More workers underpaid: Barker

Investment and employment is valuable for law and order and vice-versa, Institute of National Affairs director Paul Barker says.
He said this was whether it was in agriculture, tourism or other activities.
Barker was commenting on a recently-released national audit of the informal economy survey conducted last year by Department of Youth Religion and Community Development in conjunction with staff from the Consultative Implementation and Monitoring Council (CIMC) and United Nations Women consultants.
He said the high prevalence of unemployed young men from the audit was not surprising but it was strange that more were not involved in the informal economy.
Barker said this was why average age of participants had moved up to 35 or above.
“Formal sector businesses are mostly strict or cautious to avoid breaching any domestic or international labour laws over employing persons deemed underage, except in some formally-approved training capacity,” he said. “The informal economy is different, but so too are the unregulated sector, which should be regulated businesses.”
Barker said often those overseas owned businesses tended to be less compliant with legal requirements and standards, often employed young men and particularly women at below minimum wages in trade stores and other premises, and often did not pay tax on their wages or required insurance.
“Nevertheless, the readiness to take this employment even under these poor conditions is reflective of the need and aspiration for income and work through the community,” he said.
“Clearly, for the foreseeable future, PNG’s relatively small formal sector, which has also been static for several years, will not be able to absorb more than a small portion of the number of young people reaching workforce age.”
“The informal sector will need to continue to provide the opportunities for the majority in both rural and urban areas, using their own land and skills.
“It is critically important that Government, but also the formal private sector (including financial institutions), and development partners, assist with the providing suitable conditions for informal economic activities to thrive.
“(This is) from transport and other marketing infrastructure, to practical literacy and financial literacy and other skills training.”
Barker said the churches had a continued important part to play here.