202
World Bank Working Paper
The perception of skill and educational shortages is higher for larger companies. It is also higher in foreign owned firms than in domestically owned, and higher for exporter than for non exporters. Figure 8.10: Distribution of Employed by Economic Sector 7%
1% Agriculture, forestry, fisheries
10%
Manufacturing 3% Construction
3%
Wholesale, retail, marketing, hospitality Social & community services Others 76%
Source: Malawi Poverty & Vulnerability Assessment 2006.
Table 8.12: Percentage of Firms that Report Labor Regulations and Skill Levels of Workers as a Major or Severe Constraint in Malawi Firm Category
Labor Regulations
Skills and Education of Available Workers
Small
10.9
35.9
Medium
15.0
55.0
Large
13.2
62.3
Domestically owned
12.7
46.6
Foreign owned
12.2
58.5
Non-exporter
11.9
48.4
Exporter
15.2
54.6
Total
12.7
49.7
Source: Africa Private Sector Group, Malawi Investment Climate Assessment, 2006, p. 57.
Staff training activities by companies may also serve as an indication of skill needs. The ICA (2006) found that 52 percent of all surveyed companies provided training to their staff, either internally or externally. Not surprisingly, this rate was higher for companies that perceived skills shortage as a major impeding factor. The likelihood for employees to received company organized training became higher in larger companies, and relatively higher in foreign owned and exporting companies. Also, workers who are already skilled have better access to further training than their unskilled colleagues. Of the surveyed companies, 19 percent of all skilled workers received training but only 11.7 percent of unskilled workers did.17