Policy Monitor, Issue 4 No. 1, July-September 2011 on Unemployment in Kenya

Abstract

In many countries, long term unemployment and underemployment continue to soar. The unemployment rate of youth agl'd 15-24 in Kenya was 24% in 2005/6 compared to the overall unemployment rate of 12.7%. Under-employment increased from 5% of those employed in 1999 to 21 % of those employed in 2005- 2006. Urban unemployment rate (19.9%) was relatively higher than rural unemployment rate (9.8%), due to people moving to urban areas to seek employment. Due to the negative socio-economic impact on the economy, the unemployment problem can no longer be wished away. Social challenges such as delinquency and psychological disorders result from high unemployment, potentially affecting both public and private investments as well as economic growth. It is against this background that KIPPRA conducted a study on the unemployment challenge in Kenya. The study examines the interventions and incentives that other countries have used to tackle unemployment.