Page 23 - Azerbaijan State University of Economics

Hashim Al-Ali: Towards a realistic medium term macroeconomic and fiscal framework and
outlook for the Somali national economy (2017- 2019)

large, that at present in Somalia; a high percentage of females are working in a private informal and
unprotected jobs. This reality necessitating the need to prepare and implement a social security law
that covers all workers in private sector activities.] base perspective, is adopting an approach based
on economic empowerment of female through micro finance, private sector development and
monetary policies, to enhance and increase female contributions to the development, thus advancing
in achieving of equal opportunities between sexes. Table -4- illustrates the summary of the
aggregated labour market in Somali economy during the plan period.
28 2816.76
Table -4-: Structure of the Labour Force and Employment (in thousand)
Category 2014 2015 2016 2018 2019
Working Age Population 6765.0 6954.4 7149.1 7555.1 7766.6
Labour Force 3003.7 3971.0 4082.2 4314.0 4434.8
Employment 2665.4 2740.0 2816.8 3278.6 3636.5

Source: Integrated Macro Modelling Outcomes

As for the development in the Somali employment and its evolving during the national
development plan (NDP), this, by and large, depends on the actual implementation of the
planned macroeconomic strategic policies, and the alignment and orientation of the federal
Somali budget in term of expenditure allocation between recurrent and investment streams. The
latter is the main vehicle that is deriving the increases in the rates of employment in the
economy. With special emphasis on the policy of encouraging and supporting investment in
those sectors, activities and project which are using labour-intensive techniques in their
operation, production and maintenance. Accordingly, the SNDP is aiming at avoiding using or
allowing public sector to be the sole generator of employment in the economy, and hence,
reducing the disguise unemployment phenomenon at government sector. Therefore, the plan is
focussing on promoting public, private and foreign investment in productive activities, physical
infrastructure sectors and selective social services sectors that are employment creators,
development oriented and leading sectors, in coming years, in Somalia.

Notwithstanding, Somalia, at present, characterized with lack and absence of the much needed
labour market and employment policy. Such national labour policy should be based on feasible,
clear and optimal approach, and hence be articulated with national and sub-national/regional
accurate statistical data and pertinent indicators, representing national labour force numbers,
orientations, level of education, technical skills, number of actual employment by sex, sector and
by occupation, and the available job opportunities; by sector, activity, occupation and location.
Thus, the absence of the right policies, regulations and constructive planning for the labour force
and employment development in Somalia, as well as the lack and nonexistence of the minimum
required statistical information on the labour market and employment in the economy, all these can
be attributed to and reflected of the existing security, political, economic and social conditions that
are prevailing in Somalia, for the last two and a half decades and continuing to date.

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