The Labour Force Survey (LFS) for the second quarter of 2024, conducted by the Department of Census and Statistics in collaboration with the Central Bank of Sri Lanka, provides a detailed overview of the nation’s labor market dynamics. The survey, based on data collected from 6,440 housing units across the country during April, May, and June 2024, highlights notable trends and persistent challenges, particularly for women and youth.
According to the survey, most of the active labor force in Sri Lanka comprises individuals in their 40s. The highest labor force participation rate (LFPR) among men was observed in the 45–49 age group, standing at an impressive 96.3%. For women, the highest LFPR was recorded in the 40–44 age group at 46.5%. Despite this, there remains a significant gender disparity in labor force participation, with men consistently outnumbering women across all age categories.
Sri Lanka’s total employed population for the second quarter of 2024 was estimated at 8 million. Of this workforce, 48.5% were employed in the service sector, 26.5% in the industry sector, and 25% in agriculture. Compared to the same period in 2023, there has been an increase in employment in the service and industry sectors, while the agriculture sector experienced a decline. The majority of the workforce consists of private sector employees, and approximately 75% of the employed population works in non-agricultural sectors. Among women, 22.1% are employed in agriculture, compared to 26.5% of men. The service sector continues to hold the largest share of employment for both men and women.
The survey also sheds light on unemployment rates and their distribution across gender, age, and education levels. Sri Lanka’s overall unemployment rate for the second quarter of 2024 was 4.7%, with approximately 397,855 individuals classified as unemployed. Gender disparities are evident, with women experiencing an unemployment rate of 7.0%, nearly double the 3.6% rate for men. Youth unemployment, particularly among individuals aged 15–24, remains alarmingly high at 25.4%. For this age group, male unemployment stood at 20.1%, while female unemployment soared to 35.6%, reflecting significant challenges for young women entering the workforce.
Educational attainment also plays a role in unemployment disparities. Those with G.C.E. A/L and above qualifications reported an unemployment rate of 7.8%. Among this group, the unemployment rate for men was 5.8%, while for women it reached 10.0%. This indicates that even higher education does not guarantee employment, particularly for women. The survey reveals that unemployment among educated women is consistently more acute than among their male counterparts, a trend that has been observed across multiple survey rounds.
The challenges faced by educated women in Sri Lanka’s labor market are particularly striking. Despite their qualifications, systemic barriers continue to limit their employment opportunities. These barriers are often rooted in cultural, social, and structural factors, which discourage or prevent women from fully participating in the workforce.
Youth unemployment presents another significant issue, with a substantial proportion of young people, especially women, unable to secure jobs. This suggests a mismatch between the skills acquired through education and the demands of the labor market, raising concerns about the adequacy of the current education and training systems in preparing young individuals for employment.
The findings of the survey highlight the urgent need for targeted policy interventions to address these disparities. Enhancing female labor force participation through measures such as flexible work arrangements, childcare support, and addressing cultural barriers is crucial. Similarly, aligning education and training programs with labor market requirements can help reduce youth unemployment and better integrate young people into the workforce.
In conclusion, the Labour Force Survey for the second quarter of 2024 underscores both progress and persistent inequalities in Sri Lanka’s labor market. While employment in sectors like services and industry has grown, the continued struggles of women and youth to secure equitable opportunities remain a significant concern. Addressing these issues will be critical for fostering inclusive and sustainable economic development in the country.
