With one week left to the General Election, the unemployment crisis has dominated the campaign scene with both coalitions unveiling various strategies they would use to tackle it if elected. Jubilee has committed itself to creating one million jobs every year whereas NASA coalition has not committed itself to any specific figure though it ranks the issue high on its agenda.
According to the 2017 Economic Survey by the Kenya National Bureau of Statistics, there were 832,900 new jobs created last year of which 747,300 were in the informal sector, commonly referred to as Jua Kali, while the remaining 85,600 were created by the formal sector.
This is disheartening as there are more than 800,000 youth that enter the Kenyan job market annually, according to World Bank estimates. Going by the Kenya National Bureau of Statistics figures, more than 700,000 professionals go unemployed yearly.
According the latest BrighterMonday DF Job Market Report for June 2017, the top four job categories that grew in job creation and salaries are administration & office support, retail, research and quality control and legal.
Jobs in administration and office support created 317 jobs in May 2017 and 91 in June 2017.
Salaries for this job category increased by 101.99% in the last six months bringing the median salary to Ksh 65,329. This should be good news for those who have studied administration. The increase in median salary for a particular job category can be explained by higher wages and/or the creation of more qualified jobs.
Despite the turmoil the retail sector is going through, it too saw a 66.67% surge in median salaries which was Ksh37,500, attributed to recruiting more skilled workers at junior level and less entry level.
Legal jobs also experienced a growth in both salaries and job creation with the median salary currently standing at Ksh118,362, mostly due to more recruitment at senior level.
For any government that will take over after the August 8 polls, statistical data will be very crucial in fulfilling its promises on job creation.
Recommendations
If the Government seeks to set policies enabling job creation in the country, it should align in permanence the needs of employers and skills of the workforce (such as through the education system).
A data-driven Government using updated job market data to channel youths to where the job offer is that a promise political leaders can fulfill.
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Investing in public works could also work greatly towards reducing unemployment rate in the country. Some people remain unemployed because they are semi-illiterate, hence cannot seek jobs based on professionalism. They cannot even start businesses as they do not have capital. They cannot acquire loans due to poor bank statements, if at all they have accounts.
Public works will be a good starting point, as they can save enough capital to start businesses after the contract is over. The government can ‘force’ them to save by withholding part of their dues as savings, then give them at the end of the contract to venture into business. This will be a better alternative to loans.
Creating a business-friendly environment will be also a great source of employment. Kenyans can set up their own businesses and employ those who are not able to start their own businesses. Investors from outside will also be attracted to the country, which will provide more employment opportunities. This can be achieved through ensuring that the country is secure and implementing reasonable tax rate. Good business policies should also be put in place to ensure fair and healthy competition thrives, that will do away with monopoly businesses.
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