Abstract:
This paper investigates causes of trends and structural changes in labour
market in Sri Lanka during 1963-2006 period. Total labour force has
increased nearly three times while generating slow growth in employment
during the past fifty years. Unemployment rate had been prevailing at
higher level until late 1970s. Main reasons behind the drastic decline of it in
1990s have been the sizable slowdown in population growth since 1970s,
high international migration rate, expansion of education levels, and urban
informal sector economic activities after 1977. None of these factors have
been directly contributing to increase output in the economy. Contrary,
significant structural changes in employment, unemployment and
underemployment have been undergone in terms of gender, age, education
level, sector, industry and profession. Finally, labour market has operated
by creating many push factors for international migration such as low real
wages, high unemployment and underemployment rates, discriminations in
terms of gender, age, sector, industry, profession and level of education.
