Informal Sector

Labour Market Survey                                                                                                                           


Labour Market Needs work is in progress to find out in detail what the 'Labour markets Needs'  are in various sectors of the economy. The exercise need much care and takes time. It is also conditioned by the availability of resources.

A certain amount of work has been done with respect to the Informal Sector and Hospitality Industry. These sectors were entered first for the sake of conveniences of the survey team.

Subsequent surveys will cover Manufacturing, Construction, Mining Services, Agriculture (Plantation, small holder, hunting, forestry and logging, fishing, beekiping, poultry and animal Husbandry) Whole sale and Retail Trade and Transport (Surface and Air).

Reports will be posted as and when they are available.

Informal Sector Survey in Tanzania

One of the main functions of VETA as stipulated in the VET Act No.1 of 1994, is to establish a flexible Vocational Education and Training System which is capable of responding quickly to the needs and demands of the Labour Market in both the Formal and Informal sectors of the economy.

In order to map the actual needs of the Labour Market, VETA in 1997, conducted a comprehensive Labour Market survey in the Informal sector. The survey covered Mtwara, Morogoro, Tanga, Kagera, Mwanza, Mara, Kilimanjaro, Arusha, Tabora, Shinyanga, Singida, Dar es Salaam, Cost and Ruvuma regions. One of the objectives of the survey was to identify the skill requirements and intervention strategies for the Informal sector. It is, important to note that, the sample coverage however, suffices to warrant a national conclusion for the sector in the VETA context.

The concept of the informal sector is mainly used interchangeably with that of the micro-enterprise sector in the urban areas and the non-agricultural activities in the rural areas.  The objectives of the studies were:

  • To gain an overview understanding of existing training activities geared towards the informal sector,

  • To examine the sector’s role for later employment and/or self-employment,

  • To assess the sector’s training needs and capabilities, and

  • To outline possible options for strategy development and interventions to systematically support and enhance respective training provisions.


As a result of the study findings and observations, the following recommendations were therefore made:- 

  • VETA should assume a coordinating role whereby it will also give information and advice to NGOs, Adult     education programmes and all other parties involved in skills training and promotion of the informal sector on all policy matters.

  • VETA in its statutory role of overseeing the development of vocational education and training in the country, using its in-house or external experts should sensitise, mobilise and provide assistance to VET trainees to form production groups of vocational graduates in particular areas and trades. The groups will have better chances to access credit facilities. Read  More >>

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