ECONOMIC ACTIVITIES. Census Monograph 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA EDUCATION AND LITERACY MIGRATION AND SETTLEMENTS THE ELDERLY

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1 e 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA ECONOMIC ACTIVITIES 1 2 EDUCATION AND LITERACY 3 MIGRATION AND SETTLEMENTS 4 THE ELDERLY 5 HOUSEHOLD AND FAMILY CHARACTERISTICS 6 PERSONS WITH DISABILITIES GENDER EQUALITY POPULATION High 12ERADICATE EXTREME HUNGER AND POWERTY Medium Low PROMOTE GENDER ACHIEVE UNIVERSAL EQUALITY AND PRIMARY EDUCATION EMPOWER WOMEN REDUCE CHILD MORTALITY HOUSING CONDITIONS INTERNET AND MOBILE PHONE USERS CHILDREN AND YOUTH POPULATION PROJECTIONS SOME COMBAT HIV/AIDS, ENSURE IMPROVE MATERNAL MALARIA AND OTHER ENVIROMENTAL HEALTH INDICATORS DISEAESES SUSTAINABILITY OF THE MILLENNIUM DEVELOPMENT GLOBAL PARTNERSHIP FOR GOALSDEVELOPMENT Census Monograph 10

2 NATIONAL STATISTICAL OFFICE OF MONGOLIA 2010 POPULATION AND HOUSING CENSUS OF MONGLIA ECONOMIC ACTIVITY Ulaanbaatar city 2011

3 DDC Ý-19 NATIONAL STATISTICAL OFFICE OF MONGOLIA Government Building III, Baga Toiruu-44, Sukhbaatar District Ulaanbaatar, Mongolia This report is also available in Mongolian. Published by the National Statistical Office of Mongolia Tel: ISBN

4 contens Editor team... iv List of tables...v List of figure... vi List of tables in the appendix... vii Acronyms... viii Preface... 1 CHAPTER ONE ÅIntroduction... 3 CHAPTER two. Economic activity status or labour force...15 CHAPTER three. Employment CHAPTER four. Unemployed population...51 CHAPTER five. Regional and aimag differences...61 Conclusions and reccommendations Appendix Reference POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY iii

5 EDITORIAL TEAM ONE. Prepared and Developed by Doljinsuren Nyam-Ochir Economist Senior Specialist in the Population and Social Statistical Department, NSO Nasandelger Dashnamjil Economist - Statistician Specialist in the Population and Social Statistical Department, NSO Darimaa Sukhbaatar Matematician - Statistician Specialist in the Population and Social Statistical Department, NSO two. Edited by Erdenesuren Baatar Industrial Engineer - Economist, PhD in Economics, Professor Vice Chairman of the NSO Ganbat Bayasgalan Statistician, PhD in Economics General meneger and Head of the Administration Department NSO Tserenkhand Bideriya Programmer, Computer Engineer Head of the Data Processing and Technology Department, NSO iv 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY

6 list of tables Table 1.1. Population densities by aimags and capital city, 2000, Table 1.2. Number of households by residential areas, 2000, Table 1.3. Population by age groups and sex and the sex ratio, Table 1.4. Dependency ratio, 1989, 2000, Table 1.5. Labour force participation rate by residential area, 2000 and Table 2.1. Economic activity of the population aged 15 and above, 2000, Table 2.2. Economically active population size by age group, sex and residential area, Table 2.3. Economically active population by capital city, aimags, regions and sex, Table 2.4. Labour force participation rate, Table 2.5. Labour force participation rate by age group and sex, 2000, Table 2.6. Labour force participation rate by age group and residential area, Table 2.7. Male labour force participation rate age group and residential area, Table 2.8 Female labour force participation rate by age group and residential area, Table 2.9. Labour force participation rate by age group and residence, 2000, Table Labour force participation rate by sex and residential area, Table Labour force participation rate by residential area, sex and educational level, 2010 (in percent) Table Labour force participation rate by age group and educational level, Table Labour force participation rate by educational level, aimags, Table Labour force participation rate by marital status and sex, 2000, Table Economic activity of the population aged 15 and above by disability type, Table Labour force participation rate by sex and migration status, Table Labour force participation rate by sex, residential area and migration status, Table Labour force participation rate in aimags and capital city by last 5 years migration status, Table Economic inactivity of population by reason, 2000 and Table Number of economically inactive population by age group, sex and residence, Table Number of economically inactive population by educational level, Table 3.1. Number of employed population aged 15 and above by residential area and sex, 2000 and Table 3.2. Number of employed population aged 15 and above by residence, region and sex, 2000, Table 3.3. Number of employed population aged 15 and above by age group and sex, 2000, Table 3.4. Employed population aged 15 and above by standard classification of economic activities and sex, 2010 (percent)...43 Table 3.5. Employed population aged 15 and above by standard classification of economic activities and residence, Table 3.6. Employed population aged 15 and above by occupation and sex, 2010 (percent)...45 Table 3.7. Employment status of employed population aged 15 and above by sex, 2000, 2010 (percent)...45 Table 3.8. Marital status of employed population aged 15 and above by sex, 2000, 2010 (percent)...46 Table 3.9. Marital status of employed population aged 15 and above by sex, 2000, POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY v

7 Table Educational level of employed population aged 15 and above by sex, 2000, Table 4.1. Number of unemployed population by residence, region and sex, 2000, Table 4.2. Percentage of unemployed population in population aged 15 and above by sex and region, 2000, Table 4.3. Unemployment level by age group, residence and sex, 2000, Table 4.4 Number of unemployed population by educational level, 2000, Table 4.5. Unemployment level by age group and educational level,2010 (in percentage)...57 Table 4.6. Unemployment rate by age group and educational level, 2010 (in percentage)...58 Table 4.7. Unemployment rate by age group and educational level, 2010 (in percentage)...59 Table 5.1. Economically active population by labor force participation rate, region, aimag and the capital city, 2000 and Table 5.2. Number of employed population by aimags, the capital and sex, 2000, Table 5.3. Number of unemployed population by aimag disparities, aimags and regions, 2000, LIST OF FIGURES Figure 1.1. Response frameworks for questions on economic activity of the population aged 15 and above, Figure 1.2. Reasons for being economically inactive, 2000 and Figure 1.3. Age composition of the population, 1979, 1989, 2000, Figure 1.4. Labour force participation rate of population aged 15 and above, 2000, Figure 1.5. Age-sex pyramids of the total and economically active population, 2000, Figure 1.6. Labour force participation rate of the population aged 15 and above by age group, 2000 and 2010 (in percent)...13 Figure 1.7. Labour force participation rate by educational level, 2010 (in percentage)...13 Figure 2.1. Percentage of educated and non-educated population to the total economically active population, 2000 and Figure 2.2. Labour force participation rate by age group and sex, Figure 2.3. Labour force participation rate by region and sex, 2010 (in percent) Figure 2.4 Labour force participation rate by age group and educational level, Figure 2.5. Male labour force participation rate by educational level and age group, Figure 2.6. Female labour force participation rate by educational level and age group, Figure 2.7. Labour force participation rate by disability type and residential area, Figure 2.8. Labour force participation rat by migration status in last one year, Figure 2.9. Labour force participation rate by sex, migration status for last 5 years, 2000, Figure Number of economically inactive population by reason and sex, Figure 3.1. Numbre of employed population aged 15 and above by sex, 2000, vi 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY

8 Figure 3.2. Number of population aged 15 and above by standard classification of economical activities, 2000, Figure 3.3. Marital status of employed population aged 15 and above, 2000, Figure 3.4. Employed population aged 15 and above by migration status, Figure 3.5. Migrations of employed population aged 15 and above in the last 5 years, Figure 3.6. Employed population aged 15 and above by types of disabilities, Figure 3.7. Employed population aged 15 and above by type of disability, Figure 3.8. Employed population with disabilities, by age group, Figure 4.1. Questionnaire form defining unemployed population, Figure 4.2. Unemployment level by age group and residence, 2000, Figure 4.3. Unemployed population size by migration status, Figure 4.4. Unemployed population size by types of disability, Figure 4.5. Number of unemployed population with disabilities by types of disability, Figure 5.1. Labor force participation rate by aimag and the capital city, Figure 5.2. Number of employed population by occupation, Figure 5.3. Employed population aged 15 and above by employment status, Figure 5.4. Unemployment rate by aimag and the capital city, 2000, LIST OF TABLES IN THE APPENDIX Table 1. Resident population aged 15 and above by employment, education level and literacy Table 2. Labour force participation rate, aimags and capital city, age group, Table 3. Economically active population, aimags and capital city, age group, Table 4. Population aged 15 and above, aimags and capital city, age group, Table 5. Economic activity of the population aged 15 and above, aimags and capital city, Table 6. Economically inactive population, aimags and capital city, 2000 and POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY vii

9 EAP IISCAEA LFPR LFS NSCO NSO PHC UN ACRONYMS Economically Active Population International Industrial Standard Classification of All Economic Activities Labour Force Participation Rate Labour Force Survey National Standard Classification of Occupations National Statistical Office Population and Housing Census United Nations PREFACE In a short time of period, major changes have taken place in living standards, employment and lifestyle of the population when Mongolia made a transition to market economy. In relation to these changes demand for reliable information on patterns of labour force, employment and unemployment has been steadily increasing. The United Nations recommends all member countries to conduct a Population and Housing census at least once every ten years. In 2010, 43 countries in the world conducted their Population and Housing Censuses among which Mongolia was one of the 12 Asian countries. Mongolia successfully conducted its census between 11 and 17 November, 2010 under the campaign slogan For people the state is their treasure, for the state the people are its treasure. This census was the 10th Mongolian population census in its history and its first in the 21st century. The 2010 census had following unique features. The 2010 Population and Housing Census asked of all persons aged 15 years and above about their economic activity. On the basis of data collected as a result of the census, the major findings on employed population were shown by their occupations, a standard classification of economic activities, an employment status and other indicators and data on unemployed population or economically inactive population were shown by demographic, education, marriage and migration status at all administrative levels. It is our pleasure to present Economic activities of the population, one of the monographs, which have been prepared and published as booklets based on the results of the 2010 Population and Housing Census. CHAIRMAN OF THE NATIONAL STATISTI CAL OFFICE DEPUTY CHAIRMAN OF THE 2010 STATE CENSUS COMMISSION Ñ.ÌÝÍÄÑÀÉÕÀÍ viii 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 1

10 chapter one INTRODUCTION

11 CHAPTER ONE. INTRODUCTION 1.1 ORGANIZATION AND CONTENTS OF THE MONOGRAPH The present monograph contains five chapters and a brief statement that summarises concise analysis and main conclusions. Chapter 1 explains the main objectives, concepts and definitions of the survey, demographic and economic activity, comparison between the census results and other sources; Chapter 2 covers the patterns of economically active and inactive population of Mongolia by sex and age groups and labour force participation rates by age, sex, residence, education level, types of disability and migration status; Chapter 3 provides information on employed population structure shown by standard classification of economic activities and types of occupations, employment status and educational level. Chapter 4 particularly deals with information on unemployed population by sex, age groups, educational level, residence and reasons for unemployment; Chapter 5 compares economically active and inactive population at regional and aimag levels and identifies factors affecting it; The main results of the survey shown in Chapters 1-5 were summarized and proposals or recommendations on using the findings for policy development and future surveys regarding labour force and other matters relevant to it have been reflected respectively. 1.2 OBJECTIVES OF THE SURVEY The main purpose of the survey is to determine changes in economic activities and employment characteristics for a certain time of period on the basis of the 2010 Population and Housing Census findings, to analyze them, to develop state policies and programs directed towards increasing employment and reducing unemployment and poverty, to create sources of information required for evaluation of their implementation and to provide all levels of users with information on these issues.. performed at least one hour work for pay or profit during the reference period, being in one of the employment status. Persons were considered employed if they were on extended absences from work because of illness or injury, holiday or vacation, strike or lockout, educational or training leave, such as women on maternity leave, employees on an unpaid leave or other types of extended leaves, seasonal employees and seasonal employers during the off-season, or reduction in economic activity, temporary disorganization or suspension of work due to such reasons, including those whose temporary absence from work maintained a labour contract with a main organization or a business enterprise. 3. The unemployed or seeking work is considered as a person, who is not performing job and was actively looking for a job during the week prior to the census date. 4. The economically inactive population is defined as all persons, who were not economically active population of working age, under the working age or elder than working. This population is split into all persons of working age, who partially or entirely lost their ability to perform work permanently or on a long- term basis, persons aged 15 and above attending all levels of regular educational institutions are classified as students; provided the recovery from the impairment is not possible, persons are considered to be disabled; all persons, who were engaged in household duties in their own home responsible for the care of children, elderly and disaled poeple, and are not available for work due to the work situation of other members of the family are classified as homemakers. 5. The main household is the household, who owns the housing unit. 6. The sharing household is the household, who is living together with the main household in one housing unit. 7. The institutional population is the persons living in houses who are not members of a household. The census questionnaire includes the following questions in order to identify economically active or inactive population and it has been shown as the following figure. 1.3 CONCEPTS, DEFINTIONS AND BASIC MEASURES The 2010 Population and Housing Census complied with the Principles and Recommendations for Population and Housing Censuses, Section This allows us to determine the economic activities of the population and to compare them with results of previous censuses and other surveys. In addition, a Measurement Methodology for Statistical Indicators of Employment and Labour Force approved by the joint order No /94 of the Chairman of the National Statistical Office and the Minister of Social Welfare and Labour dated 16 July, 2009, served as a guideline. The method of a current activity approach was applied to estimate the main employment indicators of the population, the same as in the 2000 census. 1. The economically active population comprises persons, who provide the supply of labour during a specified time reference period, as employed or as unemployed, for the production of economic goods and services. 2. In accordance with the Measurement Methodology for Statistical Indicators of Employment and Labour Force, the employed is considered as a person, who 1 Íýìýëò îðóóëñàí 2 äàõü õýâëýë, Í Á, Íüþ-Éîðê, 2009 îí POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 5

12 CHAPTER ONE. INTRODUCTION FIGURE 1.1. RESPONSE FRAMEWORKS FOR QUESTIONS ON ECONOMIC ACTIVITY OF THE POPULATION AGED 15 AND ABOVE, 2010 FIGURE 1.2. REASONS FOR BEING ECONOMICALLY INACTIVE, 2000 AND 2010 What kind of job do you have? Yes or employed What is the main economic activity of you (your organization s)? have you worked during the last week? What is your employment status? In School No or unemployed In pension Disabled Home maker In school 2. In pension 3. Disabled 4. Home workers 5. No work available 6. Other In school 2. In pension 3. Disabled 4. Home workers 5. No work available 6. Not interested in working 7. Other Labour Force In search of work or unemployed Population aged 15 and above Couldn t find an appropriate job Not interested in working Other Economically inactive population These questions pertaining to employment were asked from all population aged 15 and above, whether they worked for more than one hour with the purpose of earning income during the week prior to the census. As Figure 2 shows, in the 2010 census 7 indicators determined economically inactive population, while in the 2000 census, 6 indicators were used. In the 2010 census an additional question was included, namely, Not interested in working. This indicator means a person, who is of working age and capable to work, but is not interested in providing labour force for economic activities such as holding paid jobs or self-employment. Both the 2000 and 2010 censuses also elicited the following information from those, who are employed: the nature of establishment (industry) ( International Industrial Standard Classification of All Economic Activities (ISIC-4.0), the type of work (occupation) ( National Standard Classification of Occupations (ISCO-08), and status of employment. This allows us to compare the results of the two censuses. Detailed information on similarities and differences of these classifications are shown in Chapters 3 and 4. Analysis of labour force contained in this report also utilizes other individual characteristics and information, collected in the census, such as age, sex, educational level, marital status, migration status and urban-rural residence to understand the variations and the factors that affect participation in economic activity. The main measurements on economic activity, employment and unemployment applied in the survey include the following: 1. The labour force participation rate is determined by dividing the number of economically active (labour force) by the size of population aged 15 and above. 2. The age-specific labour force participation rate is the ratio of the number of economically active population in an age-specific group to the size of total population in that age group. 3. The employment rate is the ratio of the number of economically active population to the employed population. 4. The unemployment rate is defined as the ratio of unemployed to those in the labour force. The above mentioned approaches were applied to determination of employment, labour force participation and unemployment rate by age group, sex, aimag and residence POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 7

13 CHAPTER ONE. INTRODUCTION 1.4 DEMOGRAPHIC CHARACTERISTICS AND ECONOMIC ACTIVITY Since the economic activity of the population is greatly influenced by demographical features, which determine the demand for labour force as well as the labour supply, it was considered proper to briefly present the demographic characteristics of Mongolia prior to investigating economic activity. NUMBER OF POPULATION, BY LOCATION According to the 2010 census, the total resident population of Mongolia is thousand. Among them, 49.5 percent is men and 50.5 percent is women. The 2010 census reveals that the population density is very low in Mongolia with only 1.7 persons per sq. km., having increased by 0.2 percentage points in comparison to In Ulaanbaatar, Orkhon and Darkhan-Uul population density is 245.6, and 27.5 persons per sq.km respectively, which is well above the national average. Population density in Arkhangai, Bayan-Ulgii, Bulgan, Gobi-Altai, Dundgobi, Zavkhan, Uvurkhangai, Sukhbaatar, Selenge, Tuv, Uvs, Khovd, Khuvsgul and Khentii has dropped by 0.1 to 0.3 percentage points compared to the 2000 census. Out of the total population, 43.6 percent lived in Ulaanbaatar, the capital city of Mongolia, in This represents an increase of 11.6 percentage points over the 2000 share, which was 32.0 percent. Moreover, the population size in Orkhon and Umnugobi aimags increased by 0.3 percentage points and by 0.1 percentage points in Dornogobi. But the percentage has declined in other aimags. This reflects a fact that significant migration to Ulaanbaatar has taken place during the last decade, furthermore, migration towards to Orkhon, Umnugobi and Dornogobi tends to increase. TABLE 1.1. POPULATION DENSITIES BY AIMAGS AND CAPITAL CITY, 2000, Aimag and capital Thousand People per Thousand People per city Percentage Percentage persons sq.km persons sq.km total Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber In Mongolia, thousand persons live in thousand households and the average number of family members is 3.4. However, there are 93.8 thousand single persons. In terms of the number of households by type, 62.4 percent is nuclear households of thousand, 24.9 percent -extended households of thousand, 10.6 percent - single households of 75.9 thousand and 2.1 percent is composite households of 14.9 thousand. As seen in Table 1.2, a total of thousand households were enumerated in Compared to the 2000 census, this number has increased by 31.9 percent, that of urban households increased by 61.9 percent, while that of rural decreased by 4.3 percent. TABLE 1.2. NUMBER OF HOUSEHOLDS BY RESIDENTIAL AREAS, 2000, 2010 Location Number of Number of Percent Percent 2000 % household household total Urban Rural AGE AND SEX COMPOSITION OF THE POPULATION Potential labour force in a country depends upon the size of the population and its growth. Table 1.3 presents estimation of population and its percentage distribution, by age and sex and sex ratio for all ages. The years group represents 11.4 percent of the entire population, which is the highest index compared to other age groups percent of the male population, 11.1 percent of the female population correspond to this age group. The population is still quite young with a large proportion of people under the age of 15. This implies that higher investments still needed to be made in children s education, health and social care. TABLE 1.3. population by age groups and sex and the sex ratio, 2010 Age group Total Male Female Population Percent Population Percent Population Percent Sex ratio 1 total the number of males per 100 females POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 9

14 CHAPTER ONE. INTRODUCTION The sex ratio averages 98 males per one hundred females at the national level, being more than 100 for the under years age group, lower than 100 for the above the years age group. The balance between men and women decreases markedly above the age of 70 years (66.8 males per 100 females). The age composition rates between 4 censuses of 1979, 1989, 2000 and 2010 are shown in the Figure 1.3. In 2010 census 67.2 percent of the total population was in the years age group; children under 14 years made up 27.3 percent and people above 60 made up 5.5%. Changes in the age structure of the population during the past 40 years show that the percentage of the working age group has been rising constantly, while the percentage of children aged 0-14 years has decreased. FIGURE 1.3. AGE COMPOSITION OF THE POPULATION, 1979, 1989, 2000, % TABLE 1.4. DEPENDENCY RATIO, 1989, 2000, total Children Elderly Data from the past three censuses show that the dependency ratio has been rapidly declining over the past three decades. In 2010, there were 40 dependent children, aged 0-14 and 5 elderly, aged 65 and over, per 100 economically active persons. ECONOMIC ACTIVITY The economic activity status of the population aged 15 and above is defined by two classifications, which are economically active population (in some cases, corresponds to the labour force) and economically inactive population. Otherwise, economically active population comprises all population currently employed and those without work, but available for employment. Since both employed and unemployed population are included in economically active population, this indicator is very relevant to the social and economic policy. As seen in Figure 1.4, out of the total population aged 15 and above in Mongolia, 56.4 percent is economically active population (labour force), a decrease of 5.5 percentage points compared to FIGURE 1.4. LABOUR FORCE PARTICIPATION RATE OF POPULATION AGED 15 AND ABOVE, 2000, age group age group over 60 years According to the 2010 census results, population aged 60 and above made up 5.5 percent. Comparison with 1979, 1989 and 2000 census figures reveals that the share of older people has increased by 0.5, 1.5 and 2.0 percentage points, respectively. Issues related to social welfare of elderly population, for instance, pensions, allowances, the scope, quality and financing of health services and locating labour force in suitable places require special attention. DEPENDENCY RATIO Economically active population 61.9% Economically inactive population 38.1% Economically active population 56.4% Economically inactive population 43.6% The Labour Law of Mongolia establishes that the retirement age is 60 and 55 for men and women, respectively. In order to achieve international comparability, the implied dependent ages in the 2010 census are then 0-14 years for children and 60 and above for the elderly population. The dependency ratio is measured by relating the share of population outside the workingage population, i.e. those below 15 and over 65 to the number of population aged In 2010 census this indicator was 45 for Mongolia POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 11

15 CHAPTER ONE. INTRODUCTION In 2000, 38.1 percent of total population was economically inactive, whereas the figure has risen to 43.6 percent in Among the economically inactive population, students form the largest group. This portion has increased by 75.7 percent or thousand compared to This group differs significantly according to the sex, age groups and residential area. The percentage of economically active population aged in total population is the highest among other age groups. FIGURE 1.5. AGE-SEX PYRAMIDS OF THE TOTAL AND ECONOMICALLY ACTIVE POPULATION, 2000, Male Female Male Female Persons (thousands) Persons (thousands) Total population Economically active population As seen in the above age-sex pyramid, population aged was the majority in the total population 10 years ago. In 2010, this group entered into the population aged and still remained the majority. Out of total population aged 15-19, 41.2 percent was economically active in 2000 and this number dropped by 27.3 persentage points in The number of total population referred to the age group of years increased by 32.6 percent in 2010 compared to 2000, while the number of economically active population of this age group increased by 1.1 percent. This can be explained by the fact that a number of students at universities and institutes increased. A demographic window is defined to be that period of time in a nation s demographic evolution, when the proportion of population of working age group is particularly prominent. In our country, the demographic window commenced, when the proportion of working-age population in total population increased by 8.2 percentage points from 59.0 percent in 2000 to 67.2 percent in Therefore, all appropriate measures should be taken to improve economic profit from the demographic window of opportunity. 1.5 FACTORS AFFECTING THE LABOUR FORCE PARTICIPATION In Figure 1.6, the 2010 census results on labour force participation rates by age groups are compared with those of The low participation rate in the age group of is the reflection of a fact that a large proportion of population is economically inactive or not engaged in work, being students. The majority of the population or percent is economically active in ages from 25 to 44 years and the activity rate slowly drops in ages from 45 to 59, declining dramatically in ages over 60. This confirms the fact that age plays important role in growth and decline of the number of economically active population. FIGURE 1.6. LABOUR FORCE PARTICIPATION RATE OF THE POPULATION AGED 15 AND ABOVE BY AGE GROUP, 2000 AND 2010 (IN Percent) As seen in Figure 1.7, demand for people with higher education is increasing at the national level as there is a higher percentage of economic activity among highly educated population compared to other population with lower educational level. FIGURE 1.7. LABOUR FORCE PARTICIPATION RATE BY EDUCATIONAL LEVEL, 2010 (IN PERCENTage) Age group Total Urban Urban Higher Specialized Secondary Technical and Vocational Secondary Basic Primary Non educated POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 13

16 As seen in Table 1.5, the labour force participation rate is 13.8 percentage points higher in rural areas than in urban ones, 52.3 and 66.1 percent, respectively. TABLE 1.5. LABOUR FORCE PARTICIPATION RATE BY RESIDENTIAL AREA, 2000 AND 2010 Age group Total Urban Rural LFPR Economically active population Population aged 15 and above chapter two ECONOMIC ACTIVITY STATUS OR LABOUR FORCE POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY

17 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2.1 General provisions In the 2010 Census of Mongolia, the population aged 15 and above was estimated at thousand, of which thousand people are considered economically active, including those who reported to have worked (911.7 thousand) at least one hour during the week prior to the date of enumeration and who was unemployed (164,1 thousand). The economically inactive population reached thousand increasing by thousand persons or 43.1 percent compared to 2000 (Table 2.1). TABLE 2.1. ECONOMIC ACTIVITY OF THE POPULATION AGED 15 AND ABOVE, 2000, % Population aged 15 and above Economically active population Employed Unemployed Economically inactive population In school Pensioners Disabled Home workers No work available Not interested in working Others ECONOMICALLY ACTIVE POPULATION According to the 2010 census, there are thousand economically active people in Mongolia; of them thousand men and thousand women. This relates to economic activity rates of 54.9 and 45.1 percent for male and women respectively. The economically active population, who resides in urban areas, is estimated to be thousand, which is higher by thousand than in rural areas. As table 2.2 shows, the population aged and years made up the dominant part of the economically active population in 2010, while ten years earlier adolescents aged between years constituted a large section of the total resident population of Mongolia (See Group 1 in the Figure 1.5). The number of economically active population has decreased slightly for the years age group and falls dramatically for those over 50. These changes are observed at nearly the same level for both males and females. TABLE 2.2. ECONOMICALLY ACTIVE POPULATION SIZE BY AGE GROUP, SEX AND RESIDENTIAL AREA, 2010 Age group Total Urban Rural Total Male Female Total Male Female Total Male Female Á ãä The economically active population aged years in urban areas accounted for 2.6 percent of the total economically active population, while the rate is 5.0 percent in rural areas. This could be explained by the fact that most of the young people in the rural areas are directly going to work after graduating from secondary school. Table 2.3 shows the distribution of economically active population by the capital city, aimags and regions. The economically active residents are categorized into the regions, Ulaanbaatar (42.0%), the Khangai region (20.5%), the Central region (17.9%), the West region (12.5%), and the East region (7.1%). The highest economic activity rate in the Khangai Region is due to the raised number of economically active population residing in Uvurkhangai and Khuvsgul aimags. A higher number of males than females is economically active in Umnugobi (higher by 88.0 percent) and Bayankhongor (higher by 14.3 percent) aimags POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 17

18 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY TABLE 2.3 ECONOMICALLY ACTIVE POPULATION BY CAPITAL CITY, AIMAGS, REGIONS AND SEX, 2010 FIGURE 2.1. PERCENTAGE OF EDUCATED AND NON-EDUCATED POPULATION TO THE TOTAL ECONOMICALLY ACTIVE POPULATION, 2000 AND 2010 Total Urban Rural Total Male Female Total Male Female Total Male Female National average western region Bayan-Ulgii Gobi-Altai Zavkhan Uvs Khovd Khangai region Arkhangai Bayankhongor Bulgan Orkhon Uvurkhangai Khuvsgul Central region Gobisumber Darkhan-Uul Dornogobi Dundgobi Umnugobi Selenge Tuv eastern region Dornod Sukhbaatar Khentii ulaanbaatar Ulaanbaatar Annex 1 Table 1 shows that the economic activity has changed in aimags and capital city over the past 10 years. The economically active population has increased by 64.4 percent for Ulaanbaatar city, by 50.8 percent for Umnugobi aimag, 26.8 percent for Orkhon aimag, 25.3 percent for Gobisumber aimag, 17.6 percent for Darkhan-Uul, 13.2 percent for Dornogobi aimag, 9.0 percent for Selenge aimag, and it has decreased for other aimags. Out of thousand population aged 15 and over, who obtained any educational attainment, 56.9 percent was economically active, while out of 81.7 thousand uneducated population 46.1 percent was economically active. Among economically active population, 96.5 percent has obtained one of educational attainments. The highest proportion (34.3%) was registered of those who had studied up to complete secondary education, followed by those with a university degree (28.4%). Nearly 17.4% had basic education, 8.8% had studied in a primary school only. The proportion of those, who has obtained specialized secondary education as well as technical and vocational education is 7.3% and 3.9%, respectively. Among the economically active population, 3.5 percent has no education, of which 68.3 percent declared themselves to be literate and 31.7 percent - illiterate (Annex 1, Table 1). The proportion of educated and uneducated economically active population to the total economically active population, based on data from the 2000 and 2010 Censuses, is shown in the Figure 2.1. In 2010, the ratio of economically active population reached 96.5, increasing by 0.2 percentage points against the 2000 census figure. At the 2010 Census the economically active population with educational attainment stood at thousand 2,representing an increase of thousand or 14.2 % over the 2000 census figure. With education 2.3 LABOUR FORCE PARTICIPATION RATE No education The labour force participation rate is a key indicator for economic activity. This indicator is 56.4 percent for the year 2010, which dropped by 5.5 persentage points compared to the 2000 census figure. TABLE 2.4. LABOUR FORCE PARTICIPATION RATE, % Population aged 15 years or above Economically active population Labour force participation rate LABOUR FORCE PARTICIPATION RATE BY AGE AND SEX Table 2.5 shows the labour force participation rate by age groups and sex, based on the data from past 2 censuses. The labour force participation rate has undergone little changes except for the age group 15 to 19 years, where a 26.8 percentage points decrease was observed between two censuses - the 2000 (41.2 percent) and the 2010 one (14.4 percent). The labour force participation rate of this age group has dropped for both males and females. During the last ten years a large number of private institutions offering higher education has been established in Mongolia, so the total number of students enrolled in them has steadily increased. At the beginning of the transition period steep increase of school drop-out as well as the children employment was observed. An increase in school attendance for the population of age group leads to a conclusion that the child labour ratio has decreased significantly over the last years. (201.3 thousand, belonging to the age range enrolled to school, which represents an increase of 61.6 percent compared to the 2000 census figure) 2 Annex 1- Table POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 19

19 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY TABLE 2.5. LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND SEX, 2000, 2010 Age Total Urban Rural group Total In 2000 the economic activity peaked at 79.0 percent for year olds. This rate has remained the highest in 2010 and made up 77.6 percent for those in the age group from 35 to 39 years. A comparison of the results of two censuses provides an indication that the male labour force participation rate is relatively lower in the age group, reaching the highest point in the age group. It starts to decline slowly at the age of The rate decreases rapidly after 55 years of age. Female labour force participation rates are lower than those of males in all age groups. A low female employment rate, aside from economic reasons is conditioned by demographic (age at marriage, number of children) and socio-cultural factors. FIGURE 2.2. LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND SEX, 2010 % Total Male Female At the national level, the labour force participation rate peaked at 77.6 percent for the years age group. The highest labour force participation rates are seen in that age group in most aimags. This indicator is relatively higher in Umnugobi aimag for all age groups than in other aimags. As seen in Figure 2.2, for women, the participation rate is the highest in age groups of years compared to other age groups, whilst for men, the highest rate is seen at 82.8 percent in ages TABLE 2.6. LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND RESIDENTIAL AREA, 2010 Aimags and capital city Total Total Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber Age group POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 21

20 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY TABLE 2.7. MALE LABOUR FORCE PARTICIPATION RATE AGE GROUP AND RESIDENTIAL AREA, 2010 Aimags and capital city Total Total Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber TABLE 2.8. FEMALE LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND RESIDENTIAL AREA, 2010 Aimags and capital city Total Total Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber The labour force participation rate of the years old age group in Umnugobi aimag is higher than that of the same age group in other aimags. 2.5 LABOUR FORCE PARTICIPATION RATE BY URBAN AND RURAL AREAS The labour force participation varies considerably by area, sex, age and residence, whereas the economic activity of people does not vary (Table 2.9). The labour force participation rate of the population aged 15 and above is 56.4 percent at the average at the national level, in rural areas it is significantly higher than in urban areas (66.1 percent and 52.3 percent, respectively). A high labour force participation rate in rural area is associated with the fact that agriculture and allied sectors like forestry, fishery and hunting employ as much as the 90.3 percent of total employees. In relation to 1.5 and 7.5 percentage points decline in urban and rural area, respectively, the labour force participation rates have decreased at the national level compared to the 2000 census figures. This indicator in the and years age groups has shown an increase by and percentage points, respectively in urban area as well as in the years age group by percentage points in rural areas; whilst labor force participation rates among all other age groups decreased. TABLE 2.9. LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND RESIDENCE, 2000, 2010 Age Total Urban Rural group TOTAL persons per 100 persons aged 15 years and above in Umnugobi aimag are employed or seeking work, whilst this rate is in Darkhan-Uul, Dornod, Bayan-Ulgii, Khovd aimags and Ulaanbaatar city, in Orkhon, Selenge, Zavkhan and Khentii aimags, in Khuvsgul, Tuv, Uvs, Uvurkhangai, Gobisumber, Gobi-Altai, Dundgobi, Arkhangai, Sukhbaatar, Dornogobi, Bayankhongor and Bulgan aimags (Table 2.10). The LFPR is higher by percentage points compared to the national average in Uvs, Uvurkhangai, Gobi-Altai, Gobisumber, Sukhbaatar, Arkhangai, Dornogobi, Bayankhongor, Bulgan and Dundgobi aimags, and lower by percentage points in Khovd, Bayan-Ulgii, Dornod, Darkhan-Uul aimags and Ulaanbaatar. In terms of sex, the labour force participation differs slightly in Bayankhongor and Dundgobi aimags, whilst the pattern differs markedly in Umnugobi, Bayan-Ulgii and Dornogobi aimags POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 23

21 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY Aimags and capital city TABLE LABOUR FORCE PARTICIPATION RATE BY SEX AND RESIDENTIAL AREA, 2010 Total Urban Rural Total Male Female Total Male Female Total Male Female TOTAL Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber Figure 2.3 shows that economic activity of the population in the Khangai Region made up 61.7 percent, which is higher by percentage points than in other regions. Men s labour force participation is relatively higher than that of women in all regions and also is above the national average. This indicator peaks at 67.7 percent in the Central Region and the lowest is registered at 58.6 percent in Ulaanbaatar city. FIGURE 2.3. LABOUR FORCE PARTICIPATION RATE BY REGION AND SEX, 2010 (IN PERCENT) Total Male Female 2.6 LABOUR FORCE PARTICIPATION RATE BY LEVEL OF EDUCATION Table 2.11 provides the data on labour force participation rates by completed level of education, sex and residence. At the national level, educated males labour force participation rate is higher by 12.3 percent than that of the females; the rate of non- educated males is higher by 27.8 percent than tat of females. TABLE LABOUR FORCE PARTICIPATION RATE BY RESIDENTIAL AREA, SEX AND EDUCATIONAL LEVEL, 2010 (IN PERCENT) Total Educated Higher Level of education Specialized secondary Technical Complete secondary Basic Primary No education TOtal Male Female urban Male Female rural Male Female In urban settlements the labour force participation rate of educated persons is higher by 26.3 percentage points than that of the non-educated; economic activity of the population with primary, basic or secondary education is lower. Although the number of population with low educational background or no education is relatively downward in urban centres, amongst them the percentage of elderly people is higher. There is a relatively limited opportunity for work among the population with a low educational level. In urban areas the female labour force participation is lower than of the males. The labour force participation rate of females with primary education is lower than that of the males, in both urban and rural areas. Labour force participation of educated population is higher by 0.5 percentage points than the national average, whilst that of those with specialized secondary education is greater by 4.9 percentage points, that of persons with technical and vocational education - by 10 percentage points, and that of persons with higher education - by 18.7 percentage points. The labour force participation rate of population with no education is lower than the national average by 10.3 percentage points, that of persons with primary education - by 9.9 percentage points, with incomplete secondary education or basic education - by 7.0 percentage points, with complete secondary school - by 4.6 percentage points. Labour force participation rates by age group and educational level is presented in Table 2.12 and Figure 2.4. Weat Khangai Central East Ulaanbaatar POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 25

22 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY TABLE LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND EDUCATIONAL LEVEL, 2010 Educational level Age No TOTAL Educated Specialized Technical and Complete group Higher Basic Primary education secondary vocational secondary total The labour force participation rate is lower for the age groups than that in other age groups, because of the large number of individuals enrolled in studies. Labour force participation of the people with specialized secondary education, technical and vocational education is the highest at percent in the years age group. Economic activity is high in the age group for the people with specialized secondary education, technical and vocational education, complete secondary education or basic education, in the age group for those with higher education, in the group for those with primary education, whilst educated population is economically active in the age group. FIGURE 2.4. LABOUR FORCE PARTICIPATION RATE BY AGE GROUP AND EDUCATIONAL LEVEL, % Higher Specialized secondary Technical and vocational Complete secondary The labour force participation rate of the population aged with higher or specialized secondary education is the highest. Since 1990s, as a large number of higher educational institutions was established, the number of graduates has increased as well, being the reason for an increasing number of human resources with higher education in labour market, and a higher labour force participation rate of the population with higher education or specialized secondary education. The labour force participation rate of the population with tertiary education is the highest and of those with no education is the lowest in all age groups. As shown in Figure 2.5, labour force participation rates for males with basic, and primary as well as higher education sharply increased in age groups of 15-24, steadily increased in the ages of 25-44, while gradually dropped in the age group of and then sharply declined in the age group over 59. Labour force participation rates for males with no-education steadily increased in the ages of 15-29, steadily decreased in the ages of 29-39, while increased gradually in the age groups. Labour force participation rates for persons with higher, specialized secondary, technical and vocational and basic education was the same for those aged as shown in Figure 2.5. This illustrates that labour force participation rates for persons with the above-mentioned educational levels are the same as for those aged % FIGURE 2.5. MALE LABOUR FORCE PARTICIPATION RATE BY EDUCATIONAL LEVEL AND AGE GROUP, With education Higher Specialized secondary Technical and vocational Complete secondary Basic Primary No education Basic Primary No education At the national level, labour force participation rates for females with all levels of education sharply increased in the age groups, while gradually increased in the age groups. However, the rate unsteadily increased in the age group of over 34. Labour force participation rates for females aged with higher, specialized secondary, technical and vocational, complete secondary and basic education steadily increased, while for those with primary education or no-education, the rate is considerably variable POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 27

23 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY % FIGURE 2.6. FEMALE LABOUR FORCE PARTICIPATION RATE BY EDUCATIONAL LEVEL AND AGE GROUP, TABLE LABOUR FORCE PARTICIPATION RATE BY EDUCATIONAL LEVEL, AIMAGS, 2010 With education Higher Specialized secondary Technical and vocational Complete secondary Basic Primary No education Aimags and Specialized Technical and Complete No Higher Basic Primary capital city secondary vocational secondary education TOTAL Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber In aimags and the capital city, the labour force participation rate of population with tertiary education is the highest, whilst that of persons with primary education or no education is the lowest. In Ulaanbaatar city the lowest labour force participation rate is registered for those with no education or primary education. 2.7 LABOUR FORCE PARTICIPATION RATE BY MARITAL STATUS In spite of the minimum legal age of 18 years prescribed for marriage, in accordance with the Family Law in Mongolia, there is an indication that some minors under 18 years of age do marry. According to the international methodology, an indicator to identify the marital status was included in the census questionnaire and asked of all the population aged 15 and above. In the 2010 census, LFPR of the population legally married is 68.0 percent, which is relatively higher than those in relationship types other than marriage. The highest proportion of labour force participation rates are observed for married men (74.2 percent) and for divorced women (67.6 percent). The lowest labour force participation rate was for widowed (25.6 percent), which is due generally to the fact that they are elderly or they have children to take care of them, followed by the rate of those, who never married (39.6 percent), of which the majority is young people under age of 25 years, the people who are mostly engaged in studies. Women s participation in the labour force is lower than men s by percentage points. Results of the last two censuses show that the labour force participation rate for widowed population increased by 0.3 percentage point, whilst other types of family labour force participation rates have dropped. For instance: the labour force participation rate of the population married in 2010 is 68.0 percent, lower by 3.0 percentage points than the 2000 census figure, whilst that of widowed people increased by 0.3 percentage points. TABLE LABOUR FORCE PARTICIPATION RATE BY MARITAL STATUS AND SEX, 2000, Total Male Female Total Male Female TOTAL Never married Married Living together Separated Divorced Widowed POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 29

24 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2.8 ECONOMIC ACTIVITY OF THE DISABLED persons Out of thousand people aged 15 and above at the national level, 98.6 thousand or 5.2 percent has some type of disability. Out of economically active thousand people 2.1 percent or 22.6 thousand has some type of disability; of which 19.7 thousand or 87.1 percent is employed and 2.9 thousand is looking for work. Economic activity of disabled persons in rural areas is higher by 16.8 percentage points than in urban ones. TABLE ECONOMIc ACTIVITY OF THE POPULATION AGED 15 AND ABOVE BY DISABILITY TYPE, 2010 Population aged 15 and above Economically active population Employment Employed Unemployed TOTAL No disability With disability Difficulty in seeing Difficulty in Of which: speaking Difficulty in hearing Difficulty in moving Mental disorder Others urban No disability With disability Difficulty in seeing Difficulty in Of which: speaking Difficulty in hearing Difficulty in moving Mental disorder Others rural No disability With disability Difficulty in seeing Difficulty in Of which: speaking Difficulty in hearing Difficulty in moving Mental disorder Others LFPR Out of 98.6 thousand people with disability aged 15 and above, 22.6 thousand or 22.9 percent is economically active. When economically active disabled people are classified by type of disability, the main type of disability is registered in mobility (27.2 percent). The labour force participation rate of people with difficulty in seeing is 33.8 percent; of those with difficulty in hearing is 33.0 percent, with difficulty in speaking percent, difficulty in moving percent and mental disorder percent. Figure 2.7 shows that the labour force participation rate of disabled persons in rural is higher by 16.8 percentage points than in urban areas. In rural areas disabled persons are working or seeking work. In urban areas the labour force participation rate of those who have difficulty in seeing or hearing is high FIGURE 2.7. LABOUR FORCE PARTICIPATION RATE BY DISABILITY TYPE AND RESIDENTIAL AREA, Population with disability Difficulty in seeing Difficulty in speaking Total Urban Rural 2.9 LABOUR FORCE PARTICIPATION RATE BY MIGRATION STATUS 24.7 Urbanization has expanded rapidly in Mongolia in the last two decades. Natural hazards, such as drought and dzud (winter disaster) since 2000 have caused extensive suffering to many herders and therefore triggered mass migration towards the capital city and other large cities. Easy accessibility to health services, education, consumer and social services and in particular, the availability of employment in urban areas draws people s desires and increases the rate of urbanization. In this Census, a person, who has lived in an administrative unit (aimag and the capital city) other than his/her usual residence for more than 6 months is considered to have participated in migration. As presented in Table 2.16, economic activity was classified into three categories: as not participated in migration, participated in migration before 2010, participated in migration in Out of total population thousand aged 15 or above, 47.6 percent did not participate in migration, 47.4 percent participated in migration before 2010, 5.0 percent participated in migration in Labour force participation rates of those thousand persons, who did not participate in migration is 55.0 percent, of thousand, who participated in migration 47.2 Difficulty in hearing Difficulty in moving Mental disorder Others POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 31

25 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY before 2010 is 58.3 percent and of 95.3 thousand, who participated in migration in 2010 is 53.0 percent. Labour force participation rates of those, who participated in migration before 2010 are higher than that of persons who did not participate in migration and participated in migration in 2010, by 3.3 and 5.3 percentage points, respectively. Out of the economically active population, who participated in migration before 2010, 87.2 percent is employed, which is higher than the share of the working population of those who did not participate in migration (82.5 percent) and participated in migration in percent of economically active population of those who participated in migration in 2010, 17.5 percent of economically active population who did not participate in migration, 12.8 percent of the economically active population who participated in migration before 2010, are looking for a job actively. Migration status TOTAL Did not participate in migration Participated in migration before 2010 Participated in migration in 2010 TABLE LABOUR FORCE PARTICIPATION RATE BY SEX AND MIGRATION STATUS, 2010 Population aged 15 and above Economically active population Employed Seeking work LFPR TOTAL Male Female TOTAL Male Female TOTAL Male Female TOTAL Male Female In urban areas, labour force participation rates of the population who did not participate in migration is 50.7, whereas that of those who participated in migration before 2010 is 54.4 percent, of those who participated in migration in 2010 is 43.3 percent. In rural areas, the labour force participation rate of those who participated in migration in the last one year is higher by percentage points than that of those who did not participate in migration or participated in migration before percent of rural males, who participated in migration are economically active. Economic activity of females who participated in migration or did not migrate does not differ much in urban or rural areas. FIGURE 2.8. LABOUR FORCE PARTICIPATION RAT BY MIGRATION STATUS IN LAST ONE YEAR, % The labour force participation rate of males who did not participate in migration is 60.7 percent, while that of females who participated in migration in 2010 is the lowest at 39.3 percent. The context of the place of residence five years ago has been studied since the 2000 census. As for the 2000 census, last 5 years meant and as for the 2010 census, it means In Figure 2.9, labour force participation rates of total population enumerated at the last two censuses were classified into participated in migration or did not participate in migration. Of those who have participated in migration in , 52.4 percent is employed. Labour force participation rates are 61.5 and 43.1 percents for men and women, respectively. FIGURE 2.9. LABOUR FORCE PARTICIPATION RATE BY SEX, MIGRATION STATUS FOR LAST 5 YEARS, 2000, Total Urban Rural Total Male Female Total Male Female Total Male Female Not migrated Migrated before 2010 Migrated in TABLE LABOUR FORCE PARTICIPATION RATE BY SEX, RESIDENTIAL AREA AND MIGRATION STATUS, 2010 TOTAL Did not participate in Participated in migration Participated in migration migration before 2010 in 2010 Total Male Female Total Male Female Total Male Female Total Male Female total Urban Rural % Migrated Not migrated Migrated Not migrated Total Male Female POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 33

26 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY Since 1990 migration towards to urban settlements sharply increased due to many reasons including employment and schooling. However, because of many measures taken by the government for support of population development policies, programs and regional development, the internal migration rate dropped over the last 5 years. Table 2.18 presents the economic activity of the migrants and non-migrants by aimags over the last 5 years. LFPR of the total migrants in the last 5 years is 78.8 percent in Dundgobi, while it is 52.9 percent or the lowest in Dornod. However, the labour force participation rate of migrants who have not migrated since 2000 is 63.6 percent in Umnugobi, while it is 43.6 percent or the lowest in Orkhon aimag. Moreover, the labour force participation rate of the population who migrated in the last 5 years is 92.2 percent in Umnugobi aimag and 42.4 percent or the lowest in Ulaanbaatar city TABLE LABOUR FORCE PARTICIPATION RATE IN AIMAGS AND CAPITAL CITY BY LAST 5 YEARS MIGRATION STATUS, 2010 Aimag and capital city TOTAL Not participated in migration Not migrated over the last 5 years Migrated over the last 5 years Total Male Female Total Male Female Total Male Female Total Male Female Total Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber ECONOMICALLY INACTIVE POPULATION The currently economically inactive population or, equivalently, persons not in the labour force comprises all persons, who were neither employed nor seeking work during the week prior the enumeration date; as well as those performing household duties, receiving a pension, attending an educational institution or those who were not able to work for any other reason. Thus in the classification of economically inactive population those who were not engaged in paid work for more than one hour during the last week /not involved in economic activity/, those without work, those who were not able for work were included. As of 2010, out of thousand population aged 15 and above, 43.6 percent was economically inactive population, but this rate was 38.1 percent in Otherwise, the proportion of economically inactive population in the total population increased by 5.5 percentage points. TABLE ECONOMIC INACTIVITY OF POPULATION BY REASON, 2000 AND Number Percentage Number Percentage 2000 % Population aged 15 and above Economically inactive population In school Pensioner Disabled Home workers No work available Not interested in working Others As of 2000, there were thousand economically inactive population at the national level and it rose to thousand or by 43.1 percent in In terms of growth of economically inactive population by reason, the number of students increased by 75.7 percent, that of disabled by 51.4 percent, that of home workers by 42.1 percent, that of persons with no work available by 34.5 percent, that of pensioners by 17.3 percent and the number of others increased by 15.8 percent respectively. Table 2.20 shows economically inactive population by age groups, sex and residence. At the national level, out of economically inactive population 58.2 percent is female, 41.8 percent male, 76.6 percent are residing in urban areas, while 23.4 percent are in rural areas. The proportion of economically inactive urban females is 1 percentage point higher than that of rural females, while the percentage of economically inactive urban male is 1.0 percentage point lower than that of rural males. A notable difference is observed when the economically inactive population is classified by age groups in urban and rural areas. At the national level, the number of economically inactive population aged years is high, which can be explained by a fact that the majority of the population belonging to this age group is students. As for urban areas, the number of economically inactive population aged years is high, while the number of economically inactive population aged and 65 and above is high in rural areas. Both in urban and rural areas, the number of economically inactive population aged is the lowest POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 35

27 chapter two POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY TABLE NUMBER OF ECONOMICALLY INACTIVE POPULATION BY AGE GROUP, SEX AND RESIDENCE, 2010 TABLE NUMBER OF ECONOMICALLY INACTIVE POPULATION BY EDUCATIONAL LEVEL, 2010 Age Total Urban Rural group Total Male Female Total Male Female Total Male Female total Table 2.21 detailed the number of economically inactive population by educational level. There is total of thousand economically inactive population. Out of them, 94.7 percent or thousand persons are educated and 5.3 percent or 44.1 thousand are non- educated. In respect of educated economically inactive population by educational level, people with complete secondary education account for 42.0 percent or the highest share, people with basic education - for 23.6 percent, people with primary -for 13.3 percent, those with higher education - for 12.4 percent, while persons with specialized secondary education make up 6.0 percent, and those with technical and vocational education percent. Economic activity TOTAL Educated Higher Specialized secondary Educational level Technical and vocational Complete secondary Basic Primary No education total Economically inactive population In school Pensioners Disabled Home workers No work available Not interested in working Others male Economically inactive population In school Pensioners Disabled Home workers No work available Not interested in working Others female Economically inactive population In school Pensioners Disabled Home workers No work available Not interested in working Others percent of the total male and 33.9 percent of the total female reported attending an educational institution. This is the main reason of being economically inactive percent of the male and 26.1 percent of the female are the elders or pensioners, while 3.5 percent and 19.9 percent are home workers. Therefore, main reasons for being considered economically inactive are being students and pensioners or elders POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 37

28 FIGURE NUMBER OF ECONOMICALLY INACTIVE POPULATION BY REASON AND SEX, 2010 Male Female Not interested in working and no work available 21.4 Other 7.8 In school 39.4 Not interested in working and no work available 10.5 Other 4.5 In schoo 33.9 Home workers 3.5 Disabled 9.0 Pensioners 18.9 Home workers 19.9 Disabled 5.1 Pensioners 26.1 CHAPTER THREE EMPLOYMENT Economically inactive population by aimags is shown in Table 1; Annex 1, the number of economically inactive population increased by 76.7 percent or the highest in Umnugobi, compared to In addition, the number of economically inactive population in Ulaanbaatar increased by 63.8 percent, by 61.6 percent in Orkhon aimag, in Dornogobi aimag by 59.7 percent, in Uvurkhangai aimag by 52.9 percent and in other aimags by percent POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY

29 chapter three. employment 3.1 GENERAL PROVISIONS In the first chapter of the monograph it was clearly mentioned who is to be considered working or employed persons. All working persons were asked 3 questions: the nature of establishment (industry) they work for, the type of work (occupation) and employment status. In Table 3.1 employed population or employees are shown by residence and sex, 2000 and The number of employed population has increased by 17.0 percent since In terms of sex, the rate of male employees is higher than that of females. As seen in Table, out of thousand employed population, 54.3 percent or thousand is male and, 45.7 percent or thousand is female. At the national level, 47.8 percent among employed population aged 15 and above is employed and out of it, 57.5 percent resides in rural areas, which is 13.8 percentage points higher than in urban areas. Rural population accounts for 32.1 percent of the total resident population and this proportion has been declining year by year. Employment of women in rural areas is 12.3 percentage points higher than in urban areas, while that of men is 14.6 percentage points higher. Although this difference has declined compared to the 2000 census, thousands of people who moved to urban settlements with an intention to find employment and improve their living are still in lack of employment. TABLE 3.1. NUMBER OF EMPLOYED POPULATION AGED 15 AND ABOVE BY RESIDENtial area AND SEX, 2000 AND Thousand persons Thousand persons 2000 % total Male Female Urban Rural NUMBER OF EMPLOYED POPULATION BY AGE GROUP, REGION, EDUCATIONAL LEVEL, MARITAL STATUS AND RESIDENCE As shown in Table 3.2 there is a significant difference between employed population by residential area. Out of employed population, 63.8 percent is in urban areas, while the number of employed population is comparably different by regions. Among employed population, 42.9 percent or thousand is in Ulaanbaatar city, 20.2 percent or thousand in the Khangai region, 17.9 percent or thousand in the Central, 12.2 percent or thousand in the Western and the lowest or 6.8 percent or 62.2 thousand in the Eastern region. Compared to previous or the 2000 census, the number of employed population increased in Ulaanbaatar city by 78.4 percent, by 9.3 percent in the Central and 0.2 percent in the Eastern region, but decreased by 24.2 percent and 9.0 percent in the Western and Khangai regions, respectively. TABLE 3.2. NUMBER OF EMPLOYED POPULATION AGED 15 AND ABOVE BY RESIDENCE, REGION AND SEX, 2000, 2010 Region Total Male Female Total Male Female 2000 % TOTAL Urban Rural Central Eastern Western Khangai Ulaanbaatar The number of employed population aged declined compared to 2000, but population aged has increased. This can be explained by a fact that business entities or organizations prefer to employ persons with work skills and experience and the last year s employed population aged entered up into an older age group. On the other hand, it is due to the increased number of young people who entered the university (Table 3.3). TABLE 3.3. NUMBER OF EMPLOYED POPULATION AGED 15 AND ABOVE BY AGE GROUP AND SEX, 2000, 2010 Age group Total Male Female Total Male Female 2000 % TOTAL In Figure 3.1 shown number of employed population by sex, 2000, 2010 censuses and POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 41

30 chapter three. employment Population (thousands) FIGURE 3.1. NUMBRE OF EMPLOYED POPULATION AGED 15 AND ABOVE BY SEX, 2000, National average Male Female Changes in main sectors of activities among employed population since the 2000 census are related to herders migration towards Ulaanbaatar due to dzud and natural hazards, which caused loss of livestock and their subsequent engagement in industrial and service sectors. Economic activity classifications are made in terms of legal entity or enterprises and organizations of all types of ownership and non-profit making organizations such as governmental, public and religious institutions as well as private manufacturing and services. These classifications are used for many purposes such as gross Domestic Product calculations and labour force studies percent of the population are engaged in agriculture, forestry, fishery and hunting and it remains the highest share compared to those engaged in other sectors (Table 3.4). In respect of employed population by sex, there is a considerable difference depending on sectors of economic activities. For instance, 70.0 percent or over of population engaged in sectors such as mining, quarrying, electricity, gas, steam and ventilation supply, construction, transportation, storage, administrative and supporting activities is men, while 70.0 or more percent of population engaged in accommodation, food service, education, health and social sectors of activities is women (Table 3.4). At the national level, the number of employed population increased by 17.0 percent compared to the 2000 census, which is mainly influenced by increase of percent in Ulaanbaatar, Orkhon, Umnugobi, Darkhan-Uul, Gobisumber, Selenge, Dornogobi and Dornod aimags. 3.3 NUMBER OF EMPLOYED POPULATION AGED 15 AND ABOVE BY STANDARD CLASSIFICATION OF ECONOMIC ACTIVITIES In Figure 3.2, the number of employed population is shown by 3 main sectors of economic activities. The number of population engaged in agricultural sector decreased by thousand or 34.4 percent, while population employed in industrial sector increased by 86.5 thousand or 82.3 percent and in service sectors by thousand or 56.3 percent, respectively. FIGURE 3.2. NUMBER OF POPULATION AGED 15 AND ABOVE BY STANDARD CLASSIFICATION OF ECONOMICAL ACTIVITIES, 2000, Agriculture Manufacturing Service TABLE 3.4. EMPLOYED POPULATION AGED 15 AND ABOVE BY STANDARD ClASSIFICATION OF ECONOMIC ACTIVITIES AND SEX, 2010 (PERCENT) Total Male Female Industrial classification of economic activities per per per Persons Persons Persons cent cent cent TOTAL Agriculture, forestry, fishing and hunting Mining and quarrying Processing industries Electricity, gas, steam and ventilation services Water supply and sewerage, waste management and remediation Construction Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage services Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities Administrative and support service activities Public administration, defence and compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activities Undifferentiated goods-and services-producing activities of households for own use Activities of extraterritorial organizations and bodies POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 43

31 chapter three. employment The proportion of population engaged in whole and retail sales, production, public administration, defense and education sectors among employed population in urban areas is high. However, the proportion of employed population of each sector is relatively well dispersed, whilst in rural the proportion is centralized in one sector. TABLE 3.5. EMPLOYED POPULATION AGED 15 AND ABOVE BY STANDARD CLASSIFICATION OF ECONOMIC ACTIVITIES AND RESIDENCE, 2010 Total employed population Industrial classification of economic activities Urban Rural Percent Population urban rural TOTAL Agriculture, forestry, fishing and hunting Mining and quarrying Processing industries Electricity, gas, steam and ventilation services Water supply and sewerage, waste management and remediation Construction Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage services Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities Administrative and support service activities Public administration, defence and compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activities Undifferentiated goods-and services-producing activities of households for own use Activities of extraterritorial organizations and bodies /3 of the rural employed population are those engaged in agriculture, hunting, fishery and forestry, followed by those engaged in state administration, defence and education. This can be explained by a fact that industrial sectors such as processing are poorly developed in rural areas. However, the proportion of employed population engaged in mining and quarrying sectors is similar in urban and rural areas. It is because main activities relevant to mining and quarrying discontinued and the employed population were enumerated in urban settlements at the time of census. 3.4 EMPLOYED POPULATION AGED 15 AND ABOVE BY OCCUPATION TABLE 3.6. EMPLOYED POPULATION AGED 15 AND ABOVE BY OCCUPATION AND SEX, 2010 (PERCENT) Occupation Thousand persons Total Male1 Female per cent Thousand persons per cent Thousand persons per cent EMPLOYED POPULATION Manager Professionals Technicians and associate professionals Clerical support workers Service and sales workers Skilled agricultural, forestry and fishery workers Craft and related trades workers Plant and machine operators, and assemblers Elementary occupations Armed forces occupations In terms of employed population by occupation and sex, there is almost no difference in managers, agricultural, forestry, fishery and hunting and other activities. But men filled more than 90.0 percent of jobs such as machinery operators, assemblers, armed forces and occupations that required physical force. However, 7 out of 10 persons engaged in clerical or service works are women. TABLE 3.7. EMPLOYMENT STATUS OF EMPLOYED POPULATION AGED 15 AND ABOVE BY SEX, 2000, 2010 (PERCENT) Total Male Female Total Male Female TOTAL Employee Employer Self-employed Cooperative member Engaged in family businesses Others POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 45

32 chapter three. employment Employment status of population has significantly changed in the last 10 years. In 2000 there were thousand persons engaged in family business or unpaid jobs and this number dropped to thousand in The proportion of self-employed population declined by 3.5 percentage points, while that of paid employees and employers increased due to expansion of production and services. A drop in the proportion of self-employed population has positive impacts on provision of labour safety, coverage by social welfare and increasing chances to fully exercise his/her rights of employment. Changes have taken place in the employment status of population. According to the census, the marital status of total population aged 15 and above was divided into 6 groups as follows: never married, married, living together, separated, divorced and widowed. Figure 3.3 provides the structure of a questionnaire on marital status of the 2000 and 2010 population and housing censuses. FIGURE 3.3. MARITAL STATUS OF EMPLOYED POPULATION AGED 15 AND ABOVE, 2000, Never married 2. Married 3. Living together 4. Separated 5. Divorced 6. Widowed Never married 2. Legally married 3. Living together /not legally married 4. Separated 5. Divorced 6. Widowed 60.5 percent of total population aged 15 and above of Mongolia is married, 26.1 percent has never been married and 2.9 percent is widowed. TABLE 3.8. MARITAL STATUS OF EMPLOYED POPULATION AGED 15 AND ABOVE BY SEX, 2000, 2010 (PERCENT) Marital status Total Male Female Total Male Female total Never married Married Living together Separated Divorced Widowed table 3.9. MARITAL STATUS OF EMPLOYED POPULATION AGED 15 AND ABOVE BY SEX, 2000, 2010 Marital status Total Male Female Total Male Female 2000 % TOTAL Never married Married Living together Separated Divorced Widowed In terms of marital status compared to 2000, the share of widowed increased by 8.1 percent, that of married by 25.4 percent, that of separated by 35.0 percent, that of living together by 42.9 percent and divorced by 49.5 percent, respectively, while the number of never married employed population decreased by 12.0 percent. TABLE 3.10 EDUCATIONAL LEVEL OF EMPLOYED POPULATION AGED 15 AND ABOVE BY SEX, 2000, 2010 Educational level Total Male Female Total Male Female 2000 % total Higher Specialized secondary Technical and vocational Complete secondary Basic Primary No education Table 3.10 presents the educational level of employed population aged 15 and above. Out of employed population, 96.5 percent is educated including 95.6 percent of men and 97.6 percent of women who attained some level of education. Out of employed males, 23.5 percent attained higher education, while the percentage of females with the same level of education is 12.5 percentage points higher. Compared to 2000, the number of highly educated population increased 2.8 times. The number and proportion of employed population with no education have declined by 0.6 percentage points. This can be explained by a fact that the number of population who desire to study increased over the last 10 years. In terms of marital status by sex compared to 2000, a proportion of males who claimed to be widowed or never married has decreased by percentage points, while that of separated, divorced, married or living together increased by percentage points. The share of widowed or never married women decreased by percentage points, while that of separated, divorced, married or living together increased by percentage points POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 47

33 chapter three. employment 3.5 EMPLOYED POPULATION AGED 15 AND ABOVE BY MIGRATION STATUS 2010 CENSUS RESULTS As shown in Figure 3.4, employees were classified into 3 categories as follows: non-migrants, migrants before 2010 and migrants in In total thousand population aged 15 and above live in Mongolia. Among them, 45.1 percent is non-migrants, 50.4 percent migrated before 2010 and 4.5 percent migrated in FIGURE 3.4. EMPLOYED POPULATION AGED 15 AND ABOVE BY MIGRATION STATUS, Total Male Female Total Male Female Total Male Female Not migrated Migrated before 2010 Migrated in 2010 Since children aged up to 5 were not born 5 years ago before the census, migration was defined by using certain time of period methods (permanent residence for 5 years). Therefore, only population aged 5 and above were included. Among the employed population, thousand persons or 45.1 percent is non-migrants, thousand or 40.9 percent is considered non-migrants, who did not migrate since January 2005 and thousand or 13.9 percent is migrants, who have migrated since January 2005 (Figure 3.5) 3.6 EMPLOYED POPULATION AGED 15 AND ABOVE BY DISABLED PERSONS AND THE 2010 CENSUS RESULTS At the national level, there are thousand or 97.8 percent population without disabilities and 19.7 thousand or 2.2 percent with some types of disability among thousand employed population (Figure 3.6). FIGURE 3.6. EMPLOYED POPULATION AGED 15 AND ABOVE BY TYPES OF DISABILITIES, 2010 No disability With disability Out of employed population with disabilities, 63.0 percent or thousand is male and 37.0 percent or 7277 thousand is female. In terms of disability types of disabled population, 27.5 percent has difficulty in moving, 21.9 percent in seeing, 17.6 percent in others, 17.0 percent in hearing, 10.7 percent has mental disorder and 5.2 percent has difficulty in speaking (Figure 3.7). FIGURE 3.7. EMPLOYED POPULATION AGED 15 AND ABOVE BY TYPE OF DISABILITY, 2010 Difficulty in moving FIGURE 3.5. MIGRATIONS OF EMPLOYED POPULATION AGED 15 AND ABOVE IN THE LAST 5 YEARS, 2010 Difficulty in seeing Other Difficulty in hearing 17.0 Where did you live in January, 2005? Mental disorter 10.7 Difficulty in speaking 5.2 Not migrated ( ) Not migrated in Januaty, 2005 ( ) Migrated in January, 2005 ( ) In respects of disabled population by age classification, the number keeps increasing for population aged 15 and above and it reached the highest percentage in years of age (Figure 3.8) POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 49

34 FIGURE 3.8. EMPLOYED POPULATION WITH DISABILITIES, BY AGE GROUP, ,500 3,000 2,500 2,000 1,500 1, Total Urban Rural CHAPTER FOUR UNEMPLOYED POPULATION POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY

35 chapter four. unemployed population 4.1 GENERAL PROVISIONS Concepts and definitions of economic activities of the population used for the last 2 censuses are on a basis of Section of Principles and Recommendations for Population and Housing Censuses, UN. Therefore, economic activity status of the population was defined and opportunity to compare the results of the two censuses was given. To determine the economically inactive population the present survey was conducted in accordance with the Measurement methodology for Statistical indicators of Employment and Labour Force approved in 2009 by the joint order no /94 of the Chairman of the national Statistical office and the Minister for Social Welfare and labour as well as recommendations of International Labour Organization. The unemployed population comprises all persons jobless available to work, of working age, actively looking for a job and capable to work, who during the reference period were: a. Without work, in other words, were not in paid employment or self-employment, or not engaged in economic activities for pay or profit as defined in Law of Labour and article 359 of the Civil Code, during the last week; á. Currently available for work, in other words, were available for paid employment as defined in Law of Labour and article 359 of the Civil Code during the reference period; â. Seeking work, in other words, had taken specific steps in a specified recent period to seek paid employment or self-employment. (The specific steps may have included registration at a public or private employment exchange; application to employers; checking at worksites, farms, factory gates, markets or other places of assembly; placing or answering newspaper or other forms of public advertisements.) In the 2000 census, the reason for not being employed was asked from the unemployed respondents. The structure of a questionnaire form is shown in Figure 4.1. FIGURE 4.1. QUESTIONNAIRE FORM DEFINING UNEMPLOYED POPULATION, 2010 Those who responded not having worked during the week prior to the census, but reported seeking work with regard to the question about the reason for being unemployed, were considered as unemployed. According to the 8 reasons above mentioned, only those who answered Seeking work meet the category of unemployed. Those who have chosen other reasons are considered as economically inactive. 4.2 NUMBER OF UNEMPLOYED POPULATION, BY SEX, AGE GROUP, EDUCATIONAL LEVEL, RESIDENCE AND REGION According to the 2010 Population and Housing census, the number of population who were able to be employed and were looking for jobs was Among them 57.9 percent or is males, while 42.1 percent or females. TABLE 4.1. NUMBER OF UNEMPLOYED POPULATION BY RESIDENCE, REGION AND SEX, 2000, Location 2010 Total Male Female Total Male Female and region 2000 % Number % Number % Number % Number % Number % Number % total Urban Rural Central Eastern Western Khangai Ulaanbaatar Yes Have you worked last week? No What s the main reason for not working? At the national level, the number of unemployed population was thousand in Compared to 2000 this number decreased by only 1 percent or 0.8 thousand persons. The proportion of unemployed population in total population aged 15 and above declined by 2.2 percentage points at the national level compared to In respect of regions, the proportion was the same in the Western, declined by 0.4 percentage points in the Khangai region, by percentage points in Central, Ulaanbaatar and Eastern regions, respectively, compared to the previous census. TABLE 4.2. PERCENTAGE OF UNEMPLOYED POPULATION IN POPULATION AGED 15 AND ABOVE BY SEX AND REGION, 2000, Studying - Pensioner - Not able to work - Home maker - No suitable work available - Seeking work - Not interested in working - Others Region Total Male Female Total Male Female TOTAL* Western Khangai Central Eastern Ulaanbaatar *Percentage of unemployed population to the population aged 15 and above POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 53

36 chapter four. unemployed population About 70 percent of total unemployed population settled in urban areas. But the unemployment rate declined by 2.2 percentage points in 2010 compared to 2000 including a 7.8 percentage points decline in urban and 2.8 percentage points increase in rural areas. Out of total unemployed population, persons or 37.0 percent is living in Ulaanbaatar city. The number of unemployed males is higher than that of females as well as the unemployment rate of men. In terms of the number of unemployed population by region, one out of 5 unemployed persons lives in the Khangai and 8.3 percent of total unemployed population - in Eastern regions. TABLE 4.3. UNEMPLOYMENT LEVEL BY AGE GROUP, RESIDENCE AND SEX, 2000, 2010 Age group Total Male Female Urban Rural Total Male Female Urban Rural total At the national level, the unemployment rate reached 15.3 percent of total labour force, while the proportion of male (16.1 percent) is a bit higher than that of female (14.2 percent). The unemployment rate is considerably higher in urban (16.5 percent) than rural areas (13.0 percent), which is true for both males (17.7 percent vs percent) and females (15.0 percent vs percent). FIGURE 4.2. UNEMPLOYMENT LEVEL BY AGE GROUP AND RESIDENCE, 2000, The unemployment rate is higher in urban areas and lower in rural. This can be explained by a fact that many herders migrated to urban settlements due to extensive suffering caused by natural hazards and lack of workplaces, when they moved in the cities. Among total unemployed population, there is 95.1 thousand of youths aged (57.9 percent of unemployed population). This is the highest rate among other age groups. However, there are 39.2 thousand unemployed persons aged representing 23.9 percent of total unemployed population. In the light of this, the majority or 63.1 percent of the unemployed population is those aged The number of unemployed population with higher education increased 3.5 times compared to the previous census results. In addition, the number of unemployed population with no-education increased by 53.5 percent, that of population with basic education by 25.5 percent and that of population with primary education by 5.7 percent. However, the number of unemployed population with basic education decreased by 46.7 percent, that of population with specialized secondary education by 39.2 percent and that of population with technical and vocational education by 34.4 percent, respectively (Table 4.4). TABLE 4.4. NUMBER OF UNEMPLOYED POPULATION BY EDUCATIONAL LEVEL, 2000, 2010 Educational level Total Male Female Total Male Female 2000 % TOTAL High Specialized secondary Vocational or technical Complete secondary Basic Primary Never attended school UNEMPLOYED POPULATION BY MIGRATION STATUS, 2010 CENSUS RESULTS From Figure 4.3, it is noted that the unemployed population was classified into 3 categories as follows: non-migrants, migrants before 2010 and migrants in Out of the total population of Mongolia (164.1 thousand) aged 15 and above, 53.0 percent is non-migrants, 41.1 percent migrated before 2010 and 5.9 percent migrated in FIGURE 4.3. UNEMPLOYED POPULATION SIZE BY MIGRATION STATUS, Total 2000 Urban 2000 Rural 2010 Total 2010 Urban 2010 Rural Total Male Female Total Male Female Total Male Female Not migrated Migrated before 2010 Migrated in POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 55

37 chapter four. unemployed population 4.4 UNEMPLOYED POPULATION BY TYPES OF DISABILITY, 2010 CENSUS RESULTS At the national level, out of thousand unemployed population aged 15 and above, thousand or 98.2 percent were enumerated as healthy and 2.9 thousand or 1.8 percent as having some types of disability (Figure 4.4). FIGURE 4.4. UNEMPLOYED POPULATION SIZE BY TYPES OF DISABILITY, In respects of unemployed population with disabilities by types of disability, 25.3 percent has difficulty in moving, 23.3 percent - in seeing, 19.9 percent - in hearing, 16.2 percent in others, 9.9 percent has mental disorder and 5.5 percent has difficulty in speaking (Figure 4.5). FIGURE 4.5. NUMBER OF UNEMPLOYED POPULATION WITH DISABILITIES BY TYPES OF DISABILITY, 2010 Difficulty in moving Difficulty in seeing Difficulty in hearing Others Mental disorder No disability With disabilities TABLE 4.5. UNEMPLOYMENT LEVEL BY AGE GROUP AND EDUCATIONAL LEVEL, 2010 (IN PERCENTAGE) Age group TOTAL Higher Specialized secondary Technical Complete and secondary vocational Basic Primary No education total male female Difficulty in speaking POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 57

38 chapter four. unemployed population TABLE 4.6. UNEMPLOYMENT RATE BY AGE GROUP AND EDUCATIONAL LEVEL, 2010 (IN PERCENTAGE) TABLE 4.7. UNEMPLOYMENT RATE BY AGE GROUP AND EDUCATIONAL LEVEL, 2010 (IN PERCENTAGE) Age group TOTAL Higher Specialized Technical and Complete secondary vocational secondary Basic Primary No education urban male female Age group TOTAL Higher Specialized Technical and Complete secondary vocational secondary Basic Primary No education rural male female POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 59

39 CHAPTER FIVE REGIONAL AND AIMAG DIFFERENCES Áàðóóí Õàíãàé Ç í Òªâ

40 chapter five. regional and aimag differences 5.1 GENERAL PROVISIONS The previous chapters presented labour force participation, unemployment rates and labour force structure differences in residential areas. Due to various reasons, economic activity of the population differs by regions and aimags. Those disparities will be explained in this chapter. 5.2 REGIONAL AND AIMAG DIFFERENCES OF ECONOMICALLY ACTIVE POPULAITON Table 5.1 illustrates the number of population aged 15 and above, the number of economically active population and labour force participation rates by regions, aimags and the capital, 2000 and TABLE 5.1. ECONOMICALLY ACTIVE POPULATION BY LABOR FORCE PARTICIPATION RATE, REGION, AIMAG AND THE CAPITAL CITY, 2000 AND 2010 Population aged 15 and above Economically active population Labour force participation rate (%) TOTAL Western region Bayan-Ulgii Gobi-Altai Zavkhan Uvs Khovd Khangai region Arkhangai Bayankhongor Bulgan Orkhon Uvurkhangai Khuvsgul Central region Gobisumber Darkhan-Uul Dornogobi Dundgobi Umnugobi Selenge Tuv Eastern region Dornod Sukhbaatar Khentii Ulaanbaatar Differences in the age structure and school attendance of the population may have influenced the economic activity of the population in each aimag and region as well as the capital. Particularly, the age structure and educational attainment in the urban settlements is considerably different than in other places and this difference can be explained by the labour force participation rate. The labour force participation rate is the highest in Khangai region (61.7), followed by Central (61.2), Eastern (58.4) and Western (58.0), while it is the lowest in Ulaanbaatar (51.9). Generally the labour force participation rate is the lowest in Ulaanbaatar. For instance, as seen in Table 5.1 the labour force participation rate was 51.8 percent or the lowest in Ulaanbaatar city in The labour force participation rates declined in all regions and aimags in 2010 compared to According to the national total, the labour force participation rate declined by 3.9 percentage points in 2010 in comparison to 2000 and the rates in Khangai and Western regions decreased by percentage points. This can be explained by a fact that no new industrial factors were established since 2000 in these two regions, isolated from urban settlements, along with a poor infrastructure system and lack of work places. The proportion of urban population is high, while its labour force participation is low. A higher proportion of students attending school in urban areas has resulted in an increase in the number of economically inactive population. However, for the population of Ulaanbaatar city, small increases were registered in the labour force participation rate since As seen in Figure 5.1, the labour force participation rate is the highest or above 70.0 percent in Umnugobi and on contrary, the lowest or 53.3 percent in Dornod aimag. Among employed population, 63.8 percent is living in urban areas, while the number of employed population is comparably different in regions POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 63

41 chapter five. regional and aimag differences FIGURE 5.1. LABOR FORCE PARTICIPATION RATE BY AIMAG AND THE CAPITAL CITY, 2010 TABLE 5.2. NUMBER OF EMPLOYED POPULATION BY AIMAGS, THE CAPITAL AND SEX, 2000, 2010 Arkhangai 69.1 Bayan-Ulgii 69.9 Bayankhongor 74.8 Bulgan 67.4 Gobi-Altai 76.7 Dornogobi 71.4 Dornod Dundgobi 76.4 Zavkhan 69.6 Uvurkhangai 75.1 Umnugobi 77.6 Sukhbaatar 70.5 Selenge 57.4 Tuv 67.2 Uvs 69.7 Khovd 67.2 Khuvsgul 69.4 Khentii 66.1 Darkhan-Uul 54.6 Ulaanbaatar 51.8 Orkhon 62.4 Gobisumber Aimag and capital city % Total Male Female Total Male Female TOTAL Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber FIGURE 5.2. NUMBER OF EMPLOYED POPULATION BY OCCUPATION, 2010 The number of employed population increased by percent in Dornod, Dornogobi, Selenge, Gobisumber, Darkhan-Uul, Umnugobi, Orkhon and Ulaanbaatar but declined by percent in Sukhbaatar, Bulgan, Khentii, Tuv, Khuvsgul, Arkhangai, Bayan-Ulgii, Bayankhongor, Uvs, Gobi-Altai, Khovd, Uvurkhangai, Dundgobi and Zavkhan compared to the previous census. Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber Professionals Agriculture and allied sectors like forestry and fishery workers Industry, construction, craft and relevant services workers Service and sales workers Plant and machine operators and assemblers Other POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 65

42 chapter five. regional and aimag differences As for occupation, the major share is in agriculture, forestry, fishery and hunting. The number of persons engaged in industrial, construction, craft and relevant services is higher in Orkhon, Umnugobi and Ulaanbaatar than in other aimags, while the number of persons engaged in trade and services is higher in Ulaanbaatar, Orkhon, Gobisumber, Dornod and Dornogobi. Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber FIGURE 5.3. EMPLOYED POPULATION AGED 15 AND ABOVE BY EMPLOYMENT STATUS, Paid workers Employers Self employed Cooperative members Unpaid family busness workers Others Employment status of the population has changed considerably in the last 10 years. In 2000, there were thousand persons engaged in unpaid family businesses. This number has dropped to thousand in The proportion of self-employed population decreased by 3.5 percentage points in all aimags, while the proportion of employees engaged in paid jobs and that of employers increased, which shows expansion of production and services. A drop in the share of self-employed population has positive effects such as provision of labour safety, coverage by social welfare and increasing chances to fully exercise his/her employment rights. 5.3 NUMBER OF UNEMPLOYED POPULATION, AIMAG DISPARITIES, AIMAGS AND REGIONS TABLE 5.3. NUMBER OF UNEMPLOYED POPULATION BY AIMAG DISPARITIES, AIMAGS AND REGIONS, 2000, 2010 Unemployed population Unemployment rate (%) TOTAL Western region Bayan-Ulgii Gobi-Altai Zavkhan Uvs Khovd Khangai region Arkhangai Bayankhongor Bulgan Orkhon Uvurkhangai Khuvsgul Central region Gobisumber Darkhan-Uul Dornogobi Dundgobi Umnugobi Selenge Tuv Eastern region Dornod Sukhbaatar Khentii Ulaanbaatar In the last 10 years, the number of unemployed population increased by percent in Ulaanbaatar, Gobisumber, Bayankhongor, Arkhangai, Dornogobi, Khuvsgul, Dundgobi, Khovd and Uvurkhangai and 2.5 times in Umnugobi. However, the number decreased by percent in Bayan-Ulgii, Khentii, Zavkhan, Bulgan, Uvs, Darkhan-Uul, Orkhon, Sukhbaatar, Selenge, Tuv and Dornod. Compared to the 2000 census results, although the unemployment rate declined by 2.2 percentage points at the national level, it increased by percentage points in Dornogobi, Arkhangai, Bayankhongor, Khovd, Umnugobi, Khuvsgul, Dundgobi and Uvurkhangai, while decreased by percentage points in Bayan-Ulgii, Gobisumber, Khentii, Bulgan, Zavkhan, Tuv, Uvs, Gobi-Altai, Sukhbaatar, Dornod and Orkhon. In addition, there is a positive result for Ulaanbaatar, which shows the number decreased by 6.8 percentage points POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 2010 POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY 67

43 FIGURE 5.4. UNEMPLOYMENT RATE BY AIMAG AND THE CAPITAL CITY, 2000, 2010 Arkhangai Bayan-Ulgii Bayankhongor Bulgan Gobi-Altai Dornogobi Dornod Dundgobi Zavkhan Uvurkhangai Umnugobi Sukhbaatar Selenge Tuv Uvs Khovd CONCLUSIONS AND RECCOMMENDATIONS Khuvsgul Khentii Darkhan-Uul Ulaanbaatar Orkhon Gobisumber In Figure 5.4 the unemployment rates are shown by 2000 and In terms of the unemployment rate by aimags, the highest rate is registered in Dornod (21.9 percent) and the lowest in Gobi-Altai (7.1 percent) POPULATION AND HOUSING CENSUS OF MONGOLIA: ECONOMIC ACTIVITY