Job seekers in the country and across the globe are facing a grim future, as the rate at which employment opportunities are created is set to shrink. Eastleighvoice.co.ke reports
The latest employment outlook report by the International Labour Organisation (ILO) reveals that the employment landscape is facing significant challenges.
It notes that the anticipated recovery in job creation for this year is now unlikely, with employment growth rates projected to decline.
“The economic and labour market outlook for 2025 is increasingly fragile, with global GDP growth recently revised down to 2.8 per cent from 3.2 per cent due to persistent geopolitical tensions, recent trade disruptions and heightened uncertainty,” the report reads.
“Slower economic growth is expected to reduce global employment growth from 1.7 to 1.5 per cent in 2025.”
This corresponds to an increase in employment of 53 million, down from the previous forecast of 60 million.
In Africa, the organisation has downgraded the employment growth prospect from the earlier 1.8 per cent to 1.6 per cent.
This also comes amidst the economic slowdown in the region, which has also been downgraded by the International Monetary Fund (IMF) April economic outlook, to 3.8 per cent from 4.0 per cent last year.
New challenges
Apart from the slow economic growth, the organisation also attributes the constrained employment prospects in Africa to high inflation rates, debt vulnerabilities and regional instability.
“In addition, the current trade climate has generated new challenges for this region, which generally faces lower tariffs in developed country markets due to preferential trade agreements,” the report adds.
In Kenya, the implications of these trends are already being felt.
The country’s labour market has reportedly shown signs of strain, with rising unemployment rates and a growing informal sector.
In a report released late last year, the World Bank said Kenya’s unemployment would worsen in 2024 compared to the previous year.
The lender put the unemployment rate at 5.7 per cent for the year, slightly higher than 5.6 per cent in 2023.
