Discussion Paper No. 214 of 2018 on Employment Distribution of Youth Graduates Across Economic Sectors in Kenya

Abstract

Youth graduates pursue jobs whose choices are influenced by various factors as espoused in the occupational choice theory on which this study is underpinned. The study uses a snowball methodology to select a sample of 304 respondents with Diploma, Bachelors, Masters and PhD degrees who graduated between the period 2008 to 2018. Multinomial logit was used to analyze factors influencing employment distribution of youth graduates across various sectors of the economy. The key findings of the study reveal that the private sector is the largest employer of youth graduates followed by the public sector, and the NGOs. Self-employment is the least absorber of youth graduates. The majority of youth employed in the public sector have Masters and Bachelors degrees compared to those in the private sector who hold Diploma and Bachelors degree. The need for career growth, income, experience and networking are the key reasons for seeking employment among young graduates. Moreover, requisite and relevant skills, education level, nature of employment, and search duration were found to be significant in determining employment of youth graduates. The study recommends creating an enabling environment for the private sector to continue expanding, given that it absorbs most of youth graduates. Secondly, there is need for close collaboration between industry and academia right from curriculum formulation stage to the time skills are transmitted to learners.