Government unveils plan to fix jobs crisis

The employment challenge in Uganda is a struggle for the ordinary citizen and the government.

With 45.9 million people and more than 73% of them below the age of 30, the country is under intense pressure to create pathways from school to skills, from skills to work, and from work to stable incomes.

In a statement presented at the Uganda Media Centre ahead of International Labour Day on May 1, Minister of State for Labour Esther Davinia Anyakuni outlined what the government says it is doing to meet that challenge.

At the centre of the response is a shift from simply discussing unemployment toward building employability.

One flagship initiative is the National Apprenticeship Programme, designed to equip young Ugandans with practical, market-relevant skills rather than classroom credentials alone.

Since 2022, the government says it has supported 1,134 apprentices and 242 graduate volunteers.

Most notably, the programme has recorded an employment transition rate of 71.73 %.

That means roughly seven in ten participants moved into work after the programme, a strong signal in a labour market where many graduates struggle to convert qualifications into jobs.

The government says the scheme will expand placements across districts, cities and municipalities. If scaled effectively, apprenticeships could help close one of Uganda’s most persistent gaps: employers demanding experience while job seekers cannot gain experience without first being hired.

The second priority is the informal economy. Nearly 88% of Uganda’s workforce operates informally, according to the ministry. That means job policy cannot focus only on corporate offices or industrial parks. It must reach mechanics, tailors, welders, market traders, roadside manufacturers and family enterprises.

That is where the Jua-Kali Programme comes in. Named after the East African phrase associated with the informal sector, the initiative aims to help small, often unregistered businesses transition into formal growth.

Formalisation can mean easier access to credit, training, markets and legal protections. For the government, it can also broaden the tax base and improve productivity.

The third pillar is direct youth skilling. Uganda’s labour market challenge is not just a shortage of jobs, but a mismatch between available skills and employer needs. Technical abilities in construction, manufacturing, hospitality, ICT and services are increasingly in demand.

The Youth Skilling Programme is intended to narrow that mismatch by giving young people practical capabilities that can translate into self-employment or wage employment. In a youthful country, vocational pathways may become just as important as university degrees.

Productivity is another focus. The ministry says it is implementing measures to enhance labour productivity for national competitiveness and human capital development. That may sound abstract, but productivity is simply how much value workers can produce with their time and tools.

Higher productivity often means higher wages, stronger firms and better export competitiveness.

Uganda’s current productivity levels remain below both regional and global averages, making this a strategic issue rather than a technical one.

The government also highlighted the National Labour, Employment and Productivity Reporting Programme, known as LEAP. Reliable labour data helps policymakers understand where jobs are growing, where gaps persist and which interventions work.
Without data, labour policy often becomes guesswork.

Social protection forms the final major plank. The ministry says it is working to expand social security coverage to boost national savings, increase investment and secure retirement incomes.

With millions working outside formal pension systems, broadening coverage could reduce future poverty among older citizens while mobilising long-term domestic capital.

The broader policy direction links directly to Uganda Vision 2040, which seeks to transform the country into a competitive upper-middle-income economy.

However, plans alone do not employ people. Success will depend on implementation, scale, funding and whether programmes reach beyond Kampala into towns and rural districts, where underemployment is often most severe.

The ministry also announced Labour Day build-up activities including workplace inspections, barazas, workers’ conferences, tree-planting campaigns and public awareness drives in Buikwe District, where national celebrations will be held on May 1 at Nkoyoyo Boarding Primary School Grounds, Matale.

This year’s theme is “Safeguarding Uganda’s Progress: Empowering the Workforce and Promoting Decent Work for Competitive Enterprises.”