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CRITICALLY ANALYSIS OF LABOUR MARKET ON

ECONOMIC DEVELOPMENT: CASE STUDY OF
MAGUNJE GROWTH POINT, MASHONALAND WEST
PROVINCE.



BY
MUZA TATENDA
(B1025595)
A project proposal submitted in partial fulfillment of the requirements for the
Honours degree in Economics
Department of Economics
Faculty of Commerce
BINDURA UNIVERSITY OF SCIENCE EDUCATION
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Table of Contents
BINDURA UNIVERSITY OF SCIENCE EDUCATION ....................................................................... 1
1.0 BACKGROUND .............................................................................................................................. 3
1.1 RESEARCH OBJECTIVES ............................................................................................................. 3
1.2 RESEARCH QUESTIONS.......................................................................................................... 4
1.3 HYPOTHESIS TESTING................................................................................................................. 4
1.4 JUSTIFICATION OF STUDY ..................................................................................................... 4
1.5 STATEMENT OF PROBLEM ..................................................................................................... 5
2.0 METHODOLOGY ....................................................................................................................... 5
2.1 SOURCE OF DATA ..................................................................................................................... 5
2.1.1 Primary Sources ........................................................................................................................ 5

2.1.2 Questionnaires ........................................................................................................................ 6
2.1.3 Interview ............................................................................................................................... 7
2.2 Secondary Sources ....................................................................................................................... 7
2.3 TIME SCALE ................................................................................................................................... 8
2.4 RESOURCES ................................................................................................................................ 9
2.5 BUDGET FOR THE RESEARCH (US $) ...................................................................................... 9
3.0 REFERENCES ............................................................................................................................... 10







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1.0 BACKGROUND
Labour market in Zimbabwe is performing well both formal and informal on achieving economic
development. Despite its contribution to economic development, labour market is facing many
difficult challenges in terms of remuneration, working conditions and brain drain especially
during the period of 2006 to 2008 . These factors are delimiting the motive of labour market to
achieve economic development especially the formal sector.
Most of the formal sector in Zimbabwe is employed the Government which is paying below
poverty datumn line which is around $600.Furthermore in Zimbabwe some sectors in the labour
market especially the informal sector is growing at an exponential rate to such an extent that
various tax avoidance activities are taking place resulting. This is resulting to low tax revenue for
the government. In my study, I am going to focus on different forms of work, discussing how
each has risen, with different production, and labour process and how they have evolved as
economic changes and how production levels have increased.
1.1 RESEARCH OBJECTIVES

Identify strategies that promote labour market to achieve economic development.
To find out other factors apart from labour market that has contributed to
economic development.
Find out employee dialogue regarding flexible working hours ,enumeration and
working conditions.
To evaluate contribution made by labour market on economic development.


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1.2 RESEARCH QUESTIONS

What contribution is made by labour market on economic development?

Are there any strategies that can be implemented to promote labour market?

What other factors apart from labour market that are contributing to economic
development?

1.3 HYPOTHESIS TESTING

Income of labour market has no effect on economic development.
There is no significance impact of working conditions of labour market on
economic development .
There is no effect of tax avoidance by informal labour market on development of
the economy.

1.4 JUSTIFICATION OF STUDY

The study seeks to examine how labor market is contributing to economic development.
It shall contribute to the current controversial debate on whether to increase renumaration
package of labor market especially formal sector which is paid below poverty datum
line .It is also in the interest of this paper to establish whether the working environment is
affecting achievement of economic development. The informal sector is also playing a
pivotal role on achieving development of the economy. To be particular ,the project
seeks to critically analyze the strength and weakness of informal sector on development
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of Zimbabwean economy. Furthermore it tries to outline loopholes created by informal
sector in destructing the economy of Zimbabwe such as tax avoidance.




1.5 STATEMENT OF PROBLEM

Labour market in Zimbabwe is facing many problems leading to its failure to promote
economic development. Efforts have been made by the government of Zimbabwe to
motivate labour market both informal and formal.Eventhough the government is trying to
motivate them ,the incentive is not that effective. Some of the problems which the labour
market is facing include under payment .Their income is far below poverty datum line
which is around $600.Due to this problem, this has adverse impact on employment both
quality and quantity. It is then resulting to labour force in Zimbabwe moving out of the
country going in countries with greener pastures in search of higher packages.

2.0 METHODOLOGY

Obtrusive and unobtrusive research instruments or data collection methods which include
primary and secondary data shall be employed. In order to explore information that is
factual and formal .the researcher shall conduct interviews with representatives of different
institutions.
2.1 SOURCE OF DATA
2.1.1 Primary Sources
This information collected at the original source. In this research the information to be
collected consist of findings obtained through original sources, which are interviews with
workers in both formal and informal sector.
The primary data sources which are going to be employed in this study are:
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a) Questionnaires
b) Interviews



2.1.2 Questionnaires
The researcher chose to use the quantitative research method in the form of the questionnaire.
Questionnaire is a document used in the sample survey to stimulate and record information from
individual by means of specific questions (Kothari, 2004). It can be said that a questionnaire is a
list of a research or survey questions asked to respondents and designed to extract specific
information. Because of the following advantages, it is the most popular method of conducting
scholarly research- it provides convenient way of gathering data from a target population
.Merrian and Simpson (1984) suggest the following advantages that attracted the researcher.
Questionnaire is less time consuming and offers anonymity.
In the study the researcher arranged time with the participants to meet and gave them the
questionnaires to answer also the questionnaires offered anonymity because the research
highlighted on the questionnaire that the participants should not write their names.

Therefore the participants were able to provide the information in the study without any fear of
being identified in any way.
More so the questionnaire has an advantage that it is easy to analyze and most statistical analysis
is done by software and data can easily be analyzed. Hence in the research the research made use
of micro soft office excels to construct the graphs to analyze them in the discussion chapter. Also
the method has an advantage that it avoids interviewer bias, the participants are not influenced to
say what they do not want. In the research the researcher just gave the participants to answer the
questionnaires without influencing them on what to respond in the questionnaires.
Although the questionnaire has the above noted advantages it has the following disadvantages
since the questionnaire gives little opportunity to probe and clarify the issues discussed in the
questionnaire, since the researcher is at a distance when the participants answer the
questionnaires there is little opportunity to develop rapport with the participants. To overcome
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these shortcomings and thus to ensure validity and reliability of the questionnaire, the researcher
in the questionnaire had a combination of closed and open-ended questions to get the information
from the participants.

2.1.3 Interview
An interview, as a data-collection method was used in this research, there was personal contact
and interactions between the researcher and the interviewees. The personal contact was used
to pursue in-depth information about the factors which are affecting labour market to achieve
fully economic development. Open-ended questions were asked during such interview such
that much of the information collected from the interview was qualitative.
The reason why interviews were used is because they are flexible, they provide the researcher
with detailed and fresh information the researcher have predicted or anticipated. They also
involved dialogue between interviewer and respondents, unclear questions were clarified.
Personal contact allowed the research to establish rapport and even personal relationship, with
respondents hence helping the researcher build future career prospects.

2.2 Secondary Sources
Secondary data is Information taken from a source that was not involved in the original
investigation secondary sources of data consisted of materials that come from someone other
than the original source. Because secondary data is always someone elses interpretation of
primary data, therefore secondary data must be carefully cross checked for accuracy. In this
study the researcher will use internet ,textbooks and journal.
These had a relative advantage of efficient time utilization and use of less financial resources.




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2.3 TIME SCALE



August to October- Reviewing of literature.
November Drafting of literature.
December Review research methods, literature and agree on research strategies.
January Collecting secondary data.
Feb to Mar Take a pilot or a niche research and the revision of questionnaires.
time scale
Aug to Oct
Nov
Dec
Jan
Feb to Mar
Apr to Jul
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Apr to Jul Administer questionnaires, completion of face draft project report and final
writing of the project report.



2.4 RESOURCES
I am going to use my laptop and printer to compile my project.Furthermore will use nearby
library to research and internet caf as well.
2.5 BUDGET FOR THE RESEARCH (US $)
FOOD $20
PRINTING COSTS $30
STATIONARY $15
SUNDRY COSTS $7
TRANSPORT COST $50
TELEPHONE COST $10
TOTAL $132







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3.0 REFERENCES
Atkinson, J. (1984) Flexibility, Uncertainty and Manpower Management, IMS Report
No.89, Institute of Manpower Studies, Brighton.

Atkinson, J. and Meager, N.(1986) Changing Working Patterns: How companies achieve
flexibility to meet new needs, Institute of Manpower Studies, National Economic
Development Office, London.

Fagan, C., Hegewisch, A., and Pillinger, J. (2006) Out of Time: Why Britain needs a new
approach to working-time flexibility. Trade Union Congress, London. Out of Time report
link

Reilly, P. (2001) Flexibility at Work: Balancing the interests of employers and employee.
Gower Publishing Limited, Hampshire.

In my area of study in Magunje I will be concentrating on both the formal and informal
sectors.I will have my pilot survey on governmetal institutions like government schools , and
Hurungwe district council.