Kenyan youth prefer government employment over the private sector due to job security and pension, a World Bank survey. The world Bank report released last week says that the job stability of public sector employment carries a high premium and youth are prepared to forego Sh1,700 per month in a private sector job in order to hold a public sector one.
It adds that in most cases the government jobs offer higher pay explaining their allure to the youth.
Corruption, which has seen Kenya lose a third of its budget, has also offered public servants an opportunity to be wealthy, a dubious prospect that has seen many seeking State jobs with the intention of lining their pockets with taxpayers’ money.
“Not only do they offer high potential earnings, but other non-pecuniary rewards such as job security and career opportunities are also important factors,” the Kenya Economic Update report says.
“They (youth) are prepared to forego some salary in exchange for job benefits such as pension and vacations. Together with job stability, these benefits explain why the public sector is a preferred employer to the private sector.”
The private sector is regarded as more volatile with job cuts usually dictated by the performance of the employer.
In the last 12 months for example, several listed companies like Uchumi Supermarkets, Kenya Airways and Barclays have indicated they intend to let some staff go.
Pay in government jobs has also been growing much faster than the private sector.
The Economic Survey indicates that in 2014, the increase in average annual earnings was 8.8 per cent in the public sector compared to 7.5 per cent in the private sector.
The average public sector pay surpassed that of the private sector in 2010, making the government an attractive employer given that it also offers a number of allowances not provided by private companies.
“The average monthly earnings were higher in the public sector at Sh49,739.9, compared to Sh44,806.8 in the private one,” the Economic Survey 2015 published by Kenya National Bureau of Statistics says.
Public sector employees earn a number of allowances like housing, travel and leave allowance, growing their pay in some cases up to 100 per cent.
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