LMP Sierra Leone 2015 Final Version

LABOUR MARKET PROFILE
2015 Sierra Leone
LO/FTF Council’s Analytical Unit

Copenhagen, Denmark
Danish Trade Council for International Development and Cooperation
Labour Market Profile 2015
PREFACE
The LO/FTF Council presents this Labour Market Profile as Index. The indexes’ methodologies and the data quality
a yearly updated report that provides an overview of the can be followed by the sources websites.
labour market's situation.
All sources, indicators and/or narrative inputs that are
This country profile presents the recent main developments used are available by links through footnotes.
and is not an in-depth analysis. Nevertheless, it shows a
wide range of data in a reader-friendly style. Certain It is noteworthy to highlight that although most of the
key findings of this report can be found on the Executive statistical data is available, there were some problems
Summary. with availability and reliability of the data. In particular,
the data collection of trade union membership, Collective
The report is divided in 11 thematic sections, which Bargaining Agreements (CBAs), women’s trade union
includes trade unions, employers’ organizations, tripartite membership and occupational health and safety (OHS)
structures, national labour legislation, violations of trade committees are a challenge. Therefore, used data from
union rights, working conditions, situation of the workforce these abovementioned indicators should be interpreted
(with subsections such as unemployment, sectoral with some reservations.
employment, migration, informal economy, child labour,
gender, and youth), education (with subsection vocational
training), social protection, general economic
performance, and trade. Additionally, the reader may ACKNOWLEDGMENT
find, an appendix including a list of the ratified ILO
Conventions. This Labour Market Profile is prepared by the LO/FTF
Council’s Analytical Unit in Copenhagen with support from
As indicated, the report is driven by statistical data our Sub-Region Office in West Africa as well as our local
selection from international databanks, surveys and partners in terms of data collection of trade union
reports (e.g. the International Labour Organization (ILO), membership.
the International Trade Union Confederation (ITUC), the
World Bank, WageIndicator Foundation, the Africa All other labour market profiles of the countries where
Labour Research & Educational Institute (ALREI), etc.) as LO/FTF Council operates are available at our website:
well as national statistical institutions and ministries, and http://www.ulandssekretariatet.dk/content/landeanalyse
others. Moreover, narrative inputs are collected from r
international news sources (e.g. The Economist, the British
Broadcasting Corporation (BBC), LabourStart, The Should you have questions about the profiles you can
Guardian, etc.) together with local sources such as trade contact Mr. Kasper Andersen (kan@loftf.dk), Manager of
unions centers, NGOs, local news, the LO/FTF Council’s the Analytical Unit.
Sub-Regional Office, among others.
Cover photo: Carsten Snejbjerg
This report also collects references from several indexes,
e.g. Global Rights Index, Doing Business Index, the Editing, design and layout: Adriana Romero
Governance Indicators, and the Human Development
Sierra Leone 2015 Page ii

Sierra Leone
Labour Market Profile
EXECUTIVE SUMMARY
A fter the end of the civil war in 2002, Sierra Leone’s

democratic and economic development has
gradually moved forward. The country experienced a
In the case of the education system, it received a negative
impact due to the 1991-2002 civil war. For instance, the
no-schooling rate is very high at 65% while the education
volatile economic growth since 2000, mainly due to its average year is low. For Vocational training, it has been
agricultural and mining sectors. Labour productivity has under-prioritized in the system. Clearly the school system
improved, but remains quite low in comparison to other continues to be weak because of the widespread child
Sub-Saharan Africa’s average. Nonetheless, like other labourers in the region. It is expected that the education
neighbouring countries they were hit hard by an Ebola system is bouncing back, though.
epidemic in 2014. As a result, it affected the economy
and the labour movement on many levels, such as Presently, there is a rapid urbanization with many young
disruption of farming and trading activities as well as a people moving into the cities, seeking better incomes.
high pressure on the health sector’s staff and expenditure. With little urban job creation, most find work as self-
employed in the informal economy. Also a Foreign
The country has some legal restrictions and flaws on the Workers Law is planned to strengthen workers protection
labour legislation. Moreover, there have been registered against trafficking and forced labour practices by
systematic violations of labour rights. Many of the recruitment and employment agencies. Currently, there
obsolete labour laws, dating back to the 1960s, are are more emigrate than immigrate in Sierra Leone, but
currently undergoing updates. Yet, this process was the migration sector remains a very limited part of the
delayed because of the Ebola epidemic. Other issues are economy.
that workers are mostly unaware of the existing labour
regulations, the weak incentives to formalize business as The trade union movement is under development. The
well as public sources to enforce standards. Sierra Leona Labour Congress (SLLC) registered a
membership increase of paid members at 24% from
It can be argued that there has been no trickle-down 2009 to 2014. This was mainly due to a massive influx of
effect on its economic growth. Around 83% of workers in members from affiliated unions from the informal
employment are working poor (living with below US$2 economy. Trade union members to waged workers have
per day) and a narrow middle-class has not been able to been estimated at 39%; and seven Collective Bargaining
evolve. On a positive note, the minimum wage was Agreements are registered and cover around 45,000
increased often throughout recent years. This wage is workers.
mainly reaching workers from the formal sector, which
could be interpreted as a minority. In practice, a massive On one hand, Sierra Leone experiences a very weak
majority (92%) is employed in the informal economy. social protection with extremely low coverage. On the
Hence, they are not covered by the minimum wage. In other hand, several reforms such has free and universal
addition, wages have been somewhat affected by healthcare services have be launched in 2010. This has
consumer price inflation. An impact of the minimum wage been reinforced to the active involvement of trade union
increases appears to have provoked many permanent movements. Likewise, the National Social Protection Policy
workers' positions turned into casual labour. was also adopted in 2011, to broaden its coverage, to
include the informal economy. Lastly, a Social Safety Net
Although the estimations of unemployment rates are quite program, which was launched in March 2015, plans to
low at 3.2%, a more structural unemployment is projected implement two pilot districts for workers from the informal
to reach 70% during upcoming years. On the grounds economy but it has not yet set dates for the start.
that the formal sector does not create sufficient decent
work and workers are stalled in the informal economy to
earn money to survive.
Sierra Leone 2015 Page iii

COUNTRY MAP
Source: The CIA World Factbook
Sierra Leone 2015 Page iv

Table of Contents
Preface ..................................................................................................................................................................................................................... ii
Acknowledgment .................................................................................................................................................................................................... ii
Executive Summary ............................................................................................................................................................................................... iii
Country Map .......................................................................................................................................................................................................... iv
Trade Unions ........................................................................................................................................................................................................... 1
Employer’s Organizations .................................................................................................................................................................................... 3
Central Tripartite Structures................................................................................................................................................................................. 3
Mediation and Arbitration............................................................................................................................................................................... 3
National Labour Legislation ................................................................................................................................................................................. 3
Constitution .......................................................................................................................................................................................................... 3
Labour Code ....................................................................................................................................................................................................... 3
ILO Conventions ...................................................................................................................................................................................................... 4
Trade Union Rights Violations .............................................................................................................................................................................. 4
Working Conditions ............................................................................................................................................................................................... 5
Workforce ............................................................................................................................................................................................................... 5
Unemployment and Underemployment ........................................................................................................................................................ 6
Sectoral Employment ........................................................................................................................................................................................ 7
Migration ............................................................................................................................................................................................................. 8
Informal Economy .............................................................................................................................................................................................. 9
Child Labour ....................................................................................................................................................................................................... 9
Gender ................................................................................................................................................................................................................ 9
Youth.................................................................................................................................................................................................................. 10
Education ............................................................................................................................................................................................................... 11
Vocational Training ........................................................................................................................................................................................ 11
Social Protection .................................................................................................................................................................................................. 12
General Economic Performance ....................................................................................................................................................................... 13
Trade ..................................................................................................................................................................................................................... 15
Trade agreements .......................................................................................................................................................................................... 15
Export Processing Zones (EPZ) ..................................................................................................................................................................... 16
Appendix: Additional Data .............................................................................................................................................................................. 17
Ratified ILO Conventions in Sierra Leone .................................................................................................................................................. 17
References ............................................................................................................................................................................................................ 18
Sierra Leone 2015 Page v

Tables
Table 1: Trade Unions in Sierra Leone .............................................................................................................................................................. 1
Table 2: Trade Unions Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health
Committees .............................................................................................................................................................................................................. 2
Table 3: Sierra Leone: Global Rights Index (2014) ....................................................................................................................................... 4
Table 4: ILO Complaints Procedure Freedom of Association Cases (2015, October) ........................................................................... 4
Table 5: Wages and Earnings Monthly Average and Legal Minimum Wage ......................................................................................... 5
Table 6: Employment rates (%) in Siera Leone ............................................................................................................................................... 6
Table 7: Inactivity Rate in Sierra Leone (2013), Total & Youth, % ............................................................................................................ 6
Table 8: Comparative Average Growth of GDP per capita, Employment & WAP (2004-2013), % Change on average ......... 6
Table 9: Unemployment (2013) ........................................................................................................................................................................ 7
Table 10: Employment (2004) & GDP Share (2013) Sector & Sex distribution .................................................................................... 7
Table 11: Status of employment in Sierra Leone (2004), % ....................................................................................................................... 8
Table 12: Migration .............................................................................................................................................................................................. 8
Table 13: Working children Proportion of all children ................................................................................................................................. 9
Table 14: Highest Level Attained & Years of Schooling in Population ................................................................................................... 11
Table 15: Vocational Training (2001) ........................................................................................................................................................... 11
Table 16: Public Spending on Social Protection Schemes (2009) ............................................................................................................ 12
Table 17: Benefits, Coverage and Contributions to Pension Schemes (2010) ...................................................................................... 12
Table 18: Key Facts (2014 est.) ...................................................................................................................................................................... 13
Table 19: Working Poor Age 15+ ................................................................................................................................................................. 14
Table 20: Sierra Leone’s Ease of Doing Business ......................................................................................................................................... 14
Table 21: Governance Indicators .................................................................................................................................................................. 15
Table 22: Trade and Foreign Direct Investment ........................................................................................................................................... 15
Table 23: Ratified ILO Conventions in Sierra Leone ................................................................................................................................... 17
Figures
Figure 1: Trend of SLLC members and affiliated organizations from the informal economy (IE) (2010-2014) .............................. 1
Figure 2: Employment Participation and Inactivity in Sierra Leone - (1991-2013), Total & youth, %............................................... 6
Figure 3: Labour Productivity .............................................................................................................................................................................. 6
Figure 4: Unemployment rate trends in Sierra Leone and the Sub-Saharan Africa (2000-2013), Total & youth, % .................... 7
Figure 5: Sierra Leone: Sector Share of GDP (2000-2013), % of GDP .................................................................................................. 8
Figure 6: Net Migration and Remittances Trends ........................................................................................................................................... 8
Figure 7: Knowledge & attempts to formalize businesses in Sierra Leone (2006) ................................................................................. 9
Figure 8: Females in Management and Ownership ..................................................................................................................................... 10
Figure 9: Youth Unemployment Rates in Sierra Leone ............................................................................................................................... 10
Figure 10: Standard and Structural Youth Unemployment rates of Selected African Countries (%) ............................................... 11
Figure 11: Healthcare Expenditure not financed by private household's out-of-pocket Payments (1995-2011) ......................... 12
Figure 12: GDP growth per capita (2000-2014), Sierra Leone and the Sub-Saharan Africa, Annual % .................................... 13
Figure 13: GDP per capita trend and forecast ........................................................................................................................................... 13
Figure 14: Inflation trend and forecast (2002-2018), % .......................................................................................................................... 13
Figure 15: Gross Fixed Capital Formation .................................................................................................................................................... 14
Figure 16: Middle class' trends in Sierra Leone and the Sub-Saharan Africa (SSA), (2002/03-2011) (%) ................................. 14
Figure 17: Sierra Leone's products share of main exports (2012) .......................................................................................................... 15
Sierra Leone 2015 Page vi

TRADE UNIONS Estimates have shown that 39% of waged workers in

the formal economy are unionized. The Sierra Leone
Sierra Leone is considered to have one of oldest trade Labour Congress (SLLC) has approximately 72,000
union movements in Africa. In fact, their earliest strikes members from the formal sector, whereas the Central
were recorded in 1874.1 Confederation of Trade Unions (CCOTU) has 8,340
members. In 2009, SLLC had registered 75,000
The Sierra Leone Labour Congress (SLLC), which was members from affiliated unions from the informal
founded in 1976, is the umbrella organisation of trade economy. But by 2012, around 300,000 self-employed
unions in Sierra Leone and has 27 affiliated unions market vendors were organised, along with 147,000
and/or organisations. It is believed that SLLC maintains taxi “moto-bikers”.
amicable relationship with the government.
The monthly membership for affiliated contributors cost
The government generally protects the right to 100 Leones (US$0.03). It is important to note that such
Collective Bargaining Agreements (CBAs) in practice affiliated organizations tend to declare there are a
and is widespread in the formal sector. Most enterprises lower number of members that pay a membership even.
are covered by CBAs on wages and working For example the photographers’ union has around
conditions.2 8,000 members, yet they only declare 500 paid
memberships. On another note, the SLLC has noted that
According to the U.S. Annual Human Rights Report between 2009 and 2014, a 30% increase of paid
2014,3 most industrial actions are against the members from the informal economy (See Figure 1). This
government. They are often related to protest against meant an increase to 67,000 members.6
unpaid salaries and reduced benefits. Among others,
health-care workers used a ‘work stoppage’ as a means Figure 1: Trend of SLLC members and affiliated
organizations from the informal economy7 (IE) (2010-2014)
to demand more resources for an ongoing public health
500000
crisis during August-October 2014. The government 455000 455000
generally does not interfere with peaceful 400000
demonstrations and attempts to negotiate with workers
and labor unions in good faith. 300000
200000
This report has registered seven CBAs that are
139120 144,120
considered to protect 45,000 workers. This estimates 100000 116120
that 1.9% of the labour force is covered by CBAs. The 75000
47000 61856 66856
reason why these estimates are not higher is because a 0

very large majority of the labour force operates in the 2010 2012 2014
SLLC, paid members Paid members from IE
informal economy. Affiliated members from IE
Table 1: Trade Unions in Sierra Leone4

There are two informal trade unions that seem to be
Number of trade unions (SLLC) 27
organizing all types of traders in the streets and
Dues (standard) N/A
markets. These include: hairdressers, tailors and
Members of trade unions (paid members) 147,500 dressmakers, among others. It has been recognized that
Declared trade union members they are represented in all nine regions of Sierra Leone
9.0 %
share of labour force
Total trade union members and have members at the local community level across
2.5 %
share of labour force the country. Nearly 75% of their members are women.
Trade union members to waged workers
(without informal sector unions)
39 % Very few women are so far represented in their
Female member share of trade unions N/A leading structures, but gender sensitized is integrated
Members of affiliated trade unions from the into all trainings for trade union leaders and
455,000
informal economy (2014) representatives. Furthermore, many traders migrated to
Number of CBAs (SLLC) (2009)5 7 the big cities to make a living. These two trade unions
Workers covered by CBAs 45,000 represent a diversity of ethnicities.
Share of workers covered by CBA 1.9 %
Across the country, the motorcycle union is mainly
Labour force (2013) 2,401,000
organizing those young men working as taxi drivers on
motorcycles, predominantly in the capital Freetown.
Sierra Leone 2015 Page 1

Many of these young men are ex-combatants from the operations from 7:00am to 7:00pm. They were also not
civil war (1991-2002) who are mostly uneducated. In left out the group of affected workers in the country by
some cases, many have also migrated to the bigger the outbreak of the Ebola disease. As a result of the
towns in search of a livelihood; and many different restriction of movement of people, from one place to
ethnicities are represented. They play a role for cheap another and the continued quarantining of places,
transport of people in cities where public transport is drivers can no longer commute passengers from one
almost non-existent. It was confirmed that due to the place to another.
Ebola outbreak, bike riders limited their daily
Table 2: Trade Unions Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health
Committees8
Affiliation No.of OSH
Declared Total Workers
Trade Union / To national Dues No. of committees
Members Members covered
Trade Union Centre trade union US$ CBAs at
(2014 est.) (2014) by CBAs
centre workplaces
SLLC Sierra Leone Labour Congress 147,460 535,604 - 7 45,000 -
CCOTU Central Confederation of 8,340
- - - - -
Trade Unions (2011)9
Trade Union
Artisans public works of services
SLLC 1,600 - - - - -
employees union
Clerical banking insurance accounting
SLLC 2,010 - - - - -
petroleum union
Construction workers union SLLC 1,500 - - - - -
Electicity employees union SLLC 1,200 - - - - -
Hotel food drinks tobacco
SLLC 2,100 - - - - -
entertainment workers unions
Union of mass media, financial
institutions, chemical industries & SLLC 500 - - - - -
general workers
Martime & waterfront workers union SLLC 1,000 - - - - -
Motor drivers & general transport
SLLC 1,000 - - - - -
workers union
Municipal & general government
SLLC 1,000 - - - - -
employees union
National union of civil servants SLLC 1,000 - - - - -
National union of forestry &
SLLC 1,100 - - - - -
agricultural workers
Sierra Leone fishermen’s union SLLC 400 - - - - -
Sierra Leone dockworkers union SLLC 1,000 - - - - -
Sierra Leone health services union SLLC 2,010 - - - - -
Sierra Leone national seamen’s union SLLC 1,000 - - - - -
Sierra Leone teachers’ union SLLC 36,000 - - - - -
Sierra Leone union of postal & tel.
SLLC 1,054 - - - - -
employees union
Sierra Leone reporter union SLLC 450 - - - - -
Sierra Leone union of security,
SLLC 2,500 - - - - -
watchmen & gen. workers
Skilled & manual productive workers
SLLC 510 - - - - -
union
United mineworkers union SLLC 902 - - - - -
Informal Sector Unions / Organisations
Indigenous petty traders association SLLC 1,000 300,000 0.03 - - -
Indigenous photographers’ union SLLC 500 8,000 0.03 - - -
Sierra Leone artisanal fishermen’s
SLLC 17,106 - - - - -
union
Sierra Leone traders union SLLC 3,000 - - - - -
Sierra Leone musicians union SLLC 250 - - - - -
Bike riders Union SLLC 40,000 147,000 0.03 - - -

EMPLOYER’S ORGANIZATIONS o National Social Security and Insurance Trust

(NASSIT)
o Women’s Vocational Training Centre
Sierra Leone Employers Federation (SLEF) o National Budgetary Committee
SLEF is the main employers’ organization in Sierra o Regulating Committee on Fuel and Transport Fares
Leone. It is led by Mr. Leslie Thomas, Executive councils.
Secretary. SLEF has a relatively small membership base
and collaborates with ILO for institutional
development.10 It has also collaborated with ILO, SLLC NATIONAL LABOUR LEGISLATION
and the National HIV and AIDS Secretariat on other
occasions and is present in the board of the National
Social Security and Insurance Trust. Constitution16
The constitution of Sierra Leone was established in
SLEF has agreed on the idea of an employment forum 1991, and has not been amended after the civil war
as an ideal forum to discuss wider issues in addition to (1991-2002). The constitution protects the freedom of
the joint national negotiating board, the outcome of association, health and safety at work, fair working
which will then be incorporated in the government’s conditions, equal pay for equal work and fair
agenda for prosperity.11 compensation. The constitution has been under review
since 2013 and has been expected to be adopted by
SLEP has also promoted a two-day Human Resource referendum during 2015.
Management Conference in May 2014 assessing some
17
of the challenges in their various institutions, ranging Labour Code
from poor labour laws, politics in management, lack of Many of the important laws regulating the labour
required skills to make operations smooth, low level of market in Sierra Leone date back to 1960s, a year
encouragement to capacitate staff and public sector before independence from the United Kingdom. These
reforms which is very slow.12 include the Employers and Employed Ordinance and
the Trade Unions Ordinance. The labour laws are
currently being revised in Sierra Leone. It was estimated
CENTRAL TRIPARTITE STRUCTURES that the process was concluded at the end of 2014, but
it remains ongoing. However, a new draft of the
Employment Law already exists.
Joint National Negotiating board (JNNB)
The tripartite Joint National Negotiation Board, sets the Several other legislations and acts exist, which regulate
minimum wages in Sierra Leone, however it has not and set standards and restrictions for the labour
convened for some years.13 market.18 International Trade Union Confederation
(ITUC) has registered a wide range of flaws on the
Mediation and Arbitration current legal framework regarding freedom of
Individual grievances at workplaces are first handled association, collective bargaining and the right to
by the shop steward and the sectional head, if that fails strike.19 There are, among others, registered that the
then the head of Personal affairs tries to resolve it, but Labour Code does not establish an independent body for
if not then it is transferred to the Secretary General of a trade union or its members to take recourse in the event
the relevant union. This procedure takes 13 days, if that that the Minister of the Interior refuses to issue a
fails the parties can report it to the Commissioner of certificate recognizing the trade union. In addition, this
Labour and the Minister of Labour14 Code does not establish a legal mechanism by which a
representative trade union can compel an employer to
No information on the handling of collective labour enter into collective bargaining negotiations, nor it
disputes was available. provides no specific protection to workers who take part
in a strike.
Other bi/tripartite organs15
o Trade Group Negotiating Council (TGNC) The U.S. Country Reports on Human Rights Practices for
o Joint Consultative Committee (JCC) 2014 also noted that although the government
o Trade Group Negotiating Council (TGNC) generally protects the right of workers in the private
o Joint National Negotiating Board (JNNB) sector to form or join unions, the government has never

been called upon to enforce applicable laws through The International Trade Union Confederation (ITUC)
regulatory or judicial action.20 Moreover, in practice, registered one case in 2014/2015 (October)24 . It was
laws and standards continue to be violated primarily related to the Sierra Leone Seamen’s Union (SLSU)
due to a lack of enforcement. report made in May of 2014. It’s intensive with threats
against trade unionists by the management of a
ILO CONVENTIONS company. According to ITUC, workers were informed
they would be dismissed and blacklisted if they
continued to demand the negotiation of a collective
Due to arrears in the payment of its financial agreement.
contribution to the ILO, Sierra Leone lost since June 5,
2014, its Voting Rights in the organization’s governing The U.S. Country Reports on Human Rights Practices did
bodies. However, the Conference may permit a not report the violence, threats, or other abuses
Member to vote if it is satisfied that the failure to pay is targeting union leaders and members by government or
due to conditions beyond the control of the Member. employers during 2014. On the other hand, the report
noted that there were concerns that some union
Since 1992 ILO has continued to register the leadership did not effectively represent the interest of
government’s failure to adopt specific provisions with members. There had also been observed that some
sufficiently effective penalties for the protection of private industries, such as the private security and
workers and workers’ organizations against acts of domestic workers sectors, employers are known to
antiunion discrimination and acts of interference.21 intimidate workers to prevent them from joining a union.
ILO took notes in 2014 with 'serious concern' that Sierra Since the outbreak of the epidemic in Sierra Leone in
Leone’s government has not replied to previous 2014, the most affected sector in terms of exposure,
comments and asked the government to report on the deaths, displacement, and stigmatization by
submission of the instruments adopted by the communities is the health sector. The health sector has
Convention Minimum Age for Admission to Employment been colossally devastated with low morale among
(No. 146) and the Collective Bargaining Convention health workers. There are reported cases of harassment
(No. 154).22 and forceful eviction from homes by landlord for being
considered as Ebola virus carriers.
In carrying out their work in combating the Ebola virus

TRADE UNION RIGHTS VIOLATIONS and care giving to infected persons, health workers are
being constraint by inadequate supply of Personal
Protective Equipment (PPE). Where they are being
The International Trade Union Confederation’s (ITUC) supplied, cases of substandard PPE have been reported
Global Rights Index 2014 ranked Sierra Leone as 4 out and this has accounted for health personnel contracting
of a 5+ ranking (see below). As already mentioned, the virus in the course of their duty. Hence, the high toll
there are a series of legal provisions that undermine the of death on health personnel of recent times.
freedom and action of the trade unions that makes it
easy entering illegality. ILO's Committee of Freedom of Association has no
Freedom of Association cases or follow-up cases.
Table 3: Sierra Leone: Global Rights Index (2014) 23
o Systematic violation of rights Table 4: ILO Complaints Procedure Freedom of Association
Cases (2015, October)
o Unions in country with the rating of 4 Active 0
have reported systematic violations Follow-up 0
4 out of 5+ against workers. The government
Closed 3
and/or companies are engaged in a
serious effort to crush the collective
voice of workers putting fundamental
rights under continuous threat.
Note: Five clusters in total with ratings from 1 to 5. A country is
assigned the rating 5+ by default, if the rule of law has
completely broken down.

WORKING CONDITIONS Especially those around the borders like farmers, rural
dwellers, and informal urban workers whose subsistence
and survival are the main economic concerns.
Table 5: Wages and Earnings Monthly Average and Legal
Minimum Wage The official work day is 8 hours, but in reality the
Current Current
Source average working hour amounts to 12 hours. This is
Leone US$
Minimum wage
JobSearch25 500,000 116 especially higher in the informal sector. In addition,
(2015)
Minimum wage for a
there is no prohibition on excessive compulsory
19-year old worker or 150,691 35 overtime.29
an apprentice (2013) Doing
Ratio of minimum Business26
wage to value added 0.04 According to ILO’s Decent Work Country Programme,
per worker (2013) workplaces are hazardous in Sierra Leone. The working
Real minimum wage
(2015)
451,005 104 conditions and health hazards in the mines are
Global Wage
Wage Share
Database27
particular dire, and the Occupational Safety and
Unadjusted 47 % Health inspection is not functioning.30
(average, 2001-2007)
Ratio of minimum wage to value added per worker denotes the
minimum wage share of labour productivity. Reported as ratio of The Ministry of Health and Sanitation is responsible for
minimum wage to value added per worker in the Doing Business setting and enforcing safety and health standards.
Report.
According to the U.S. Country Reports on Human Rights
The Wage Share is the share of GDP that goes to wages and other
forms of labour compensation. It is not adjusted for the self- Practices, the government did not effectively enforce
employed, and can therefore underestimate the amount of GDP that these standards in all sectors. There is often no
goes to workers, if there are many self-employed in the economy.
information available on working conditions like in the
artisanal mining sector. Violations of wage and
The Joint Negotiation Board agreed a new minimum overtime are frequent. For example, violations are
wage that was compared with other neighboring common among street vendors and market stall workers,
countries. The adjusted minimum wage, which covering rock crushers, and day laborers.
all occupations, including in the informal sector, was
raised to 500,000 Leones (US$116) per month per There have been numerous complaints of unpaid wages
January 1, 2015. The real minimum wage has been and lack of attention to injuries caused by the job.
somewhat reduced by the consumer price inflation (see Unfortunately many victims do not know where to turn
Table 5 above). for recourse, or their complaints are unresolved.
Since many small-businesses and individuals have

benefitted by using the archaic former minimum wage,
which was set at 21,000 Leones (US$19) in 1997, they WORKFORCE
are likely to be affected by the labour cost increase. It
has triggered some conflicts during revision of workers’
contracts, e.g. employees demand more productivity The total population of Sierra Leone is 5.7 million and
with half the time or even terminate contracts. In its labour force account to 2.4 million people. Around
addition, it can generate using more casual labour 63% of the population is on the age of 25 years or
instead of maintaining permanent workers. below.31 The employment rate has been estimated at
65% with a very small gender gap at 2% among men
The poverty line is placed at 133,000 Leones (US$31) and women (see Table 6).
per month.28 It is quite low in terms of the minimal wage
level. However, the minimum wage compliance is quite
difficult to monitor in the informal economy. In practice,
the minimum wage is frequently not applied in this
dominating 'sector'. Most workers support an extended
family, commonly pooling incomes and to supplement
wages with subsistence farming and child labor.
Inflated food prices and job losses as an impact of the

Ebola Virus Disease (EVD) epidemic, which hit the
country hard in 2014, have affected many workers.

Table 6: Employment rates (%) in Siera Leone32 during 2014. Sierra Leone’s labour productivity
2013, Age and Sex Distribution continues to be far below the Sub-Saharan Africa’s
Sex Age Employment rate average.
Men & Total 15+ 65 % Figure 3: Labour Productivity35
Women Youth 15-24 42 % (1992-2012), Output per unit of labour input based on
Adult 25+ 77 % GDP constant 2005 US$; and labour productivity indexed
Men Total 15+ 66 % year 2000 (=100)
Youth 15-24 38 % 25000 200
Adult 25+ 81 %
Women Total 15+ 64 % 20000
Youth 15-24 47 % 147150
Adult 25+ 73 % 15000 122 126

112 113 111 113
107 107
100 100 100
The employment participating trend has been on a 10000
narrow increase, while the inactivity rate decreased. 50
This trend has been slightly more prevalent among 5000
youth. Among youth, women have a higher employment

0 0
rate (47%) than men (38%). This is related to that more 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
youth men are present in the education system as well Sierra Leone SSA
as with higher inactivity and unemployment rates. World Sierra Leone - year 2000 (=100)
The labour productivity is defined as output per unit of labour input, i.e.
GDP per person engaged and GDP per hour worked as an index with
Figure 2: Employment Participation and Inactivity in Sierra base year 2000 (= 100).
Leone - (1991-2013), Total & youth, %33
80% Based on a basis calculation of the growth in GDP per
capita and the employment rate, the labour
60%
productivity has been relatively high growth at 2.0%
40% per year on average over the period 2004-2013. It is
notably that this growth was in the period 2009-2013
20% at 4.8% while it declined at -0.7% in the period 2004-
2008. The employment ratio fell by -0.4% in the period
0%
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2004-2013 in relation to the WAP growth. This
Participation - 15+ Participation - 15-24 suggests that the growth of GDP per capita is only due
Inactivity - 15+ Inactivity - 15-24 to labour productivity during this period not an
increasing employment rate (see Table 8 below).
One out of three (33%) of the working age population
(WAP, 15+) and a little more than one out of two Table 8: Comparative Average Growth of GDP per capita,
(56%) of the youth population (15-24 years old) are Employment & WAP (2004-2013), % Change on average36
inactive on the labour market; and with some gaps GDP/ GDP/ Employment/
Years
between men and women (See Table 7). employment WAP WAP
2004-08 -0.7 % -1.8 % -1.0 %
2009-13 4.8 % 5.1 % 0.3 %
Table 7: Inactivity Rate in Sierra Leone (2013), Total & 2004-13 2.0 % 1.6 % -0.4 %
Youth, %34
Note: The columns above reflect: i) GDP per capita/employment
equals GDP per worker (i.e. labour productivity); ii) GDP/WAP
Total Male Women equals GDP per capita; and iii) employment/WAP equals the
employment rate (ratio of workers to working-age population
Inactivity rate 33 % 31 % 34 % (15+)).
Inactivity rate, youth 56 % 60 % 52 %

Unemployment and Underemployment
According to ILO estimations, there has been an The unemployment rates in Sierra Leone are low and
increase in the productivity in Sierra Leone since 2000, stable since 2000; and far below the Sub-Saharan
i.e. more effective work by those who are employed. Africa’s average. But given the large informal sector
The improvements are related to an expansion in and the little coverage of social security systems, they
agricultural production, services, construction as well as are notable. Both unemployment and youth
an increased access to electricity. The productivity is unemployment are relatively higher for men than for
likely to have decreased due to the Ebola epidemic women.

Table 9: Unemployment (2013) 37

Youth Youth unemployment is a high political priority in Sierra
Unemployment
Unemployment Leone. A National Youth Commission was created in
Total 3.2 % 4.7 % 2009 to deal with these issues.44 (See also Youth
Male 4.3 % 6.6 % section).
Female 2.1 % 3.0 %
Sectoral Employment
Figure 4: Unemployment rate trends in Sierra Leone and the Agriculture is the largest sector employing about 67%
Sub-Saharan Africa (2000-2013), Total & youth, %38 of the workforce and contributing at 53% to GDP.
14 Trade, Hotels and Restaurants has most women to men
employed, but with a low contribution to GDP relative
12
to the number of workers in the sector. The diamond
10 and mineral mining are prominent industries in Sierra
8 Leone. The Ebola epidemic has hard hit the tourism
industry adversely. This epidemic has accounted for
6
about 98% of checkouts in all hotels nationwide due to
4 the cancellation of flights from and to Sierra Leone.
2 Most road building has been suspended affecting
mostly youths on basic wages.
0
Agriculture is the largest sector employing about 67%

Sierra Leone - unemployment rate
Sierra Leone - Youth unemployment rate of the workforce and contributing at 53% to GDP.
SSA - unemployment rate
SSA - youth unemployment rate Trade, Hotels and Restaurants has most women to men
employed, but with a low contribution to GDP relative
There has been argued that youth unemployment was a to the number of workers in the sector. The diamond
major cause of the outbreak of civil conflict in Sierra and mineral mining are prominent industries in Sierra
Leone back in the 1990s. Today, youths’ employment Leone. The Ebola epidemic has hard hit the tourism
situation in Sierra Leone continues to be critical. A point industry adversely. This epidemic has accounted for
is that approximately 70% of youth (age 15-35) are about 98% of checkouts in all hotels nationwide due to
technically not unemployed but underemployed. Other the cancellation of flights from and to Sierra Leone.
estimations suggest that about 400,000 youths are Most road building has been suspended affecting
jobless (not working or studying). The youth mostly youths on basic wages.
unemployment is projected to reach over 70% during
the next five years.39 This latter estimation diverges Table 10: Employment (2004) & GDP Share (2013) Sector &
methodically from the ILO’s more strictly definition of Sex distribution 45
unemployment on the table on this page. There is an GDP
approximation of a need to create over 300,000 jobs Male Female share
Sector
employment employment per
to engage different categories of unskilled and skilled Sector
youths.40 Mining and
59,311 9,663 12 %
quarrying
Moreover, illiteracy remains a persistent challenge and Manufacturing 7,397 2,015 2.1 %
youth lacking skills and education find it extremely Electricity, gas &
7,104 1,243 0.2 %
water
difficult to compete for the limited jobs available. 41 ILO
has also estimated a share of youth unemployed in total Construction 28,239 10,829 1.3 %
unemployed at 32% in 2013.42 Trade, restaurants &
104,831 169,595 9.1 %
hotels
Transport and
The country is undergoing a rapid urbanization with the 14,425 1,257 4.6 %
communication
influx of young people into the larger cities. An Finance, real estate
9,468 8,251 6.6 %
and business services
estimated 800,000 youth today are actively searching Public
for employment. As already mentioned, the urban administration, 54,232 26,155 4.9 %
areas are likely not able to generate the amount of education & health
employment needed, let alone in the formal sector, and Other services 50,914 44,707 6.9 %
lack of employment opportunities.43 Agriculture 651,245 672,128 53 %

Since 2001 the country has experienced a sector share which is 1 out of every 1,370 Sierra Leonean. It is still
of GDP increase in the agricultural sector while a higher than the Sub-Saharan Africa’s average and the
decrease in services. The industry sector has also slowly borders are porous.
declined. The sharp changes of the sector shares in the
beginning of 2000 are related to the end of the Sierra Table 12: Migration48
Leone’s Civil War (1991-2002), which devastated the
Net migration
country’s development. (2008-2012)
Sierra Leone -21,000
Figure 5: Sierra Leone: Sector Share of GDP (2000-2013), % -1 : 1,370

Net migration to Sierra Leone
of GDP46 inhabitants
average population
70 per year (2008-2012) Sub-Saharan -1 : 2,838
60 Africa inhabitants
50 Sierra Leone 1.6 %

Remittances received,
40 % of GDP (2012) Sub-Saharan
2.0 %
Africa
30
Net migration is the net total of migrants during the period, i.e. the
20 total number of immigrants less the annual number of emigrants,
including both citizens and noncitizens.
10
0 Remittances play a limited role in Sierra Leone's

economy, providing to 1.6% of the country's GDP. As
already mentioned, there is also a massive internal
Agriculture Industry Services
rural-urban migration. It has been assessed as a
negative impact on the agriculture sector’s production.49
The available data from 2004 showed that wage and
Many of those who migrated to Freetown to seek
salaried workers constituted around 8% of the workers
employment out of desperation were vulnerable to
in employment in Sierra Leone. Men are dominating this
exploitation in order to earn enough for a day’s meal.
segment. Self-employment is covering 92% of the
country’s labour market’s workforce: Own account
Due to an critical shortage of skilled workers,
workers are the largest part (74%) while contributing
companies in Sierra Leone are frequently seeking
family workers (18%) are less present. All of them are
foreign workers in managerial and technical positions.
in vulnerable employment. Since the industry and the
However, the immigrations policy operates with
service sectors have not gone through a transformation
cumbersome and costly procedures to obtain the
that can produce more jobs in the formal sector in the
permits.
last decade there are indications that the status of
employment has probably not changed.
Figure 6: Net Migration and Remittances Trends 50
(2000-2012), Net total of migrants during five years and
Table 11: Status of employment in Sierra Leone (2004), %47 remittances comprise personal transfers and compensation
of employees
Wage & Self-employed workers
salaried 600000 4
Self- Own Family
workers employed* account workers
500000
500000 3.5
Total 7.6 % 92 % 74 % 18 % 3
400000
Male 11.3 % 89 % 74 % 15 % 2.5
300000
Female 3.7 % 96 % 75 % 22 % 2
*) Self-employment is a sum of the own account workers and the 200000
family workers employment. 1.5
100000 60000
1
0 0.5
-21000
Migration -100000 0
Sierra Leone previously experienced an influx of

Net migration - persons (Sierra Leone)
migrants as refugees returning after the civil war, but Remittances - % of GDP (Sierra Leone)
the migration trend has changed in recent years. Now, Remittances - % of GDP (SSA)
in the period 2008-2012, the net migration is -21,000,

Informal Economy underemphasising the responsibilities of a child. 54 In

The formal sector only absorbers a rough 9% of the addition, the Act lacks prohibiting the use of children in
total labour force. In contrast, it was estimated in 2004 illicit activities and there is limited funding for
that the informal economy employs 2 million people enforcement efforts or social programs.55
(92%) of the economically active population, which has
half of them being women. As it occurs in least There is widespread child labour in Sierra Leone. A
developed countries, Sierra Leone’s informal economy 50% of children are involved in child labour, which is
covers both the rural and urban areas. Workers in the more than double the Sub-Saharan Africa's average.
informal economy are mainly in agriculture in the rural Child labour is more common among the poorest quintile
areas and are closely followed by wholesale, retail, of households (57%) compared to the richest (34%),
petty trading and artisans’ activities in the urban areas. more common the rural areas (53%) than urban (42%).
Other important informal ‘sector’ occupations include
Table 13: Working children Proportion of all children
mining, transport service, construction and services Region Age Year Type Proportion
delivery workers, among others.51 Child
Sierra Leone56 5-14 2010 50 %
labourers
Children in
A survey of businesses in the informal economy in Sierra 28 %
employment
Leone showed that a main reason to remain informal is Sub-Saharan Child
5-14 2008 25 %
Africa57 labourers
based on the total costs of entering the formal sector Hazardous
13 %
(see graph). But it is also related to a generally lack of work
information of the labour market and personal Children in employment include all children who conduct some kind
of work, whereas child labourers are a narrower term without mild
knowledge about steps to operate with a formalized forms of work. Hazardous work is the worst from of child labour as
enterprise. Close to three out of four (73%) have never defined in ILO C182.
tried to formalizing their enterprises.
Child labour is predominantly highest in the group age
Figure 7: Knowledge & attempts to formalize businesses in 5-11 (63%). This involves more than one hour of
Sierra Leone (2006)52 economic work a week. Whereas the age group 12-14
(15%) is much lower since it is more than 14 hours of
Relativ
ely
Know
exactly
economic work. As school attendance was also higher
well ; 1% among child labourers, it indicates that although most
inform Know
ed ; somet
Know
nothin
children do work, most is not full time and less harmful
6% Yes;
hing;
18%
g; 36%
27
than what is common among child labourers.
%
Lately, the Government launched the Agenda for
No;
Know
few 73 Prosperity, which includes strategies to address child
details % labour and participate in social programs to address
; 39%
child labor and child trafficking. Nonetheless, child
labours is mostly found in the sectors of agriculture yet
Similarly, as explained in the Trade Unions section, the worse within mining.
SLLC has seen a massive increase in organizing self-
employed informal workers during the last couple of
years. The organization has moreover provided training
for the leadership of informal economy unions to Gender
develop a business plan53 as well as implementing In terms of gender, Sierra Leone has made significant
conferences for informal economy workers and local progress in addressing the wide-range of issues that
authorities. are meant to mitigate the vulnerabilities of women and
girls. Though, shortfalls persist due to the existence of
legal frameworks that stumbles the implementation of
Child Labour the gender-related structural changes, e.g. at the level
of local courts, customary law often discriminates
Sierra Leone has ratified the ILO core Convention on against women.58 The Gender Equality and Women’s
the Worst Forms of Child Labour or the Convention on Empowerment Policy is currently being drafted. This will
Minimum Age. A Child Rights Act has been precede the adoption of the Gender Equality Bill.
implemented, but it has received criticisms for

Females are under-represented in paid employment in

the non-agricultural sector, as well as in politics and However, youth unemployment is a challenging social
public life.59 They have little or no access to credit problem in Sierra Leone. The age group faces high
facilities, improved technologies, extension services and rates of inactivity, underemployment and poor working
post-harvest technologies. conditions such as long working hours and low pay.
Youth have fewer opportunities for salaried
Work made on gender equality continues with reviews employment compared with those above a thirty-five
made by trade unions. They are focus in age bracket. Employment opportunities are significantly
accommodating more women in union structures. This lower for youth, regardless of their qualifications. Public
means that formed women committees within the region sector employment opportunities tend to exclude youth
will enable women members to raise any concern to on the basis of age and experience.63
union leaders. Cases like HIV/AIDS under health and
safety have received attention thus, served to address Figure 9: Youth Unemployment Rates in Sierra Leone 64
some issues of particular importance to women. Gender gaps & Share of Youth Unemployed in total
Unemployed (%)
Trainings regarding occupational health and safety
disseminated HIV/AIDS information and also distributed 8% 38%
condoms. Consequently, the national women’s committee 37%
36% 36% 36% 36%
remains vibrant.60 6%
35% 35%
34% 34% 34% 34% 34% 34%
An Enterprise Survey reported that 8% (Figure 8) of 4%
firms had female participation in ownership, 32%
32%
considerably lower than the Sub-Saharan Africa's
2%
average at 29%, and that 17% of full time employees 30%
were women, which was also lower than the Sub-
0% 28%
Saharan Africa's average at 24%. 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
Youth unemployment - Male
Youth unemployment - Female
Figure 8: Females in Management and Ownership61 Share of youth unemployed in total unemployed (%)
35%
30%
30%
29%
In 2013, Sierra Leone launched its first “Status of the
25% 23% Youth” report, which argues that the country is making
21%
strides to reverse negative development trends, but the
20% 17%
structural underemployment remains quite high, also in
15%
terms of regional comparison. Youth structural
8%
10% unemployment has been projected to reach over 70%
5% during the upcoming years. It shows a need to create
0% over 300,000 jobs to engage different categories of
Females in ownership Full-time female workers unskilled and skilled youths.65 Thus, the government has
Sierra Leone Sub-Saharan Africa Low income countries implemented new legislation for youth-friendly
initiatives that aim to provide youth development,
employment, and empowerment (see also Figure 10).
Youth
According to the post-war Truth and Reconciliation
Report, the youth unemployment was a leading factor in
the prolongation of the brutal ten-year conflict. In the
early 1990s, young people with few job prospects
joined rebel groups and engaged in criminal activities
and armed conflict.62
As mentioned in previous Workforce section, youth

unemployment rates have been stable and relatively
low. Men supersede women’s rate (Figure 9). The youth
unemployment has also slightly decreased in terms of
the total unemployment.

Figure 10: Standard and Structural Youth Unemployment There are clear differences in gender roles, as women
rates of Selected African Countries (%)66 have less education than men. The graph on Table 14
100% shows the educational attainment of all Sierra Leoneans
88%
90% above 25 years, therefore gives a glance of the human
80% 70% capital of the labour force.
70% 60%
60% 50% 48%
There is insufficient data regarding the education
46%
50% enrolment rates in Sierra Leone. Gross enrolment into
40% primary education was 125% in 2011, whereas it was
30% 25%
21% 99% for Sub-Saharan Africa in 2010. Gross enrolment
20% 14%
5% 5%
is the ratio of total enrolment, regardless of age, to the
10% 1%
population of the corresponding official school age.
0%
Sierra Leone Liberia Botswana Malawi Zambia Zimbabwe Gross primary enrolment can therefore be higher than
Standard unemployment Structural unemployment 100% if more children enrol than are children of that
age. The attendance rates in primary education are
62% and 64% for males and females respectively, and
A Youth Report67 from 2012 showed that less than 50% for secondary school the attendance rates are 31%
of young workers in Sierra Leone receive payment for and 35% for males and females.70 Sierra Leone’s
their labor, compared with two thirds of adults. In education system does therefore suggest to be bouncing
addition, most private companies pay between US$30 back from the civil war.
to 37 per month as a basic salary, reaching US$58 to
70 at the top supervisory levels.
Vocational Training
The latest data available for Sierra Leone’s vocational
EDUCATION training is based on 2001. Based on this data, Sierra
Leone had on average more students in vocational
Sierra Leoneans have an average of 3.3 years of training than the Sub-Saharan Africa's (SSA) with 44%
schooling in total, largely because 65% of the of them being females. In some way, this data can be
population has never been to school. Sierra Leone is a positively accepted since there is a fair number of
very poor country and has been through a decade of Sierra Leoneans with secondary education level.
long civil war. Due to war, many in the age group 15-
35 have no schooling background. Table 15: Vocational Training (2001) 71
Sierra
Table 14: Highest Level Attained & Years of Schooling in Pupils in vocational training 21,454
Leone
Population68 Sierra
(2010, Population 25+, Total and Female Pupils in vocational training 44 %
Leone
Highest Level (women)
Total Women SSA 36 %
Attained
Ratio of pupils in vocational Sierra
No Schooling 65.1 % 74.0 % 13 %
student to all pupils in secondary Leone
Begun 0.5 % 0.3 % education SSA
Primary 6.8 %
Completed 19.5 % 16.1 % Sierra
Begun 12.3 % 8.2 % Ratio of pupils in vocational 2.4 %
Secondary Leone
Completed 1.2 % 0.7 % training out of 15-24 year olds
SSA 1.3 %
Begun 0.4 % 0.2 % Note: Ratio average data from SSA covers the period 2007-2011.
Tertiary
Completed 0.9 % 0.4 %
Average Year of Total Schooling 3.3 Years 2.3 Years It has been registered that many young people have
Educational Gini Coefficient 0.70 0.77 low interest on technical and vocational education and
Primary, secondary and tertiary is the internationally defined distinction of
education. In Denmark these corresponds to grundskole, gymnasium & training (TVET). They consider that the sector is using
university. outdated equipment, poor funding for TVET programs,
The educational Gini Coefficient is similar to the Gini Coefficient, but instead of
measuring the distribution of income in a population, it measures the distribution and the general lack of strategic thrust and quality. The
of education measured as years of schooling among the population. 69 public budgetary allocation to the education sector is
lowest for TVET, declining from 4.2% in 2008 to only
Of those who have education it is both remarkable and
2% of the sector budget in 2010.72
uncommon, that almost all have completed primary
education, and many have begun secondary education.

SOCIAL PROTECTION
In 2001, at the end of the civil war, Sierra Leone
Public spending on social protection schemes is growing. established a social security scheme and the National
So far, the public social protection spending covers Social Security and Insurance Trust (NASSIT), with a
0.6% of GDP (table 16), excluding health. It is very low tripartite board of trustees. The institution provides
also in comparison with an average at 1.8% of GDP in pensions to old age, disability, and survivors. NASSIT is
other African countries.73 Public health expenditure is voluntary for self-employed or informal workers. The
also quite low, but on a noteworthy rise. The presented organization’s pension members have increased their
tables in this section moreover show huge coverage insured populations from 179,000 in 2011 to 223,000
gaps, e.g. only 5% are active contributors to a pension in 2014. Of these, 39% are in the public sector and
scheme and 1% of the pensionable age receiving an 61% are in the private sector.76 On average, each
old age pension. The social assistance programs are pensioner received 961,000 Leones a year (US$220).77
without a doubt affected by insufficient spending. Recently it was revealed that there were many
shortcomings and flaws in the payment of retirement
Table 16: Public Spending on Social Protection Schemes benefits to pensioners of the NASSIT. 78 The Trust lacks a
(2009) 74 file tracking and retrieving system.
Sierra Leonean 50.7 billion
Few systematic health care services exist and those that
US$ 15 million exist are largely donor funded and supported by
Public Social
Protection % of GDP 0.6 % NGOs. However, a free and universal health care
Expenditure, excl. per capita 2.7 US$ service for pregnant and breastfeeding and children
Health under the age of five was introduced in 2010.79
% of
government 5.5 % Several cash transfer programs also exist, e.g. the
expenditure government runs several Social Safety Net (SSN)
Public Healthcare % of GDP 1.5 % programs. A study from 2013 argued that such
Health Social programs risk crowding-out resources for existing
Protection % of population 0.0 % programs and the traditional welfare services.80
Coverage
Trends in
government % changes per The traditional 'osusu' savings mechanisms provide
14.5 %
Expenditure in year (2007-2011) income, which can be used in times of illness,
Health unemployment or maternity. The arrangement focuses
mostly on microfinance savings and credit schemes
Table 17: Benefits, Coverage and Contributions to Pension
Schemes (2010) 75 rather than broad social security overage schemes.
They provide very little protection for individuals and
Social benefits for the active
% of GDP 0.2 % families that face recurring life risks.81 The rotating
age
Pensionable age receiving an Proportion savings scheme operates not only among informal sector
0.9 %
old age pension (age 60+) of total operators, but also among formal sector workers. In
Old age effective coverage as addition, SLLC has established relations with micro-
Contributory 0.9 %
proportion of programs
finance institution and secured informal economy
Active contributors to a pension 15-64
4.6 % members possibility of accessing loans.
scheme years
Figure 11: Healthcare Expenditure not financed by private As previously indicated, the social protection programs
household's out-of-pocket Payments (1995-2011) depend heavily on external financing. It is estimated
Public & private expenditure, Selected West African
countries, % that 85% of social assistance expenditures are financed
100%
by external resources.82 The Cabinet adopted a
National Protection Policy in March of 2011. This policy
will have a much coverage to include among others the
informal economy. SLLC is a strong proponent of the
50%
system and was actively engaged in policy discussions.
The government plans to pilot this to two districts for
informal economy workers, but a date has not be set
0%
yet.
1995 2000 2005 2006 2007 2008 2009 2010 2011
Benin Ghana Niger
Sierra Leone Togo

A National Social Protection Strategy and Sierra Leone is at the bottom of the Human
Implementation Plan were launched in May 2015. The Development Index (Table 18: Key Facts (2014 est.) ).
strategy attempts to improve coordination in this sector GDP per capita measured in Purchasing Power Parity
as well as a system that will help government gather (PPP) is also very low and is not projected to reach
and manage relevant information. levels near the Sub-Saharan Africa's average.
Figure 13: GDP per capita trend and forecast90

(2002-2018), Current US$, Purchasing Power Parity (PPP)
GENERAL ECONOMIC 5000
4500
PERFORMANCE 4000
3500
There has been a notable increase on the growth of 3000
GDP per capita from 3.6% in 2011 that peaked in 2500
2013 at 18% in 2013 (Figure 12). This growth is due to 2000
commencing of iron ore production, an expansion in 1500

1000
agricultural production, services, and construction.
500
However, the outlook of the economic growth has been
0
changed due to the Ebola epidemic in 2014 and
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
international iron ore price falls. The GDP per capita
was estimated to fall to 4.7% in 2014 Sierra Leone Sub-Saharan Africa
Table 18: Key Facts (2014 est.) 83

The inflation of consumer prices declined since 2011.
GDP real Doing HDI86 Gini Index
GDP Despite an economic impact of the Ebola epidemic the
growth84 Business85 (2013) (1989)
5.4
140 of 189
0.374 62.9 inflation was estimated at around 8% in 2014 (Figure
billion 4.7 % 183 of 187 4 of 141 14while food price inflation has been only slightly
countries
US$ countries countries
A high ranking on the Ease of Doing Business Index means the higher at 8.5.91 Estimations for 2015 suggest it was
regulatory environment is more conducive to the start-up and hover around 10% in 2015.
operation of a local firm.87
The Human Development Index (HDI) measures the average of a long
and healthy life, access to knowledge, and a decent standard of Figure 14: Inflation trend and forecast (2002-2018), %92
living. The first country in the Gini Index’s ranking has the highest 20%
inequality while the number 141 has the highest equality.
15%
A growth projection for the 2015 has currently been
estimated at -2%. In addition, Ebola’s impact has
created a budget deficit and investment funds were 10%
leaving the country.88
5%
Figure 12: GDP growth per capita (2000-2014), Sierra
Leone and the Sub-Saharan Africa, Annual %89
0%
25
20
-5%
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
15
10
Sierra Leone Sub-Saharan Africa
5
0 The country has relied heavily on its natural resources,
-5 such as cacao as well as aluminium and iron ores.
-10 Diamonds have also contributed to growing the
-15 economy, but this has led to conflict and corruption. This,
and the declining international iron prices, could to
some extent explain why the capital formation trend
Sierra Leone Sub-Saharan Africa that sky rocked from 10% of GDP in 2009 to 40% in
2011, reversed to 16% in 2013 (see Figure 15).

Figure 15: Gross Fixed Capital Formation93 Figure 16: Middle class' trends in Sierra Leone and the Sub-
(2000-2013), % of GDP Saharan Africa (SSA), (2002/03-2011) (%)95
45
20%
40
35
15%
30
25 10%
20
15 5%
10
0%
5
2002/03 2011
0 Middle class US$2-4 (Sierra Leone) Middle class US$4-20 (Sierra Leone)
Middle class US$2-4 (SSA) Middle class US$4-20 (SSA)
Sierra Leone Sub-Saharan Africa (all income levels) The Doing Business indexed Sierra Leone at 140 out of
189 countries in 2015; with no change from 2014. The
Sierra Leone has experienced a decrease of working country scores low in terms of getting electricity (172
poor living below US$1.25 a day from 61% of total out of 189 countries), registering property (158) and
getting credit (151). Although getting electricity remains
employment in 2003 to 55% in 2011. There was only a
cumbersome, slight improvements have occurred. The
marginal drop from 84% to 83% working poor below country eliminated the need for customers to submit an
US$2 per day in the same period. The tempo of application letter inquiring about a new connection
reduction working poor in Sierra Leone is lower than before submitting an application—and made the
the Sub-Saharan Africa’s (Table 19). process faster by improving staffing at the utility.96
Table 19: Working Poor Age 15+94 This Doing Business Index has been controversial due to
Share of workers flawed data in some sections, e.g. undervalued paying
in Total Employment taxes.97 However, the table below can still be used as
1.25 US$ 2 US$ indicative measurement with reservations.
Region a day a day
Sierra Leone (2003) 61 % 84 % Table 20: Sierra Leone’s Ease of Doing Business98
Sierra Leone (2011) 55 % 83 %
Sub-Saharan Africa (2003) 53 % 74 % Topics 2015 2014 Change
Sub-Saharan Africa (2011) 42 % 65 % Starting a Business 91 87 -4
Working poor measures employed people living for less than Dealing with Construction Permits 120 119 -1
US$1.25 and US$2 a day, as proportion of total employment in
that group. Getting Electricity 172 183 11
Registering Property 158 161 3
Additionally, data reveals that Sierra Leone has a Getting Credit 151 147 -4
smaller middle-class. For instance, it was reported that Protecting Minority Investors 62 61 -1
in 2011, 14% of Sierra Leoneans lived for US$2-4 a Paying Taxes 130 123 -7
day and 3% for US$4-20 a day. In comparison, Sub- Trading Across Borders 133 137 4
Saharan Africa's averaged at 20% and 10% for Enforcing Contracts 109 109 No change
US$4-20 a day, respectively (Table 19). Thus, the Resolving Insolvency 143 143 No change
evolution of a middle-class has not been on a rise in Doing Business 2014 indicators are ranking from 1 (top) to 189
(bottom) among other countries. The rankings tell much about the
Sierra Leone. One reason of this is related to skills business environment, but do not measure all aspects of the business
gaps. As an example, in the mining sector only around surroundings that matter to firms and investors or that affect the
competitiveness of the economy. Still, a high ranking does mean that
23% on middle level and 12% on senior level staff are the government has created a regulatory environment conducive to
Sierra Leone nationals. operating a business.
Sierra Leone has weak government effectiveness,

control of corruption, rule of law as well as regulatory
quality. Also people’s voice and politicians’
accountability as well as the political stability are
below a medium (Table). It is striking that the country
basically has not experienced evolutions on the
governance environment during the last five years.

Table 21: Governance Indicators Figure 18: Sierra Leone's main export markets (2013)
2009-2014), Score & percentiles, and change99 Others; 4% US; 2%
Voice and Political Government EU;
Year 12% Australia;
Accountability Stability Effectiveness 1%
-0.26 / -0.30 / -1.22 / Turkey; 1%
2009
40% 35% 9%
-0.31 / -0.22 / -1.22 /
2014
38% 37% 11%
Regulatory Control of
Year Rule of Law
Quality Corruption China; 79%
-0.78 / -0.92 / -0.94 /
2009
24% 19% 18%
-
-0.81 / -0.92 / -0.95 /
2014
24% 18% 16%
Note: The Governance Indicators score from -2.5 to +2.5 while the More foreign companies, in particular from Europe and
percentiles rank from 0 (lowest) to 100 (highest).100
the USA, are investing in the extracting of natural
resources, which can generate as many as 25,000 new
jobs. Diamonds miners are in the artisanal sector
operate largely informally, are not regulated and have
TRADE no written agreements with their employers. A review
estimated that there were between 120,000 and
200,000 artisanal diamond miners.
Trade has become an important role in the country's
economy, with exports increasing fast and has reached The national control mechanisms have been extremely
41% of GDP. Imports are also on an increase and are weak, and diamond smuggling has been substantial,
estimated at 38% of GDP (Table 22). A few years perhaps even bigger than legitimate exports.105 As a
back, the vast majority of export went to the European result, the government attempts to review existing
Union (EU), but it has very fast been dominated by agreements with mining companies but any changes are
China. Cacao beans followed by aluminium ore and likely to be gradual, as it is eager not to scare off
glass bottles are the majority of Sierra Leone’s export investors.106
products.
Table 22: Trade and Foreign Direct Investment101
(2014 est.), US$ and % of GDP Trade agreements
FDI flow102
Exports Imports
(2009-13, average)
FDI Stock Sierra Leone is part of the Economic Community of the
West African States. The treaty from 1993, which was
2.2 2.1 334 2.7
million US$ revised in 2005, contains labour provisions with the
billion US$ billion US$ billion US$
following: 1) cooperation regarding harmonization of
41 % of 38 % of 6.2 % of GDP 50 % of
GDP GDP GDP labour law and social security, 2) promotion of
women’s, youth and professional organizations, and 3)
Sierra Leone is endowed with many natural resources. consultation of the social partners.107
Cash crops, mainly cocoa production, are more labour
intensive productions. They were projected to Sierra Leone is in the 2000 Cotonou Agreement on
increase103, but due to the Ebola epidemic, trade has development cooperation between EU and African,
lost its flow. Caribbean and Pacific (ACP) countries, which reaffirms
commitment to ILO’s Fundamental Conventions and
Figure 17: Sierra Leone's products share of main exports
(2012) 104
includes provisions on cooperation on various labour
and social issues.108
Others; 25%
Cocoa Beans;
19%
Since 2002, Sierra Leone has benefitted from the
Scrap Iron;
3,9%
United States’ African Growth and Opportunity Act
Aluminium (AGOA), which is a Generalised System of Preferences
Scrap Vessels;
Ore; 16% (GPS). It allows duty and quota free access for some
5,8%
Niobium, products.
Tantalum,
Titanium Ore ; Vanadium & Glass Bottles ;
6,7% Zirconium Ore; 15%
8,9% Sierra Leone can be removed from AGOA, if the United
States deems that Sierra Leone among other human

rights issues do not seek to uphold the ILO Core Labour

Standards and have acceptable minimum wages, hours
of work and occupational safety and health.109
Export Processing Zones (EPZ)

There are several EPZ in Sierra Leone. Unfortunately,
there is limited information about EPZs. An EPZ from
2005 attracted investments from Chinese private
enterprises. In 2011, the first fruit- processing plant
went into production and has been expected to employ
80 workers, earning between 80 euros a month for
loaders and fruit sifters, while 300 euros a month for
more skilled workers.110

APPENDIX: ADDITIONAL DATA

Table 23: Ratified ILO Conventions in Sierra Leone
Ratified ILO Conventions111

Subject and/or right Convention Ratification date
Fundamental Conventions
Freedom of C087 - Freedom of Association and Protection of the Right to Organise, 1948 1961
association and C098 - Right to Organise and Collective Bargaining Convention, 1949 1961
collective bargaining
Elimination of all C029 - Forced Labour Convention, 1930 1961
forms of forced C105 - Abolition of Forced Labour Convention, 1957 1961
labour
Effective abolition of C138 - Minimum Age Convention, 1973 2011
child labour C182 - Worst Forms of Child Labour Convention, 1999 2011
Elimination of discri- C100 - Equal Remuneration Convention, 1951 1968
mination in C111 - Discrimination (Employment and Occupation) Convention, 1958 1966
employment
Governance Conventions
C081 - Labour Inspection Convention, 1947 1961
Labour inspection
C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified
Employment policy C122 - Employment Policy Convention, 1964 Not ratified
Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 1985
Up-to-date Conventions
C094 - Labour Clauses (Public Contracts) Convention, 1949 1961

Wages
C095 - Protection of Wages Convention, 1949 1961
Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to
basic human rights at work.
Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve
to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.
In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.

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LABOUR MARKET PROFILE

2015 Sierra Leone

LO/FTF Council’s Analytical Unit

Sierra Leone 2015 Page ii

A fter the end of the civil war in 2002, Sierra Leone’s

Sierra Leone 2015 Page iii

Source: The CIA World Factbook

Sierra Leone 2015 Page iv

Sierra Leone 2015 Page v

Sierra Leone 2015 Page vi

TRADE UNIONS Estimates have shown that 39% of waged workers in

reason why these estimates are not higher is because a 0

Table 1: Trade Unions in Sierra Leone4

Sierra Leone 2015 Page 1

Sierra Leone 2015 Page 2

EMPLOYER’S ORGANIZATIONS o National Social Security and Insurance Trust

Sierra Leone 2015 Page 3

In carrying out their work in combating the Ebola virus

Sierra Leone 2015 Page 4

Since many small-businesses and individuals have

Inflated food prices and job losses as an impact of the

Sierra Leone 2015 Page 5

Adult 25+ 73 % 15000 122 126

youth. Among youth, women have a higher employment

Inactivity rate, youth 56 % 60 % 52 %

Sierra Leone 2015 Page 6

Table 9: Unemployment (2013) 37

Agriculture is the largest sector employing about 67%

Sierra Leone 2015 Page 7

Figure 5: Sierra Leone: Sector Share of GDP (2000-2013), % -1 : 1,370

50 Sierra Leone 1.6 %

0 Remittances play a limited role in Sierra Leone's

Sierra Leone previously experienced an influx of

Sierra Leone 2015 Page 8

Informal Economy underemphasising the responsibilities of a child. 54 In

Sierra Leone 2015 Page 9

Females are under-represented in paid employment in

As mentioned in previous Workforce section, youth

Sierra Leone 2015 Page 10

Sierra Leone 2015 Page 11

Sierra Leone 2015 Page 12

Figure 13: GDP per capita trend and forecast90

commencing of iron ore production, an expansion in 1500

Table 18: Key Facts (2014 est.) 83

Sierra Leone 2015 Page 13

Sierra Leone has weak government effectiveness,

Sierra Leone 2015 Page 14

Sierra Leone 2015 Page 15

rights issues do not seek to uphold the ILO Core Labour

Export Processing Zones (EPZ)

Sierra Leone 2015 Page 16

APPENDIX: ADDITIONAL DATA

Ratified ILO Conventions111

C094 - Labour Clauses (Public Contracts) Convention, 1949 1961

Sierra Leone 2015 Page 17

42 ILO, Key Indicators of the Labour Market Database

Sierra Leone 2015 Page 18

No. 78195-SL, June 2013

No. 78195-SL, June 2013

Ebola Epidemic on Liberia, Sierra Leone, and Guinea, December

Short and Medium Term Estimates of Guina, Liberia, and Sierra

Ebola Epidemic on Liberia, Sierra Leone, and Guinea, December

agreements: current trends and provisions