Federal Democratic Republic of Ethiopia

THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

National
NATIONAL Employment Policy
EMPLOYMENT POLICY andAND
Strategy
STRATEGY

April 2016

April 2016
ADDIS ABABA
 Contents

Foreword......................................................................................................................................................1

CHAPTER ONE
GENERAL
1.1 National Vision.......................................................................................................................................4
1.2 Vision of the Policy.................................................................................................................................4
1.3 Mission of the Policy ..............................................................................................................................4
1.4 General goal ...........................................................................................................................................4
1.5 General objectives...................................................................................................................................4
1.6 Principles ................................................................................................................................................5

CHAPTER TWO
POLICY PRIORITIES AND STRATEGIES

2.1 Ensuring the harmonization of macro and sectoral policies and strategies for matching
the supply of and the demand for labour, thereby promoting decent employment opportunities.......6

2.2 Crating favorable conditions for the promotion of employment opportunities by improving
the functioning of labour market information and employment services............................................7

2.3 Creating enabling environment that facilitates the transition from the informal to the formal
economy in order to unleash the creation and promotion of decent and sustainable employment
opportunities...........................................................................................................................................9
2.4 Enhancing productivity and competitiveness by maintaining industrial peace.................................10
2.5 Focusing on cross-cutting issues for employment creation................................................................11

CHAPTER THREE
POLICY IMPLEMENTATION
3.1 Implementation modality......................................................................................................................20
3.2 The role of stakeholders .......................................................................................................................20
3.3 Monitoring and evaluation ..................................................................................................................21
Glossary......................................................................................................................................................23

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Foreword

Human resource is key instrument for the development of a country. It is, therefore,
necessary for a country like Ethiopia to have a right employment policy in place in
order to effectively use its growing labour force in a productive manner.
As labour force is among the abundant resources that Ethiopia is endowed with,
the country is making rigorous efforts towards effectively utilizing its available
labour force for development.
Accordingly, the macro and sectoral policies of the country are geared towards
creating direct and indirect employment opportunities to the labour force.
In relation to this, efforts are being exerted to make sure that new entrants to the
labour force are equipped with the necessary knowledge, skill, and attitude that the
economy needs.
Micro and Small Enterprises have strategic relevance for employment creation,
poverty reduction, rural-urban linkages, and for the growth of the private sector. In
view of this, special attention is given to the sector in terms of training, financial,
and business support towards engaging a considerable labour force (mainly the
youth and women) in different economic activities.
A considerable number of permanent and temporary employment opportunities are
being created as a result of the appropriate investment policy of the country
attracting the private sector and also due to public investments especially in
infrastructure, urban development, and housing construction.
As social protection and employment are interlinked, a National Social Protection
Policy is adopted by the Ethiopian government so as to improve the lives of
citizens, which is now in the process of implementation. Though there are
encouraging results from due efforts for employment creation across sectors, the
issue of employment still requires due attention of the government. The main
reason for the country’s unemployment is a mismatch between rapidly growing
labour force and the rate of growth of productive employment and income
generation opportunities of the economy.

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It is recognized that poverty is less an outcome of open unemployment than of low
labour productivity and inadequate levels of income. The agricultural sector and
the informal urban sector employ a large size of labour force in Ethiopia. However,
employment in these sectors is characterized by low earnings and contributes
significantly to the problem of “working poor”.
Labour market institutions provide such services as protecting the interests of
workers based on standards and regulations related to employment, wages, benefits,
promotion and other related issues. In Ethiopia, the scope of such institutional
provisions and protections has been confined in most part only to the public
enterprises and to some private sector employees, with no protection for the largest
segment of the labour force which is engaged in the informal sector and
subsistence farming. Public and private employment services are too weak to
provide even basic services such as information to jobseekers and employers. The
situation has therefore resulted in lack of protection and job security, weak social
dialogue, and poor labour market services.
Employment creation can translate economic growth to poverty reduction to the
extent that issues influencing the labour market dynamics are well managed and
the policies and strategies are well targeted. Accordingly, Ethiopia is on the track
of translating its economic development to poverty reduction by adopting a pro-
poor growth strategy.
In order to alleviate the problems of unemployed and underemployed and thereby
eradicate poverty, it is necessary to improve the productivity and income of labour
by promoting social dialogue and work place cooperation, and maintaining
industrial peace.
In view of this, adopting a national employment policy is expected to coordinate
employment creation efforts in different sectors, to create effective and sustainable
employment opportunities, and to provide comprehensive information on the
situation of national employment to the government. It is necessary, therefore, to
adopt employment policy that addresses issues related to labour supply, labour
demand, and labour market institutions in a coordinated and participatory way.

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Though the need for employment policy could be expressed in various ways, the
major ones are:

 Effective coordination of efforts at different levels aimed at creating

employment opportunities;

 Identifying gaps in currently implemented employment-related policies and

strategies and filling these gaps through appropriate policy provisions;

 Promoting industrial peace through improved work relationships;

 Coordinating education and skill development programs with contemporary

labour market needs;

 Ensuring that employment services respond to the needs of different societal

groups and specific needs;

 Identifying mechanisms to enhance rural employment opportunities towards

reducing poverty driven rural-urban migration;

 Better use of employment creation efforts extended by governmental and

non-governmental organizations, workers and employers associations, and
other stakeholders;

 Gathering and dissemination of employment and labour market related

information for policy making, planning and programming;

 Gathering and documentation of information on employment related best

practices and challenges to help guide successive policy directions and
interventions.

Accordingly, the Council of Ministers of the Federal Democratic Republic of

Ethiopia, in its 12th ordinary meeting held on April 28, 2016, have thoroughly
discussed and endorsed the National Employment Policy and Strategy document.

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 CHAPTER ONE
GENERAL

1.1 National Vision

Making Ethiopia a middle income country where democracy, good governance,

and social justice flourish based on equity and participation of its citizens.

1.2 Vision of the Policy

Making Ethiopia a country where all its citizens who are available and willing to
work enjoy decent and equitable employment opportunities.

1.3 Mission of the Policy

Promoting decent, productive and equitable employment opportunities in Ethiopia

by ensuring the harmonization and coordination of human resource development
and employment related policies and strategies; by improving labour market
information system and employment services; by maintaining industrial peace; and
by undertaking periodic labour market and employment related researches and
studies.

1.4 General goal

Ensure that full, productive, and freely chosen decent employment is promoted in
Ethiopia.

1.5 General objectives

a. Promote employment opportunities that fully absorb the country’s labour force.

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b. Maintain stable and favourable macroeconomic policies that facilitate the
creation of decent employment opportunities.
c. Improve labour productivity and competitiveness.

1.6 Principles

a. All citizens who are able to work have indiscriminate rights for employment
opportunities.
b. Compliance to labour standards is the basis for decent work.
c. Social dialogue and work place cooperation are instrumental for labour
productivity and competitiveness.
d. Labour market information is fundamental for effective human resource
development and employment.

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 CHAPTER TWO

POLICY PRIORITIES AND STRATEGIES

The priorities of the Ethiopian Employment Policy are the following:-

a. Ensuring the harmonization of macro and sectoral policies and strategies for
matching the supply of and the demand for labour, thereby promoting decent
employment opportunities;

b. Crating favorable conditions for the promotion of employment opportunities

by improving the functioning of labour market information and employment
services;

c. Creating enabling environment that facilitates the transition from the informal
to the formal economy in order to unleash the creation and promotion of
decent and sustainable employment opportunities;
d. Enhancing productivity and competitiveness by maintaining industrial peace;
and

e. Focusing on cross-cutting issues for employment creation.

2.1 Ensuring the harmonization of macro and sectoral policies and strategies for
matching the supply of and the demand for labour, thereby promoting decent
employment opportunities

Various policies and strategies of the country (e.g., agriculture, industry, small and
micro enterprises, investment, trade and finance, education and training, health,
population, urban development, social protection, disaster and risk management,
etc) have in fact contributed directly or indirectly to human resource development
and job creation.
However, it is necessary that efforts that aim at human resource development and
employment creation across such diverse sectors need to be supported and guided
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by a harmonized policy framework and operational guidelines that clearly
delineate responsibilities and accountability among sectors and clearly outline
agreed set of actions.
2.1.1 Goal
Promote human resource development and decent employment opportunities by
ensuring the coordination and harmonization of national policies and strategies.
2.1.2 Strategies
a. Developing and implementing a national human resource development and
employment plan in order to supply the necessary labour force that meets the
demands of the economy and the state of the art technology and skill;
b. Establishing a national coordination mechanism to ensure that employment
issues are properly mainstreamed in all development plans in an integrated
manner;
c. Providing capacity building supports for relevant bodies to make sure that
employment is appropriately mainstreamed across all sectors;
d. Providing the necessary advisory and counseling services to students, job
seekers, and workers about the essence and culture of work and on the need to
take initiatives and change attitudes to create own job for self-employment.
e. Assessing and identifying gaps and challenges in implementing employment
creation activities enshrined in different policies and strategies; and
f. As deemed necessary, assessing and learning from the best practices of other
countries in human resource development and promoting employment.

2.2 Crating favorable conditions for the promotion of employment opportunities

by improving the functioning of labour market information and employment
services

The institutions established to manage labour market in Ethiopia are not well-
developed. As a result, there remains a lot to be done to ensure the basic rights of
workers, to improve occupational safety and health, and thereby to enhance labour

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and industrial productivity. The contemporary employment and labour related rules
and regulations are not enforceable in the informal sector.
Most issues of the labour conditions are not known among workers in the private
sector. Minimum wage is not implemented in the private sector, except in public
enterprises. Employment services provided both by the public and private
employment agencies are subtle and deficient of the basic services expected.
This makes it relevant to work together with the relevant stakeholders and
coordinate efforts to establish a labour market information system and to improve
employment services with the purpose of creating conducive environment towards
promoting employment opportunities.
2.2.1Goal
Create a balance between labour supply and demand through establishing modern,
efficient, and effective labour market information system and promoting
employment services.
2.2.2 Strategies
a. Enhancing the capacity of labour market institutions to improve their role in
terms of providing labour market related information and promoting
employment opportunities;
b. Promoting employment opportunities by establishing accessible national labour
market information exchange network;
c. Disseminating information to users on concurrent and reliable indicators of
labour market dynamics, by using alternative mechanisms;
d. Improving the accessibility of public and private employment services in a
coordinated and integrated manner;
e. Taking labour market adjustment measures to improve the employability of
those job-seekers who are unable to compete in the labour market due to
various reasons;
f. Undertaking action-oriented and problem solving researches and studies in
relation to employment and manpower; and

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g. Establishing a system that enables to determine minimum wages taking into
account the country’s stage of development, competitiveness and capacity to
pay.

2.3 Creating enabling environment that facilitates the transition from the
informal to the formal economy in order to unleash the creation and
promotion of decent and sustainable employment opportunities

Though the informal sector provides employment opportunities to the majority of

the labour force, the workers often do not have established and well identified
work place, lack occupational safety, and most of them are working-poor.
Moreover, the workers in this sector exceptionally work for long hours, are less
productive, paid less, and lack access to training, information, credit, market, and
technology services.

Generally, the informal economic sector lacks established employment rules and
regulations, is not officially registered and recognized, and lacks proving the
necessary legal protection to its employees. However, if transformed to a formal
sector and provided with the necessary support, the informal economic sector can
be a source for decent job creation and poverty reduction.
It is, therefore, necessary that the informal sector receives the necessary legal,
administrative and technical supports for transforming it to the formal economy.
2.3.1Goal
Contribute to the promotion of decent employment and sustainable development
by creating an enabling environment that facilitates the transition from the informal
to the formal economy.
2.3.2 Strategies
a. Making assessments to understand the situation of the informal economy with
the aim of transforming it to the formal economy;
b. Establishing a system that helps transforming the informal economy to the
formal economy and, thereby creating and promoting decent and sustainable
employment opportunities;

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c. Ensuring the development of indicators that hallmark the transformation stages
of the informal economy to the formal economy;
d. Ensuring that fundamental principles and rights at work are extended to those
employed in the informal sector and the workers have social protection coverage;
e. Providing the necessary supports to workers in the informal economy to enhance
their productivity and competitiveness in the process of transforming the
informal economy to the formal economy; and
f. Providing the necessary support to operators in the informal economy to be
organized so as to protect their rights and interests.

2.4 Enhancing productivity and competitiveness by maintaining industrial peace

As Ethiopia’s economy transforms from agricultural to industrial economy, the

industrial sector is expected to accommodate a large number of the labour force.
The conducive investment policy of the country, coupled with globalization, has
attracted a growing number of foreign investors in different economic sectors.
However, the industrial development can be halted unless it is accompanied with
harmonious industrial relations.
Industrial relations and associated issues are expected to expand and get
complicated as the country experiences economic transformation. Therefore, it
becomes necessary to enhance enterprises productivity, competitiveness, and
sustainability by preventing potential labour conflicts and disputes that may arise at
work place. It is necessary to understand the role of industrial peace in the process
of economic transformation and, therefore, to establish the appropriate mechanism
to promote it.

2.4.1Goal
Contribute to industrial development by maintaining industrial peace.
2.4.2 Strategies
a. Building and strengthening the capacity of public executive bodies, social
partners and other stakeholders towards maintaining industrial peace;

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b. Establishing and strengthening information exchange and advisory and
regulatory services at all levels to ensure the application of labour standards in
different economic sectors;
c. Reducing labour disputes and enhancing productivity by promoting the culture
of bipartite and tripartite dialogues and cooperation at work place;
d. Establishing alternative labour dispute resolution mechanisms at all levels; and
e. Undertaking continuous assessments to enhance and strengthen industrial peace.

2.5 Focusing on cross-cutting issues for employment creation

2.5.1 Mainstreaming gender issues in employment

The participation of women in education and employment is currently on the rise
in Ethiopia. Yet, compared to their male counterparts, the participation of women
in formal sector employment and professional occupations is limited.
As open unemployment and underemployment is more visible on women when
compared to men and as most of the employed women are engaged in the informal
sector, it makes it keen for the employment policy to pay special attention to
address the different labour market challenges faced by women.
In view of this, it becomes necessary to take women-specific and gendered policy
measures targeted at enhancing labour market participation of women (especially
their participation for employment in the formal economy).

2.5.1.1 Goal
Enhance the participation of women in employment by mainstreaming gender
related issues in employment.

2.5.1.2 Strategies
a. Strengthening women targeted vocational and skill training programs to ensure
the competency of women in the labour market;
b. Providing appropriate legal protection for women against gender related
discrimination in labour market and employment, and at workplace;

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c. Strengthening supports that enhance the benefits of women in projects and
programs aimed at job creation;
d. Providing support to improve the accessibility of women to benefit from
programs aimed at enhancing business skills;
e. Improving the productivity and income of women by enhancing the supply of
technologies that reduce the burden on women from domestic chores; and
f. Providing the necessary support to establish day-care centers in or around
working premises where working mothers can safely leave their infants during
working hours.
2.5.2 Reducing the impact HIV/AIDS inflicts on the labour force
Though the HIV/AIDS infection rate in Ethiopia is declining recently, it remains a
threat against the effort of poverty reduction as it affects mainly the labour force of
the population. Its impact is especially considerable among women.
Therefore, it is necessary for the government, in collaboration with development
partners and non-governmental organizations to take necessary measures to
prevent infections and to provide care and supports and eliminate stigma and
discrimination against those leaving with HIV/AIDS.

2.5.2.1 Goal
Enhance production and productivity by promoting preventive measures and
providing care and sports for those leaving with HIV/AIDS.

2.5.2.2 Strategies
a. Identifying and implementing mechanisms that prevent HIV/AIDS infection
among the labour force;
b. Extending legal protection against stigma and discrimination to HIV/AIDS
victims in labour markets and employment, and at work place;
c. Enhancing the supply of HIV/AIDS medication, and promoting the importance
of balanced diet to reduce the damage the disease inflicts; and

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d. Providing the necessary support at workplace to maintain the integrity and
enhance the skills and productivity of HIV/AIDS victims.

2.5.3 Promoting employment opportunities for the youth

Youth, especially the urban youth, comprise the largest share of unemployed and
underemployed labour force.
Therefore, in view of the potential contribution that the youth might unleash to
development, it is necessary to promote and strengthen employment opportunities
for the youth.

2.5.3.1 Goal
Enhance the contribution of youth to national development by promoting their
employment opportunities.

2.5.3.2 Strategies
a. Revising and improving academic and training programs towards improving the
competitiveness and employability of the youth;
b. Identifying and implementing programs that create employment opportunities to
the youth;
c. Creating awareness among youth to inculcate into them positive attitudes about
jobs irrespective of types and grades;
d. Promoting youth entrepreneurship related issues; and
e. Facilitating the creation of alterative and complementary employment
opportunities to reduce youth underemployment.

2.5.4 Facilitating employment opportunities for people with disabilities

Compared to their counterparts, the participation of people with disabilities in
labour markets and other income generating activities is limited.
Therefore, it is necessary to adopt and practice skill development and supportive
strategies that ensure equal participation of people with disabilities in labour
market and in income generating activities.
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2.5.4.1 Goal
Enhance equal participation of people with disabilities in labour market and
employment opportunities.

2.5.4.2 Strategies
a. Enhancing inclusive education, training and skill development programs
responsive to the special needs of people with disabilities;
b. Facilitating the provision of special and relevant labour market information and
employment services tuned to the specific needs of people with disabilities;
c. Extending legal protection to eliminate any discrimination in labour market and
employment and at work place against people with disabilities due to their
disabilities;
d. Providing the necessary supports to enable people with disability to engage in
self employment;
e. Providing the necessary supports to strengthen associations of people with
disabilities in view of promoting their employment opportunities; and
f. Raising awareness among employers in the private sector so as to encourage
them pay due attention to employment related issues of people with disabilities.

2.5.5 Preventing child labour

A considerable number of children are subject to child labour abuse through
engagement in family farm, informal sector, and, sometimes, in formal sector
economic activities. Yet, they earn low income. Poor family background, lack of
awareness, and absence of custodian are some of the important factors that
contribute to child labour.
This makes it important to protect children against child labour by providing the
necessary protection.

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2.5.5.1 Goal
Contribute to the overall development of children by protecting them against child
labour.
2.5.5.2 Strategies
a. Providing legal protection to children to eliminate child labour ;
b. Improving and strengthening education to children to avoid school attrition and
child labour participation;
c. Improving overall economic growth for it to trickle to better family income and
to curb and avoid child labour;
d. Identifying and implementing programs that enable prioritizing and tackling the
root causes of child labour; and
e. Taking measures that reinstate children engaged in child labour.

2.5.6 Making labour migration fair and effective

2.5.6.1 Domestic labour migration

Domestic labour migration can often be considered a result of economic
transformation and can be deemed appropriate and inevitable.
However, the majority of rural-urban migration in Ethiopia can be attributed
mainly to the problem of land scarcity and degradation, poverty, search for
employment opportunities, etc. As such migrants mainly participate in the informal
economic sector; the migration exacerbates the problem of urban unemployment
and creates pressure on the basic services available in urban areas.
Therefore, it is necessary that domestic migration from rural to urban areas is
provided with institutional supports to make it planned and coordinated in such a
way that it contributes to development and poverty reduction.
2.5.6.1.1 Goal
Establish a system for domestic labour migration management with the purpose of
impacting effective employment opportunities across all economic sectors.

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2.5.6.1.2 Strategies
a. Devising mechanisms that help for efficient and effective labour migration in
response to the needs unleashed by the opportunities of economic
transformation;
b. Providing supports and inputs that enhance the skill and productivity of young
farmers in rural areas;
c. Promoting and strengthening appropriate employment opportunities in pastoral
and agro-pastoral areas;
d. Promoting and enhancing technical and skill related supports to women
farmers to reduce their work loads and improve their productivity and income
generation capacity; and
e. Promoting and strengthening non-farm employment and income generating
activities.

2.5.6.2 International labour migration

International labour migration has become an ever increasing incidence. However,
despite the benefits it might render to labour exporting and labour receiving
countries, lack of legal protection and policies can lead to undesirable
consequences on the migrants, including labour exploitation.
The growing outmigration of labour from Ethiopia makes it necessary to extend
legal protection to the migrants in the best interest of the country and the migrants.
Ensuring the safety of migrant workers of Ethiopian citizenship in different
countries and protecting their rights requires coordinated service provision in the
sector.
2.5.6.2.1 Goal
Protecting the rights and safety of international labour migrants from Ethiopia in
order to make them competitive and ensure their benefits from their employment
engagements.

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2.5.6.2.2 Strategies
a. Establishing and implementing a system to well protect the rights of
international labour migrants from Ethiopia and to ensure their benefits;
b. Establishing bilateral and multilateral agreements with labour receiving
countries and other relevant bodies to ensure fair and effective employment
opportunities for international labour migrants from Ethiopia;
c. Assisting international labour migrants from Ethiopia have the necessary
knowledge, skill and attitude to competitively participate in international labour
markets;
d. Establishing mechanisms that enable skilled manpower from Ethiopia to
participate in international labour markets without affecting the domestic
demand for manpower; and
e. Devising and implementing mechanisms that control and curb illegal labour
migration.
2.5.6.3 Employment of foreign nationals in Ethiopia
Measures being taken in the education and training sectors have important
implication in terms of producing manpower necessary to meet the needs of the
country. Employing foreign nationals can be deemed necessary under
circumstances where and when the domestic labour market faces a gap in terms of
supplying manpower with the required skills.
Therefore, it is necessary to ensure that the country benefits from knowledge,
technology and skill transfer by employing foreign nationals to fill such gaps.
2.5.6.3.1 Goal
Employ foreign nationals who are capable and competent to contribute to the
transfer of knowledge, skill and technology to the country.
2.5.6.3.2 Strategies
a. Making periodic labour market assessment and identifying sectors and
occupations that require the knowledge and skill of foreign nationals;

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 b. Devising mechanisms to ensure whether the country adequately benefits from
foreign nationals employed in Ethiopia;
c. Providing legal protection to eliminate any form of employment and
occupational discrimination between foreign nationals and Ethiopians
employed in the country;
d. Ensuring that the rights and safety of foreign nationals employed in Ethiopia
are protected as per the Ethiopian Labour Law.
2.5.7 Balancing population growth and labour force demand
Though population size has its own impact on the development of a country,
population (and labour force) growth beyond the absorptive capacity of an
economy can lead to unemployment problem. Therefore, balancing the population
growth of the country with labour demand immensely helps efforts of decent job
creation, poverty reduction, and economic development.
This makes it necessary to promote family planning and related services, in
compliance to the national population policy of the country.
2.5.7.1 Goal
Stabilize labour market by contributing to a balanced growth between population
growth and labour demand.
2.5.7.2 Strategies
a. Implementing family planning services continuously and in a vibrant manner;
b. Ensuring that family planning is part of the education programs at all levels;
c. Increasing women’s age at which they give their first birth, assisted through
implementing and as appropriate revising marriage laws;
d. Enhancing women’s decision making capacity and participation on issues
related to marriage and birth;
e. Taking measures to improve contraception services to better control pregnancy;
and

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 f. Facilitating for education and training opportunities to capacitate women
labour force joining the world of work to engage in productive economic
activities.
2.5.8 Improving environmental protection and natural resource management
Climate change and natural resource degradation, coupled with population growth,
inflict negative consequences on the level and sustainability of agricultural income
and on employment opportunities in the agriculture sector.

It is therefore, important that appropriate measures are taken to protect and

effectively use natural resources towards a green economy, to contribute to global
efforts promoting environmental protection, and to employment creation.
2.5.8.1 Goal
Promote employment opportunities through improved environmental protection
and natural resource management.
2.5.8.2 Strategies
a. Strengthening environmental protection and natural resource management
programs against the negative consequences of climate change and natural
resource degradation on rural and urban employment;
b. Providing support to those vulnerable to climate change and related disasters
and agricultural workers to engage in alternative income generating activities;
and
c. Promoting the inculcation of green economy initiatives across all economic
sectors.

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 CHAPTER THREE

POLICY IMPLEMENTATION

3.1 Implementation modality

As employment policy is wide and multi-sectoral in its nature, it requires an

integrated implementation modality involving government and other stakeholders.
Accordingly, a National Employment Council (NEC) will be established
comprising the representatives of relevant public sectors at federal and regional
level, Workers’ and Employers’ Associations, representatives from the informal
sector and others as appropriate.
The National Employment Council will ensure that employment related issues are
mainstreamed and properly addressed at the level of all macro and sectoral policies
in a coordinated and integrated manner. The NEC will also serve as an advisory
body to the government on issues related to employment.
Employment Council bodies with similar composition to the National Employment
Council will be established at regional and woreda levels to ensure the
implementation of the provisions of the Employment policy and the creation of
decent employment opportunities.
The National Employment Council will establish a Technical Committee
representing different stakeholders. The Technical Committee, in accordance with
the guidance of NEC, will develop modalities, programs and plans that help
effective implementation, monitoring and evaluation of the employment policy and
strategies. Technical Committees can be established at regional level to serve the
same purpose.
3.2 The role of stakeholders

3.2.1 Government
The Ethiopian government is committed to work in collaboration with other
stakeholders towards creating and promoting decent employment opportunities.
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This requires effectively coordinating the roles and activities of the different
stakeholders in the interest of avoiding duplication of efforts, effective utilization
of available resources, and improving employment policy implementation and its
impacts.
Since the employment policy is multifaceted and envisages to address diverse
issues, it is necessary to draw the attention and seek the participation of all the
relevant public sector stakeholders. Doing so will make successful implementation
of the employment policy possible.
Achieving this in reality requires implementation of the policy provisions in
respective sectoral policies and programs towards decent employment creation.
This requires, among others, identifying appropriate investments and other options
for creating and promoting decent employment opportunities.
3.2.2 Social partners
The Government of Ethiopia promotes tripartism as core element for maintaining
industrial peace, which immensely contributes to productivity growth,
competitiveness, and investment expansion. In this respect social partners i.e.,
employers and workers can play a considerable role in settling conflicts and labour
disputes that might arise between them through consultation, social dialogue and
workplace cooperation which in effect can contribute to industrial peace and
decent employment.
Therefore, it is expected that employers, workers, and their respective associations
become strong partners of the government and contribute their share to economic
development, productivity growth, employment creation, and income generating
activities. In view of this, social partners are expected to proactively participate
towards successfully implementing the employment policy and in the monitoring
and evaluation of activities to get feedbacks to rectify it.

3.3 Monitoring and evaluation

A monitoring and evaluation system will be established to be able to periodically
follow-up and evaluate the policy implementation process, gather relevant data and
exchange information, and get feedbacks from stakeholders to be used as inputs.

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The monitoring and evaluation system will be integrated with and synchronized to
the overall development monitoring and evaluation system of the country. The
monitoring and evaluations systems in place across different sectors and sub-
sectors will be used as sources of information for the implementing bodies of the
employment policy and strategy.
In the policy impact evaluation process, baseline information will be used to
compare the ex-post impacts of the employment policy. The evaluation exercise
will use appropriate indicators that enable assessing the employment creation and
poverty reduction impacts of the policy.
Results of the monitoring and evaluation exercise will be published as reports,
evidences, and recommendations that may lead to policy revision and programes
adjustment will be submitted to the government for appropriate action.
The Ministry of Labour and Social Affairs is mandated with the responsibility of
following the proper implementation of the employment policy and strategy,
assessing the effectiveness of measures taken to improve the implementation of the
policy, and providing information to relevant stakeholders. To this end, the policy
implementation process will be evaluated periodically by engaging all relevant
stakeholders.

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Glossary

Labour force Population aged 15 – 64 years and actively seeking employment

opportunities.

Employment Participation of a labour force in self-initiated economic activity or

hired by others for a defined or undefined period of time.
Self-employment Employment in own economic activities with no wage payment.

Full employment Full engagement of an active labour force in productive economic

activities.

Unemployed Comprise all persons above a specified age who during the reference
period were: without work, that is, were not in paid employment or
self employment during the reference period; currently available for
work, that is, were available for paid employment or self-
employment during the reference period; and seeking work, that is,
had taken specific steps in a specified recent period to seek paid
employment or self-employment.

Underemployed A situation in which a worker is employed, but not in the

desired capacity, whether in terms of compensation, hours,
or level of skill and experience.

Informal economy Refers to all economic activities by workers and economic units that
are – in law or in practice – not covered or insufficiently covered by
formal arrangements; and does not cover illicit activities, in
particular the provision of services or the production, sale,
possession or use of goods forbidden by law, including the illicit
production and trafficking of drugs, the illicit manufacturing of and
trafficking in firearms, trafficking in persons, and money laundering,
as defined in the relevant international treaties.

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Labour market Organizations and institutions responsible for administering and
institutions regulating employment related issues, collecting labour market
information, and performing related activities.

Employment service Service provided by public and private institutions on labour market
and employment related issues.

Child labour Employment of children below the minimum age proclaimed by the
Ethiopia Labour Law and by the Minimum age Convention of the
ILO.

Decent work It is the aspirations of people in their working lives; and it involves
opportunities for work that is productive and delivers a fair income,
security in the workplace and social protection for families, better
prospects for personal development and social integration, freedom
for people to express their concerns, organize and participate in the
decisions that affect their lives and equality of opportunity and
treatment for all women and men.

Labour standards A recognized and enforceable legal framework to promote industrial

peace and human resource development and management.

Social dialogue It is defined to include all types of negotiation, consultation or

simply exchange of information between, or among, representatives
of governments, employers and workers, on issues of common
interest relating to economic and social policy.

Migrant worker A person moving from one State to another, or within his/her own
country of residence, for the purpose of employment.

Regular migration Migration that occurs through recognized, legal channels.

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