Jua Kali Sector Created More Jobs Than Formal Sector in 2023

Contract workers by the roadside waiting for opportunities.
Contract workers by the roadside waiting for opportunities.
Photo
Reuters

A total of 848,200 new jobs were created in 2023, a survey released by the Kenya National Bureau of Statistics (KNBS) revealed.

According to the 2024 Economic Survey Report released on Monday, May 20, employment opportunities both the modern and informal sectors rose from 19.1 million in 2022 to 20.0 million in 2023.

The report further indicated that the number of new wage jobs outpaced those in the modern sector.

"Total new jobs generated in the economy were 848.2 thousand in 2023," the report showed.

Graph on wage employment
Graph on wage employment.

"In the year under review, wage employment in the modern sector grew by 4.1 per cent which translated to the creation of 122.8 thousand new jobs in the sector."

The report further showed that the total number of self-employed and unpaid family workers within the modern sector increased from 168,100 in 2022 to 172,4000 in 2023.

"The informal sector created 720.9 thousand new jobs and accounted for 85.0 per cent of all the new jobs created in 2023," added the report.

In the private sector, manufacturing, agriculture (forestry and fishing), wholesale and retail trade as well as repair of motor vehicles and motorcycles emerged as the leading industries in the provision of wage employment.

In the public sector, wage employment increased by 5.9 per cent in 2023 compared to 1.6 per cent recorded in 2022. During the year under review, education recorded the highest growth of 10.9 per cent mainly attributable to the large number of teachers hired by the Teachers Service Commission (TSC).

This was followed by Human, health and social work activities which registered a growth of 5.1 per cent.

Employment in manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles, and electricity, gas, steam and air conditioning supply declined by 5.6, 3.1 and 1.9 per cent, respectively.

"The leading industries with highest employment levels in the public sector were Education; and Public administration and defense; compulsory social security which accounted for 44.9 per cent and 34.6 per cent of total employment in the sector, respectively," added the statement.

The creation of jobs is in line with President William Ruto's goal of creating 4 million jobs for the youth in Kenya.

The Head of State, during his manifesto in 2021, promised to hit the milestone by providing cheaper credit for small-scale businesses such as the launch of the Hustler Fund.

Kenyans queue for Jobs in Nairobi.
Kenyans queue for Jobs in Nairobi.
PCS