By Mike Rwothomio

President Museveni committed to creating more jobs, aiming to exceed the total number of jobs currently available in Uganda.

Speaking During the international Labour day held on May 1, 2025, in Nakapiripirit District, he outlined a universal formula for wealth creation, emphasizing collaboration between the government and individuals to drive increased job opportunities.

“We are going to create more jobs than the total number of jobs currently available in Uganda. The universal formula is simple — you create wealth, whether by government or individuals, and that wealth, in turn, creates jobs." Museveni said.

International Labour Day, observed annually on May 1, is a global tribute to workers and the labour movement, recognizing their vital contributions to society.

In Uganda, this year’s celebrations were held under the theme “Consolidating the Gains of the Parish Development Model for Increased Productivity and Inclusive Job Creation.”

According to the Uganda Bureau of Statistics (UBOS), Uganda’s working-age population (ages 15–64) stands at approximately 25.5 million, representing 57.4% of the total population.

As of 2024, UBOS reports that around 14 million individuals are employed across various sectors: 3.6 million in agribusiness, 5 million in services, 1.4 million in manufacturing, 46,000 in ICT, and 408,000 in public services, with the private sector being the largest employer.

Despite this, the unemployment rate is 12.3%, and youth unemployment remains a significant challenge, with 42.6% of youth aged 15–24 (approximately 4 million) not in employment, education, or training (NEET).

Agriculture remains the dominant sector, employing about 66% of the workforce, though most jobs are low-wage, subsistence-based roles. The services sector accounts for 43.1% of GDP but is less job-intensive, while industry contributes 24.9%.

Challenges Faced by Workers in Uganda

Despite a decline in youth unemployment from 20.3% in 2012/13 to 16.8% in 2016/17, underemployment is widespread, driven by low skills (1%), time constraints (43.6%), and inadequate wages (30.2%). Many youths engage in precarious, informal jobs, with 21% of employed youth classified as poor due to low earnings.

Educational curricula often fail to align with labour market demands, leaving graduates unprepared for available jobs. Limited resources, outdated teaching methods, and a shortage of qualified teachers exacerbate this issue.

Dominance of the Informal Sector: Approximately 95% of youth in non-farm enterprises work in informal jobs, characterized by low and unstable earnings, job insecurity, and lack of social security. This limits opportunities for stable, formal employment amongst other factors.

Uganda celebrates the international labour day with its Over 1.5 million refugees facing higher unemployment and discrimination in hiring, compounding economic integration barriers despite legal rights to work, according to right groups.

President Museveni’s pledge aligns with initiatives like the Parish Development Model (PDM), which aims to boost agricultural productivity and create jobs.

However, addressing the structural challenges outlined above—through improved education, skills alignment, formalization of jobs, and agricultural modernization—will be critical to achieving inclusive job creation and sustainable economic growth.

Mike Rwothomio is news editor at zoomer Africa