The Uganda unemployment crisis continues to worsen. The 2024 Census reveals that 700,000 Ugandans in the working-age group have spent over a year looking for work or starting businesses. Released in December 2024, the report shows that 9.4 million Ugandans, or 37.5% of the working-age population, hold jobs.
However, the data highlights troubling trends. Of the 9.4 million employed, 39.2% are employees, 29.3% are business owners without employees, and 24.5% work as helpers in family businesses. Just 5.3% are employers, while 1.7% work as paid interns. Of the employed, 4.1 million are men, and the rest are women. These numbers reflect a decline from 10.2 million employed in 2019, according to the Ubos 2018/2019 Annual Labour Force Survey (ALS).
The ALS report found that 56% of Ugandans worked in subsistence agriculture. In contrast, the 2024 Census reveals fewer than half of the working-age group are employed, showing a decline since 2019.
The Census also reports that 1.4 million Ugandans are unemployed. Women face a higher unemployment rate at 14.5%, compared to 10.7% for men. Bukedi and Madi sub-regions have the highest unemployment rates, while Ankole has the lowest at 8.2%. Youth unemployment is a significant issue. The Census states that 5.2 million youths (42%) aged 18 to 30 are neither employed nor engaged in education or training (NEET).
The Uganda unemployment crisis worsens because of the informal sector’s dominance. Around 88% of Ugandans work informally, while only 12.86% of graduates find formal jobs. The government acknowledges the problem and has implemented various programs to tackle it.
These initiatives include the Presidential Initiative on Wealth and Job Creation (Emyooga), Operation Wealth Creation (OWC), and the Uganda Women Entrepreneurship Programme (UWEP). These programs provide capital, training, and value-chain linkages to communities. By 2021, these efforts helped 30% transition into commercial agriculture, reducing reliance on subsistence farming.
Despite these efforts, casual labor remains a major issue. More than 60% of workers are on casual terms with no social security, low wages, or health benefits. Many workers lack written contracts, making it difficult to resolve disputes, particularly when workplace injuries occur. Experts urge the government to take more action to address the Uganda unemployment crisis.
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John Walugembe, president of the Federation of Small and Medium Enterprises, calls on policymakers to support young entrepreneurs. He recommends creating policies that make it easier for youth to start and grow businesses.
Douglas Opio, executive director of the Federation of Uganda Employers (FUE), stresses the importance of technical and vocational education. He believes that providing relevant skills will reduce unemployment significantly. Additionally, he advocates for capital support to help startups grow and create jobs.
The Uganda unemployment crisis requires immediate solutions. While government programs help, stronger policies are necessary to create jobs and ensure youth participate in the economy.
