Uganda’s economy is not “creating excellent jobs.”
According to a recent analysis by the National Planning Authority, Uganda’s consistent economic growth of 5.4 percent over the last two decades has had no influence on enhancing the quality of employment available in the market.
“The working-age population increased from 16.5 million in 2012-13 to 19.1 million in 2016-17,” according to the study.
According to the research, 700,000 individuals join the labor force each year, but only approximately 238,000, or 34%, get hired. According to the World Bank, this figure is predicted to climb to almost one million every year between 2030 and 2040.
“However, the work quality is poor. “Waged labor employs just one in every five employees, yet outside of agriculture, waged work employs over half of the workforce,” according to the research.
According to the International Monetary Fund, Uganda’s economy would increase at 3.8 percent in the fiscal year 2021/2022, down from 4.3 percent previously projected, due to the consequences of Covid-19.
According to Uganda Bureau of Statistics data, 77 percent of the projected 45 million inhabitants are under the age of 25. According to the statistics, the unemployment rate for young people aged 15 to 24 in Uganda is 83 percent.
According to the World Bank research, this percentage “is significantly greater for individuals with formal degrees and who reside in metropolitan areas.”
Dr. Joseph Muvawala, executive director of the National Planning Authority, said in a study released on Tuesday that the working-age population is expanding faster than economic growth.
“In order to generate increasing demand for labor, the National Development Plan III job creation strategy must concentrate on growing and diversifying economic development while preserving macroeconomic stability,” he stated.
According to him, the majority of these employment will be in the service industry, with the trade sector providing the most.
However, the majority of trade employment will be in petty trade, which includes the informal sector such as vending, supply, and transportation, and will be performed by semi-skilled workers. University graduates will continue to have difficulties in finding work.
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