How we can address rising unemployment in Uganda

Unemployment in Uganda is a multifaceted issue that affects both urban and rural areas, with youth unemployment being particularly high. According to the Uganda Bureau of Statistics, the unemployment rate in Uganda stood at 9.2 per cent in 2020, with youth unemployment estimated at around 13.3 per cent. These figures, however, do not fully capture the extent of underemployment and informal sector employment, which are prevalent in the country.

The high levels of unemployment are driven by various factors, including limited job creation in the formal sector, inadequate skills matching, rapid population growth outpacing job creation, and a lack of access to finance for entrepreneurship.

Addressing unemployment in Uganda is a complex task that is compounded by several challenges. One of the primary challenges is the limited capacity of the formal sector to absorb the growing labour force. The mismatch between the skills possessed by job seekers and the requirements of employers further exacerbates the unemployment problem. Inadequate infrastructure also hinders job creation and entrepreneurship opportunities.

Moreover, the prevalence of informality in the labour market poses challenges for monitoring and regulating employment conditions, leading to exploitation and lack of social protection for workers. Limited access to finance and credit facilities for small and medium enterprises (SMEs) restricts entrepreneurial activities and job creation in the informal sector, where a significant portion of the workforce is engaged.

To tackle the issue of unemployment in Uganda effectively, a multi-faceted approach that addresses the root causes and leverages various stakeholders is essential. Some key strategies that can be adopted include investing in education and vocational training programmes that align with the needs of the labour market. These can help bridge the skills gap and enhance employability among the youth.

Creating an enabling environment for entrepreneurship by providing access to finance, business development services, and mentorship can spur job creation and economic growth.

Encouraging investment in key sectors such as agriculture, manufacturing, tourism, and information technology can create more formal job opportunities for the growing workforce.

Implementing social protection programmes that provide a safety net for vulnerable populations, including the unemployed, can help mitigate the impacts of job loss and poverty.

Harnessing the power of digital technologies and the Internet can create new opportunities for employment and entrepreneurship in Uganda. Initiatives such as e-commerce platforms, online freelancing, and digital skills training can enable individuals to access job opportunities globally and work remotely, thereby overcoming geographical barriers to employment.

Despite the challenges posed by high unemployment rates, Uganda possesses significant opportunities for economic growth that can be leveraged to create more jobs and improve livelihoods. The country’s abundant natural resources present opportunities for investment in agriculture, mining, and energy sectors.

Furthermore, Uganda’s strategic location in the East African region and its membership in regional economic communities such as the East African Community and the Common Market for Eastern and Southern Africa offer opportunities for trade and investment. Strengthening regional integration, improving trade facilitation mechanisms, and enhancing infrastructure connectivity can unlock new markets and create employment opportunities in cross-border trade and logistics sectors.

Addressing unemployment in Uganda requires a concerted effort from government, private sector, civil society, and development partners to implement sustainable solutions that promote inclusive growth and create decent job opportunities for all. By investing in skills development, supporting entrepreneurship, strengthening the formal sector, enhancing social protection, and leveraging digital technologies, Uganda can unlock its potential for economic growth.

The writer is a member of the Equal Opportunities Commission of Uganda