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Kenya’s Job Market: Jua Kali Sector Created More Jobs Than Formal Sector in 2023

Kenya’s Job Market: Jua Kali Sector Created More Jobs Than Formal Sector in 2023

In 2023, a survey released by the Kenya National Bureau of Statistics (KNBS) revealed the creation of 848,200 new jobs.

The 2024 Economic Survey Report, issued on Monday, May 20, highlighted a rise in employment opportunities across both modern and informal sectors, increasing from 19.1 million in 2022 to 20.0 million in 2023.

Within this growth, the report noted that the number of new wage jobs surpassed those in the modern sector.

According to the report, the economy generated a total of 848.2 thousand new jobs in 2023.

Wage employment in the modern sector experienced a 4.1 percent increase, resulting in the creation of 122.8 thousand new jobs.

Additionally, the report indicated a rise in the total number of self-employed and unpaid family workers in the modern sector, climbing from 168,100 in 2022 to 172,4000 in 2023.

The informal sector contributed significantly to job creation, generating 720.9 thousand new jobs, which accounted for 85.0 percent of the total new jobs in 2023.

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In the private sector, industries such as manufacturing, agriculture, wholesale and retail trade, and repair of motor vehicles and motorcycles emerged as leading providers of wage employment.

Meanwhile, wage employment in the public sector saw a 5.9 percent increase in 2023, driven by notable growth in education, which recorded a 10.9 percent rise due to increased hiring by the Teachers Service Commission (TSC).

Human, health, and social work activities also experienced growth, with a 5.1 percent increase.

However, employment in manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles, and electricity, gas, steam, and air conditioning supply witnessed declines of 5.6, 3.1, and 1.9 percent, respectively.

The public sector’s leading industries in terms of employment levels were Education, and Public administration and defense; compulsory social security, accounting for 44.9 percent and 34.6 percent of total employment, respectively.

These job creation efforts align with President William Ruto’s objective of generating 4 million jobs for Kenyan youth, as outlined in his 2021 manifesto, which includes initiatives like the Hustler Fund aimed at providing cheaper credit for small-scale businesses.

Kenya’s Job Market: Jua Kali Sector Created More Jobs Than Formal Sector in 2023

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