• Fri. Nov 29th, 2024

Zim’s informal sector grows amid rising youth unemployment: QLFS Q3 2024

ByETimes

Nov 5, 2024

By ETimes

HARARE – The 2024 Third Quarter Labour Force Survey (QLFS) report from Zimbabwe offers critical insights into the country’s labour market trends and employment challenges. Key findings highlight a modest decrease in labour force participation, an increase in unemployment, and a growing prevalence of informal sector employment, underscoring underlying structural issues in Zimbabwe’s labour market.

Accordingly,the labour force participation rate has declined slightly to 47.6%, down from 48.0% in the first quarter. This drop, although minor, reflects a reduction in active engagement within the working-age population.

Variations across provinces and demographics suggest that urban areas have higher participation rates, indicating disparities influenced by location and likely access to employment opportunities.

The Employment-to-Population Ratio (EPR) declined to 37.2% from 38.2% in the first quarter, suggesting fewer individuals within the working-age population are engaged in employment.

Source: ZimStat

The informal sector has seen an increase in its share of non-agricultural employment, now accounting for 43.6% of employment, up from 41.3%. This trend indicates a reliance on informal work, likely due to limited formal employment opportunities.

Agriculture, a major employer in Zimbabwe, saw its share reduce to 20.3%, a decline of nearly 3% from the previous quarter. This shift may be influenced by seasonal factors or ongoing challenges in agricultural productivity.

Unemployment Rates and Youth Challenges

The unemployment rate for the working-age population increased from 20.5% to 21.8%, reflecting a rise in job-seeking individuals unable to find work.

Youth unemployment remains high, with rates of 41.2% (ages 15-24) and 30.1% (ages 15-35). Additionally, nearly half of Zimbabwe’s youth are classified as Not in Employment, Education, or Training (NEET), a critical indicator of disengagement among the younger population that could have long-term economic and social repercussions.

Income distribution data reveals income disparities across industries, with a significant portion of workers in lower income bands. Additionally, time-related underemployment remains a concern, with many employed individuals expressing a desire for more work hours.

Reflecting the constrained employment environment, time-related underemployment underscores that many individuals who are technically employed are not fully utilised, impacting their income and productivity.

The report highlights labour migration patterns, with 37,801 labour migrants, which may point to economic challenges driving individuals to seek employment opportunities outside Zimbabwe.

By ETimes

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