ILO Data Reveals Africa's Youth Employment Paradox: Low Unemployment Masks Crisis of Working Poverty and Informality

International Labour Organization modelled estimates for 2019 show that while Africa's youth unemployment rate of approximately 11% appears low by global standards, more than one in five young Africans are not in employment, education, or training (NEET), with young women disproportionately affected at 27.4%.

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FIRAT Editorial BoardInstitutional Research Desk
Jun 14, 2019
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ILO Data Reveals Africa's Youth Employment Paradox: Low Unemployment Masks Crisis of Working Poverty and Informality

Geneva, Switzerland · June 2019 — International Labour Organization (ILO) modelled estimates for 2019 have revealed a paradox at the heart of Africa's labour market: while the continent records some of the lowest official youth unemployment rates globally, the reality for millions of young Africans is one of working poverty, informality, and chronic underemployment.

The data, drawn from the ILO's ILOSTAT database and modelled estimates (ILOEST), shows that Africa's youth unemployment rate (ages 15–24) stood at approximately 11% in 2019 — a figure that, on its own, would suggest a relatively healthy labour market. However, the ILO has consistently emphasised that for many African nations, the primary challenge is not unemployment in the traditional sense, but the absence of decent work.

The Employment Quality Crisis

The ILO's analysis identifies three interconnected dimensions of the youth employment challenge in Africa that conventional unemployment statistics fail to capture:

Informality: Because many young Africans cannot afford to be completely idle, they engage in informal, poorly paid, or insecure work. The informal sector employs the vast majority of the youth workforce in many African countries, with estimates suggesting that over 80% of employed youth in Sub-Saharan Africa work in the informal economy. These jobs typically offer no social protection, no contract, and no pathway to career advancement.

Working poverty: A large share of young people classified as "employed" live in working poverty — earning incomes below the international poverty line of $1.90 per day. This means that employment, as measured by standard labour force surveys, does not equate to economic security or a path out of poverty.

Underemployment: Official unemployment figures fail to capture those who are underemployed — working fewer hours than they desire, or in jobs that do not utilise their skills or education. Time-related underemployment is particularly prevalent among young women, who often bear disproportionate unpaid care responsibilities.

Stark Sub-Regional Disparities

The ILO data reveals that Africa is far from a monolithic labour market. Youth unemployment rates varied drastically across the continent's sub-regions:

Sub-RegionYouth Unemployment Rate (2019)Key Characteristics
Southern Africa~53%Highest rates; South Africa dominates
North Africa~30%Persistent structural unemployment
East Africa~6%Low official rates; high informality
West AfricaSingle digitsHigh working poverty; agricultural dominance
Central AfricaSingle digitsData gaps; conflict-affected labour markets

The Gender Dimension

The gender gap in NEET rates — 27.4% for young women versus 16.6% for young men — represents one of the most persistent inequalities in African labour markets. The ILO attributes this gap to multiple intersecting factors:

  • Early marriage and childbearing: In many African countries, young women exit education earlier than men and face cultural expectations to prioritise family responsibilities.
  • Unpaid care work: Women and girls bear a disproportionate share of household and care responsibilities, limiting their availability for paid employment and education.
  • Occupational segregation: Young women are concentrated in lower-paid, lower-productivity sectors, particularly informal agriculture and domestic service.
  • Limited access to finance and assets: Cultural and legal barriers to land ownership and credit access constrain women's entrepreneurial opportunities.

The ILO has noted that this gender gap has been a consistent finding across successive reports and represents a significant drag on the continent's economic potential. Closing the gender gap in labour force participation could add billions to African GDP.

The Demographic Imperative

These labour market conditions take on particular urgency in the context of Africa's demographic trajectory. The ILO noted that Africa was the only region in the world where the youth labour force was projected to grow significantly in the coming decades. In 2019, UN officials estimated there were roughly 220 million people aged 15–24 living on the continent, with projections suggesting this could rise to approximately 350 million by the late 2020s.

Policy Directions

The ILO's framework for addressing the youth employment challenge centres on the concept of "decent work" — employment that is productive, delivers a fair income, provides social protection, and guarantees workers' rights. Key policy directions include:

  1. Investing in skills development: Aligning education and training systems with labour market demand, with particular attention to digital skills, technical and vocational education, and entrepreneurship training.

  2. Supporting enterprise development: Creating an enabling environment for small and medium-sized enterprises, which are the primary source of employment for young people. This includes access to finance, simplified business registration, and supportive regulatory frameworks.

  3. Extending social protection: Expanding social protection coverage to informal economy workers, who represent the majority of the youth labour force. This includes exploring innovative financing mechanisms and building on the expansion of social protection programmes observed in several African countries.

  4. Addressing structural barriers: Tackling the gender-specific barriers that keep young women out of the labour force, including investing in care infrastructure, challenging discriminatory norms, and ensuring legal equality in property and inheritance rights.

The data makes clear that Africa's youth employment challenge is not primarily about creating jobs — it is about creating decent jobs. With the youth labour force set to expand dramatically in the coming decades, the stakes of getting this right could not be higher.


Sources:

  • International Labour Organization (ILO), ILOSTAT Database — Modelled Estimates (ILOEST), 2019
  • ILO, Global Employment Trends for Youth 2020 (containing 2019 modelled estimates)
  • ILO, World Employment and Social Outlook: Trends 2019
  • ILO, "Youth Unemployment Rises: Young People Face Harder Road to Decent Work"
  • UN Population Division, World Population Prospects (2019 Revision)
Filed Under:#Youth Employment#Labour Markets#ILO#NEET#Informal Economy#Gender Disparity

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