Public Disclosure Authorized

Assessment of the Labor Market Information System (LMIS) in the Lao

People’s Democratic Republic PDR
This assessment has been prepared by a World Bank team1 as part of the World Bank Programmatic
Advisory Services titled “Lao PDR Social Protection and Jobs” (P172089). The objective of the assessment
is to support the Ministry of Labor and Social Welfare (MOLSW) in their planned reforms of labor market
institutions and systems in Lao; in particular by supporting investments in a comprehensive Labor Market
Information System (LMIS) for improved jobseeker data collection and analytics, jobseeker profiling, and
assignment to various employment support programs (such as vocational trainings and job search
Public Disclosure Authorized

assistance). The target audience of this report is the technical staff and management at the department
levels as well as the policy makers at the MOLSW, Ministry of Planning and Investment (MPI) as well as
the Ministry of Finance (MOF).
Background: poverty and labor markets in Lao PDR
The Lao People’s Democratic Republic (PDR) has made substantial progress in poverty reduction – even
though its resource-based development pattern has historically limited the impact of growth on poverty
reduction. Thanks to strong economic growth during the past two decades, poverty was halved (from 46
to 23 percent between 1993 and 2013) and other welfare indicators (such as increased access to
healthcare and clean water, access to reliable energy source) also show an improvement in living
standards. Although poverty declined, the impact of growth on poverty reduction was low. Between 2008
and 2013, average household consumption grew by only 2 percent, falling behind the average GDP growth
Public Disclosure Authorized

rate of 8 percent. Since 2012/13, the incidence of poverty declined by 6.3 percentage points to 18.3
percent in 2018/19. The rural-urban gap and disparities across provinces have narrowed due to a faster
decline in poverty in lagging areas and stagnation in more well-off regions.
The geography of poverty has been changing in Lao PDR. There has been a significant shift in the spatial
distribution of the poor population as poverty declined in the northern provinces— historically the lagging
region, while it has stagnated in the central region, which has become home to a significantly larger share
of the poor (from 34 percent in 2012/13 to 42 percent in 2018/19). Inequality has risen due to widening
consumption gaps within regions. The Gini index, a measure of inequality, increased from 36 in 2012/13
to 38.8 in 2018/19. As the urban-rural and between-province gaps have declined, a widening consumption
gap within areas drove inequality. Although poverty remains a rural phenomenon, the share of the urban
poor is rising due to urbanization and slower poverty reduction in urban areas. Multidimensional poverty
also points to lagging areas catching up as access to education and living standards have improved, though
food insecurity is still a concern. Poverty remains higher among ethnic minorities (Chine-Tibet, Hmong-
Public Disclosure Authorized

lumien, and Mon-Khmer) than the Lao-Tai ethnic group.

The economy in Lao has failed to deliver broad-based job growth. Over the past six years, labor market
conditions have not been favorable enough to support inclusive growth. The industry and services sectors
did not create enough jobs to absorb the surplus agricultural workforce. This mismatch arose from the
growing industry sector creating few jobs while output in the job-absorbing services sector grew slowly.
Between 2012/13 and 2018/19, about 20,000 net nonfarm jobs disappeared, translating into 1.7 percent
contraction in nonfarm employment and contributing to rising unemployment. Including the seasonally
unemployed, the unemployment rate increased from 4.1 percent to 15.7 percent and was accompanied
by a decline in the labor force participation rate. All sectors, except the public and hospitality sectors,

1
The note has been prepared by Thongdeuane Nanthanavone (Social Protection Specialist), with technical inputs
and contributions from Sandor Karacsony (Senior Economist) and Francesca Lamanna (Senior Economist, Task
Team Leader).
experienced a net decline in employment. The retail trade sector shed the most jobs, followed by the
manufacturing sector. The expanding energy sector did not create enough jobs. Net nonfarm job creation
was observed only in Vientiane capital and urban areas in the northern region, albeit insufficient to
preventing rising poverty in the capital.
Limited nonfarm job opportunities weighed negatively on poverty reduction. A decline in nonfarm
employment limited households’ ability to maintain livelihood diversification strategies. Households have
become less diversified in their livelihoods and relied on fewer income sources. The share of exclusively
agricultural households rose by 10 percentage points between 2012/13 and 2018/19. Limited nonfarm
job opportunities stalled urban poverty reduction in recent years. Urban poverty would have been 4
percentage points lower in 2018/19 if households had similar access to off-farm opportunities as they did
in 2012/13.
The COVID-19 pandemic is expected to severely disrupt progress in poverty reduction through two main
channels: employment and remittances. Disruptions in economic activities due to the pandemic and
mitigation measures have impacted jobs and household income and could stall or reverse progress in
reducing poverty. Among the hardest-hit areas of the economy were the travel- and tourism-related
sectors, including retail trade, transport, food, and accommodation businesses. Given that the hospitality
sector was the primary source of job creation besides the public sector during the past few years, the
pandemic will likely add pressures to an already stressed off-farm labor market. The lack of livelihood
diversification has increased vulnerability to employment shocks and raised the risk of falling deeper into
poverty among low-income households. As migrants return and the labor market conditions of
destination countries deteriorate, remittances are expected to decline. Given the sizable share of
remittances in total household income, they provide a crucial livelihood source, and the loss of
remittances could impoverish poor and vulnerable households - or push them further into poverty.
Regular use of evidence in labor policy is key for maintaining progress in poverty reduction. Given the
complexity of emerging issues, a better understanding of labor market dynamics is critical to guide policy
making in support of inclusive growth and tackling inequality. For example, the impact of labor market
regulations on job creation, the drivers behind job losses in the retail trade sector, the spillover effect
from foreign investment on the local labor market, and job opportunities for youth should be at the
forefront of the labor and jobs agenda in Lao. More generally, understanding household income shocks
and coping mechanisms has become increasingly important amid the COVID-19 pandemic; and more
frequent and severe climate shocks, which should further inform the government’s vision on social
protection in general. In the short term however, more investments are needed to close data gaps, in
order to have a complete understanding of the linkages between growth, jobs, and poverty reduction.
Institutional context in employment and skills in Lao PDR
Ministry of Labor and Social Welfare
MOLSW is charged with all aspects of labor and social welfare in Lao. The Ministry advises the
government on the matters related to social welfare, social works, employments, workforce development
plans and immigration policy. According to Article 156: Rights and Duties of the Ministry of Labor and
Social Welfare (Law on Labor, 2014) the responsibilities of the Ministry are outlined in Box 1.
 Box 1. Roles and responsibilities of MOLSW

• To research and draw up strategic plans, laws and regulations on the building and
development of labor skills, job placement, and administration of labor, and to submit
proposals to the government for consideration and approval;
• To disseminate, monitor, supervise and inspect the implementation of strategic plans, the
labor Law, and other regulations on labor;
• To supervise, monitor, establish labor skills standards, evaluate, and certify competitive
labor skills;
• To research, consider, approve or cancel the establishment of recruitment service networks,
labor skills development centers, and protect labor;
• To establish and conduct scientific research on labor, statistics and information, the labor
market and others;
• To collaborate with other sectors and organizations in developing labor skills, job placement
and labor protection;
• To research a quota for approval, importation, registration and issuance of work permit
cards to foreign employees
• To administer Lao workers working within the country and abroad, and foreign workers
working in the Lao PDR, in collaboration with other sectors at central and local levels;
• Monitor, asses and certify labor standards for labor units;
• Administer the use of labor funds in accordance with the law;
• Guidance and mediation of labor disputes;
• Create a database on labor;
• Cooperation with foreign countries, regional or international (countries) in relation to labor
affairs;
• Summarize and report the results of implementation of labor works to the government
routinely;
• Implement other rights and responsibilities as determined by the law.

Source: Article 156, Law on Labor, 2014.

MOLSW’s Department of Skills Development and Employment (DSDE) is responsible for the
employment service of the government. The Provincial Department of Labor and Social Welfare (PDLSW)
acts as its mirror structure. There is a total of eight job centers housed under the PDLSW and on Skill
Development Center located in the Municipal Labor Social Welfare Department in Vientiane capital. The
job centers aim to enhance employment opportunities for people seeking employment or employees
locally, addressing unemployment, the migration of urban labor from rural areas to cities, and illegal trans-
border labor. They also aim to create conditions providing choice, revenue and poverty reduction for
employees.
MOLSW requires reforms in several areas. Improvements are needed in MOLSW to ensure that current
policies and practices are translated into development plans and programs addressing the reality of the
labor market situation in Lao PDR. Actions should focus on the implementation of the National Human
Resource Development Strategy, the National Social and Economic Development Plan and the Sustainable
Development Goals, with a view to (i) helping drive private sector development; (ii) making the Lao
national labor market more diverse and competitive; and (iii) taking advantage of the demographic
dividend (Lao PDR has one of the youngest populations in Southeast Asia, with over half (50.8%) of the
population aged between 10 and 35 years old). The age structure and demographic transition present an
advantageous direction and great potential to reap the demographic dividend in the years to come2.
Ministry of Education and Sports (MOES)
MOES is the government agency with a responsibility for the supervision and coordination of all pre-
professional educational activities and programs. This includes the formulation and review of policies,
establishment of a regulatory framework for the various agencies and units involved in the education
sector, and the creation of an enabling environment to ensure an efficient and effective delivery of
education services. The roles and responsibilities of MOES are outlined in Box 2.

Box 2. Roles and responsibilities of MOES

• Consider strategic plan, policy, program, educational development projects to submit to the
government for approval;
• Draft laws and other legislations on the education;
• Disseminate the strategic plan, policy program, educational development projects, laws and
other legislations on the education;
• Create, develop curriculum, materials, learning-teaching media in each period and organizing
training on the use;
• Supervise the alleviation of un-alphabets and upgrade the education in line with the basic level
of professional training;
• Determine the standards and design of the building, places for education;
• Build, use, train, administer the teachers and educational personnel on the basis of its
mandates;
• Administer, manage the schools, centers and educational institutions under its scope of
responsibilities;
• Supervise, monitor, encourage, inspect, control, evaluate the educational work;
• Coordinate with state and other organizations relating the educational works;
• Administer, use budget on education in effective manner;
• Cooperate with foreign countries and international organizations in the educational works;
• Report on the implementation of educational work to the government and the standing
committee of the National Assembly; and
• Perform such other duties and rights as regulated by law and regulations

Source: Article 63, Law on Education, 2015.

Currently, technical and vocational education and training (TVET) as a sub-sector3 faces significant
challenges. The system is fragmented and duplicative, with multiple ministries (MOLSW and MOES)

2
UNFPA. 2020. [Link]
dividend-lao-pdr
3
In Lao PDR, technical and vocational education and training (TVET) refers to technical and vocational education and
training for learners so that they may possess specialized knowledge and skills, find employment, and become
workers who hold true to work ethics and possess occupational skills and qualities so that they may provide for the
involved, including overlapping mandates between them. Additionally, the sub-sector lacks effective
coordination between government agencies and development partners active in the field. Moreover,
TVET education in is perceived as having a low “social status”, with higher education being preferred over
TVET. There is also a mismatch between skills produced and labor market demand. Supply side remains
low in quality and relevance - service delivery needs improvement, lack of facilities and equipment, limited
apprenticeship opportunities, curriculum irrelevance and out of date. There is also limited cooperation
with the private sector, with the Lao LMIS being in a preliminary stage, unable to inform skills development
systems yet. Box 3 summarizes some priority actions towards improved employment support and
vocational training, as identified by the government.

demands of socio-economic development. The government policy on the TVET is expressed in the TVET law which
promotes that all Lao citizens should receive TVET and the development of Occupational Skills in a given technical
or vocational field based on the true circumstances and conditions of the individual and their family and for support
to be given to outstanding students, Students with Problems, and students studying in fields promoted by the state.
 Box 3. Priority actions for improving employment support and TVET in Lao

Labor market information / data collection and analysis: The government and its development
partners (DPs) should continue to strengthen the development of a national Labor Market Information
System (LMIS) based on the needs of the public and private sectors. The LMIS should provide accurate,
high quality and timely information to meet the planning and investment cycles of government
agencies, while reflecting the needs of the education and training systems and being responsive to the
private sector. To this end, MOLSW will work with other agencies and DPs to improve the process of
data collection, the analysis of information, and the dissemination of information to stakeholders on
a regular and timely basis.
Education, training and skills development: The government and DPs should continue strengthening
the capacity of the National Council for Vocational Training and Skills Development (NCVTSD) as the
mechanism for collaboration between government agencies, trade unions and the private sector for
training and skills development in Lao. The NCVTSD, in cooperation with the private sector and training
providers, will lead the development of occupational standards and skills competencies for TVET as
well as workplace-based training conducted in the Lao PDR, ensuring as far as possible that these skills
and competencies meet industry and Association of Southeast Asian Nations (ASEAN) requirements.
Further institutional expectations towards the Quality Assurance Center of MOES, National Human
Resources Development Commission are formulated, and the government, DPs and the private sector
will work together to ensure that education and skills development in the Lao PDR is sufficiently
financed, and that appropriate technical support is made available.
Workforce Development Planning: The government, DPs and the private sector shall cooperate in the
development and dissemination of industry/economic sector workforce plans to guide labor market
forecasting and education and training investments for the Lao PDR. Workforce planning shall be
undertaken by the National Human Resource Development Commission Secretariat at the MOES, in
consultation with MOLSW, the Ministry of Planning and Investment and representatives from the
private sector. Government agencies and DPs in key industries/economic sectors will be involved in
providing technical advice and support for the development of workforce plans. The Ministry of Home
Affairs shall take responsibility for the development of a public sector workforce development plan
covering all relevant Ministries and agencies.
Employment Information and Services: MOLSW and the MOES shall ensure the effective
dissemination of information on labor market conditions, changing employment demand and
education and training opportunities to the people of the Lao PDR, especially to school leavers and
those entering the workforce.
Source: MOLSW background paper prepared for the Roundtable Meeting on the 9th National Social
Economic Development Plan

Labor Market Information Systems (LMIS)

Labor Market Information Systems (LMIS) can provide relevant and timely information to help labor
market stakeholders – ministries of labor, public employment and TVET agencies, private sector, civil
society – make informed choices on a variety of issues, including job search, career planning and skills
upgrading, hiring decisions, migration policies, public or private workforce and skills investments, and
optimal employment and skills policies designed to meet future demands. An advanced LMIS – that are
mostly available in middle / high-income countries - is an integral part of modern employment services
that help reduce unemployment, boost the productivity of firms, manage and prevent risks related to
labor markets, and maximize the impact of skills and labor market programs.4,5 The LMIS does not
compete with private actors, but complements and promotes them, by linking to and incorporating
functions that are undertaken by private institutions.
LMIS in developing economies (if available) are often hampered by data limitations6. These constraints
affect the availability and reliability of basic labor market indicators – employment, unemployment,
economic activity etc. – that in most developed economies are available on a monthly or quarterly basis.
In many developing countries, efforts have been made to produce labor market information, for example
labor market data provided through surveys undertaken by national statistics offices. However, many lack
accurate, relevant and up-to-date information that can assist relevant labor market actors in the design
and implementation of activation and employment support programs.
LMISs can be classified according to the quality of information they produce, the stakeholder
involvement, and the strengths of the connections between the different institutional partners. Table
0.1 presents the distinctive characteristics of a basic, intermediate, and advanced LMIS (Section Error!
Reference source not found. elaborates more on this classification).7
Table 0.1 LMIS Classification
Basic Intermediate Advanced
Information Provides basic information Provides market Several sub-systems of
via statistical indicators intelligence using different information and digital
using national surveys and data sources beyond tools are used to collect,
administrative data surveys produce, evaluate and
disseminate updated
(often real time)
information using also Big
Data
Services None Basic services to different Several services tailored
stakeholders, in particular to different users
to jobseekers and firms
Actors Few public sector actors More public sector actors Both public and private
including (e.g., education sector are active users
systems, job-counseling and producers of data and
and job-matching services
services, social security,
statistics offices, business
registry)
Source: World Bank adaptation from Sorenson and Mas, 2016, Op. Cit.
This report proposes a framework to define an advanced LMIS as a benchmark, including the LMIS’
stakeholders, the functions it offers, the underlying success factors and essential features.

4 Woltermann, 2012, Sorensen and Mas, 2016.

5 Yoo, 2018
6 ILO, 2020
7 Sorenson and Mas, 2016, Op. Cit.
Stakeholders are the potential users and producers of labor market intelligence generated by the LMIS.8
Stakeholders include actual or potential workers (e.g. unemployed, inactive, or current and future
students), firms, policymakers, researchers, and practitioners (e.g. those in skills development systems,
public employment services, and other public services systems, such as social protection).
The key functions of an advanced LMIS include both direct services to different users, as well as the
provision of data and information analyzed and processed by users. The different functions serve the
needs of the stakeholders but also rely on them for their input and processing. The LMIS functions include:
• Job matching. Core services that help unemployed or employed workers – looking to improve
their working situation – identify job opportunities, help firms close their skill gaps, and assist
practitioners in public or private employment services to conduct job-matching.
• Career and skills guidance. Services that guide current and future workers in identifying the skills
that are, or will be, in demand, their own aptitude and interest in different types of jobs, and skills
development paths needed to fulfil their ambitions. Successful career guidance services connect
users with education and training opportunities.
• Government support. Services that help individuals and practitioners assisting them identify
potential government programs (active labor market programs, other skilling programs, business
support, social welfare programs) from which they could benefit.
• General labor market information and analysis. Information that provides policymakers,
practitioners, and the research community with comprehensive information on labor market
outcomes and the impact of different policies and programs, largely with the purpose of informing
policy formulation.
The underlying success factors for a well-functioning LMIS include a variety of technical factors (data
collection, validation and management; information security; interoperability with other systems;
technical infrastructure needs) as well as factors related to user experience and staff capacity (accessibility
and user experience in general; targeted services; strategic marketing; staff and user training needs).
The functions should be supported by three essential features. First, the system should build upon strong
institutional arrangements involving key stakeholders such as policymakers, and the education system.
Second, an active partnership with private sector actors is in itself an indicator of the value of the LMIS.9
Third, the system should rely on a strong technological base and advanced technology solutions (Big
Data, artificial intelligence, etc.) for sharing data efficiently, and for analyzing and disseminating the
available information.
In addition, the framework is supported by five characteristics that are key to the success of an advanced
LMIS. These are based on good practice observed in other countries, and a recent cross-country
comparison of LMISs.10 These key characteristics allow the system to:
• Provide relevant information by attracting, collecting and coordinating a critical mass of
trustworthy and updated information that improves job-matching as well as by actively linking to
other sources of data, both private and public.

8 Usually, a labor market observatory is in charge of producing the information and intelligence of the LMIS and disseminate it
to the stake holders. See Rutkowski, Jan; de Paz, Carmen; Levin, Victoria. 2018. Labor Market Observatories: Critical Success
Factors. Job Notes; No.4. World Bank, Washington, DC. © World Bank.
[Link]
9 Sorenson and Mas (2016), op. cit.
10 Sorenson and Mas (2016), op. cit.
 • Be reliable and trustworthy, by providing frequent updates, establishing quality control systems
(manual and IT-based), and ensuring the necessary technical infrastructure that guarantee service
availability and information integrity. Technical infrastructure should include hardware capacity,
a backup system and disaster recovery systems, and data management and information security
systems.
• Ensure the provision of effective and efficient services, by applying technology solutions to
facilitate the use of online services (by individuals, officers in PES offices, career counselors, etc.),
and by regularly monitoring all aspects of system efficiency and effectiveness to continuously
improve services.
• Be client centered by providing users with comprehensive yet targeted and relevant information
and other services, through an appropriate design of the online experience, prompt resolution of
user inconveniences, several communications channels, and AI/Big Data analysis.
• Strive for comprehensiveness in providing a broad range of stakeholders with a diverse set of
services to improve their basis for decision-making, and operate in connection with other public
information systems (e.g., social protection, education and training), and as a fully integrated part
of national development policies.
The current LMIS and linkages to employment service delivery in Lao
Lao is operating an LMIS with some functions – but the system has limitations, and its use is also limited.
Lao’s current LMIS was established in 2017 by the Department of Skills Development and Employment
(DSDE) within MOLSW and is operated by the Division of Labor Market Information (DLMI)11. The LMIS
website can be found at the following link: [Link]

11
DLMI has the following responsibilities: 1) Conduct research and monitoring of economics and social indicators; 2) develop and
manage LMIS database; 3) integrate data from population census, economics census, labor force survey, enterprise survey, skills
demand survey and related labor market surveys; 4) conduct and analyze labor market surveys for labor market forecast, capacity
building on labor market systems, and dissemination of labor market reports.
The user interface of the LMIS, a [Link] offers key functions
including labor market information and analysis, employment services (job-matching), skills development,
and career counselling. Labor market information and analysis function provides periodic labor market
analyses, labor market updates and labor market indicators. The LMIS consists of 3 key modules: (i) LMI
policies; (ii) LMI software application developments; and (iii) data mechanism and services.

LMI Policies are based on memoranda of understanding for data sharing with the employer registry
(operated by the Ministry of Industry and Commerce), population registry (at the Ministry of Home
Affairs), unemployment and social security member registry (within the Social Security Organization), and
labor market monitoring of Specific Economic Zones (SEZ) (at the Ministry of Commerce and Industry).
This module further includes the promotion of the Prime Minister‘s decree of Labor Market Information.
Software application development has been designed and managed by technical staff at the Division of
Labor Market Information (DLMI), DSDE, MOLSW, who developed a web database system supported by
an ADB project titled “Lao People’s Democratic Republic: the Employment Service System Development”.
Most of the applications employ open-source coding and a MySQL database.
Data mechanism and services consist of 5 service components of the LMIS website, including (i) job-
matching (including unemployment Social Security member registration before claim unemployment
benefits), (ii) job seeker and job vacancy registration, (iii) skill development registration, “Quiz on Job12”
counselling, labor market forecast, and dissemination of labor market information.
Public employment services (PES) in Lao are currently the main users of labor market data and
information. MOLSW has established nine job centers in eight provinces – Bolikhamxay, Champasack,
Khammouane, Louang Prabang, Oudomxay, Savannakhet, Vientiane Province, and Xayabouly. – and an
employer service center in Vientiane Capital, to provide employment support services to jobseekers and
employers. The job centers located in the regions are operated as part of the Section of Skill Development
and Employment (SSDE) of the Provincial Department of Labor and Social Welfare (PLSW); however, until
recently, these centers had an unclear legal status, making it difficult to operate. In follow up to a recently
completed needs assessment as part of the ADB TA - which found that there was a need for more clarity
towards establishing the mandate and roles of job centers, along with improved procedural frameworks
and operational manuals on core PES functions such as job search counseling services and partnerships

12
Provide advice on job application, interview skills, and inter-personal skills
with private job search agencies – the agencies’ roles and responsibilities were redefined in 201813. These
include (i) providing employment services- including job search counseling, self-employment support,
skills development – In the province; (ii) management and publication of labor market information (LMI);
and (iii) coordination with employers and facilitating workforce development and training activities.
Recent office and IT infrastructure investments, as well as the introduction of an Employment Services
Manual (ESM)14 allows for a more streamlined and effective provisioning of services.
Staff capacity building activities remain to be a priority. A recent DSSE internal assessment recently
indicated the need for capacity development in LMIS focusing on 3 main areas: (i) use of LMIS for central
and regional staff; (ii) dissemination of data from LMIS; and (iii) LMIS and mobile apps software
development, and data integration.
Current engagements with MOLSW on LMIS and PES – a stocktaking
Asian Development Bank’s technical assistance (TA) project supported development of the employment
service system for MOLSW between 2017 and 2019. This capacity development technical assistance (TA)
has developed an employment service system to expand opportunities for job seekers to access
employment information in the formal sectors. It has strengthened capacity of central and provincial level
institutions in terms of providing information on employment opportunities to jobseekers, and job/career
counseling to graduates from secondary school. The TA was developed as a complement the ongoing
secondary education projects, TVET projects, and higher education projects financed by ADB and other
development partners. This TA has implemented an assessment of the current LMIS to identify areas for
improvement. The assessment suggested to upgrade the LMIS and its server and to introduce mechanism
to collect data related labor supply and demand. The TA has also developed a training program for data
collection, data analysis and preparing reports by job center staff, and it has further developed manual
and tool for labor market surveys. Finally, several online PES tools were introduced: a website in English
and Lao languages, and a mobile network application / SMS system to send employment opportunities to
job seekers, particularly rural job seekers whom own mobile phones.
International Labor Organization has been supporting the assessment of skills development,
employment services, and tripartite constituents needs through its TA conducted between August 1-
15, 2020. The assessment has aimed to assess general skills development needs in Lao PDR by reviewing
current international and domestic cooperation of the TVET and skills centers, analyzing the needs of skills
training platforms, and reviewing current PES, its progress and challenges, its short- or longer-term
development needs, reviewing social dialogue mechanism in matching job vacancies with job seekers, and
use of data and ICT in PES operations.
Department of Foreign Affairs and Trade (DFAT) supports the integration of LMIS. This TA supports the
establishment of a labor market information integration platform to line employment service providers,
PES, the national social security office (MOLSW) and the education affair department (MOES). The work
builds on a 2017 assessment of labor market information in Lao PDR that reported inefficiencies in

13MLSW / PLSW Agreement No. 3585, September 13, 2018.

14The ESM comprises four parts (i) a brief conceptual framework of PES, a job center’s mandate and staff’s job descriptions; (ii)
servicing jobseekers by job centers; (iii) servicing employers/vacancies by job centers; and (iv) performance management. In
addition to ESM, a guideline on planning and organizing job fairs was also developed and already applied by some job centers.
Feedback received from planning and organizing the job fairs contributed to the improvements and finalizations of the guideline.
The outreach plan was developed including practical steps so that the job center staff can use to organize by themselves outreach
activities in the future.
supplying on-time data (eg. slightly more than half of labor market surveys conducted in Lao had reports
available within a year) as well as fragmentations and gaps in data availability.
International Organization for Migration supports nationwide data collection efforts through the
development of a “Labor Bank” by supporting labor data collection nationwide.
Conclusions
LMIS was upgraded and made operational by the end of 2019 – but it has been getting limited use due
to lack of data. In spite of upgrading efforts, the introduction of the LMIS has not been effective due to
lack of labor market information and statistics. More financial and capacity building support – to be
provided to PLSWD and job center staff – is required for data collection and analysis, in order to enable
the organization to conduct surveys effectively, then feed labor market data into the existing LMIS. In
addition to data limitations, structural issues such as capacity limitations within the labor market
institutional framework have further hampered the effective operation of LMIS.
While the role and mandate of PES is now clear for job center staff, staffing numbers impose severe
limitations on service delivery. As a result of past reforms supported by DPs, job center staff are now
more aware of PES concept, roles, responsibilities and function. The employment services manual
supported by the online PES website enables PES staff to deliver services to jobseekers and employers
more effectively. Moreover, the PES website is changing the way that jobseekers search for jobs, and
employers for the right people. It is further changing the way job center staff is doing business providing
services to jobseekers and employers/vacancies. However, with less than 4 people per location in SSDE,
and multiple other tasks – such as dealing with foreign workers and issuing or reissuing work permits –
the excessive caseload of job center staff leads to challenges in overall institutional performance. ICT
solutions such as the PES website only provides limited opportunities to improve service delivery, due to
lack of access to ICT solutions (particularly among vulnerable groups) and possible IT literacy constraints.
Moreover, while institutional capacity to sustain the PES and LMIS have been strengthened, it remains
to be inadequate. Training programs approved by the MOLSW are being implemented partially with
funding support from the development partners, but there remain to be funding gaps to be filled. The
DSDE and provincial teams have identified 16 training programs, and by 2019 at least 15 master trainers
and 60 technical staff in Vientiane and 8 provinces have been trained, including on employment services,
job and career counseling, labor market survey, and communication skills. However, master trainer
training was largely unsuccessful because most of the job center staff were not prepared to be master
trainers due to limited skills and knowledge on employment services and LMIS.
Recommendations
Short term recommendations
• Invest in new staff as well as trainings of existing staff to be able to manage the large number of
new incoming cases imposed by COVID-19 (both local and return migrant workers).
• Plan and budget for outreach activities through job fairs and online channels (eg. social media) to
target beneficiaries, particularly youth (eg. recently graduated TVET students).
• Improve outreach activities towards employers, particularly Small and Medium Enterprises and in
growth regions and sectors.
• Invest in making the job-matching services of LMIS operational, including by (i) strengthening data
review and validation activity to be conducted by job center staff; (ii) appropriate use of ISCO
codes in jobseeker and vacancy data.
 • Set up a technical support team for the PES website at the level of MOLSW to work with end-users
(jobseekers, employers) as well as job center staff.
• Produce monthly and quarterly reporting using data online.
Medium-term recommendations
• Mainstream the job centers Provisional Work Plan into the PDLSW Annual Plan to ensure
operational and budgetary sustainability.
• Ensure regular exchange of information between job centers and government or private sector
stakeholders through regular roundtables, monitoring meetings, networking events.
• Equip job centers to provide labor market information and policy-related feedback to the LMIS
through a quarterly or semi-annual monitoring plan.
Long-term recommendations
• Incorporate the job centers strategic plan in to the 5-year Provincial Labor and Social Welfare
Development Plans.
• Strengthen coordination between MOLSW and other line ministries such MOES, Ministry of
Commerce and Industry (MOCI), Ministry of Planning and Investment to develop a functioning
LMIS, with particular attention to the coordination between MOLSW and MOES through a
functional career guidance system, sector skills councils and skills observatories, and trained labor
market analysts.
• Expand the PES website functionalities to also include and incorporate related capacity needs in
MOLSW’s training plan.