BizCLIR

Employees constitute an overwhelming proportion of the inputs to national production, and the predictability of the regulatory regimes by which they are employed indicates the degree of predictability in the national labor market as a whole. If workers are poorly compensated and living in bad conditions, then the nation cannot be healthy. Thus, the key to a successful, emerging economy is a satisfied workforce.

The Doing Business indicators measure the flexibility of labor regulations. It examines the difficulty of hiring a new worker, rigidity of rules on expanding or contracting working hours, the non-salary costs of hiring a worker, and the difficulties and costs involved in dismissing a redundant worker.

The BizCLIR methodology probes further into the system of employing workers to understand the role of labor in a developing economy. A team of experts interview stakeholders in government, the private sector, and civil society to understand how they employ workers. It considers both equally essential endpoints of the employment equation—labor supply (a ready and qualified source) and labor demand (growing in size and sophistication). These areas are evaluated using indicators divided among the four pillars:

The BizCLIR tool enables us to observe the business environment from dynamic angles currently ignored by recent indicators. If reports name Tanzania as one of the most difficult countries to hire new workers, BizCLIR's evaluation of the labor system will help us understand why; it may be due to the lack of successful employment agencies or because of safety standards that the company should adhere to but do not. BizCLIR methodology provides offers an opportunity to evaluate, assess, and understand the real problems to a developing economy?s labor system.