The Role of Informal Labour Market Conditions and Transferrable Competences on Informal Employments for Secondary School Graduates in Kigoma District, Tanzania

Abstract

Secondary school graduate output in Tanzania has enormously increased without a proper placement plan in the labour market. Specifically, the paper delineates the differences in informal labour market conditions and transferrable competences between urban and rural secondary school graduates; presents an examination of informal employments for secondary school graduates; and denotes the impact of transferrable competences and informal labour market conditions on secondary school graduates’ informal employment. A cross-sectional study design was employed to collect quantitative and qualitative data. Descriptive results showed trading, fishing, transportation, mechanics, food vending, palm oil processing and farming to be among main informal employments in which secondary school graduates are engaged. Mann-Whitney U test showed that there were significant differences in the effect of explanatory variables between urban and rural secondary school graduates. Binary Logistic Regression analysis showed that 8 variables namely, informal labour market accessibility, financial capital, social networks, labour market legal framework, self-efficacy, interpersonal relation, entrepreneurship, and farming competences had significant influence on informal employments of secondary school graduates. The results from focus group discussions and key informant interviews were consistent with the findings from the quantitative data. It is thus concluded that informal labour market conditions and transferable competences have an influence on informal employment of secondary school graduates. Therefore, adjustments of informal labour market conditions and transferable competences could be an effective tool of expanding informal employments for secondary school graduates in the informal labour market. The findings emphasise on the need for alerting Local Government Authorities, labour offices, employment agencies, and Non-Governmental Organisations to adjust and re-organize informal labour market conditions and improve transferable competences for secondary school graduates, and hence, improve chances for the graduates getting informal employment.

Keywords: Informal labour market conditions, transferable competences, informal employment, secondary school graduates.

DOI: 10.7176/EJBM/13-2-05

Publication date: January 31^st 2021