SL to establish comprehensive National Labour Market
Labour and Foreign Employment Minister Manusha Nanayakkara, has embarked on an ambitious plan to establish a comprehensive National Labour Market Information System (NLMIS) to bolster inclusive economic growth and address labor market challenges.
The system, expected to be operational by the beginning of August 2024, aims to collect, store, analyze, and evaluate labor market statistics, covering macro and micro factors that influence labor demand and supply. The NLMIS will be crucial in shaping future labour market policies and providing valuable insights into the nation’s economic development.
Key stakeholders have supported the NLMIS initiative, recognizing its potential to drive inclusive economic growth. President Ranil Wickremesinghe emphasized the need forinclusive economic growth, ensuring that all segments of society benefit from the nation’s progress. The Minister of Labour pledged to achieve this vision through efficient labor law reforms, creating a level playing field for employers and employees. The ultimate goal is to provide cost-effective, seamless, and efficient services by leveraging modern technologies.
Employers and enterprises expressed their expectations for a streamlined registration and service process through online platforms. At the same time, individuals emphasized the importance of user-friendly access to the NLMIS without complex online or mobile-based systems.
The NLMIS will encompass the entire life cycle of individuals, including the phases before, during, and after working. This holistic approach considers education, employment, and retirement, ensuring a comprehensive understanding of labor market dynamics. The system’s scope will cover labor demand, originating from enterprises, and labour supply, focusing on employed and unemployed individuals. To achieve this, various data sources, such as population census, household surveys, and administrative records, will be integrated to provide accurate and up-to-date labor market statistics.
Proposed modules of the NLMIS include:
1. National HRIS for enterprises and individuals (Managed by DOL)
2. Private Sector and Public Sector databases
3. Employed and unemployed database
4. Dispute/Complaint Management
5. Compensation Module
6. Unemployment insurance, Maternity benefits, Work-related accidents, etc.
7. Employability, Reskilling, and Upskilling programs
8. Job placement services
9. Job Market analysis, including local and foreign job markets
10. Occupational Safety and Health (OSH) measures
11. E-Wages
Several public information systems will be integrated to enhance the NLMIS’s effectiveness and coverage, including the Department for Registration of Persons, Schools, Vocational Training institutions, Universities, Banks, and the Central Bank (EPF/ETF). This integration will ensure data accuracy and enable seamless access to critical information.
The NLMIS will boast several generic features, such as unique number identification, biometric authentication, integration with other government services, and robust data security and privacy measures.
This will promote data sharing while safeguarding sensitive information, fostering stakeholder trust.
The proposed digital strategy for the NLMIS will adopt a mobile-first approach, leveraging big data analytics, artificial intelligence (AI), and AI tools to gain deeper insights into labor market trends. Personalization and cloud computing will enable efficient data management and enhance user experiences.
Sri Lanka’s lack of a comprehensive labor market policy since independence has necessitated the development of the NLMIS. The establishment of this system is expected to yield crucial data and analyses for future labour market policies, promoting inclusive economic growth and equitable opportunities for all.
While the NLMIS promises transformative benefits, challenges remain, particularly in incorporating the informal sector into the system. To address this, the Labour Minister, Manusha Nanayakkara, has proposed an occupation/practitioner license to recognize professionals in the informal sector, such as carpenters and electricians, ensuring their contributions are acknowledged and included in the national labor market framework.
With the NLMIS set to revolutionize Sri Lanka’s labor market landscape, the nation anticipates a brighter, more inclusive economic future where data-driven policies and efficient services empower employers and employees. As the system takes shape, stakeholders stand united in their commitment to shaping a progressive and prosperous labor market ecosystem for Sri Lanka’s growth and development.
(The writer, Shan Yahampath, is an advisor to the Ministry of Labour and Foreign Employment)