The role of the informal sector as a safety net for youth unemployment in Addis Ababa

Abstract

Due to Ethiopia’s youth bulge and the formal economy’s inability to accommodate new job entrants, the youth of income-earning ages are compelled to work in the informal sector. The main purpose of this study was to examine the role, characteristics, and effectiveness of the informal sector in acting as a safety net for youth unemployment in Addis Ababa. A mixed-methods research design was adopted, and 409 young people were selected for a quantitative survey and 22 critical informants for qualitative telephone interviews. More than three-quarters of the participants in the survey were new migrants to the city. The respondents’ incomes increased after joining the informal sector and further improved when these businesses became regulated. Their average productive assets increased more than six-fold. However, accessing education was challenging due to a lack of flexible training options. There was a decline in the dependency ratio as the youth focused on earning money instead of getting married. The respondents’ incomes differed significantly in terms of possession of the city ID card, age, gender, ethnicity, education, skills training, regulated status, working premises, market linkages and access to loans. Three paths for the integration of informal individuals into the formal sector are recommended. Firstly, integrated, multidimensional government support with minimal effort from the informal sector. Secondly, minimal government support with maximum effort from individuals in the informal sector. Thirdly, almost no government support with all assistance coming from individuals in the informal sector. Based on the findings, the study recommends that the existing informal sector and population policies need to be reviewed urgently. Currently, the first option seems most suitable, provided that the government identifies, designs, and implements appropriate strategies to harness the potential benefits of the demographic dividend in Ethiopia by focusing on supporting those regions most vulnerable to out-migration and linking the formal and informal sectors through tailored training and certification to build the skills of the informal sector.

Zwi tshi khou itiswa nga tshivhalo tshihulwanesa tsha vhaswa vha Ethiopia na u sa vha na vhudziki kha ikonomi ya fomaḽa u katela vhathu vhaswa vhane vha khou dzhena mishumoni, vhaswa vha vhukale ha u wana mbuelo vha kombetshedzea u shuma kha sekithara i si ya fomaḽa u shuma sa tsireledzo kha vhaswa vha si na mishumo ngei Addis Ababa. Ho shumiswa nyolo ya ṱhoḓisiso ya ngona dzo ṱanganelaho, ho nangwa vhaswa vha 409 kha ṱhoḓisiso ya khwanthithethivi na vhaḓivhadzi vha ndeme vha 22 kha khwaḽithethivi ya inthaviwu dza luṱingo. Vhadzheneli vhane vha fhira kotara tharu kha ṱhoḓisiso ho vha vhapfulutsheli vhaswa ḓoroboni khulwane. Mbuelo dza vhadzheneli dzo gonya nga murahu ha u dzhoina sekithara ya fomaḽa na u isa phanḓa na u khwinisa musi mabindu haya a tshi langulwa. Tshikati tshavho tsha mveledziso ya ndaka tsho gonya u fhira ka rathi. Naho zwo ralo. U swikelela pfunzo zwo vha zwi tshi ṋea khaedu zwi tshi itiswa nga u shaya u nanga vhugudisi vhune ha konadzea. Hu na u tsela fhasi kha vhushaka ha u ḓitika sa musi vhaswa vho sedza kha mbuelo ya tshelede madzuloni a u maliwa. Mbuelo ya vhadzheneli yo fhambana nga maanda zwi tshi ḓa kha u vha na garaṱa ya ID ya ḓoroboni, vhukale, murafho, pfunzo, zwikili zwe vha gudela, tshiimo tsha ndaulo, vhupo ha u shumela, vhuṱumani ha maraga na u swikelela khadzimiso. Nḓila tharu dza u ṱanganyisa vhathu vha si kha sekithara ya fomaḽa u ya kha sekithara ya fomaḽa fomaḽa zwo themendelwa. Tsha u thoma, ṱhanganelano, thikhedzo ya masia o fhambanaho a muvhuso, na nungo ṱhukhu u bva kha sekithara i si ya fomaḽa. Tshavhuvhili, thikhedzo ya masia o fhambanaho a muvhuso na u lusa nga huhulu u bva kha sekithara ya inifomaḽa. Tsha vhuraru, a hu na thikhedzo u bva kha vhathu vha sekithara ya inifomaḽa. Zwo ḓisendeka kha mawanwa, ngudo yo themendela uri sekithara ya inifomaḽa ire hone na mbekanyamaitele dza vhathu dzi ṱoḓa u sedzuluswa hafhu nga u ṱavhanya. Zwazwino, u nanga ha u thoma ho tea nga maanḓa, tenda muvhuso wa topola, nyolo na zwiṱirathedzi u ṱumanya mbuelo dza ndeme dza khovhekanyo ya vhathu ngei Ethiopia nga u sedza kha u tikedza madzingu ayo o ṱanwaho u fhelisa mupfuluwo na u ṱumanya sekithara dza fomaḽa na dzi si dza fomaḽa nga kha vhugudisi ho tou itelwaho na khwaṱhisedzo u fhaṱa zwikili zwa sekithara i si ya fomaḽa

Hikwalaho ka ku ndlandlamuka ka vantshwa eEthiopia na ku tsandzeka ka ikhonomi ya ximfumo ku endla leswaku vanhu va kuma mitirho, vantshwa lava nga eka malembe yo kuma muholo va boheka ku tirha eka xiyenge xo ka xi nga ri xa ximfumo. Xikongomelokulu xa dyondzo leyi a ku ri ku kambisisa xiave, swihlawulekisi na ku tirha kahle ka xiyenge lexi nga riki xa ximfumo eka ku tirha tanihi nete ya vuhlayiseki eka mpfumaleko wa mitirho ya vanytswa eAddis Ababa. Dezayini ya ndzavisiso wa maendlelo yo hlanganisiwa yi tirhisiwile, naswona vanhu lavatsongo vo ringana 409 va hlawuriwile ku endla ndzavisiso wa nhlayo na twenty-two wa vanyiki va mahungu va nkoka ku endla tiinthavhiyu ta tiqingho. Ku tlula tikotara tinharhu ta vatekaxiave eka ndzavisiso a ku ri vahlapfa vantshwa eka dorobakulu. Miholo ya vahlamuri yi ndlandlamukile endzhaku ka ku joyina xiyenge lexi nga riki xa ximfumo na ku ya emahlweni yi antswa loko mabindzu lama ya sungula ku lawuriwa. Rifuwo ra vona ra avhereji ri ndlandlamukile ku tlula katsevu. Hambiswiritano, ku kuma dyondzo a ku ri tlhontho hikwalaho ka mpfumaleko wa tindlela to amukeleka ta ndzetelo. Ku vile na ku hunguteka ka mpimo wa nseketelo tanihileswi vantshwa va kongomiseke eka ku kuma mali ku nga ri ku tekiwa kumbe ku teka. Miholo ya vahlamuri yi hambanile swinene hi mayelana na ku va na khadi ra ID ra dorobakulu, malembe, rimbewu, rixaka, dyondzo, swikili, vuleteri, xiyimo lexi lawuriweke, tindhawu to tirhela eka tona, mihlangano ya makete na mfikelelo wa tiloni. Ku bumabumeriwile tindlela tinharhu ta ku hlanganisiwa ka vanhu lava tirhaka eka xiyenge lexi nga riki xa ximfumo eka xiyenge xa ximfumo. Yosungula, nseketelo wa mfumo lowu hlanganisiweke wa swiyenge swotala hi matshalatshala matsongo ku suka eka xiyenge lexi nga riki xa mfumo. Yavumbirgi, nseketelo wutsongo wa mfumo hi matshalatshala lamakulu eka vanhu eka xiyenge xo ka xi nga ri xa ximfumo. Yavunharhu, ku hava nseketelo wa mfumo na mipfuno hinkwayo leyi humaka eka vanhu eka xiyenge lexi nga riki xa ximfumo. Ku ya hi leswi kumiweke, ndzavisiso wu bumabumela leswaku xiyenge lexi nga riki xa ximfumo lexi nga kona na tipholisi ta vanhu swi lava ku langutisiwa hi vuntshwa hi xihatla. Sweswi, ndlela yosungula yi vonaka yi ri leyi faneleke swinene, xi ntsena loko mfumo wu kombisa, wu dezayina na ku simeka switirateji leswi faneleke ku tirhisa swipfuno leswi nga vaka kona swa mivuyelo ya vanhu eEthiopia hi ku kongomisa eka ku seketela tirhijini leti nga eka nxungeto swinene wa ku rhurhela ehandle na ku hlanganisa swiyenge swa ximfumo na swo ka swi nga ri swa ximfumo hi ku tirhisa ndzetelo lowu lulamisiweke na ku nyika switifikheti ku aka swikili eka xiyenge xo ka xi nga ri xa ximfumo.