Youth4policy 2017 Article 5 Originally published as; Working Poverty and Vulnerable Employment Citation: Graduate Institute Geneva (2017).Geneva Challenge: Advancing Development Goals: The Challenges of employment Author: Otim Ivan Founder Member of: Youth4Policy KAS Scholar; Uganda Martyrs University –Bachelor’s Degree in Democracy and Development Studies Program Officer: Students for Global Democracy Uganda National Chancellery: International Association for Educators for World PeaceUganda Chapter Working poverty includes individuals who are either employed or looking for work but with an income that falls below the poverty line. The developing and emerging economies “account for approximately 30 percent and 70 percent of the world’s extreme poor.” Vulnerable employment reflects the “limited access to social protection schemes of the employed and greater earning volatility. In today’s world, “vulnerable employment accounts for over 46 per cent of total employment globally, which translates into nearly 1.5 billion people.” This challenge will become even more important in emerging economies where the number of vulnerable workers is predicted to grow by 25 million over the next three years. The vulnerable employment rate is especially high in emerging economies and developing countries. The rate is estimated to be as high as 73 percent in Southern Asia and 70 percent in Sub-Saharan Africa. Other forms of employment such as forced labour, child labour are often related to hazardous forms of work and appear to be particularly significant in developing countries. Citation: Graduate Institute Geneva (2017).Geneva Challenge: Advancing Development Goals. The Challenges of employment Abstract: The developing and emerging economies “account for approximately 30 percent and 70 percent of the world’s extreme poor and this is reflected by “limited access to social protection (Graduate Institute Geneva 2017). Decent work and livelihood creation are chief determinants in the socio-economic empowerment of youth and yet they also important for the sustainable human development. Unemployment is increasingly being recognized as one of the serious problems affecting the youth in Uganda. According to the Uganda Youth survey report, the overall unemployment among youth was about 52% and where 22% of the youth reported were self -employed while 26% were in formal employment (Uganda youth Ivanotim96@gmail.com survey report 2015). In contrast, its highlighted that self-employment rates were lowest among youth with university level education and putting reality to perspective, we have to question why this is so beyond the narrative of contemplating on the education system. With 52% unemployment rate high among youth, it is alarming that the country has to only create a sufficient number of formal jobs to absorb all those who want to work but also focus on decent jobs with good working condition. It is possible that with these numbers, there young people with positive altitude, with qualification and ability to work but the absence of decent jobs often turns them away. Many decide to move to informal employment, which is typically characterized by low productivity and more precarious working conditions. (Graduate Institute Geneva 2017) that brings them to the cycle of unemployable and underemployed. Even where government has introduced number of programs, polices, strategies in its effort against the employment challenge among these include Youth livelihood program, Youth capital venture fund, Despite the intervention, there are structural challenges that this paper puts into perspective in the reality of vulnerable employment. The Challenges of employment when addressed quantitatively will improve living standards and eradicate poverty among many, but the question is; what kind of employment will nurture sustainable growth and development if quality employment is absent? Keywords: Sustainable human development, vulnerable employment, development challenges Introduction Decent work and livelihood creation are determinants in the socio-economic empowerment of youth; they also contribute to sustainable human development overall. The high unemployment rate in both formal and informal sector puts into the perspective that increasing the quantity of jobs for young people also requires enhancing the quality of jobs by improving their productivity, access to social protection, increase access to finance and markets. The world is changing with unprecedented speed profoundly affecting the lives of the world’s one billion young people where 85 percent of these are in developing countries (UNDP youth strategy 2014-2017). whereas it is estimated that there are over 1.5 billion youths all over the world, 62% of these numbers make up Africa’s population. It is evident that this is a great opportunity that the continent is endowed with considering that youths are the powerhouse of every nation and with the numbers as a great investment, ensuring youth participation in Africa becomes more important as enshrined in the African Youth Charter., Factors that have led to Vulnerable Employment in Uganda Informal sector unregulated In the reality, that majority of young people are more actively engaged in the informal sector than in the formal sector, this has led to unregulated businesses with multiple challenges. According to the Sustainable development goal 8, that talks about promoting sustained, inclusive, and sustainable economic growth, full productive and decent work for all. In particular, target 8.3 on promoting development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro, small, and medium sized enterprises, including through access to financial Services. The informal sector is faced with often faced with long working long hours, no remuneration for extra work or actual work, lack of social welfare basic like food, health services in case of The World Bank estimated in an account of 2015 that in the sub-Sahara Africa, there have been 186 million to 856 million people from 1950-2010, and going by the analysis of about 11 million people a year, this means that by 2060, the population of sub-Sahara Africa could be as large as 2.7 billion people( Agenda-2063uncertain-future-for-africanyouths/2016/05/17) In many corners of the world, both developed and developing, young people are a force for change, asserting themselves as agents with a powerful voice on the public scene. Therefore, the achievement of sustainable human development would remain an aspirational concept without the inclusion of this segment of society in a holistic, consultative, and participatory way. To make this possible, safeguarding the rights of young people and investing in quality education, decent work, and employment opportunities, effective livelihood skills, access to youth friendly health services and participation are essential to achieving sustainable development outcomes (Global Review Report February 2014). emergencies, increased sexual harassment, and where there is machinery, there are no protective gears. To benefit from the “demographic dividend” developing economies will involve and enable young people to escape from working poverty that stems from the irregularity of work, lack of formal employment and social protection. (Global Employment Trends for Youth 2015) Scaling up investments in decent jobs for youth Employment Policy Department International Labour Office Geneva In many cases, there are no contracts for many taking up both formal and informal jobs. Even when young women in markets or road side stall engage is small scale business, their aspects of detail that have not been paid to, The high taxes and multiple market dues where Most of these are unregulated put their business is a situation to remain vulnerable to closure. The perception that formalizing business come with an immediate burden of immediate taxes. Small-scale business and Taxations: In Uganda, small and medium enterprises are potential engines for innovation and employment so it important that they are harnessed as vehicles for economic growth. These small-scale businesses make up a particularly large part of the economy, yet existing data suggest that very few grow into larger businesses. According to a report by approved Index a global, firm that assesses the levels of entrepreneurship among countries (Approved Index 2015). The study noted that 28% of Uganda's adult population started businesses in the last 42 months, almost twice as high a rate as any other country in the world. However, the worrying trend is that majority of these businesses die almost as fast as they get started. In fact, studies show that over 90% of these enterprises never survive to celebrate their first birthdays even when the country is ranked the most entrepreneurial country in the world. . In the Ugandan context, it’s been observed that what affects many of these business is lack of adequate investments, management skills and information about how to access financial services and other resources all limiting their ability to improve and grow their businesses through a sustainable market linkage. At the East Africa level, majority of these businesses are mainly small and medium enterprises facing several problems relating to the cost of doing business. There also exist infrastructural impediments like high cost of energy, high transport costs and this brings onto that understanding that many of these business whether at EAC level or Ugandan level have their operational cost higher than the investment costs that come around with the nature of starting a business, the multiple high taxes that come immediately after the start of the business. In recent times, the link between taxation and development is fundamental and a functioning state can meet the basic needs of its citizens relying ultimately on its own revenues to meet development objectives because economic and social rights exist in taxes codes increasing the social contract between citizens and the state. Government’s decision to grant tax exemptions is precipitated by policy considerations, like stimulating employment and development as highlighted in the case of the Investment Code Act that many of these SME’s contribute too. Whereas taxation is important, taxation incentives to small-scale business through tax waivers can support growing these businesses to large-scale enterprises with increased potential for youth participation in business and trade. In broader analysis, that we keep on asking ourselves like If these SME’s have such growth potential, what prevents them from expanding and growing?, answers like high cost of energy, high transport costs, high taxes play a role is stilling these business as SME and thus not able to expand to create employment opportunities, also contribute to economic growth. The Government of Uganda should introduce modest tax incentives for enterprises run by private individuals Torture & Sexual harassment The 1995 Constitution of the Republic of Uganda, supreme law provides a Bill of rights under chapter 4. This constitution created the Uganda Human Rights Commission as the national human rights institution charged with the promotion and protection of human rights. In addition to a promotion and advisory mandate, the commission has quasi-judicial powers to investigate and judiciously rule on human rights violations (Universal Periodic Review Stakeholders Engagement). The right to be free from torture and other cruel, inhuman, or degrading treatment is absolute. In reference to article 5 of the Universal Declaration of Human Rights and article 7 of the International Covenant on Civil and Political Rights, it provides that “no one shall be subjected to torture or to cruel, inhuman, or degrading treatment or punishment.” Despite the existence of these frameworks, torture and sexual harassment are some of the cruel, Inhuman, degrading treatment and punishment that many labours face as they go on with their work. This is high among casual laborers like house cleaners. In April 2012, parliament passed the AntiTorture Bill to criminalize torture among the clauses, it affirms “Any person who commits an act of torture faces up to 15 years imprisonment, a fine of 7.2 million shillings ($2,680), or both (Uganda Human Rights Report 2012). Whereas the constitution prohibit such practices, On issues of sexual harassment, the law criminalizes sexual harassment but there has not been effective enforcement and this in most cases put many young women into vulnerable employment and later pushing them out of employment. Occupational Safety and Health The Occupational Safety and Health (OSH) Act, 2006 was reviewed with a major objective of providing for health and safety of persons at work and for the health and safety of persons in connection with the use of plant and machinery. It was meant to have a look out on accidents and injuries to health at work and minimizing the causes of hazards inherent in the working environment (Uganda labour resource center May 2011). The act established the occupational safety and health department under the directorate of labour and ministry of gender labour and social development as the merger of factories Inspectorate and occupational health and hygiene departments. Occupational Safety and Health department is mandated to administer and enforces the Occupational Safety and Health Act, No.9, 2006, inclusive the laws of Uganda and its subsidiary legislation. According to the occupational safety and health department directorate of labour, the department has two divisions namely: Safety division and health division. The Safety Division comprises of specialized sections dealing with construction, electrical, mechanical, and gas installations and the general safety section deals with general safety inspections. The health division comprises of health section carries out medical surveillance of workers analysis and research on causes of workers ill health from different economic activities while the hygiene section evaluates and analyses hazards at workplaces and working environment, evaluates and Controls the physical, chemical, physiological, social, and technical factors that affect a person at work and the working environment. With the department of occupational safety and health comprised of two divisions mandated to ensure the existence of safety and health at all workplaces, and to control the physical, chemical, physiological, social, and technical factors that affect a person at work and the work environment. Despite the existence of a department with defined functions like, carrying out routine, specialized and Statutory inspection of workplaces, identifying occupational hazards, and putting in place measures to control their occurrence, enforcement of the occupational safety act of and ensuring safe handling and use of toxic chemicals. The country has increasing cases as regards to occupational safety and in regards to safe handling and use of toxic chemicals; this scenario put the safety of workers and the working environment at risk Fig left Google pic showing In reference to section, 11, (1) the occupier of a workplace shall cause a thorough safety and health audit of his workplace carried out at least once in every period of twelve months by a safety and health advisor. Then the advisor shall issue a report of such an audit containing the prescribed particulars to the occupier on payment of a prescribed fee and shall send a copy of the report to the Director; with these guidelines in existence, there is not framework to actualize them. The approved structure provides for 42 inspectors and currently there are about 24 inspectors occupational hygienists; specialized safety inspectors for construction, mechanical & electrical; occupational physicians; general safety inspectors; occupational nurse; and lab technician are currently employed and this is against 1:500 workers as per International Labour Organization (ILO) desired standard With the National OSH Policy development is under process There is inadequate funding that has led to low levels of staffing in the Traditionally, the Uganda Bureau of Statistics (UBOS) has been generating data on employment through population censuses and household based sample surveys (National labour force survey report December 2013). However, there is not sufficient information to meet the current data needs on labour issues. With inadequate data, it is difficult to carry out medical inspections of workplaces and thus unable to collect information on occupational health and safety issues. OSH services in Uganda are centralized though there are labour officers and in most cases have no capacity to check on labour and industrial relations services in their respective areas; A Case in point is the Tororo district crane accident that happened on 22 of march/2017 Minimum Wage or Living Wage Bill The country is in the process of transiting from a peasant economy to achieving middle-income status by 2020 and in this, young people’s potential needs be harnessed enabling achieve the middle-income status (National Graduate Service Scheme Working paper 2016). The National Development Plan (NDP) 2009/10-2014/15 identifies instituting a minimum wage as a critical step to increasing access to gainful employment, which in turn contributes to the reduction in poverty, tackling inequality and stimulating growth through increasing people’s incomes. The minimum wage in Uganda has since 1984 been at 6,000 Ugandan shilling per month after devaluation and conversation of the shilling, the minimum wage stood at 60 shillings as of 1999. ‘’Minimum Wage is defined as the lowest monetary value, which may be paid to a worker at a particular point in time. A minimum wage provides a basic social protection floor to help safeguard incomes and living conditions of workers and their families who are considered most vulnerable in the labour market.’’ Fig Above is an extract from the Minimum Wage Bill 2015 (18 December 2015) Tracing the story of the minimum wage in Uganda 1930’s The first Minimum Wages Board was established 1950, Implementation of the first Minimum Wages Order that set the minimum wage at 33 shillings 1963, Uganda joined the International Labour Organization (ILO 1964 Convention translated into national law Minimum Wages Advisory Board and Wages Councils Act 1967 Ratified the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26). 1984 Minimum wage adjusted to 6,000 Ush/per month =($2.23) per month 1995 Government constituted the Minimum Wages Advisory Council under General Notice No. 176/1995 in accordance with section 3(1) of the Minimum Wages Advisory Boards and Councils Act, Chapter 164 Laws of Uganda, 1964. In its recommendations, the Minimum Wages Advisory Board proposed raising the Minimum Wage from 6,000 to 65,000 Ugandan shilling per month (Devereux 2005 2003 private sector negotiated a new rate of 54,000 shillings ($20.10) per month 2012, workers’ Member of Parliament Rwakajara (workers Mp)including Paul Mwiru (Jinja Municipality) and James Mbahimba (Kasese Municipality) tabled the Minimum Wage Bill in parliament that proposed a minimum wage based on different sectors, which shall be determined by the Minimum Wages Board Article 1 of the ratified minimum wage-fixing machinery convention, 1928 (No. 26) stated, “Each member of the International Labour Organization which ratifies this Convention undertakes to create or maintain machinery. In this the minimum rates of wages can be fixed for workers employed in certain of the trades or parts of trades and in particular, in home working trades in which no arrangement exists for the effective regulation of wages by collective agreement or otherwise and wages are exceptionally low.” The convention translated into national law through the establishment of the minimum wages advisory board and wages council’s act adopted in 1964 and in 1995. Government of Uganda constituted the minimum wages advisory council under general notice no. 176/1995 in accordance with section 3(1) of the Minimum Wages Advisory Boards and Councils Act, Chapter 164 Laws of Uganda, 1964. The Board role was to inquire into the wages of unskilled labour in Uganda and submit recommendations with regard to the existing circumstances, and recommend different wages, which should apply between different areas/sectors (PLA 2012). Why the Minimum wage Article 23 of the Universal Declaration of Human Rights, affirms, “Everyone has the right to work, to free choice of employment, to just and favorable conditions of work and to protection against unemployment.” It further states, “Without any discrimination, everyone has the right to equal pay for equal work.” Negative Narrative on Minimum wage According to the Federation of Uganda Employers the proposed minimum wage would make Ugandan exports uncompetitive, reduce investments and put jobs at risk (Devereux 2005) thus translation into negative growth Similar criticisms have been made by key government officials including President Museveni and the Minister of State for Labour and have openly expressed the view that such a move would lead to unemployment. Goal 8 calls for a global partnership for development target 16 explicitly urge countries to “develop and implement strategies for decent and productive work for youth. Poverty eradication is the world challenge today in addition, an indispensible requirement for sustainable development (open working group’s proposal for sustainable development goals 2015). In Uganda today, one of the important narrative is pushing Uganda to middle income status by 2020 and the key tools to middle-income status is increasing the fight against poverty and meaningful employment that ensures that citizens have a decent, predictable income (Youth Budget Working Paper (January 2017). Labour survey and Data Qualitative and quantitative data on the evolution of youth employment in the country facilitates the development of adequate policies and programmes through available or potential sources of information on youth employment and unemployment and related variables such as underemployment, child labour, self-employment, employment by occupation and employment in the informal economy need to be sought. According to 2015 statistical abstract the total working population in Uganda was Statistics on Labour are vital in the measurement of economic estimated at 13.9 growth and development of a nation. These statistics furnish an millions of which 56.8 percent (7.9 indicator of the number of persons who, during a specified period, million) are employed. The labour force participation rate was 52.8 contributed to the production of goods and services in the country. percent while the employment to Labour statistics support analysis of the relationships between population ratio was 47.8 percent. employment, income and other socio-economic variables and is (Statistical abstract 2015) necessary to plan and monitor employment, training and similar types of programmes (National labour force survey report 2013 December). According to the labour Force Participation Rate, it was 52.8 Percent while the overall Unemployment Rate (UR) was 9.4 percent in 2012/13 with the females experiencing higher unemployment rates at (11 percent) than males at (8 percent). (Statistical abstract 2015) The global economic slowdown that occurred in 2015 is likely to have a delayed impact on labour markets in 2016, resulting in a rise in unemployment levels, particularly in emerging economies. Based on the most recent growth projections, global unemployment is expected to rise by nearly 2.3 million in 2016 and by a further 1.1 million in 2017 (world Employment social outlook trends (2016 ) While national statistics on the various dimensions of youth employment exist, the data available is not established with indicators to measure progress, or and even an evaluation approach. Emerging economies are expected to see an increase in unemployment of 2.4 million in 2016. This largely reflects the worsening labour market outlook in emerging Asian economies, in Latin America and in commodity-producing economies, notably in the Arab States region and Africa. (World Employment social outlook trends (2016 ) International Labour Office Geneva). When there is a shortage of decent jobs, more workers may give up looking for work. In 2015, the number of working-age individuals who did not participate in the labour market increased by some 26 million to reach over 2 billion. Participation rates are expected to stabilize at 62.8 per cent of the global working-age population (aged 15 years and above) but then to follow a moderate downward trend, reaching 62.6 per cent in 2020 and falling further in subsequent years(.( world Employment social outlook trends( 2016 ) International Labour Office Geneva) In the coming years, the share of vulnerable employment is expected to remain at around 46 per cent globally. The challenge will be particularly acute in emerging economies, where the number of vulnerable workers is projected to grow by some 25 million over the next three years leading to a pause in the expansion of the middle class (world Employment social outlook trends( 2016 ) Sector, Activity rates and Labour Underutilisation components Labour Underutilization components Unemployment Time related under employment Marginally attached to the labour force e.g. discouraged workers Skills related Inadequate employment Income/wage related Inadequate employment Total Total population underutilized (000's) Total working age population (14-64 years) (000's Labour Underutilization rate (percent) Source: Uganda National Household Survey 2012/13, UBOS Male Female Total 32.2 21.3 4.3 15.3 26.9 100 1,913 7,850 24.4 16.1 21.3 15.6 10.5 36.6 100 1,379 8,652 15.9 25.4 21.3 9.0 13.3 31.0 100 3,292 16,502 19.9 With the existence of data that does not support policy intervention, it is important that a manpower survey becomes necessary. There are should be a policy that makes it mandatory for the government to carry out an annual manpower survey in order to inform its programming and planning processes establishing employment plans in different sector (Employment policies for Uganda (December 2011) Social protection schemes: In many contexts, social security and social protection are interchangeable; social protection is considered broader than social security because it has wider application including development programmes and strategies (The status of Social Security Systems in Uganda November 2014). In Uganda today, despite the rapid growth rate of GDP reflected by the growing government revenues, the country continues to rank poorly in a number of human development indices (Human development indices 2014). The human development indicators today reflect that growth is not tandem with the development of the country. According to a report by the Aga Khan University East African Institute, the country posted an average growth of 7% in the 1990’s and 2000’s making it the fastest economies in Africa (Uganda Youth Survey August 2015). As economies grow and more fiscal spaces created, so should the social protection systems, these can and should move progressively while extending the scope, level, and quality of benefits (Social Protection Floor in Uganda August 2012). It is a fact that because of decreasing incomes, many people need social protection schemes and when you analyze trends in incomes exacerbated by absence of minimum wage, this call for social protection schemes. Everyone as a member of society, has the right to social security and is entitled to realization, through national efforts and international cooperation and in accordance with the organization and resources of each state of the economic, social and cultural rights indispensible for his dignity and the free development of his personality.’’ (Universal declaration of human rights Article 22) It is recognized that in order to mitigate forms of poverty, social security mechanism are crucial to a country social and economic development. Evidence suggests that the eradication of chronic poverty is possible when employment opportunities exist; however, it also requires the expansion of social protection to the chronically poor because social security is a human right and a mechanism that ensures social and economic equality Recommendation Increasing recognition of entrepreneurship as a source of job creation, empowerment, and economic dynamism in the Ugandan context is important however, there is need to stimulate policy debate on the potential benefits of youth entrepreneurship as a viable career option and in the process move the obstacles in enterprise development through policy measures and strategies. The law established occupational safety and health standards and the department of Occupational health should engage in responsible enforcement of regulations relating to conditions of work and the protection of workers while engaged in their work.” Whereas the ministry of gender, labour, and social development has the mandate, the sector needs a multistakeholders approach to stimulate interest in matters connected with Occupational Safety and Health. Whereas taxation is important, Government’s decision to grant tax exemptions is precipitated by policy considerations, like stimulating employment and development as highlighted in the case of the Investment Code Act that many of these SME’s contribute too. Taxation incentives to small-scale business through tax waivers can support growing these businesses where many young people can access employment. Under the Occupational Safety and Health Act, 2007, the aspect of discrimination against an employee , section 8.(1) ‘’An occupier shall not dismiss an employee, injure the employee or discriminate against or disadvantage an employee in respect of the employee’s employment, or alter the employee’s position to the detriment of the employee by reason only that the employee’’. In regards to this act, it is important that workers be sensitized on their rights. With the 2030 agenda mainstreamed within our National development plan, it is important that we start working for decent work for all, women, and men including young people and PWD.s with equal pay for work of equal value. In this we will deal with the reality of vulnerable employment and in the end, the country will be able to benefit from the demographic dividend Conclusion In all countries, youth aspire to productive, formal employment opportunities that provide them with a decent wage, relative security, and good conditions of work. Unfortunately far too few youth are able to match their aspirations to reality, which means that opportunities to benefit from the demographic dividend in the countries with the greatest potential principally in Africa are quickly slipping away (see (Global Employment Trends for Youth 2015) With many jobs created not able to increase labour rights and with benefits of decent work and equal pay for value of work, we will continue to narrate on issues of unemployment even when jobs increase because many young people will not be motivated to work in the end. Achieving decent work for young people is a critical element in poverty eradication and sustainable development, growth and welfare for all because when young people increasingly lack economic opportunities, conditions can foster them to be recruited or forced into armed conflict not only within their own borders, but also in neighboring countries negatively affecting economic growth and investments. References Graduate Institute Geneva (2017).Geneva Challenge: Advancing Development Goals. 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