Lao workforce not in private companies

So the 2011 census is there and, it is quite interesting: In a country that is, following World Bank and other reports, booming and growing fast,  "only 174,000 people or 4.33 percent of the total population within the working age group of 15 to 64, work for private companies" according to a Report by the local newspaper Vientiane Times.

So that means all this new businesses aren't creating jobs?

But it comes even better: 1.4 million people, or 35 percent of the working population, are self employed. That means they sell noodle soup, run a 4x4m grocery shop, work as handy man. Not much income from that, and of course they don't have any social insurance at all.

But it's not the end: 1.1 million people or 28.57 percent of the working age population work for their own families without payment, 218,342 or 5.42 percent are home makers, and 558,905 people or 13.87 percent are students.

Ok, let's do the math: 28.57 percent at home, plus 35 self-employed in mainly very low paid jobs, 13.87 percent students without a job, 6.8 work for state agencies. More than 70 percent of the work force. And don't even think calling Laos a paradise for entrepreneurs - the self-employed are mainly quite poor people with very low profit (if any) in what they sell. 

I wonder how a country can develop with nobody working in the private sector?

Career development in Laos (and other countries)

I was at the Vientiane Career Fair recently (listen to my Interview with the organizers here) and it was quite amazing how many people showed up (400 in the first two hours). According to the Vientiane Times most students were looking for an job in accounting. Why that? I think, and some experts in this field told me so as well, that most students have no idea what a job is and means. Accounting sounds like a well paid office job, and this is why so many want to work in this field.

Now here comes something in play my friend Titi mentioned at the recent Laos Business Meetings in her talk about career pathways. Indeed people do not know what companies require, what a career pathway actually is. Students are just not prepared for the business life. They have certificates, but no clue about what is actua happing in the company they applying for a job. She is looking for ways to change this.

Nearly all foreigners were complaining about the lack of professional skills within the young Lao community. This is true, but I also think that this is quite natural since most people are between 20-25 and have of course not much of an experience. While someone mentioned the need of a education were also internships and trainings are supported as well as craftsmanship (like German system, where you are an apprentice for 2 years with school added), what many people do now is job hopping for getting experience.

So how to solve the problem? I think there is still a need for a major change in (public) education, with a radical change in curriculums. Also, there must be a closer relationship between universities and the business community, so the first can be aware of what the latter actually needs. It might be helpful to use the summer break for mandatory internships (I know internships are already required, but what I learned was that they are over-regulated. Just let the people work in a company for a month). Oh and as long as Manadarin is not taking over yet, more important than using Excel is speaking English. It IS the business language, period.

I really like the idea of the Khan Academy, where you learn online (at home) on your own pace and the classroom becomes the place to reflect and discuss what you learned (formally know as homework). There are also TED talks, so no excuse of "we do not have the materials".

And don't even think the above is a Lao problem or in any way linked to "Lao culture". Vietnam, Thailand and Cambodia have exactly the same issues, and I guess it might even similar in Malaysia, Myanmar and Indonesia.

What is your idea?