The recently published annual bulletin of the Labour Force Survey (LFS) highlighted a concerning trend: Sri Lanka’s labour force participation rate plummeted to a new low in 2023.
In 2023, the labour force participation rate dipped to 48.6 percent, down from 49.8 percent recorded in 2022. Notably, this marks the continuation of a downward trend since 2021, with the rate consistently remaining below the 50 percent mark.
The labour force participation rate signifies the percentage of the population engaged in either working or actively seeking employment.
Breakdown by gender reveals that in 2023, the male labour force participation rate decreased to 68.6 percent from 70.5 percent the previous year, while the female rate dropped to 31.3 percent from 32.1 percent over the same period.
Furthermore, in absolute terms, the employed population saw a decline of 137,821 individuals, totaling just above 8 million in 2023. Both male and female employed populations decreased by 66,402 and 71,412 persons, respectively.
Sector-wise analysis indicates growth in the service sector workforce by 47,445 persons, while employment in agriculture and industry sectors witnessed declines. The service sector now encompasses 48.4 percent of overall employment, up from 47 percent the previous year.
Despite this, the unemployment rate remained steady at 4.7 percent throughout the year. However, female unemployment rose to 7 percent in 2023 from 6.5 percent in 2022, while male unemployment decreased to 3.6 percent from 3.7 percent over the same period.
Urban areas reported the highest unemployment rate at 7.4 percent, followed by 7 percent in rural areas and 4.8 percent in the estate sector.
Meanwhile, youth unemployment surged from 16.2 percent in 2022 to 17 percent in 2023, indicating a concerning trend.
Highlighting a positive shift towards full-time employment, the proportion of individuals working 40 hours or more per week increased to 62.1 percent in 2023 from 60.3 percent the previous year.
The Labour Force Survey (LFS) conducted by the Department of Census and Statistics remains one of the most vital regular surveys, offering critical insights into the country’s employment landscape.
- 2023 labour force participation rate contracts to 48.6% from 49.8% in 2022
- Male labour force participation dips to 68.6% while female participation falls to 31.3%
- In absolute terms, SL’s employed population declined by 137,821 to just above 8 million
- Service sector accounts for 48.4 percent of overall employment
Source – www.dailymirror.lk/
