Managing human resources (HR) in Cambodia, Laos, Vietnam and Myanmar (CLMV): Background, characteristics, and trends - Introduction of Myanmar’s transition (2011-2015) - Economic profile (2011-2015) - HDI profile - laws (labor, investment, education) - Characteristics of labor - Challenges of human resources - HRM practices
Real GDP Growth 2011-2014 (%) 9 8.5 8 7.5 Myanmar Cambodia 7 Lao 6.5 Vietnam 6 5.5 5 2011 2012 2013 2014 Source: Myanmar Economic Monitor, World Bank,2015 report
Sector contribution to real GDP growth 5 4 3 Agriculture 2 Industry Services 1 0 2011/12 2012/13 2013/14 2014/15 -1 Source: Myanmar Economic Monitor, World Bank,2015 report
Sector growth rate 14 12 10 8 Agriculture 6 Industry 4 Services 2 0 2011/12 2012/13 2013/14 2014/15 -2 Source: Myanmar Economic Monitor, World Bank,2015 report
Expenditure allocation by sectors Health, Education & Social Welfare is only 9% Making Public Finance work for children in Myanmar- MDRI-CESD and UNICEF 2014
Human Development Report,2015 prepared by UNDP Myanmar Norway Tonga Bhutan Niger Rank Demographic Profile Rank 148 Rank 1 Rank 100 Rank 132 188 Population, total (millions) 53.7 5.1 0.1 0.8 18.5 Dependency ration, old age (65 and older) (per 100 people ages 15-64) 7.7 25.2 10.2 7.3 5.5 Dependency ration, young age (0-14) (per 100 people ages 15-64) 34.4 28.6 64.3 39.9 106 Population, ages 65 and older ( millions) 2.8 0.8 0 0 0.5 Median age (years) 29.8 39.2 21.3 26.7 15 Population, under age 5 (millions) 4.4 0.3 0 0.1 3.8 Population, urban (%) 34.4 80.2 23.7 37.9 18.6 Sex ration at birth (male to female births) 1.03 1.06 1.05 1.04 1.05 * Norway: Rank 1:Very high HDI * Tonga: Rank 100: High HD *Myanmar: Rank 148: Low HDI *Niger : Rank 188, Low HDI
Human Development Report,2015 prepared by UNDP Health Myan Norway Tonga Bhut Niger mar an Rank Rank 1 Rank 00 Rank Rank 148 132 188 Life expectancy at Birth 65.9 81.6 72.8 69.5 61.4 Adult mortality rate, female (per 1000 people ) 183 47 245 212 241 Adult mortality rate, male (per 1000 people) 240 73 115 219 252 Deaths due to malaria (per 100,000 people) 11.3 131.1 Deaths due to tuberculosis (per 100,000 people0 48 0.1 2.5 14 16 HIV prevalence, adult(% ages 15-49) total 0.6 0.1 0.4 Infant mortality rate (per 1,000 live births) 39.8 2.3 10.4 209. 59.9 7 Infant lacking immunization, DTP(% of one year 10 1 1 3 15 olds) Infant lacking immunization measles(% of one 14 7 1 6 33 year olds) Public health expenditure( % of GDP) 1.8 9.6 4.7 6.5 Under five mortality rate (per 1000 live births) 50.5 2.8 12.1 36.2 104.2
Human Development Report,2015 prepared by UNDP Education Myan Nor Tonga Bhut Nige mar way an r Rank Rank Rank Rank Rank 148 1 100 132 188 Expected years of schooling (years) 8.6 17.5 14.7 12.6 5.4 Adult literacy rate(% ages 15 and older) 92.6 99.4 52.8 15.5 Gross enrolment ratio :pre primary(% of primary school age 9.1 98.9 35.4 13.8 6.3 population) Gross enrolment ratio, primary(% of primary school age 114.2 99.4 110.1 106.6 71.1 population) Gross Enrolment ration, secondary(% of secondary school 50.2 111.1 90.9 77.7 15.9 age population) Gross enrolment ratio, tertiary (% of tertiary school age 13.4 74.1 6.3 9.4 1.8 population) Mean years of schooling (years) 4.1 12.6 10.7 3 1.5 Population with at least some secondary education (% aged 19.2 97.1 87.9 34.4 5.2 25 and above) Primary school dropout rate( % of primary school cohort) 25.2 1.5 9.6 21.1 30.7 Primary school teachers trained to each 99.9 91.5 97.1 Public expenditure on education(% of GDP) 0.8 6.6 5.5 4.4
Laws related to labor market - Minimum wage law , 2013 - Social Security law, 2012 - New labor organization law, 2012 - Employment and skilled development law,2 013 - Education law, 2014 - SMEs law, 2015 - FDIs law (law emphasizing labor intensive investment) - Workers’ compensation act, 2005 - Education law , 2014. - Trade dispute act, 2012 - (other laws are still as old version: factories act, 1951, - Leaves and holiday, 1951, shopsand establishment act, 1951)
The impacts of minimum wage • New minimum wage (MW) replaced the 1949 MW Act. • The rate of MW is 3,600 Ks ($US 2.70). • An objection can be made within 60 days. • Employers protested and did not agree on this policy. • Negative impacts: laying off employees, reduction of overtime and other incentives • Projection: positive impact on wages security and likely to be moved from the informal sector to formal sector • In medium and long term: investors would invest more on productivity and efficiency with effective labor
Labor market challenges - Not able to implement labor policies yet due to a lack of data for labor market (previous labour market survey was conducted 25 years ago, data from the 2015 survey is still being finalised) - Skill shortages due to skilled labor migration to Singapore and other countries - Employee turnover rate is higher at entry level - Poor English language skills limit ability to join the skilled labor market - Poor management of regional government to make decision on foreign direct investment (FDI)
SWOT of labor market Strengths Weaknesses - Labor costs are low - Law enforcement - Large population of energetic young - Skills shortage potential laborers - Language barrier s - Abundant vacant and virgin land - Mismatch of education and labor - No insurance employment system market needs - lack of labor market data - Safety and social security scheme are weak at present Opportunities Threats -Labor intensive industries -Insufficient electricity distribution (Apparel manufacturing, food - Poor infrastructure processing sector) - Ability to create new products -Tourism sector - Deep sea port and special economic zone projects are being implemented for local job opportunities
Labor market characteristics • Labour force by educational level, employed population by occupation, industry and employment status can not be projected due to the unreliability of the data • Workers are sincere, energetic and prefer leadership management styles, rather than intense and oppressive disciplinarian management styles of managers • Trust in leadership and soft management play a vital role for managing the labor fource
Human resource management practices (a) • Law enforcement on safety environment scheme for risky work sites • Providing a social security scheme • Skill and technology transfer to local laborers • Introduce incentive firms to send their workers for domestic and overseas staff training with provision of grants, tax break or subsidies. • Resolve the mismatch between education supply and labor market demand • Creation of links between jobs market and schools and universities
Human resource management practices (b) continued Co-ordination and collaboration is needed to strengthen • the government, private sector, civil society and informal educational sector. • Identify indicators of quality assurances for for Universities and schools • Laws should be established with detailed guidelines for encouraging the private sector, joint ventures and foreign direct investment, particularly in the education sector • Domestic universities should co-operate with international universities and more scholarship opportunities for students and teachers are needed to support study abroad • Capital and current budget expenditure needs to expand for human resources development and looking for external funding sources
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