Explaining Labor Market Imbalance in Sri Lanka: Evidence from Jobsnet Data
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conventional ways. As a result, they may be more flexible about employment type than other workers.
Main Findings and Recommendations This study analyzes Jobsnet data to explain labor market imbalances in Sri Lanka. The data results show that the main imbalance is the mismatch between the supply of jobs seekers with higher education levels and job aspirations and the demand for workers with those levels of education attainment. The data suggest that the inability of the education system to teach general skills essential for securing “good” jobs could be a source of inequality. Individuals with high levels of formal education were more likely to obtain general training in English language and computer skills, indicating a lack of competency in these skills among all school leavers. Most job seekers have obtained vocational training from private institutions that are not nationally recognized, suggesting that the training carries little weight in improving employability. Individuals with better English skills obtained training geared toward jobs at the higher end of the occupation ladder where vacancies were relatively scarce. Location is not a major source of labor market imbalance, mainly because of the willingness of most job seekers to migrate for work. However, most vacancies in all occupational categories are in Western Province. Age, gender, experience, and employment duration are also not main sources of imbalance. These results support all three hypotheses—slow job creation, skills mismatch, and queuing. First, vacancies for “good” jobs are limited. Most vacancies are for inexperienced youth and in low-skill occupational categories.10 LMIB data also suggest that the majority of the vacancies are in the informal sector. Second, the data show that most job seekers are educated, young, inexperienced, new entrants to the labor market who aspire to white-collar office jobs. However, such jobs are of limited availability, supporting the skills mismatch argument. The data also suggest that most of these job seekers need further learning to acquire the information technology (IT) and English skills demanded by the market. This finding points to limitations in the education system. Last, although the data do not allow us to identify formal and informal sector jobs and the remuneration levels attached to jobs, they do suggest that job seekers queue for jobs that have a higher social status. There is a need to promote creation of jobs at the higher end of the occupation ladder and to improve working conditions for lower-skill occupations so that they are more attractive to job seekers. The demand