MINISTRY OF EDUCATION I UNDPI UNESCO

EOUCAnON SECTOR STUDY PROJECT

CMYA I 90 I 0041

,.

No. 3.6

Labour Market Institutions

in Myanmar

by

U Kyaw Kyaw

Myanmar Education Research BureauYangon

February • 1992

Labour Market Institutions

in Myanmar .

by

U Kyaw Kyaw (Department of Labour)

Acknowledgement: This paper is the outcome of the collaborative effort of ESS Working Group No. 3(Education and Employment). The working group, chaired by Dr. Thet LWIn (Institute of Economics) includedthe following members: U Tin Nyo (MERB), U Kyaw Kyaw (Department of Labour), Daw Myint Myint Yi(Institute of Economics), U Van Naing (DBE), Daw Win Win Myint (Institute of Economics), Daw Lai Lai Yu(MERB), Dr. Mehm Hla Aung Gyi (MERB),Dr. Nyi Nyi (Ministry of Agriculture), U Kan Myint (DTAVEj andU Tun Aye (Ministry of No. 1 Industry).

ABSTRACT

This paper reviews the existing labour market institutions in Myanmar, and describes the functionsof the Ministry of Education and the Ministry of Labour, the two institutions responsible forcollecting relevant labour market information. This study shows that the restructuring of theeconomy and the encouragement of the private sector will mean greater employment opportunities.Labour market institutions need to be strengthened and reorganized to promote the success ofeconomic reforms.

PREFACE

The Ministry of Education, UNDP and UNESCO are engaged in a joint effort to review the presentstate of education and manpower training in the Union of Myanmar. This review is being carriedout under the Education Sector Study project, which began in mid-1990. The objective of theproject is to help improving Myanmar's education system so it can make contribute moreeffectively to the country's social and economic development. The first phase of the EducationSector Study (ESS), a detailed diagnosis and analysis of the needs of the education sector, is nowcompleted. A synthesis of the main findings has been issued in a separate report.

This paper is one of a series of working papers produced by Myanmar ESS participants. The seriescovers various important aspects of education, such as quality and efficiency, linkages betweeneducation and employment, costs and financing, school facilities, and sector organization andmanagement. The ESS Working Papers series addresses itself to all professional staff in theeducation sector, as well as to interested researchers. It is hoped that these papers will contributeto stimulate a national discussion on ways and means to improve Myanmar's education system.

Dr. Khin Maung KyweNational Project Director

Antoine SchwartzChief Technical Adviser

['BEDHEDTAVEESSMERB

LIST OF ABBREVIATIONS

Department of Basic EducationDepartment of Higher EducationDepartment of Technical, Agricultural and Vocational EducationEducation Sector StudyMyanmar Education Research Bureau

TABLE OF CONTENTS

Page

I. INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1

11. THE POPULATION OF MYANMAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2

Ill. MYANMAR'S LABOUR FORCE 3

IV. THE EDUCATION SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4

V. ORGANIZATION STRUCTURE AND FUNCTIONS OF THE MINISTRY OF LABOUR. .. 6

VI. LABOUR MARKET INFORMATION COLLECTED BY THE DEPARTMENT OFLABOUR , 8

VII. MANPOWER PLANNING RELATED CO-ORDINATION COMMITTEE. . . . . . . . . . .. 11

VIII. CONCLUSiON ' " 12

123

LIST OF TABLES

The Sectoral Structure of Myanmar's Labour Force, 1990/91Education Statistics, 1990/91Employment exchange statistics for 1986/87-1990/91

Page

34

10

CHAYfER I

INTRODUCTION

In both developed and developing countries, emphasis is being laid on the vitalimportance of labour market information. The aim is to identify skill needed for the developmentof the economy and to provide a comprehensive framework for education and manpower planning.

There fl!ay be one or more than one institution which gather labour marketinformation and the information is integrated at the national level for the purpose of education andmanpower planning.

This paper describes the functions of labour market institutions in Myanmar. Itdescribes mainly the structure and functions of the Ministry of Education and the Ministry ofLabour (Department of Labour) -- the two institutions responsible for collecting labour marketstatistics and labour market regulation.

CHAPTER 11

THE POPULATION OF MYANMAR

The 1983 Census of Myanmar showed that the population of Myanmar for thatyear was 35.3 millions. It was estimated that during the decade preceding the census thepopulation grew at about 2 per cent per year. The current rate of growth is estimated at 1.9 percent. At this rate of growth the population of Myanmar for the year 1990/91 was estimated at40.8 million. The sex distribution of the Myanmar population is estimated as 98.3 males per 100females for 1990/91. The age distribution in 1990/91 was 36 per cent in the 0-14 yearsage-group, 57.6 per cent in the 15-59 years age-group and 6.4 per cent in the 60 years and olderage-group.

The geographical distribution of the population of Myanmar is quite even. The ruralpopulation is spread out along the main river valleys, the Ayeyarwaddy delta, and the coastalareas. The urban population located in 288 towns made up 24 per cent of the population in 1983.The rate of growth of the urban population is estimated at about 2.2 per cent, only slightly higherthan that of the rate for the whole population. Yangon, the capital city of Myanmar, has apopulation of about 4 million.

CHAPTER III

MYANMAR'S LABOUR FORCE

The 1983 Census revealed that the labour force of Myanmar was 12.2 million. Theparticipation ratio (calculated on the basis of the total population) was 34.6. Studies show that theparticipation ratio is steadily increasing as a result of the declining dependency ratio as well asincreased participation of women in the labour force. Thus, for the year 1990/91, it was estimatedthat the total labour force in Myanmar was 15.7 million representing 38.5 per cent of thepopulation.

The sectoral structure of Myanmar's labour force is given in Table 1. Over 65 percent of Myanmar's labour force in 1990/91 was employed in the Agriculture sector; the Trade andServices sectors together employed 19.5 per cent; the Industrial sectors (Manufacturing,Construction and Power) together employed 10.5 per cent.

Table 1The Sectoral Structure of Myanmar's labour Force,

1990/91

EmploymentSectors Number Per cent

(Thousands)

1. Agriculture2. Livestock & Fishery3. Forestry4. Mining5. Manufacturing6. Power7. Construction8. Transport & Communication9. Services10.Trade

10,316365186

791,132

17188388

1,6701,396

15,737

65.62.31.20.57.22.11.22.5

10.68.9

100.0

Source: Ministry of Planning and Finance: Review ofFinancial, Economic and Social Conditions for1991/92

Because the population of Myanmar is predominantly rural and its main occupationis farming it is difficult to estimate reliably the level of unemployment in Myanmar. The 1983Census indicated that unemployment was only 1.6 per cent. However, a study by the Departmentof Labour showed that urban unemployment was 9.4 per cent in 1989. There is every reason toexpect that there is considerable under-employment in the rural areas and unemployment in theurban areas, but detailed studies must be undertaken to obtain a more clear understanding of theproblem.

CHAPTER IV

TIlE EDUCATION SYSTEM

The Ministry of Education is responsible for both formal and non-formal education.Under the Ministry of Education, there are the Departments of Higher Education, Basic Educationand Technical, Agricultural and Vocational Education which are the three teaching departments.The Medical Colleges and the Dental College operate under the Ministry of Health. Apart fromthese there are other training institutions such as training centres operating under the Ministry ofIndustry I and 11, the Ministry of Transport and Communications, the Ministry of Labour etc.

Private training schools also exist such as secretarial schools, computer centres,tailoring schools, motor mechanic etc.

Myanmar's education system mainly consists of the basic education system(covering schools and teacher's training institutions), the higher education system (coveringuniversities, colleges and institutes) and the teclinical education system (covering technical,agricultural, and vocational schools). Table 2 gives some of the basic data on the education sectorin Myanmar for 1990/91.

Table 2Education Statistics, 1990/91

-

Basic EducationPrimary SchoolsMiddle SchoolsHigh School

Higher EducationUniversities Collegesand Institutes

Technical and Vocational EducationTechnical, Agriculturaland Vocational Schools·

No. ofSchools

36,4992,062

858

31

100

No. ofTeachers

198,90949,12218,381

5,974

1,999

No. ofStudents

5,423,537930,207331,849

218,848

24,352

Source:

•

Ministry of Planning and Finance:Review of Financial, Economic and Social Conditions for 1991/92 .

Includes only schools under the Ministry of Education.

Basic Education in Myanmar involves 10 years of schooling. Advanced educationinvolves 4 under-graduate years, and for those with adequate qualifications, 3 additional years ofpostgradua<:e studies for the Master's degree. Post graduate diploma courses on specializedsubjects He 11so offered by the universities and institutes. There are 3 universities in Myanmar(Yangon, Ma"dalay and Mawlamyine) and 10 institutes (4 for medicine and one each for

-

5

engineering, computer science, education, economics, agriculture and veterinary science). Eachyear the universities produce about 20,000 graduates including about 12,000 science graduates,600 medical doctors, 800 engineers and 1,000 economic graduates.

A large variety of vocational and technical studies, in forms ranging from eveningcourses, to full-time four year courses. Technical and vocational education is provided not onlyby the Ministry of Education but also by other ministries. Of these, the educational facilitiesprovided by the Ministries of Labour; Social Welfare; Agriculture, livestock and Fisheries; Trade,Industry, Transport and Communications are of particular importance.

CHAPTER V

ORGANIZATION STRUCTURE ANDFUNCTIONS OF THE MINISTRY OF LABOUR

In Myanmar, the Ministry of Labour has been established separately. The Ministryof Labour is responsible for the formulation and implementation of the labour policy and its mainobjectives are to:

• Promote industrial peace at work• Foster safety and health at work• Render social security protection• Manage manpower and human resources development programmes• Provide for further protection though appropriate legislative measures.

To promote employment service and fulfil the objectives and also to carry out theduties and functions of the Ministry of Labour the following departments, boards and committeeshave been established:

• Department of Labour• Department of Factories and General Labour Laws Inspection• Social Society Board• Office of the Central Inland Freight Handling Committee• Office of the Central Trade Disputes Committee

The Department of Labour, with a network of 74 branch offices operating in thecountry, is the most important and prominent one. It is headed by a Director-General, with aDeputy Director-General and three Directors, each in charge of the four cardinal divisions, namely,Regional and Co-ordination Division, Administration and Budget Division, Employment and TrainingDivision, and Research and Planning Division respectively. There is a Vocational Training Centre(VTC) under the Employment and Training Division. A statistical unit is operating its duties andfunctions under the Research and Planning ·Division.

The Department of Factories and General Labour Laws Inspection is responsible forlabour inspection and enforcement of labour legislation such as safety and health, leave andholidays, welfare and recreation, hours of work and so on.

The Social Security Board is headed by a Chairman with a General Manger underthe chairman. It sees to social security- related matters; provision of medical treatment and care,maternity benefit, sick benefit, death grant, survivor pension, damages for injury and deathsustained in the course of and during employment are benefits given out by the Social SecurityBoard. The Social Security Board runs the 200 bedded general worker's hospitals in Yangon andMandalay. '

7

The Office of the Central Trade Disputes Committee is a governing body whichlooks after matters related to industrial relations. It is responsible for industrial peace at work andalso to effect amicable settlement of trade disputes if they ever happened to arise. The CentralTrade Dispute Committee is chaired by the Minister of Labour.

The Office of the Central Inland Freight Handling Committee is mainly responsiblefor the administration,' control and welfare of the foreshore labourers registered under the 1958and 1959 labour Employment Control Order .

•

CHAPTER VI

LABOUR MARKET INFORMATION COLLECTEDBY THE DEPARTMENT OF LABOUR

Data-Collection Sources

All ministries and organizations have their own statistical data-collectingmechanism. The Department of Labour has a Statistical and Manpower Branch which collects,analyses and interprets statistical data that evolve from the duties and functions of organizationsunder the Ministry of Labour. It is concerned with employment, unemployment and labour turnover;industrial disputes; wages and earnings; labours of work; labour productivity; absenteeism;workmen's compensation; accident rates and cost of living indices.

Myanmar, being a member of ILO has ratified 19-ILO conventions. One of theratified conventions is ILO convention No. 63 concerning Statistics of Wages and Hours of Work.The Employment Statistics Act of 1948 served as the legal basis for the collection of statistics,and more statistics were required by the Minimum Wages Act of 1949 and The Employment andTraining Act of 1950.

The Department of Labour gathers data from three sources:

• various township offices, which often have directdealings with the grassroots levels,

• other departments and organizations, and• surveys conducted regularly in accordance with the Employment

Statistics Act 1948, also those conducted as and when required.

The Department of Labour publishes a quarterly gazette, called People'sWorkers' Gazette. The source gives monthly statistics of n employment service activities of thelabour offices. n They might be used as raw material for analysis of comparative labourshortages or surpluses in different labour markets, though they are presented without anyanalysis.

Special Surveys

The Department of Labour conducts a number of surveys of establishments inaddition to the earning surveys published in the People's Worker's Gazette. These are not publishedin English, but the results are available without analysis or interpretation and not always with a fullEnglish language explanation of their scope and limitations.

•The most comprehensive establishment survey is conducted every two years. This

survey excludes agriculture. The survey is not much more than a head count.

Much fuller and more useful details were collected in special establishment surveystaken in 1984 (covering governmental and co-operative employers) and 1986 (covering privateemployers). These include a considerable amount of details concerning the occupations, industries,earnings, education and demographic characteristics of the employees in the surveyedestablishments.

9

On-going Projects

With the assistance of iLO , the Department of Labour is implementing the followingon-going project.

Strengthening of Manpower Planning Phase I

The objective is to develop a system of manpower planning in the country whichwould be capable of making necessary projection of analysis of the requirement and supply ofskilled manpower so as to ensure a smooth flow of manpower needed by the economy.

This project has been implemented and phase 11 has begun.

Strengthening of Manpower Planning Phase 11

The objective is to develop a system of manpower planning in the country whichwould be capable of making necessary projections of the requirements and supply of skilledmanpower as well as undertaking labour market analysis.

Establishing a Base for Integration of Population and Human Resources forDevelopment Planning

The objective is to contribute to more effective development planning in Myanmarby helping to enhance the capacity of government agencies to integrate population and humanresource factors in development planning.

The Household labour Force Sample Survey was conducted in 1991 and the resultsof the survey is still in process.

Employment Service

Employment service in Myanmar is undertaken nationally under the Department oflabour. There are now 74 labour offices in operation, which perform a number of other functionsin the administration of labour laws in addition to the employment services function.

The most important laws are the Employment and Training Act of 1950 and theEmployment Restr;cting Act of 1959. The Employment and Training Act of 1950 empowers thelabour Ministers to open employment exchanges in any suitable place in the country. It wassupplemented by the Employment Restricting Act of 1959, which gave an employment exchangemanager the legal power to enforce compulsory notification of vacancies for the benefit of theregistrants. While all establishments in the public, co-operative and private sectors employing fiveor more workers are covered on a statutory basis under the Employment Restricting Act. 1959.there is difficulty in enforcing this provision in the private sector. Steps are now being taKen toenforce the private sector. The employment services of the Department of Labour with a network

10

of 74 field offices in operation had to serve the job-seekers only for the public and the co-operativesectors.

The employment service under the Department of Labour is the only institution thatprovide information on unemployment and placement through labour exchange offices, but datafrom labour exchange offices has its own weaknesses. It covers only the public and co-operativesectors and often a person register more than once. Nevertheless it can provide a guide to ageneral situation of the labour market. Table 3 shows employment exchange statistics for 1986/87to 1990/91.

Table 3Employment exchange statistics for 1986/87-1990/91

Year Number of Number of fresh Number ofoffices registrants person placed

1986/87 60 235,115 34,2471987/88 69 198,981 31.0791988/89 74 156,827 15,9751989/90 74 356,827 25.9201990/91 74 282,460 28,182

Overseas Employment

The Department of Labour set up an Overseas Employment Promotion Programme.The main objectives was to increase the opportunities for gainful employment abroad of Myanmarmanpower and help Myanmar get foreign exchange earnings. Besides this the Department ofLabour is dealing with UN Volunteers service and is the only focal point for this matter.

CHAPTER VII

MANPOWER PLANNING RELATED CO-ORDINATION COMMITTEE

Recently, a Manpower Planning Related Co-ordination Committee has been formedin Myanmar to assess the future probable manpower availability and requirements and to givefeasible advice. The Committee recommends the government on a basis for a long-range manpowerplanning on which steps that should be taken with the assistance of appropriate internationalagencies and also to conduct a national survey, in order to determine what numbers and types ofpersonnel are likely to be in short supply and/or in surplus in the near future.

The Director-General of the Department of Labour is the chairman of the committeewith representatives from related ministries as members respectively.

The major objectives of'the committee are:

• To identity the existing manpower situations in the public, private andco-operative sectors

• To identify the macro and micro level manpower problems• To help solve the manpower issues through co-ordination and co-operation

The ultimate objective of the committee is the encourage organization levelmanpower plans.

CHAPTER vm

CONCLUSION

The labour market in Myanmar is changing because of economic reforms andrestructuring since 1988. The private sector has been recognized and encouraged as an importantpartner in economic development. To a great extent the employment structure is determined bythe economic structure. The restructuring of the economy is gaining momentum and theencouragement of the private sector is one of the effective tools in solving unemployment andunder-employment problems. Greater opportunities for self-employment would also reduce thecurrent serious problem of unemployment and underemployment. These opportunities will emergein a macro-economically stable economy with a vigorous private sector.

As the labour market is expanding, there is need to change the functions of existinglabour market institutions. They should be strengthened and reorganized to help realise theobjectives of current economic reforms.

LIST OF WORKING PAPER SERIES

1. Education Data Review and Analysis

1.1

1.2

1.3

1.4

1.5

Performance Indicators in Basic Educationby U Saw Win (Institute of Economics).

Performance Indicators in Higher Educationby U Thein Htay (DHE).

Performance Indicators in Technical, Agricultural and Vocational Educationby U Myat Naing (MERB) and U Nyunt Maung (DTAVE).

Quantitative Review of Education Staffby U Tun Hla and U Myint Thein (DBE).

Population Projections (1983-2013) by U Nyan Myint (Institute of Economics).

2. The Quality of Education

2.1

2.2

2.3

2.4

2.5

Teacher Quality by Daw 00 Khin Hla (Institute of Education).

Pedagogy by naw Nu Nu Win (Institute of Education).

Curriculum by U Myint Han (MERB).

Student Evaluation by Dr. Khin Saw Naing (Institute of Medicine 2).

Student Characteristics by U Maung Maung Myint (DBE).

3. Education and Employment

3.1

3.2

3.3

3.4

3.5

3.6

Manpower Demand and Employment Patterns in a Changing Economyby Dr. Thet Lwin (Institute of Economics).

A Tracer Study of Recent Graduates: Implications for Education and ManpowerPlanning by U Kyaw Kyaw (Department of Labour).

Linkages between Training Institutions and Employersby U Tun Aye (Ministry of No.1 Industry), Daw Myint Myint Yi (Institute ofEconomics) and U Van Naing (DBE).

Education and Work Performance (A Survey of Employers' Perceptions) by DawHla Myint (Institute of Economics).

Non-Formal Education in Myanmar by Daw Win Win Myint (Institute ofEconomics) and Daw Lai lai Yu (MERB).

Labour Market Institutions in Myanmar by U Kyaw Kyaw (Department of Labour).

4. Costs and Financing of Education

4.1 .

4.2

4.3

Management and Administration of the Education Budget by Dr. Khin Ohn Thant(Ministry of Planning and Finance).

Government Expenditure on Education by Oaw Soe Soe Aung (Institute ofEconomics)

Non-Government Expenditure on Education by U Saw Gibson (Yangon University).

5. Education Infrastructure

5.1

5.2

5.3

5.4

The Construction Sector by U Tet Tun (Ministry of Construction), U Nyi Hla Nge(Yangon Institute of Technology), Oaw Naw Joy Loo (Institute of Medicine 1) andOaw Win Win Maw (Institute of Medicine 1).

A Comprehensive Survey of Education Facilities by U Sein Myint (OBE), U NyiHla Nge (Yangon Institute of Technology), Oaw Win Win Myint (Institute ofEconomics), Oaw Naw Joy Loo (Institute of Medicine 1), U Saw Wynn (OBE) andOaw Win Win Maw (Institute of Medicine 1).

The Provision of Infrastructure by U Nyi Hla Nge (Yangon Institute ofTechnology), U Nyunt Hlaing (Ministry of No.1 Industry), U Tet Tun (Ministry ofConstruction) and U Sein. Myint (OBE).

Norms and Standards for Education Facilities by U Nyi Hla Nge (Yangon Instituteof Technology), Oaw Win Win Maw (Institute of Medicine 1), and U Tet Tun(Ministry of Construction).

6. Organization and Management of the Education System

6.1

6.2

6.3

Organization and Management of Basic Education by Oaw Hla Kyu (OBE) and UMyint Thein (OBE).

The Cluster System for Primary Schools by U Myint Han (MERB).

Organization and Management of Universities and Colleges by U Saw Gibson(Yangon University) and U Thein Htay (OHE).

7. Special Studies

7.1

7.2

7.3

7.4

Economics and Business Education by Oaw Cho Cho Thein (OBE).

The Teaching of Science and Technology by U Khin Maung Kyi (OBE).

The Teaching of English by Dr. Myo Myint (Yangon University).

Higher Education by U Myo Nyunt (Institute of Education)