Focusing on job creation, the Government of Ethiopia has launched a national program that will enable it to improve the business and investment climate of the country.
The national program has 80 activities that will be implemented by ten implementing agencies. Prime Minister Abiy has attended the launching of the program on Tuesday 25 December 2018.
The program, which is part of the national job creation program, aims to improve the global competitiveness of Ethiopia on how to start and grow business.
The government will play a key role in removing the bottlenecks that hinder the private sector from creating jobs.
In Ethiopia, the unemployment rate stands at 24%. Reports show that Ethiopia’s rural youth are becoming landless and lacking job opportunities, which often leads to increased migration to urban areas.
According to the International Labour Organization’s (ILO) 2016 World Employment and Social Outlook, in 2015 the youth unemployment rate was 10.9% in Sub-Saharan Africa, with the working poverty rate among youth standing at 70%. In Northern Africa, in 2015 the unemployment rate was 29.3%, with one in four working youth estimated to be living in extreme or moderate poverty.
The 2018 ILO report on Sub Saharan shows:
The unemployment rate is expected to reach 7.2%, essentially remaining unchanged.
The number of unemployed should increase by 1 million due to the region’s high levels of labor force growth.
More than one in three workers is living in conditions of extreme poverty, while almost three out of four workers are in vulnerable employment.
