Using data to tell a story.



UNEMPLOYMENT STATUS IN KENYA



In Kenya, the rate of unemployment measures the number of people who are actively looking for jobs as a percentage of the total labor force population. It is estimated 12.8% of the population between age (20-59), faced relaxed unemployment while 4.6% of the population faced strict unemployment (As of Quarter 1, 2020). Among the unemployed population, 1.9% of the population is long term unemployed





The total rate of unemployment (strict unemployment) in Kenya has decreased from 6.1% in the 1st quarter, 2019 to 4.6% in the 1st quarter 2020, according to this report.

According to KNBS the labor participation rate, meaning the measure of the economy’s active workforce, stood at 68.7% down from 70.2% recorded in quarter 4 of 2019. The age group 50-54 years recorded the highest rate at 91.8% while age group 20-24 years recorded the lowest rates at 31.4 percent.

In the labor force population there is a percentage of youths between age 15-34 who are not in education, employment or training. The rate was at 15.7% in Quarter 1, 2020 with a 2.4% increase from the previous quarter 4, 2019. In this population age group 20-24 recorded the largest portion at 25.3% of the NEET.

According to WORLD BANK, the total rates of unemployment in Kenya increased steadily from 1999 to 2003 then there was a decrease in the rates until 2008 when the rates began increasing until 2013. Finally a decrease has been witnessed in the rates until 2019, as shown in the graph below.





One major factor that could have contributed to the change in employment rates was the change in the GDP per capita (current US$) over the years.The GDP per capita (current US$) in 1999 was at $414.68 then it decreased until 2002 where it was at $389.54. Between these periods we see an increase in the unemployment. From 2003 there was an increase in the GDP per capita (current US$) which was at $429.79 to 2019 where it was at $1816.55. (Source: World Bank)


Kenya is ranked 21 from the country with the highest GDP per capita (current USD$) in Africa. Kenya has the relatively the same GDP per capita (current USD$) with countries such as Cote D’Ivore, Nigeria, Ghana, Sao Tome and Principe, Cameroon and Mauritania. (As of 2019)


Other factors that may have contributed to the change in the rates of unemployment are:Change of government in 2003 ,where Daniel Arap Moi handed over leadership to Mwai Kibaki, which led to a decrease in the rates of unemployment until 2008. In 2008 the country experienced post-election violence which may have slowed down the economy thus leading to an increase in the unemployment rates up to 2013. In 2013 there were changes in the government, where Mwai Kibaki handed over the government to Uhuru Kenyatta and also the Konza city mega project commenced. This affected the employment sector positively since a decrease in the rates was witnessed to date (2019).


In East Africa, the rate of employment in Kenya is lower compared to Djibouti, South Sudan, Eritrea and Somalia but relatively the same with Uganda, Tanzania, Ethiopia and Burundi. Rwanda has the lowest rate of unemployment compared to the other East African countries.

RATE OF UNEMPLOYMENT IN TERMS OF GENDER

Over the years since 1991 to 2019 the rate of unemployment in Kenya for males is slightly lower compared to that of females, according to this analysis.

In East Africa, Kenya’s male rate of unemployment is lower compared to countries like Djibouti, South Sudan and Somalia but the rate is relatively the same with countries such as Burundi and Ethiopia. Rwanda is the country experiencing the lowest rate of male unemployment compared to the rest of East African countries.

On female unemployment, Kenya’s rate is lower compared to Djibouti, South Sudan, Eritrea and Somalia but the rates are relatively the same with Ethiopia and Tanzania. Rwanda has the lowest rate of female unemployment compared to other East African countries.(SOURCE: WORLD BANK)