ABSTRACT
This chapter discusses the changes in production, employment and labour productivity which took place in Tanzania's manufacturing sector over the eleven year period, 1961 to 1972, following Independence in December 1961. It examines the question of what changes took place in average earnings per employee and the distribution of earnings within the manufacturing sector. The chapter shows that the output per employee increased at an overall slower rate than earnings per employee and the effects. Between 1961 and 1964 the mean real wage for all manufacturing employees increased by only 6.0 per cent compared with an increase of 80.0 per cent for the median real wage of adult male African manufacturing employees. The increases in prices have allowed for increases in the surplus available for investment as indicated by the general fall in the share of labour costs in value added.
