economy 1 May 2026 Daily Monitor (Uganda)
Uganda's Labour Market: Low Pay and High Youth Unemployment Persist
Uganda's job market offers many low-wage positions amid soaring youth unemployment, with 42% of young people neither in work nor education. Recent data shows job growth, but experts warn the economy fails to deliver decent opportunities. Source: https://www.monitor.co.ug/uganda/magazines/people-power/is-labour-market-giving-ugandans-a-raw-deal--5443586
Sarah Kamuge, a nursing graduate who invested over Shs15 million in her training, settled for a Shs400,000 monthly job in Mukono after failing to secure better prospects. Government positions often demand hefty bribes, leaving many like her with few choices.
The 2024 National Population and Housing Census outlines employment types, including paid employees like Kamuge, apprentices, employers, own-account workers, and unpaid family helpers. Despite a rise of 900,000 employed people since May 2024, only 9.6 million of 25.1 million in the working-age group (14-64) have jobs.
Youth aged 18-30 face acute challenges, with 5.2 million (42%) classified as NEET—not in employment, education, or training. Karamoja reports the highest NEET rate at 57.1%, while Kigezi has the lowest at 31.4%.
The Uganda Bureau of Statistics’ Human Resource Survey reveals fixed-term contracts dominate at 1.19 million, followed by permanent roles at 939,000 and casual work at 73,000. Workers aged 31-64 hold 74.2% of jobs, with youth at 24.7%.
Between 2023 and 2025, 618,503 new jobs emerged, mainly in informal sectors led by women. Education employs the most at 1.3 million, trailed by trade, manufacturing, and finance.
Experts like Julius Mukunda of CSBAG argue the economy cannot absorb annual job seekers into meaningful roles. Dr. Fred Muhumuza of Makerere University Business School blames structural issues, uneven growth, and limited markets for businesses.
Junior Labour Minister Esther Davinia Anyakun acknowledges poor pay in untracked home enterprises but calls for better conditions. Thadious Musoke of Neta highlights high costs forcing underpayment and NSSF defaults.
President Museveni defends his record, claiming programs like Parish Development Model and four-acre farming will generate millions of jobs via agriculture on 40 million arable acres.
The Employment (Amendment) Act 2025 aims to protect domestic, casual, and migrant workers, though enforcement remains key.
Source: Daily Monitor (Uganda)