Youth unemployment can be managed

Youth Unemployment can be managed

The National Budget of 2011/12 allocated a big chunk of money of about 44.5bn to youth activities and ensure unemployment levels are reduced considering that that there are many youth on street with no work to bring in income for sustainability. Uganda is one of the countries in the world with the highest youth population of over 80% and yet idle. Education made easy, most young people are educated with good grades and degrees but no jobs.

Thousands of graduates pour onto the streets every year looking for jobs. Statistics from the Labour department show that 390,000 students who finish tertiary education each year have only 8,000 jobs to fight for. This means that for every one job that is available they are about 50 people to fill it. The UBOS findings indicate that illiterates are more likely to be available for any work than the literates. Statistics from all government departments point to major job crisis in Uganda. According to the Labour force flow figures, more than 400,000 Ugandans who enter the Labour market each year, only about 113,000 are absorbed in formal employment, leaving the rest to join the informal sector. Uganda's unemployment rate stands at 80 per cent and underemployment, which is mainly prevalent in rural areas, is at 17 per cent.

Undergraduate degree enrollment alone expanded by 1045% between 1990 and 2004 and, annually, Ugandan universities produce about 20,000 graduates who face competition for employment opportunities from the graduates of over 325 non-university higher education institutions in the country.

In a developing economy, where choices are limited, voluntary, or frictional unemployment is rare, hence the case in Uganda with skills mismatch and petite Labour market. Unemployment further causes further grounds for unemployment since prolonged unemployment can lead to an erosion of skills, basically robbing the economy of otherwise useful talents. Unemployed individuals are unable to earn money to meet basic financial obligations including Medicare, shelter, and education, clothing and personal development.

If the labor market in the economy does not work in an optimum manner, it will lead to few job openings, hence unemployment. The world rankings still place Uganda amongst the sorry environments for investment, with countless regulations, and lack of clear information for investor match making, or investor relations, and investment generally.

 However, the government has taken several initiatives like running entrepreneurship programmers and establishing vocational training institutes to create job creators, not job seekers. Through various partners, it has established funds, including the Youth Venture Capital Fund, to fund youths going into business.

At a glance, the successive governments of Uganda have had excellent policies with regard to education and internship placements. However, the implementation has not been effected. There is still a gap in the growth of the economy and the expansion of the Labour market.

As the youth we cannot keep blaming the government for the increased unemployment levels, we have to play a role in ensuring that this reduces to our advantage. Youth need to be more creative and stop looking at the white collar jobs only and consider other options especially with jobs that involve use of hands.

However, the government has a role to play in ensuring that its citizens (youth being majority) are catered for and given an opportunity to earn a living which is sustainable. The budget allocations to the youth need to be effectively used to show change or else the Minister for the youth will be held to account.

Adellah Agaba is a member of Young Leaders Think Tank for Policy Alternative (KAS).

Adellah_agaba@yahoo.com