Chapter 9. Economic Activity2000 FSM <strong>Census</strong> of <strong>Chuuk</strong> <strong>State</strong>UnemploymentTable 9.6 compares <strong>Chuuk</strong> <strong>State</strong>'s unemployment rate in 1994 and 2000 by gender. The state unemployment ratewas about 20 percent in 1994 compared with about 34 percent in 2000 and showing a higher unemployment rateamong females than males in both census years. In every age bracket, female unemployment rate was higher thanmales: more than 10 percentage points higher in 1994 but less than 5 points in 2000. This illustrates that the gapbetween males and females labor force participation is getting narrower. Additionally, unemployment rate is higherin the younger age brackets than in the older ones, suggesting that unemployment in general was age related, withthe rates declining as age rose in both years.Table 9.6: Unemployment Rates (Percent of Labor Force Unemployed) by Age Group and Sex, <strong>Chuuk</strong> <strong>State</strong>: 1994 and 20001994 2000Age group Total Males Females Total Males FemalesTotal 19.9 13.1 34.3 34.2 30.9 38.615 to 19 years 40.0 31.6 56.1 50.5 46.7 55.920 to 24 years 33.4 25.0 46.7 49.8 47.2 53.325 to 29 years 22.2 14.6 36.5 42.5 39.3 46.530 to 34 years 18.0 12.3 30.4 34.0 29.6 39.935 to 39 years 14.8 9.6 25.1 30.8 26.5 36.240 to 44 years 12.3 5.3 27.7 22.0 20.1 24.645 to 49 years 9.3 4.7 21.8 19.3 16.0 24.350 to 54 years 8.1 4.0 19.7 14.5 13.5 16.155 to 59 years 7.8 4.9 17.8 10.8 9.3 13.360 to 64 years 10.6 4.9 32.2 7.4 7.0 8.065 to 69 years 15.9 9.8 32.3 7.7 9.2 5.470 to 74 years 12.0 8.9 21.1 7.0 11.8 -75 yrs & over 14.3 9.4 23.5 7.4 5.8 10.3Source: 1994 FSM <strong>Census</strong>, Table P132; 2000 FSM <strong>Census</strong>, Table P9-1.Table 9.7 illustrates the widely reported differences in unemployment rates by age groups in 1994 and 2000 among theregions in <strong>Chuuk</strong> <strong>State</strong>, with Faichuk having the highest unemployment rate (36.5 and 30.2 percent) compared with therest of the regions in both census years. Together with their already observed low LFPRs, this result is indicative of thepoor employment and income job opportunities available in Faichuk. As expected, Northern Namoneas had the lowestunemployment rate in <strong>Chuuk</strong> <strong>State</strong> in 1994 (14 percent). It was where most businesses and government offices arefound, thus work opportunities there are common. However, by 2000, the unemployment rate in Northern Namoneashad more than doubled its 1994 rate to 30 percent. This is possibly a result of the influx of migrants from the OuterIslands, causing the unemployment rate to rise.Generally, there was an inverse relationship between the unemployment rate and age across the regions for both censusyears. There were some slight variations, but the unemployment rate tended to decrease as age rose. For example, theunemployment rate at age group, 15 to 19 years, were 40 and 50 percent in 1994 and 2000, respectively, as opposed toage group, 55 to 59 years, where the unemployment rate were 8 and 15 percent, respectively.Table 9.7: Unemployment Rates (Percent of Labor Force Unemployed) by Age Groug and Region, <strong>Chuuk</strong> <strong>State</strong>: 1994 and 20001994 2000Age group Total N.Namon. S.Namon. Faichuk Mortlocks Oksortod Total N.Namon. S.Namon. Faichuk Mortlocks OksortodTotal 19.9 13.6 22.2 36.5 15.8 14.7 34.2 37.3 23.1 39.8 33.3 37.515 to 19 years 40.0 42.9 44.1 58.8 19.6 16.6 50.5 67.4 31.1 54.7 50.2 48.720 to 24 years 33.4 28.1 35.5 50.5 22.6 30.6 49.8 56.0 32.8 54.8 47.0 55.125 to 29 years 22.2 16.3 27.4 41.1 18.8 10.8 42.5 44.6 32.2 47.7 40.4 46.030 to 34 years 18.0 14.2 18.7 33.9 15.2 11.5 34.0 34.0 24.5 39.8 34.1 40.935 to 39 years 14.8 8.2 17.7 28.1 16.6 9.8 30.8 32.2 22.6 37.8 28.1 32.940 to 44 years 12.3 5.6 15.7 24.4 14.8 11.1 22.0 19.8 17.6 26.1 25.1 24.145 to 49 years 9.3 3.8 11.9 24.5 8.2 3.4 19.3 18.2 15.5 22.3 23.1 19.250 to 54 years 8.1 1.9 5.1 19.4 7.2 11.1 14.5 13.2 9.9 15.8 23.2 10.655 to 59 years 7.8 3.0 7.9 22.4 5.8 2.6 10.8 10.1 3.3 14.8 16.5 10.860 to 64 years 10.6 4.2 2.0 22.4 14.3 16.7 7.4 13.7 - 8.9 7.9 9.165 to 69 years 15.9 4.2 5.6 29.6 14.8 23.5 7.7 11.4 1.2 9.4 17.9 6.370 to 74 years 12.0 11.1 - 26.7 5.3 13.3 7.0 26.7 - 3.1 15.0 -75 yrs & over 14.3 6.7 - - 21.4 33.3 7.4 31.3 - 4.5 - -Source: 1994 FSM <strong>Census</strong>, Table P132; 2000 FSM <strong>Census</strong>, Table P9-1Persons who have been unemployed for a year or more are sometimes referred to as the long-term unemployed.They often have difficulty finding jobs as their work-skills will have depreciated and the less likely is it that theywill find new work. Of course, it is not appropriate to label all of these persons as the long term unemployed since,although they are currently unemployed, we do not know for how much of the time since they last worked have theybeen seeking work.80 <strong>Chuuk</strong> Branch Statistics Office, Division of Statistics, FSM Department of Economic Affairs
2000 FSM <strong>Census</strong> of <strong>Chuuk</strong> <strong>State</strong>Chapter 9. Economic ActivityTable 9.8 reports on the last work experience of the 2,218 unemployed persons in 1994 and the 6,213 unemployed in2000 in <strong>Chuuk</strong> <strong>State</strong> according to their age and sex. These respondents were asked for the year in which they lastworked at a job, business or farm, even if for only a few days. In 1994, nearly 90 percent of the unemployed had notpreviously worked while the 2000 data showed that more than 95 percent of the unemployed had not previouslyworked. No pattern was noticeable by age; however, in general, the female unemployed were more likely to havehad no previous work.Table 9.8: Unemployed Persons by Age Group and Previous Work Experience, <strong>Chuuk</strong> <strong>State</strong>: 1994 and 20001994 2000Proportion worked in1994 or earlierProportion neverworkedProportion worked in2000 or earlierProportion neverworkedAge group Total Males Females Total Males Females Total Males Females Total Males Females Total Males Females Total Males FemalesTotal 2,218 989 1,229 10.8 13.3 8.7 89.2 86.7 91.3 6213 3268 2945 4.1 4.7 3.4 95.9 95.3 96.615 to 19 years 442 231 211 5.9 6.1 5.7 94.1 93.9 94.3 1177 643 534 0.3 0.5 0.2 99.7 99.5 99.820 to 24 years 534 244 290 9.7 11.5 8.3 90.3 88.5 91.7 1472 797 675 2.0 2.1 1.8 98.0 97.9 98.225 to 29 years 334 144 190 12.3 17.4 8.4 87.7 82.6 91.6 1161 597 564 3.7 4.2 3.2 96.3 95.8 96.830 to 34 years 271 126 145 14.4 15.1 13.8 85.6 84.9 86.2 769 385 384 5.3 6.8 3.9 94.7 93.2 96.135 to 39 years 230 100 130 10.4 15.0 6.9 89.6 85.0 93.1 646 313 333 6.0 7.7 4.5 94.0 92.3 95.540 to 44 years 177 52 125 10.7 17.3 8.0 89.3 82.7 92.0 411 223 188 9.0 8.5 9.6 91.0 91.5 90.445 to 49 years 92 34 58 17.4 23.5 13.8 82.6 76.5 86.2 312 155 157 6.7 7.7 5.7 93.3 92.3 94.350 to 54 years 39 14 25 15.4 14.3 16.0 84.6 85.7 84.0 155 87 68 20.0 24.1 14.7 80.0 75.9 85.355 to 59 years 35 17 18 14.3 23.5 5.6 85.7 76.5 94.4 53 29 24 9.4 10.3 8.3 90.6 89.7 91.760 to 64 years 30 11 19 20.0 36.4 10.5 80.0 63.6 89.5 25 15 10 8.0 13.3 - 92.0 86.7 100.065 to 69 years 18 8 10 22.2 37.5 10.0 77.8 62.5 90.0 18 13 5 - - - 100.0 100.0 100.070 to 74 years 9 5 4 11.1 20.0 - 88.9 80.0 100.0 8 8 - 25.0 25.0 - 75.0 75.0 -75 yrs & over 7 3 4 - - - 100.0 100.0 100.0 6 3 3 - - - 100.0 100.0 100.0Source: 1994 & 2000 FSM <strong>Census</strong>es, unpublished dataUnderemploymentTable 9.9 gives a more comprehensive indication of the extent of underemployment in the FSM beyond the ILOdefinitions. The percent distribution of persons looking for work remained about the same between 1994 and 2000.For example, of the 8,768 persons looking for work in 2000, over 70 percent (6,213 persons) were unemployed,about 30 percent (2,471 persons) were in subsistence agriculture and fishing and 1 percent (84 persons) were inmarket-oriented agriculture and fishing. In 1994, of the 3,153 persons looking for work, 2,218 persons wereunemployed, 847 were in subsistence agriculture and fishing and 88 persons in market-oriented activities. The 1994and 2000 data show that there is a substantial number of people of working-age population who are underemployedsuggesting these people were working at lower capacity than they could prefer.Table 9.9. Underemployment by Region, <strong>Chuuk</strong>: 1994 and 20001994 2000Underemployment Total N.Namon. S.Namon. Faichuk Mortlocks Oksoritod Total N.Namon. S.Namon. Faichuk Mortlocks OksoritodPersons 15+ years 29,068 9,904 6,326 6,470 3,593 2,775 31,587 9,276 6,771 7,730 4,170 3,640In formal work 5,373 3,067 860 613 576 257 4,546 2,204 739 607 681 315Looking for work 3,153 627 778 868 485 395 8,768 2,197 1,674 2,480 1,409 1,008Unemployed 2,218 548 481 743 249 197 6,213 1,871 967 1,879 847 649Subsistence agriculture and fishing 847 63 271 103 234 176 2,471 308 688 596 561 318Market-oriented agric. and fishing 88 16 26 22 2 22 84 18 19 5 1 41Could have taken a job 4,227 594 969 1,402 364 898 1,555 245 588 439 236 47Subsistence agriculture and fishing 791 31 92 171 128 369 311 -15 109 98 110 9Market Oriented agric. and fishing 101 18 26 47 5 5 449 16 299 122 8 4Not in the labor force 3,335 545 851 1,184 231 524 795 244 180 219 118 34Total available for work 12,753 4,288 2,607 2,883 1,425 1,550 14,869 4,646 3,001 3,526 2,326 1,370Not available .for work 16,315 5,616 3,719 3,587 2,168 1,225 16,718 4,630 3,770 4,204 1,844 2,270Source: 1994 and 2000 FSM census, Unpublished dataLabor Force Status by CitizenshipTable 9.10 examines the distribution of the working age population by labor force status and citizenship. About 98percent of the working age population was citizens of <strong>Chuuk</strong> compared to more than 99 percent in 2000. In 1994, alittle over 2 percent of the working age population and 4 percent of the labor force were non-<strong>Chuuk</strong>ese while in2000 they were less than 1 percent of the working age population and the labor force. The 1994 and 2000 datafurther indicated that Non-<strong>Chuuk</strong>ese numbered 658 and 236 persons, respectively, in the state labor force, makingup about 4 percent of the male labor force and less than 1 percent of the female labor force in 1994 but less than 1percent for both male and female labor force in 2000.The largest group of foreign workers hailed from Asia,<strong>Chuuk</strong> Branch Statistics Office, Division of Statistics, FSM Department of Economic Affairs 81
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LIST OF TEXT TABLESTABLEPageChapter
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LIST OF FIGURESFIGUREPageFigure 1.1
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MAP OF FSMxxiiChuuk Branch Statisti
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CHAPTER 1INTRODUCTIONThe creation o
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