Timor-Leste

Overview

Timor-Leste has made significant progress since independence, but economic and employment growth remain key concerns in its development. 

After a strong recovery from the 1999 destruction, economic activity slowed down substantially after mid-2002. Real GDP is estimated to have declined by 3 percent in 2003. Inflation was high at 10 percent,  immediately after independence, but appears to have stabilized at 4 percent during 2003 and 2004.

The country however, continues to be among the least developed in East Asia on most social indicators, with one in five people living below US$1 a day.

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 Ongoing Projects
 Closed Projects
 Analytical and Advisory Activities

Ongoing Projects

None

Closed Projects

None

Enterprises, Workers and Skills in Urban Timor-Leste - P079630 (364kb pdf)

This report is part of an overall program on social protection and labor markets in Timor-Leste.

Other outputs of the same program include a report on the impact of the minimum wage policy and a review of technical and vocational training and employment centers.

The paper analyses the situation of urban labor markets in Timor-Leste based on a survey conducted by the Dili Institute of Technology.

Several initiatives dealing with private sector development and employment laws have been undertaken or are planned.

The reality of a growing youth population will mean a potentially growing unemployment problem, in an economy where youth unemployment in urban areas is already high.

Given the paucity of up-to-date labor market information, a survey of formal and informal urban enterprises was carried out in August-September 2004 in Dili, Baucau and Maliana in order to provide up-to-date information on some key elements of urban labor markets and act as a resource as stakeholders develop labor and employment policy. 

The research found that small scale credit initiatives need to be deepened in the face of widespread demand and relatively limited start-up financing needs; skills enhancement is needed at the micro and macro-levels; and that moves to formalize a minimum wage require more benchmarking of local wage levels and those of neighboring countries.

Youth and Youth Policy Development – P089990 (in progress)

The Government of Timor-Leste intends to implement a youth policy, with the assistance of a long term supervisor provided by UNICEF.

This work will examine available data and examine possible avenues for improving school completion and youth joblessness.  The piece will examine how youth policy development has taken shape across the world and determine current gaps in policies geared toward youth advancement. The work is intended to determine where the World Bank can be of assistance.

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