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Labor Market Assessment Graduating to Resilience

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Labor Market Assessment Graduating to Resilience Labor Market Assessment Graduating to Resilience October 2018 “This publication is made possible by the generous support of the American people through the Office of Food for Peace, United States Agency for International Development (USAID) under terms of Cooperative Agreement No. AID-FFP-A-17-00006. The contents are the responsibility of AVSI Foundation and Graduating to Resilience and do not necessarily reflect the views of USAID or the United States Government.” Graduating to Resilience is implemented by AVSI Foundation in partnership with 2 Executive Summary Launched in October 2017, the Graduating to Resilience Activity (the Activity) aims to help extremely poor Ugandan and refugee households in Kamwenge, Uganda, graduate from conditions of food insecurity and fragile livelihoods to self-reliance and resilience. This Activity is being jointly implemented by the AVSI consortium (or team) consisting of the AVSI Foundation, IMPAQ International, and Trickle Up. To understand the current challenges and opportunities faced by Ugandan and refugee communities in pursuing meaningful livelihoods, the AVSI team conducted a labor market assessment (LMA). The purpose of the LMA was to: understand current livelihoods of Ugandans and refugee households living in Kamwege; identify avenues to strengthen current livelihoods for poor and ultra-poor households; and find ways to connect these households to other viable livelihoods that they could pursue with the Activity’s support. The key lessons learned from the LMA will contribute to the design and content of the interventions implemented under the Activity. To implement the LMA, we used a mixed methods approach to triangulate quantitative and qualitative evidence to examine the current state of the labor market among both Ugandan and refugee communities. As a first step, we conducted a rigorous desk review of existing literature to understand the main livelihoods and challenges in pursuing livelihoods for the host and refugee communities in Kamwenge. Next, the team conducted a pre-assessment site visit to narrow the scope of the analysis and contextualize the data collection tools. The team conducted key informant interviews with relevant stakeholders, such as the United Nations High Commission on Refugees, the Office of the Prime Minister, and district agricultural officials, and focus group discussions with Ugandan and refugee women and men. Following the pre-assessment visit, we conducted 17 focus group discussions with a total of 93 Ugandans and 117 refugees separately with Ugandan and refugee women and men. These focus group discussions elicited information from households on the broader challenges they face, the livelihoods they would like to pursue, and the reasons for choosing those potential livelihoods. We also learned the challenges unique to Ugandans and refugees for engaging in meaningful livelihoods. Finally, we designed and implemented a household and women’s survey among the host community and refugee households. The household survey was designed to collect information on the livelihoods pursued by household members. As a complementary effort, we also collected information specifically from women using a women’s survey to understand key elements of livelihood decision-making within the household since women will be the primary point of entry and contact for the Activity’s implementation. Our sampling strategy for the household survey was purposive. Our purpose was to select a proportionally high number of poor and ultra-poor households as they are the main target population for the intervention. We collected data in 19 Ugandan and 18 refugee villages, with a total sample size of 333 Ugandan and 350 refugee households. Given that the sampling was purposive and the households were not selected from the village roster list randomly, our household sample could be biased and the results from the survey should be interpreted with caution, especially with respect to the generalizability of the results. As is expected in a rural setting similar to Kamwenge, we found that a vast majority of Ugandan and refugee households were engaged in agriculture. Along with farming, engaging in casual labor was also common among the two household groups. Whereas livestock rearing was the third most frequent livelihood activity that the Ugandan households engaged in, pursuing a small 3 business was the third most common task pursued by refugees. Among the households involved in agriculture, maize and beans were the most common crops grown by both types of households. Ugandan households also cultivated bananas, millet, sweet potatoes, cassava, Irish potatoes, and groundnuts. In contrast, no refugee households in our sample cultivated millet, fruit, or coffee. Cassava was the other major crop grown by refugees. Overall, refugee households grew fewer types of crops as compared to their Ugandan counterparts. Among the households involved in livestock rearing, we found key differences between Ugandans and refugees. Ugandan households owned an average of 12 animals, and refugee households own about half as many. Ugandan households owned more sheep and cattle, whereas refugees owned smaller animals, such as chicken and ducks. We also elicited information on the types of livelihood opportunities households would like to pursue in the future if given some support and/or a cash transfer. The vast majority of both Ugandan and refugee households would pursue either a business, agricultural, or livestock livelihoods. A similar proportion of both Ugandan and refugee households would raise livestock (33 percent vs. 35 percent, respectively) or pursue a skilled trade (both 2 percent). However, a much larger proportion of refugee households relative to Ugandan households would engage in business pursuits (48 percent vs. 33 percent), whereas a higher proportion of Ugandan households would engage in agricultural pursuits (29 percent vs. 16 percent). We also asked women about the future livelihoods they would like to engage in. Refugee women overwhelmingly chose business enterprises, with a smaller proportion choosing livestock. Ugandan women chose agriculture, livestock, and business pursuits in similar proportions. The majority of households reported lack of access to capital as a significant constraint in pursuing meaningful livelihoods. A lack of training and lack of land were also considered significant constraints for survey respondents. While the broad patterns of livelihood activities pursued by Ugandans and refugees are similar, a closer analysis reveals key structural differences between the two groups. First, refugees earned significantly less per day for both agricultural and non-agricultural casual labor as compared to Ugandans. Second, refugees rented plots that were, on average, larger than the ones they owned, and larger than the ones owned by Ugandans. Moreover, refugees paid significantly more for renting their plots as compared to Ugandans. Third, a higher proportion of refugees were unable to obtain loans vis-à-vis Ugandans. Fourth, Ugandans were more likely to want to engage in agricultural pursuits compared with refugees, who wanted to engage in business. Presumably, refugees pursued non-agricultural livelihoods prior to relocating to Uganda. Given these differential structural constraints between Ugandans and refugees, program activities may have a varying level of success and acceptance among Ugandans and refugee communities. Similarly, differences in household decision making also exist among women and men belonging to the same household. Most household decisions are made jointly by the household head and the spouse. Women participate most in decisions pertaining to food crop farming. If the program aims to strengthen target households’ place in certain value chains, the AVSI team will need to consider these household dynamics. It is quite possible that cultivating certain crops may have a buy-in by women and not from men; therefore, both primary decision-makers in the household will need to be on board in making their economic plan. Ultimately, the program intervention should, closely examine these differences between and within households for enhancing the program impact. 4 List of Acronyms The Activity……………………………………. Graduating to Resilience Activity DRC…………………………………………… Democratic Republic of Congo FEWS Net…………………………………..…. Famine Early Warning Systems Network FGD…………………………………………… Focus group discussion LMA…………………………………………… Labor market assessment OPM…………………………………………… Office of the Prime Minister UGX ………………………………………..…. Ugandan shillings UNHCR……………………………………….. United Nations High Commission on Refugees VSLAs……………………………………….… Village saving and lending associations WFP…………………………………………… World Food Program 5 1. Introduction Launched in October 2017, the Graduating to Resilience Activity (the Activity) aims to help extremely poor Ugandan and refugee households in Kamwenge, Uganda, graduate from conditions of food insecurity and fragile livelihoods to self-reliance and resilience. The Activity will work directly with approximately 13,200 Ugandan and refugee households that are economically active but chronically unable to meet their basic needs. The suite of interventions under the Activity comprises coaching, consumption and saving support, risk management, technical training, asset transfer, and improving linkages within key value chains. The Activity will be designed for implementation under three treatment arms (standard adapted model, group coaching model, and the empowerment model)
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