The Informal Sector and Zambia's Employment Crisis

Abstract

Late in 1979 the Zambian Government unveiled its Third National Development Plan which will guide policies until the year 1984, and this implies that problems of unemployment, particularly in urban areas, will be partly overcome by an expansion of self-employment possibilities.Such was the enthusiasm for the new initiative that the absence of reliable information surrounding it was largely ignored. This article attempts to provide relevant data concerning a number of issues which will be vital in implementing any measures to encourage self-employment in the so-called ‘informal sector’ of the Zambian economy. In particular we shall endeavour to quantify the likely flows into the labour force, particularly from the educational system, the possible growth of formal wage employment in urban areas, and the current size and composition of the informal sector. Finally, conclusions are drawn concerning the possible rôle of this sector in absorbing the unemployed in the plan period.