Lack of jobs severest among 20-24 age group

According to KNBS, “The unemployment rate, measured based on the strict of not working, seeking work in the last four weeks and available to work was 4.9 percent in the fourth quarter of 2022.” An analysis from the 2024 Economic Survey indicates that the country added 127,200 jobs in the formal sector last year despite real GDP growing to 5.6 percent from 4.9 percent over the same period.

This signals the increasing unemployment in an economy that is struggling to generate enough jobs for school leavers and college graduates.

Generally, out of the 19.4 million total workforce, 960,000 are idle an indicator of increasing dependency burden.

Economists reckon that Kenya will have to boost economic growth and diversify its portfolio in an effort to solve its acute youth unemployment crisis.

The lack of formal employment is a major issue. Many individuals aged 18 and 35 have no form of employment at all despite graduating with university degrees or other suitable qualifications.

While the number of jobs created increased by 127,200 in 2022 from 113,700 in 2021, this is still inadequate to absorb those graduating from schools.

The situation will exacerbate as university enrolments continue rising. Last year, enrolment for these institutions increased by 2.9 percent to 579,050 from 562,930 witnessed in 2022.

At a time when firms are struggling to stay afloat due to the changing business environment, layoffs have become the theme of many companies in an attempt cut down operational costs. As a result, the number of jobs created in the formal sector are limited worsening the plight of school leavers.