The unemployment rate for those between the ages of 20 and 24 rose to 15.6 percent in 2022 from 14.6 percent in 2021, indicating worsening unemployment among young people in a country suffering from a hiring freeze in companies.
Data from the Kenya National Bureau of Statistics (KNBS) indicates that the number of unemployed people in the age group was the highest at 424,470 against a total labour force of 2.72 million for this age group.
“The unemployment rate, measured as strictly not working, seeking work in the past four weeks and available for work, was 4.9 percent in the fourth quarter of 2022,” according to KNBS. Analysis of Economic Survey 2024 He points out 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 during the same period.
This indicates growing unemployment in an economy that is struggling to create enough job opportunities for school leavers and university graduates.
Overall, out of a total labor force of 19.4 million people, 960,000 people are unemployed, which is an indication of the growing dependency burden.
Economists believe Kenya will have to boost economic growth and diversify its investment portfolio in a bid to solve the severe youth unemployment crisis.
The lack of formal employment is a major problem. Many individuals between the ages of 18 and 35 have no form of employment at all despite graduating with university degrees or other appropriate qualifications.
While the number of jobs created increased by 127,200 in 2022 from 113,700 in 2021, this is still not enough to absorb school leavers.
The situation will worsen as university enrollment rates continue to rise. Last year, enrollment at these institutions rose 2.9 percent to 579,050 from 562,930 in 2022.
As companies struggle to stay afloat due to the changing business environment, layoffs have become the topic of many companies in an attempt to cut operational costs. As a result, the number of jobs created in the formal sector is limited, which exacerbates the plight of school leavers.
