Lao workers leaving agriculture for industry, service sectors
Lao workers leaving agriculture for industry, service sectors
More people in Laos are leaving jobs in agriculture for work in the service and industry sectors, which economists view as a positive change.
According to a report from the Ministry of Planning and Investment's Planning Department, the proportion of workers in agriculture has fallen from 80 to 73 percent while the numbers of people working in the industry and service sectors have risen to 6.5 percent and 20 percent respectively.
The change in the make-up of this aspect of Laos' economic structure is attributed to the growth of the industry and service sectors, which has opened up opportunities for people to leave their traditional jobs in agriculture.
In the 2012-13 fiscal year, agriculture saw only 2.8 percent growth while the industry and service sectors saw 14.8 percent and 8.1 percent growth respectively. The rapid growth in industry was due to substantial foreign investment in mining and hydropower.
Growth in the service sector has occurred with the expansion of hotels and banking. Retail business expansion has also helped to boost the growth of the service sector. There are now more than 20 banks operating in Laos due to the country's policy to provide more credit facilities.
Officials in the Planning Department said that despite the significant swing in the job market, the government wanted to see an even faster reduction of the workforce in agriculture and a surge in the number of people employed in the industry and service sectors.
They said the government is encouraging farmers to adopt new technology and use modern equipment so they need to employ fewer people. This would free up workers to enter the industry and service sectors, which are undergoing rapid growth.
They explained that in developed countries, farming does not require a large workforce as is the case in Laos because modern equipment is used instead of manpower.
In Tasmania, Australia, only two farmers are required to manage 300 hectares of farmland because they use highly advanced machinery.
Economists welcome the change in the make-up of the labour structure, adding that improved education would enable Laos to further reduce the number of people employed in agriculture.
They also said Laos needs skilled workers in the industry and service sectors to ensure sustainable growth of the economy. These two sectors play a significant role in driving economic growth in every country.
At present, the main driving force of the Lao economy is the mining and hydropower industry. The tourism, garment and handicraft sectors have also helped to drive economic growth in recent years. In 2012, GDP increased by about 8 percent.
vientiane times
