The overall unemployment rate in Rwanda in the second quarter stood at 16.8 per cent, showing a little change from 15 per cent rate that was registered in the previous year. It was higher among females at 19.8 per cent, compared to males at 14.1 per cent. Unemployment was also high among youth at 20.5 per cent compared to 14.1 per cent among adults. In addition, rural areas experienced a higher unemployment rate at 17.3 per cent than urban areas at15.7 per cent, according to the National Institute of Statistics of Rwanda (NISR). Labour underutilisation, the rate of unemployed persons and persons who do not work full time or take a job that does not reflect their actual training and financial needs, was estimated at 53.9 per cent. This figure was significantly higher for females (61.1 per cent) compared to males at 46.5 per cent, and for youth at 59.5 per cent compared to adults at 53.8 per cent. In an exclusive interview with The New Times, Gaspard Musonera, Permanent Secretary at the Ministry of Public Service and Labour, raised measures that are being implemented to address these unemployment and labour underutilisation concerns. The current data indicates that there was a higher unemployment rate among females than males. What are the measures in place to deal with the issue? While there remains a gap in unemployment between females and males, the government has made considerable efforts to reduce unemployment among its citizens including the gender disparity. The Government of Rwanda has implemented various measures to address this disparity, especially through labour law and regulations, promoting inclusive employment creation and equal educational opportunities. Between 2017 and 2023, the percentage of female managers in both public and private sectors rose from 32.4% to 39.6% overall, with a notable rise in private sector leadership roles, according to the National Gender Statistics Report 2023. These efforts underline Rwanda's commitment to reducing the gender unemployment gap and promoting inclusive economic growth. The government has taken critical steps to facilitate women's access to the labour market. The Business Development Fund (BDF) guarantees up to 75% for women-owned Small and Medium Enterprises (SMEs) to secure loans, enabling more women to start and grow their businesses. Over the decade, female participation in tertiary education has increased significantly, supported by policies that remove barriers and ensure equal access to Science, Technology, Engineering, and Mathematics (STEM) fields. Programmes such as scholarships for low-income students and mentorship opportunities for women in technology and engineering are contributing to this shift. According to recent data, female enrollment in STEM programmes has grown by 8% over the past three years, reflecting the success of these initiatives. Initiatives such as maternity benefits and flexible work policies, supports women's retention in the workforce. ALSO READ: The fight against unemployment in Africa Based on the statistics, the unemployment rate is higher in rural areas than in towns. What are the contributing factors to that? Rural areas tend to have less access to formal employment opportunities, with most jobs concentrated in agriculture, which are often informal and seasonal. There is still limited access to infrastructure, markets, and financial services hindering the growth of small and medium enterprises (SMEs) in rural areas. Rural businesses relatively still face challenges such as inadequate business development support and difficulties in scaling due to limited access to technology and innovation hubs. What is being done to reduce the gap? The government has implemented various initiatives aimed at promoting employment in rural areas. Programmes such as expanding Business Development Services (BDS) up to the sector (Umurenge) level provide entrepreneurship advisory services to help rural entrepreneurs to improve their businesses and access resources. Employable skills development programmes accompanied by startup toolkits and capital have contributed to employment promotion in rural areas. Jointly with partners and the private sector, the government has implemented various initiatives including Innovation Project Competition, Youth Connekt Awards, Aguka project, and Hanga Pitch Fest. A number of innovation hubs such as kLab, Think IT, Hehe Labs, Impact hub, 100 and Startups incubator have been set up. This is in addition to Integrated Craft Production Centres that are being developed across the country. ALSO READ: Labour Day: 80% of new jobs filled by young people every year Statistics show that adults in Rwanda are more employed than the youth, yet we have a big number of youth compared to adults. What explains this? The youth unemployment rate in Rwanda, while reduced by 5% post-COVID-19, remains higher than for adults, primarily due to labor market mismatches, limited job opportunities, and the prevalence of informal jobs. To address this, the government has implemented various initiatives, including expanding vocational training programmes for non-educated youth, supporting youth initiatives and projects. Additionally, the government is enhancing academia-industry linkages, organising job fairs, and promoting public-private partnerships (PPP) to create more employment opportunities and support entrepreneurship. These measures are aligned with national goals under the NST2 and Vision 2050 to further reduce youth unemployment. Under- employment is also another problem facing the labor force. What are the trends for under-employment in Rwanda? The issue of under-employment arises mainly from a lack of quality and sustainable jobs, skills mismatches, and limited access to formal employment opportunities. The government is taking several steps, such as promoting job creation in the private sector, enforcing labor law compliance, and increasing labor productivity. The government is expanding business development services to support informal businesses and the creation of sustainable jobs, provide bridge financing and guarantee schemes for young entrepreneurs and scale up technology. We are also upgrading skills to support integrated Craft Production Centres (ICPCs) in various districts, in addition to up-skilling and reskilling workers to align with labor market demands, expanding vocational training, and fostering entrepreneurship mindset among youth. Another priority is to expand the Employment Service Centres (ESCs) to effectively connect youth with employment opportunities and capacitate the potential beneficiaries.
