Bridging the Workforce Gap: A Comparative Analysis of Global and Sri Lankan Labor Force Participation

Executive Summary

Labor force participation is crucial for economic growth, with global rates typically ranging from 60% to 70% of the working-age population (ages 15-64). However, Sri Lanka faces significant challenges that inhibit its ability to reach these benchmarks, including outdated labor laws, demographic changes, and socio-economic barriers. This article compares the global labor force participation structure with that of Sri Lanka, highlighting key gaps and offering HRM-centered solutions to enhance workforce engagement, productivity, and sustainable economic development.

The Gap: Global vs. Sri Lanka

Globally, countries experience workforce participation rates between 40% and 50% of the total population engaged in labor. Countries with strong labor policies often report higher participation due to a focus on education, flexible labor laws, and favorable economic conditions. Conversely, Sri Lanka's labor force participation rate (LFPR) falls significantly below this average, particularly in rural areas and among women. Contributing factors include:

  • High Informal Economy: A significant number of workers operate in the informal sector, leading to underreported employment figures.
  • Gender Inequality: Cultural and structural barriers restrict female participation in the workforce.
  • Aging Population: An increasing proportion of older individuals places additional demands on the working-age demographic.
  • Rigid Labor Laws: Outdated regulations discourage formal employment opportunities, limiting job market flexibility.
  • Limited Vocational Training: Insufficient training opportunities leave many workers unprepared for modern industry demands.

Design Thinking Approach to HRM Solutions

To bridge the workforce participation gap in Sri Lanka, a strategic, design-thinking approach is essential. This involves empathizing with stakeholders, defining problems, ideating solutions, prototyping initiatives, and testing their effectiveness. Below are key recommendations rooted in this approach:

 

  1. Revising Labor Laws
  • Empathy: Engage with employees and employers to understand their needs.
  • Define: Identify specific barriers within existing labor laws that restrict participation.
  • Ideate: Propose flexible working hours and part-time job options.
  • Prototype: Pilot modern labor reforms in selected sectors.
  • Test: Evaluate the impact on participation rates and adjust policies accordingly.
  1. Female Workforce Engagement
  • Empathy: Gather insights from women about their challenges in joining the workforce.
  • Define: Recognize policies that hinder gender equality in employment.
  • Ideate: Develop initiatives that provide maternity benefits, childcare, and equal pay.
  • Prototype: Implement these initiatives in targeted industries.
  • Test: Measure female participation rates and refine the approach based on feedback.
  1. Vocational Training and Skill Development
  • Empathy: Consult with industries to understand skill gaps.
  • Define: Pinpoint the skills most in demand.
  • Ideate: Create training programs aligned with industry needs.
  • Prototype: Launch pilot training sessions in collaboration with local businesses.
  • Test: Assess the effectiveness of these programs in increasing employability.
  1. Youth Engagement
  • Empathy: Interview young people to identify barriers to workforce entry.
  • Define: Highlight gaps between education and employment.
  • Ideate: Establish programs linking education to job opportunities.
  • Prototype: Initiate partnerships with educational institutions and industries.
  • Test: Track the outcomes of these collaborations on youth participation rates.
  1. Retirement and Senior Workforce
  • Empathy: Understand the perspectives of older employees regarding retirement.
  • Define: Identify opportunities for older individuals to contribute economically.
  • Ideate: Propose part-time roles and consultancy opportunities for seniors.
  • Prototype: Create initiatives within organizations that allow for these roles.
  • Test: Monitor the impact on both the economy and the retirees’ quality of life.

Conclusion

Sri Lanka’s labor force participation rates are suboptimal compared to global standards due to various socio-economic and structural factors. By adopting a design-thinking approach to HRM interventions—modernizing labor laws, empowering women, investing in skill development, and enhancing labor market flexibility—Sri Lanka can unlock its economic potential. A proactive stance in these areas will not only improve labor force participation rates but also enhance productivity and foster sustainable economic growth.

References

  1. World Bank. (2023). World Development Report: The Changing Nature of Work. Washington, DC: World Bank Publications.
  2. ILO. (2022). Global Employment Trends 2022: Navigating the Impact of the COVID-19 Pandemic. Geneva: International Labour Organization.
  3. Asian Development Bank. (2021). Sri Lanka: Labor Market and Employment Policy Review. Manila: Asian Development Bank.
  4. UNDP. (2020). Human Development Report 2020: The Next Frontier: Human Development and the Anthropocene. New York: United Nations Development Programme.

Bottom of Form

Lalin I De Silva, Value Chain Journalist of www.vivonta.lk former Senior Planter, Agricultural Advisor / Consultant, Secretary General of The Ceylon Planters Society, Editor of The Ceylon Planters Society Bulletin and freelance journalist.

Share this article

Read more...