOLA L.Kyoga SOROTI KUMI KAPCHORWA KAMULI PALLISA SIRONKO BUNDIBUGYO KIBAALE KIBOGA LUWERO KAYU -NGA MBALE IGANGA TORORO KABAROLE KYENJOJO MUBENDE KAMWENGE KASESE MPIGI L.George SSEMBABULE JINJA BUGIRI WAKISO BUSIA MUKONO MAYUGE KAMPALA K E N Y A L.Edward BUSHENYI MBARARA MASAKA KANUNGU RUKU -NGIRI NTUNGAMO RAKAI KALANGALA Lake Victoria KISORO KABALE R W A N D A KEY International Boundary District Boundary Water Body T A N Z A N I A Central Region Eastern Region Northern Region Western Region KM 2

15 1.1.3 Geography The country enjoys equatorial climate with plenty of rain and sunshine moderated by the relatively high altitude. In most parts of the country, the mean annual temperatures range from 16 0 C to 30 0 C. Nevertheless, the Northern and Eastern regions sometimes experience relatively high temperatures exceeding 30 0 C and the South Western region sometimes has temperatures below 16 0 C. The Central, Western and Eastern regions have two rainy seasons, from March to May for the first rains, and the second rains from September to November. The Northern region receives one rainy season from April to October, and the period from November to March has minimal rain. Most of the country receives between 750 mm and 2100 mm annually. The country has loamy soils with varying proportions of sandy and clay. In addition, it has varying vegetation with tropical rain forest vegetation in the South and savannah woodlands and semi arid vegetation in the North Culture and Religion Uganda s population is made up of different ethnic groups with varying customs and norms. These play a major role in shaping the behaviours and ways of life of the people in the country. Some of the traditional values have changed due to the integration of the people as a result of migration and/or intermarriages. The cultural groupings, such as, Baganda, Basoga, Batoro, Banyoro, Itesoit etc are headed by traditional kings or chiefs who are not politically elected but have an indirect role in community governance and moral build up. There are a number of languages spoken because of the many tribes in Uganda, however English is the official language. The Swahili language is being promoted in the spirit of Regional Socio-Economic Corporation, and integration of the East African Community. The 1995 Constitution of the Republic of Uganda recognizes the freedom to practice any religion Education Uganda s education system is both formal and informal. Under the formal system, the four tier educational model is followed that is seven years of 1

16 primary education, four years of ordinary level secondary education, two years of advanced level secondary education and the tertiary level of education. Each level is nationally examined and certificates are awarded. University education is offered by both public and private institutions. The Universal Primary Education (UPE) was introduced in 1997 to offer free education at the primary level. However, access to secondary and tertiary education is limited to only those who can meet the costs. There are plans by the Government to introduce Universal Secondary Education (USE) in The government also sponsors about 4,000 students every year through the public universities. In addition, the private sponsorship scheme is operational in the public universities. University education can also be obtained from any of the seven private universities in the country. In addition, a large number of institutions both private and public also offer tertiary education. In addition to formal education there exists informal education to serve all those persons who did not receive formal education. Under the informal system, a range of practical/hands-on skills are imparted to those who have not gone through or only partially gone through the formal system of education. The majority in the informal system are the young adults and/or drop out and disadvantaged children. The Functional Adult Literacy (FAL) programme in the Ministry of Gender, Labour and Social Development also targets older people who did not get chance to go through formal training Macro economy Uganda s economic performance was performing well in the early years of independence; with rapid economic growth and development. In the early post independence period ( ), the economy grew at an average of 6.7 percent per year. By the end of the 1960 s, commercial agriculture accounted for more than one-third of GDP and industrial output had increased to nearly nine percent of GDP, given the new food processing industries. In the early 1970 s, the government targeted an annual GDP growth rate of about 5.6 percent. However, the political instability and associated economic mismanagement resulted in a persistent economic decline that left Uganda among the world s poorest and least developed countries. In early 1980s, Structural Adjustment programs were introduced which led to strong economic growth of GDP. Hence, the period that followed showed a remarkable increase in productivity and output. This was given impetus by macroeconomic stability resulting from the macroeconomic reforms. The led 2

17 to the economy reverting to its high GDP growth rates and low and stable inflation and interest rates from the 1990 s to present. The PEAP target was for a GDP growth rate of 5.2 percent in 2003, and an average of 7 percent thereafter. The economy of Uganda is primarily based on the agricultural sector, with over 70 percent of the working population being employed by the sector. Agricultural exports account for over 45 percent of the total export earnings with coffee, tobacco and fish continuing to be the main export commodities that bring in foreign exchange. In the last 5 years, the telecommunication sector has been the fastest growing sector of the economy, and this is due to the expansion programs and increase in coverage by the major telecommunication companies in the country which have led to increased numbers of subscribers and providers of the services. 1.2 Sources of Data The main data sources for establishing benchmarks for economic and social indicators for Uganda are censuses and surveys. Information is also obtained from administrative records The Earlier Population Estimates Prior to 1900, there was limited information on Uganda s population. The first official population estimates of the Uganda Protectorate were made in 1900 and 1901, and gave a population at 2 million and 2.5 million respectively which were more or less accepted until the first census was carried out in the year The Population Censuses The population censuses in Uganda have been conducted in the years 1911, 1921, 1931, 1948, 1959, 1969, 1980, 1991 and The 1911, 1921 and 1931 population censuses were mainly administrative in nature, and for all the three censuses, separate enumeration procedures were made for the African and non-african population in the country. For the non-african population and for the Africans living on non-african premises, census forms were collected from their local administrative centres. The population census results of 1911, 1921 and 1931 were 2.5 million, 2.9 million and 3.5 million respectively. 3

18 The 1948 Population Census was the first scientific census to be carried out in Uganda. This was followed by the 1959 Censuses. During the two censuses, the African Population and the non-african population were enumerated separately. The two censuses were followed by sample censuses of 10 percent and 5 percent respectively. The sample censuses were intended to provide detailed data to help in the planning processes. The first post independence census was conducted in 1969 followed by 1980 and The methodology used during these censuses was similar; people were enumerated where they spent the census night (De facto Census) and conducted simultaneously for Africans and Non-Africans. Two different types of schedules were used to collect the data. The first schedule contained limited questions and was administered at 100 percent coverage while the built in sample covered 10 percent of the rural areas and 100 percent of the urban areas and was intended to provide detailed data to aid in planning. 1.3 The 2002 Uganda Population and Housing Census The 2002 Population and Housing Census was the most comprehensive census ever conducted in Uganda. The census collected data on the demographic and socio-economic characteristics of the population; household and housing conditions, agriculture; activities of micro and small enterprises; and the community characteristics. A structured questionnaire was administered to all households and the institutional population Census Implementation The reference night (Census Night) was 12 th /13 th September 2002, and the actual enumeration was carried out between 13 th and 19 th September The enumeration was done by trained enumerators who canvassed the entire country and administered the questionnaires to the household head, or in his/her absence any other knowledgeable household member. Special arrangements were made to enumerate institutional, homeless and mobile populations. The census administered a standard questionnaire to all persons countrywide. For purposes of presentation of the results, the country s 56 districts have been grouped into four regions namely Central, Eastern, Northern and Western. These are statistical groupings of districts without administrative or political status. In order to show a clearer trend, the 1980 and 1991 censuses 4

19 data was redistributed according to the 2002 district boundaries and other lower administrative units Quality of the Census Data Quality is important aspect of data as it enhances their credibility, increases their potential use and the benefits to be derived from them. Census data quality can be compromised by poor measurement of characteristics as well as poor quality control in implementation of methodologies. In particular, quality can be compromised through inadequate coverage, use of untested methodology and procedures, inaccurate responses, high non response errors and data processing errors (editing, coding, data entry, tabulation, etc). the 2002 census process paid attention to quality management and enhancement. In particular, special measures were taken to ensure quality census data. These included, among others: dividing up the whole country into compact and manageable enumeration areas which can be covered by one enumerator. producing enumeration area maps to avoid omission or double counting during enumeration ensuring that each enumerator exhaustively canvassed the assigned area. using simple and pre-tested questionnaires. preparation of an Enumerators Instructions Manual to act as a fulltime guide to the census enumeration. adequate publicity of the census exercise throughout the country. adequate training of all field staff lasting for a period of 6-7 days intensive supervision at all levels parish, sub-county, district and national checking and editing the census questionnaires. 100 percent verification of all data entered into the computer. carefully checking all data for internal consistency as well as consistency with data from other sources. conducting a Post Enumeration Survey (PES) with the aim of measuring the magnitude, direction and sources of errors for the 2002 Census Exclusion of data from Kotido District The final results showed that Kotido District had a very high population growth rate of 9.5 percent per annum and an average household size of 6.8 persons. 5

20 These were much higher than what was observed for the same district in 1991 and for the neighbouring districts in UBOS carried out an investigation of the Census data and found that a number of indicators for Kotido district deviated from other reliable results obtained from other studies. A deeper review of a representative sample of the census data for the district revealed that there was a deliberate duplication of households and individuals to inflate the population figures. Statistical methods were applied on the population of Kotido to come up with more reliable estimates of the population of the district as of UBOS subsequently adjusted the population of Kotido district downwards to be consistent with the results from other studies carried out around the same time. Despite this adjustment, it was not possible to have obtained detailed characteristics of the population and households. Since most of the indicators from the district were not reliable, a decision was taken to carry out the census analysis without Kotido data. Thus, the indicators shown in this report exclude the figures for Kotido district apart from indicators on population size, growth and distribution. Because of this, the analysis of population size and Growth is based on the total population of 24.2 million, while the rest of the analysis is based on the population excluding persons enumerated in Hotels and Kotido district, which was 23.8 million. 1.4 Organisation of the Report This monograph is organized into five Chapters. Chapter 1 gives an introduction which includes the background to the census, the 2002 census processes, data quality and the organization of this report. Chapter 2 presents the activity status of the population. Chapter 3 covers characteristics of working population while Chapter 4 gives the micro and small enterprises. Chapter 5 presents the policy implications and recommendations. 6

21 CHAPTER 2: ACTIVITY STATUS 2.1 Background This chapter provides background information on the working age population and economic activities of communities obtained from the 2002 Population and Housing Census. Human capital is a prerequisite for development, hence raising its quality and productivity is recognized as a critical factor for increasing economic growth and reducing poverty levels. The key labour market indicators that are obtainable from the 2002 Population and Housing Census include; Labour force participation rate, Employment-population ratio, Unemployment rate, Youth unemployment rate and Inactivity rate Government Framework The primary objective of economic policies is to improve the welfare and the quality of life of the population of a country. One way of achieving this objective is through a broad-based economic growth which will ensure that an increasing number of persons are gainfully employed. In a bid to respond to the need for reducing poverty and improving the welfare of the people, Government has made the issue of investment and employment creation a priority. Pillar 2 of the PEAP is enhancing production, competitiveness and incomes. This Pillar shows that one of the objectives of the PEAP is promotion of employment creation, by increasing the ability of firms to be innovative and adopt new technologies that are labour-friendly and eventually develop a new economic order. The national employment policy aims at the promotion of rapid productive employment in all sectors of the economy. The policy spells out the need to analyse and understand the implications of gender roles in labour management and strategies to reduce them Sources of Data These include the National Household Surveys and the 2002 Census asked three questions relating to economic activity of individuals namely activity status, occupation and industry. The three questions relating to economic activity of individuals were asked to all persons aged 5 years and above. However, the analysis was done for 7

22 persons in the official working age bracket of 14 to 64 years 1. The Micro and Small Scale Enterprises (MSE) module collected information on nonagricultural Micro and Small Enterprises operated by a household, while the Community module collected information on the main activities carried out in the communities. 2.2 Working Age Population The working age population is divided into two distinct groups; those in the labour force (economically active) and those not in the labour force (economically inactive). The economically active population (labour force) comprises of those persons who during the last 7-days period prior to the census were either employed or unemployed (but actively looking for work). The official working age population in Uganda is years i, which is slightly different from the internationally used definition of years. The census results showed that in Uganda, there were 12 million persons of working age (see Figure 2.1). Of these, 6.3 million persons were females (52 percent) while 5.7 million were males (48 percent). 1 Report on National Workshop on Concepts and Definitions of Labour Statistics in Uganda, May

23 Figure 2.1: Labour Force Framework Total Population of Uganda 23.8 M Working-age Population (14-64 years) 12.0 M Below or above Working Age Population 11.8 M The Labour Force 6.7 M Not in the Labour Force 5.3 M Employed Population 6.4 M Unemployed Population 0.3 M Adapted from ILO, Surveys of Economically Active Population, Employment, Unemployment and Underemployment, an ILO Manual on Concepts and Methods Selected Characteristics of Working Age Population Only 15% of the working age population resides in urban areas Table 2.1 shows that 85 percent of the working age population resides in rural areas while only 15 percent reside in the urban 2 areas. This was slightly higher than the national urbanization level of 12 percent of the total population. Females make up more than half (52 percent) of the working age population. The distribution of working age population by region is almost proportional to the regional distribution of the total population. The Central region had the largest share of the working age population (29 percent), followed by the Western region with 27 percent, and the Eastern region with 25 percent. The Northern region had the least proportion of the working age population of 20 percent. When Kampala is excluded from the Central region, the contribution 9

24 of the Central region to working age population is only higher than that of the Northern region. 77% of the working age population had education below secondary More than 9 million persons (77 percent) of the working age population had education level below secondary education. Only 4 percent of the working age population had education above secondary level. This indicates that majority of the working age population lacked secondary education and is therefore of low quality (unskilled). Table 2.1: Distribution of the Working Age Population (14 to 64 Years) by Selected Characteristics Residence Number Percentage ( 000) Male Female Both Sexes Urban 1, Rural 10, Region Kampala Central 3, Central without Kampala 2, Eastern 2, Northern 2, Western 3, Education None 2, Primary 6, Secondary (S1 S3) 1, S4 & S S6 & Above Uganda 11, Figure 2.2 shows that majority of the working age population is in the age bracket years, while a few of them were 55 years and above. It is also observed that the proportion of the working age population decreases as age increases. 2 The 2002 census defined Urban areas as only gazetted urban areas (cities, municipalities and town councils) 10

25 Figure 2.2 Age distribution of the Working Ag e Population Percent Age Activity Status of the Working Age Population Figure 2.3 shows that more than half of the working age population was economically active while three percent were looking for work. The remaining 44 percent were outside the labour force. Figure 2.3 shows some minor variations in the distribution of the working age population by sex. Figure 2.3: Distribution of Working Age Population by Activity Status Working (non-subsistence) Working (Subsistence) 3 2 Looking for Work Inactive Male Female 11

26 2.3 Labour Force The labour force (the economically active population) comprises of all persons aged 14 to 64 years who, during the reference period (last 7 days) were either employed or unemployed that is its part of the working age population. The employed persons refers to all persons who were employed in the week prior to the census night, and were categorized as being in; paid employment (employees) or self-employment (employers, own-account workers, members of producers' cooperatives, contributing family workers) depending on where they spent more time. The unemployed persons include all persons aged 14 to 64 years who during the reference period of the seven days prior to the census were; a. Without work that is were not in paid employment or self employment b. Currently available for work that is were available for paid employment or self employment during the last 4 weeks c. Seeking for work, but included those who did not necessarily seek work that is did not necessarily take steps to search Size and Sex Composition of the Labour Force The labour force is 6.7million persons The 2002 Census showed that the country had a labour force of about 6.7 million persons, which constituted 56 percent of the working population as depicted in Table 2.2. The proportion was slightly higher for males (53 percent) compared to that of females (47 percent) Distribution of the Labour Force by Selected Characteristics 86 % of the labour force resides in rural areas Table 2.2 shows that the distribution of the labour force by residence as stated above was almost proportional to the regional distribution of the total population. Eighty six percent of the labour force resided in the rural areas. The proportion of the males in the labour force residing in urban areas was 15 percent, slightly higher than that their female counterparts of 12 percent. Central region had the highest proportion of the labour force The distribution of the labour force by region was proportional to the regional distribution of the total population. The Central region had the highest proportion of the labour force of 31 percent, followed by the Western region with 27 percent. The Northern region had the least proportion of the labour force of 19 percent. However, apart from the Central region, the proportion of the labour force is higher among females compared to their male counterparts in all the other three regions. 12

27 77 % of the labour force was below secondary education level About 25 percent of the labour force in 2002 had never been to school. Those with primary and 53 percent had primary level education. If a working minimum level of education necessary to function in a modern economy is fixed at senior four and above, then, only 13 percent of the labour force had that minimum qualification. Therefore, the ability for most of the labour force to compete for jobs in the formal sector was limited. Education levels in the labour force varied by sex. Thirty four percent of the females in the labour force had no education compared to 16 percent of their male counterparts. About 5 percent of the female working population had education level above senior six compared to 9 percent for their male counterparts. 46 % of the labour force was youths The United Nations defines a youth as a person aged 15 to 24 years while in Uganda; a youth is defined as a person aged 18 to 30 years. The proportion of the youths in the total labour force is 30 and 46 percent according to the international and national definitions of the youth respectively. In all instances female youth are more likely to join the labour force (32 and 48 percent) than their male counterparts (28 and 45 percent) respectively. This is likely to imply that the school drop-out rate is higher for females than males. The youth need to be planned for because many of them are leaving school and joining the labour force for the first time, and may not have any experience. It should be noted that 70 percent of the labour force were adults i.e. aged 25 to 64. The proportion was slightly higher for males (72 percent) compared to that of females (67 percent). 13

28 Table 2.2: Distribution of the Labour Force by Selected Characteristics Percentage Background Characteristics Male Female Both sexes Number ( 000) Residence Urban Rural ,708 Regions Kampala Central without Kampala Central ,051 Eastern ,547 Northern ,259 Western ,810 Education None ,531 Primary ,599 Secondary (S1 S3) S4 & S S6 & Above Special Groups (Youth International) , (Youth National) , (Adults) ,592 Uganda , Age Distribution of the Labour Force The labour force was at peak in the 20 to 24 year age group As potrayed in the Figure 2.3, the size of the labour force increases from the age group 15 to 19 years, reaches a peak at the age group of 20 to 24 years, and then it starts dropping. This means the age group of years which is closely followed by year age bracket have the highest percentage of the labour force. In these age brackets, many persons are completing there education and attaining certificates, diplomas or degrees. Beyond these age groups, the size of the labour force falls as age increases. About 81 percent of the labour force falls within the age group of 20 to 54 years. In Uganda, a person is expected to retire from public service at the age of 55 years. 14

29 Figure 2.4: Distribution of the Labour Force by Age Groups Percent Age Groups Distribution of the Labour force by Marital Status Majority of the labour force were currently married (67 percent) with no major variations between males and females, as shown in Table 2.3. Twenty two percent of the labour force had never married, the proportion being higher for males (27 percent) compared to their female counterparts (16 percent). However, 11 percent of the labour force was either widowed, had divorced or separated. Table 2.3: Marital Status of the Labour force Percentage Marital Status Male Female Both sexes Never married Married Widowed/Divorced/Separated Uganda Labour Force Participation Rate The labour force participation rate measures to what extent, which a country s working age population is economically active (or in the labour force). It is the size of the labour force relative to the size of the working age population. The labour force participation rate provides an indication of the relative size of the supply of labour available for the production of goods and services. Table

30 shows that the over all the labour force participation rate was 56 percent with no major differences by residence. The labour force participation rate for males in the rural areas was higher than that for those living in urban areas (67 percent compared to 62). The participation rate for females in urban areas was slightly higher in rural areas compared to their urban counterparts. Among the regions, Central region had the highest labour force participation rate of 60 percent while the Eastern and Northern had the lowest rate of 52 percent. This is partly attributed to the fact that several females are engaged in household domestic duties. The labour force participation rates by district are shown in Appendix Table 2.1. The results also show that persons with education level of senior six and above had the highest labour force participation rate of 71 percent. This is partly because many of them have already left school and joined the labour force. This is followed by those with no education at all of 60 percent. The labour force participation rates for persons with primary or secondary education is slightly lower than those without any education level or those who have completed senior six and above because several of these persons are still attending school, hence they have not yet joined the labour force. The labour force participation rate reaches a peak at the age group of 35 to 44 years, beyond which it starts to fall. In general, female participation rates are lower than those of their male counterparts. This is partly because many females are engaged in non-economic activities. i.e. is domestic duties like cooking at home or caring for own children. The domestic duties do not contribute to measured national income according to the System of National Accounts (SNA). 16

31 Table2.4: Labour Force Participation Rates by Selected Characteristics Background Characteristics Percentage Male Female Both sexes Residence Urban Rural Regions Central Central without Kampala Eastern Northern Western Education None Primary Secondary (S1 S3) S4 & S S6 & Above Age groups Special Groups years (Youth International) years (Youth National Definition) years (Adults) years Uganda Table 2.5 shows the five districts with highest and five districts with the lowest labour force participation rate. Kalangala has the highest participation rate of 76 percent (91 percent for males and 49 percent for females), Kaberamaido had the least participation rate of 18 percent. 17

32 Table 2.5: Labour Force Participation Rates (LFPR) in selected districts by sex District Highest LFPR Male Female Total Kalangala Ssembabule Kamwenge Mubende lowest LFPR Kaberamaido Moyo Katakwi Nakapiripirit Unemployment Since there are no unemployment benefits in Uganda, all able bodied persons attempt to do some work. Hence, unemployment is a state of total lack of work for those persons who were without work, willing to work but did not do anything i.e. zero hours in the last 7 days. The questions used in 2002 Census were not detailed enough to capture the levels of underemployment and therefore this information is not presented in this report. Unemployment was 5 % while youth unemployment rate was 7 % For Uganda as whole, unemployment was 5 percent (5 percent for males and 4 percent for females). Among the regions, the Central region had the highest unemployment rate (7 percent) and the least rate was exhibited in the Northern and Western regions with 3.4 percent. The high rate for Central region is partially due to the high unemployment rate for Kampala since its exclusion leads to a reduction in rate for Central region to 5.6 percent. The youth unemployment rate was 7 percent which is high compared to that for the young persons (18-30 years) which is 2 percent. Persons with primary education and no education had the lowest Unemployment Rate The level of education has a direct relationship with the unemployment rate. From table 2.6 it is seen that the lowest unemployment rate is seen among those with no schooling or with primary education (about 4 percent) while those with post secondary education had the highest unemployment rate (7 percent). This could be attributed to the fact that persons with no formal education may be willing to take on any form of employment. Among the population with post primary education, the unemployment rate was higher for women than men. 18

33 Table 2.6: Unemployment Rate by Socio-economic Characteristics and Sex Socio economic Characteristics Characteristics Unemployment Rate Male Female Total Residence Urban Rural Region Central Central without Kampala Eastern Northern Western Selected Age Groups Educational Attainment None Primary Secondary Above secondary Total (14 64 yrs) : Economically Inactive Population Economically inactive people are those among the working age population who during the reference period (last 7 days prior to the census) were neither employed nor unemployed and not working because of school attendance; household duties; retirement or old age; or other reasons like not interested in working, and disability etc. Economically inactive people were not engaged in any economic activity during the reference period. 19

34 2.6.1: Size and Sex Composition Economically inactive females outnumber the males Table 2.7 shows that a total of 5.3 million persons of the population were economically inactive. Out of these, 3.2 million were females representing 60 percent, and 2.1 million males representing 40 percent of the total economically inactive population : Spatial Distribution of Inactive population Economic inactivity is more of a rural phenomenon than urban. 4.5 million of the economically inactive population resided in rural areas and only 0.8 million were in urban areas as potrayed in Table 2.7. This is because Uganda s population is predominantly rural. In the rural areas males (87 percent) were more likely to be economically inactive than their female (84 percent) counterparts whereas the reverse is true in the urban areas where females (16 percent) were more likely to be inactive compared to their male counterparts at 13 percent. The distribution of the economically inactive persons among the regions was more or less equal. Northern region had the lowest number of the economically inactive at 22 percent and Eastern region had the highest proportion of the economically inactive population of 27 percent, accounting for 1,415,194 persons of the total. The proportion of females who are economically inactive in Kampala district is (7 percent) higher compared to that of males (4 percent). Almost 20 percent of the economically inactive population had no education at all, while 58 percent had primary level education. Females with no education at all are more likely to be economically inactive (26 percent) compared to their male counterparts (10 percent). After the age of 19, more females are economiclly inactive Majority of the economically inactive population were in the age group of 15 to 19 years (34 percent), followed by those in the age group of 20 to 24 years (17 percent). Several people in those age groups including those who are aged 14 are still attending school. Almost 62 percent of economically inactive population is below the age of 25. After the age of 19, females are more likely to be economically inactive compared to their male counterparts. 20