What is the distribution of the labor force between urban and rural areas in Laos, and how does it impact factors like poverty and vulnerability?

Answered on : 2024-01-24

Sources

Labour force

ilo.org

Poverty Profile in Lao PDR - Pubdocs.worldbank.org.

pubdocs.worldbank.org

Urbanization in Lao People's Democratic Republic

unhabitat.org

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In Laos, a significant portion of the population lives in rural areas. As of the available data, approximately two-thirds of the country's population resides in rural areas [6]. The labor force in Laos is also predominantly engaged in agriculture, with 77% of the labor force, including 81% of the female labor force, working in this sector [6].

This distribution of labor force between urban and rural areas has several implications:

1. **Poverty**: Poverty rates tend to be lower in rural areas compared to urban areas due to a lower cost of living [2]. However, there have been efforts to reduce the rural-urban poverty gap over the years [5].

2. **Vulnerable Employment**: Vulnerable employment accounts for a significant portion of the labor force in Laos, particularly in rural areas, making up 81% of the labor force [9].

3. **Income Disparities**: Income disparities may exist between urban and rural areas due to differences in economic activities and access to resources. For instance, urban areas might offer more non-agricultural job opportunities, potentially leading to higher income levels [8].

Overall, while a large part of the population resides in rural areas and engages in agriculture, efforts have been made to address poverty and vulnerability disparities between urban and rural areas in Laos [5].