The Independent Uganda: You get the Truth we Pay the Price
A new survey shows rising enrolment and modest formal job growth, yet highlights a widening mismatch between education and employment as most Ugandans remain in the informal sector
Kampala, Uganda | JULIUS BUSINGE | Uganda’s labour market is expanding and becoming more formalised, but structural weaknesses in skills matching and persistent informality continue to weigh on productivity, according to new government data.
The Uganda Bureau of Statistics (UBOS) said in its National Human Resource Survey 2023/2024 that the country’s workforce is being reshaped by rising education enrolment, modest job growth in formal sectors and uneven improvements in workplace conditions.
The survey — only the second of its kind since 2016/17 — is intended to guide policy on employment, training and human capital development.
Expanding education pipeline
The report shows Uganda’s tertiary education system has continued to grow, with 1,459 training and certificate-awarding institutions in 2023, including 449 public and 1,010 private providers.
Enrolment rose from 364,617 in 2021 to 484,746 in 2023, reflecting increasing demand for higher education. Female participation was slightly higher, with 255,005 women enrolled compared with 229,741 men.
Graduate output also rose sharply over the period, from 182,065 to 241,293, with women accounting for a larger share of graduates than men.
Universities and affiliated colleges accounted for about 230,000 students in 2023, underscoring the growing importance of higher education in Uganda’s labour supply pipeline.
Total employment in formal establishments reached 2.2 million in 2023, up from 2.14 million a year earlier. The private sector accounted for more than 1.7 million jobs, while the public sector employed just over 500,000 people.
Education remained the largest employer, with 1.3 million workers, followed by trade, manufacturing and financial services.
The survey shows a workforce heavily concentrated in professional roles, alongside a gradual shift towards non-permanent employment. About 939,259 workers were on permanent contracts, while more than 1.19 million were on fixed-term contracts and 73,582 in casual work.
Most formal sector employees were aged between 31 and 64, accounting for 74% of the workforce.
Skills mismatch persists
Despite rising education levels, the report highlights continued mismatches between training and labour market demand.
While 85% of workers said their jobs matched their education level, 5% were overqualified, 1% underqualified, and 9% reported no training requirement for their roles.
Skill gaps were particularly pronounced among managers, who reported deficiencies in customer care, managerial capability, communication and IT skills. Among professionals, IT and communication skills were the most frequently cited shortfalls.
Analysts say the findings point to a need for closer alignment between education institutions and employers, as well as stronger emphasis on soft skills and continuous training.
Pamela Kabahesi, country programmes lead at BrighterMonday Uganda, said employment outcomes depend on more than academic qualifications.
“Employment is not just about wages or having an address. It must have a face — a dignified and fulfilling one,” she said.
“Many graduates lack soft skills employers expect. Can you keep time, can you articulate your point? On the other end, employers must nurture and mentor them. If both sides speak the same language, placement becomes easier.”
The survey also points to improvements in working conditions across sectors. The share of establishments with occupational safety and health (OSH) policies rose to 53% in 2024, up from 19% in 2016/17. Public sector compliance increased to 55%, while private sector compliance rose to 49%.
Gender policies have also become more common, rising from 10% to 57% over the same period. Measures to address sexual harassment were reported in 72% of workplaces.
ICT adoption has expanded significantly, with usage rising from 54% to 83%, reflecting broader digitalisation of work processes.
However, only 26% of employees said they had been informed about workplace hazards, despite 94% reporting awareness of safety measures — pointing to gaps in risk communication.
Outside the formal economy, Uganda’s labour market remains overwhelmingly informal. The survey estimates 7.18 million people work in the informal non-household sector, compared with just over 2.2 million in formal employment.
Of these, 4.7 million are self-employed, 1.75 million are paid employees, and about 705,000 are contributing family workers. Women make up a slightly larger share of informal workers than men.
Most informal workers have low levels of education, with the majority having only primary schooling, followed by secondary education and a smaller share with tertiary qualifications.
Policy implications
The findings highlight both progress and persistent structural constraints, including informality, skills gaps and uneven workplace standards, which economists say could limit productivity growth if not addressed.
Stephen Mukitale, deputy chairperson of the National Planning Authority’s executive board, said Uganda’s private sector must play a central role in job creation.
“If we are serious about addressing unemployment, we must deliberately invest in empowering the private sector. Government alone cannot absorb the growing workforce — its capacity to create jobs is limited,” he said.
He called for improved access to finance, infrastructure and a more supportive regulatory environment to enable business growth.
“Our focus should be on building a business ecosystem where enterprises can grow, innovate and employ more Ugandans,” he said. “When the private sector succeeds, the entire economy benefits.”
