The Government Has Failed To Address The Unemployment Issue

By Steve Biko Wafula / Published March 19, 2023 | 8:05 am

KEY POINTS

KEY TAKEAWAYS

Political instability and insecurity have also contributed to the high levels of unemployment. The country has experienced periods of political turmoil, which have deterred investors from investing in the country and creating jobs. Additionally, insecurity in some parts of the country has made it difficult for businesses to operate, leading to job losses.

Unemployment refers to a situation where people who are willing and able to work cannot find employment opportunities. In other words, it is a state of being jobless despite actively seeking work. Unemployment is measured as the percentage of the labor force that is unemployed.

Underemployment, on the other hand, refers to a situation where people are employed but not in the full capacity they desire. It includes people who work part-time when they would prefer full-time work, as well as those who work in jobs that do not fully utilize their skills and education. Underemployment is also measured as a percentage of the labor force.

Both unemployment and underemployment can have negative impacts on individuals and the economy as a whole. They can lead to lower economic growth, lower productivity, lower living standards, and increased social problems such as poverty and crime.

Kenya is currently experiencing high levels of unemployment, with the situation being dire, particularly for the youth. According to a report by the Kenya National Bureau of Statistics (KNBS), the unemployment rate in Kenya stands at 7.4%. However, the rate of unemployment among the youth is significantly higher, standing at 22.5%. Despite the government’s efforts to address this issue, the current administration led by President Ruto has failed to address the unemployment question. In this article, I will explore some of the reasons why this is the case.

The government has not implemented effective policies to address the issue of unemployment. While the government has launched several initiatives, such as the Youth Fund and the Uwezo Fund, these programs have been marred by corruption and mismanagement, which has limited their effectiveness. As a result, many of these programs have not been able to create meaningful employment opportunities for the youth.

The government has failed to create an enabling environment for job creation. For example, the high cost of doing business in Kenya, coupled with the country’s inadequate infrastructure, has deterred many potential investors from setting up businesses in the country. The government has not done enough to address these issues, making it difficult for businesses to thrive, which has ultimately led to limited job creation. Not to mention the scary tax code that is driving away potential job creators.

The government has not invested enough in education and skills training, which has left many young people ill-prepared for the job market. Despite the government’s efforts to increase access to education, many young people are still unable to access quality education, particularly in rural areas. Additionally, the education system has not been adequately aligned with the needs of the job market, leaving many graduates without the necessary skills to compete in the job market.

The government has failed to diversify the economy, which has led to over-reliance on a few sectors, such as agriculture and tourism. As a result, many young people who would like to venture into other sectors have limited opportunities to do so. Furthermore, the government has not done enough to promote innovation and entrepreneurship, which would create new jobs and stimulate economic growth.

Corruption has undermined the government’s efforts to address the issue of unemployment. Many programs meant to create employment have been siphoned by corrupt officials, leaving the intended beneficiaries worse off. Additionally, corruption has discouraged foreign investors, who would have otherwise created jobs, from investing in the country.

The government has not done enough to address the issue of brain drain. Many highly educated and skilled Kenyans are leaving the country in search of better opportunities abroad, leaving behind a skills gap that the government has not been able to fill.

The government has not done enough to promote labor-intensive industries. Many industries in the country are capital-intensive, which limits the number of job opportunities they create. The government has not done enough to promote labor-intensive industries, such as light manufacturing, which would create more jobs.

The government has not done enough to support small and medium-sized enterprises (SMEs), which are the engines of economic growth and job creation. SMEs face numerous challenges, including limited access to credit, high taxes, and bureaucratic red tape, which limit their growth potential. The government has not done enough to address these issues, which has limited the ability of SMEs to create jobs.

About Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

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