Statistics released by the Zimbabwe National Statistics Agency (ZimStat) on Monday reveal that the country has a rate of employment of 79 per cent but most of the jobs are of low value.
According to ZimStat, the rate of unemployment in Zimbabwe increased to 21 per cent in the 3rd quarter of 2023 compared to 20.1 per cent in the comparative period in 2022.
The Agency said youth unemployment (those aged between 15 and 34 years), increased to 28.7 per cent up from 27.6 per cent the prior year.
The unemployment rate measures the share of workers in the labour force who do not currently have a job but are actively looking for work.
The expanded unemployment rate, which includes people discouraged from looking for work, in the country is 47.8 per cent.
According to ZimStat, the the labour force participation increased to 44.1 percent from 42.6 percent.
However, 68.5 per cent of the working population earn less than $800 000 (US$133) per month with 52 per cent earning less than $200 000 (US$33.33) per month a clear indication that the majority of the jobs are low-quality and low-paying jobs.
According to ZimStat manager, Labour Statistics, Clapton Munongerwa, the Agency includes vendors as part of the people that are employed.
The majority of the low-earning workers are in the wholesale and retail trade, sales and repair of motor vehicles and motorcycles. Their average income is $197 119 (US$32.85).
The wholesale and retail sector employs 26.6 per cent of the country’s employed population.
40.1 per cent of the employed population are own account workers or self-employed, according to ZimStat.
Trigrams Investments analyst Walter Mandey told Business Weekly that when a country is creating a lot of low-quality, is a sign that the economy is not growing as it should. He said:
When a country creates a lot of low-quality and low-paying jobs, it can have a number of negative consequences.
First, it can lead to a decline in living standards for workers and their families.
Second, it can make it difficult for workers to save for retirement or invest in their children’s education.
When a country is creating a lot of low-quality and low-paying jobs, it is a sign that the economy is not growing in a healthy way.
Workers who earn low wages have less money to spend, which can reduce aggregate demand in the economy leading to slower economic growth.
They also pay less in taxes leading to a reduction in Government revenue making it more difficult to fund essential public services such as health and education.
Source Pindula News
