Bridging the salary gap

Friday, 8 January 2016 00:00 - - {{hitsCtrl.values.hits}}

One of Sri Lanka’s key attributes is its workforce, but while much has been written about the need to improve productivity, there is little policymaking initiative to improve the number of women in the formal workforce and provide them with well-paying jobs at home rather than sending them as housemaids to the Middle East.

According to the Department of Census and Statistics, the estimated economically-active population of Sri Lanka was about 8.9 million in the first quarter 2015, of which 63.3% are males and 36.7% are females. Within the economically-inactive population, which also comprises everyone involved in household duties, the disequilibrium is even starker with 25.9% being males and 74.1% females.

Looking at female labour force participation rates around the world, this suggests that there is a large untapped reservoir of female manpower that could be utilised for the development of the country, while empowering women and benefitting society as a whole. But such an effort requires a huge adjustment from employers and female employees alike.

In Sri Lanka girls outnumber their male counterparts at secondary level education, indicating a dedication to gender equality across the social spectrum. However, this has not translated into equitable employment opportunities or wage parity between men and women.

The female unemployment rate in Sri Lanka is over two-and-a-half times that of the male rate, and almost twice the national figure. According to Government data, only 2.9% of men entering the labour market remain unemployed, while the corresponding figure for women is 7.2%. The national unemployment rate is 4.2% making it clear impediments exist for women to enter the job market.

Allowances also have to be made for women employed in Sri Lanka’s agriculture sector, which employs nearly 34% of the workforce but rarely at a formal level. The prevalence of low income in farming also means less women have the opportunity to enter the formal workforce unless they are pushed to the lower end of the earning spectrum and have to opt for employment overseas. The strong levels of migration to be employed in formal jobs, family responsibility and social constraints are among the challenges in getting more women in the formal workforce.

The same Government figures indicate that education and skills do not necessarily help females secure employment – on the contrary, they could result in a lifetime of frustrations. Currently, services and industry function at four or five times the productivity of agriculture in terms of GDP contribution but they fail to pay more than twice the average income earned from agriculture. This means there is less incentive for women to move from rural to urban areas, especially since they have additional ties of family.

Trends of women seeing employment in non-traditional industries must be enthusiastically encouraged, especially when they reach child bearing age, so that they are given the flexibility to continue being part of the formal workforce. Since 52% of the population are women it will all the more necessary to improve their skills as it also filters down to the next generation. A woman employed means a healthier, happier and better educated family. Economic growth demands investment. Let us start with the women.