THE International Labour Organisation says the Papua New Guinean government is making inroads into the problem of child labour.
About one-fifth of PNG children aged 10 to 14 years, and almost one-third of children aged 14 or over, are believed to be economically active.
Studies have found child labour, including its worst forms - child trafficking, child prostitution, use of children for the production and sale of drugs and hazardous child labour - are extensive in PNG.
The director of the ILO's Pacific regional office, Donglin Li, visited PNG this month as the government launched its national action plan to eliminate child labour.
He said government took heed of his advice that child labour was unacceptable.
"When I visited PNG last December, I saw lots of street vendors - they were all children. And last week, I didn't see any children (street vendors) there. It means they have taken some action."
Mr Li said the government has already taken initial steps towards establishing a Child Labour Unit.
"The problem is not sufficient budget," Mr Li explained.
"So that's why this time we urged the government to put more money towards Child Labour Unit. Otherwise if you don't have a budget you cannot do any monitoring activities."
Lack of funding was also an impeding factor in moves to counter child trafficking in the country, which is a significant problem.