Uganda’s unemployment rate has been estimated at 12 percent, according to the newly released Labour Market Survey Report 2025 by the Uganda Bureau of Statistics (UBOS), highlighting persistent challenges in job creation, informality, and youth employment.
The report, launched at Statistics House in Kampala, indicates that although a large share of the population is engaged in some form of economic activity, most Ugandans remain trapped in informal employment.
UBOS findings show that about nine in ten people aged 15 years and above are working in jobs without formal arrangements such as social security, pensions, or paid leave, exposing them to economic vulnerability.
Unemployment is more pronounced in urban areas, where it stands at about 13 percent, compared to slightly lower levels in rural settings.
The survey also reveals that men register higher unemployment rates than women in both rural and urban areas, even though women’s overall participation in the labour force remains lower.
Youth unemployment continues to pose a major concern, with 18 percent of young people aged between 15 and 24 unable to secure jobs.
The situation is more severe among young women, whose unemployment rate stands at 21 percent, reflecting widening gender disparities in access to economic opportunities.
Regionally, Bukedi sub-region recorded the highest youth unemployment rate at approximately 37 percent.
The report further highlights the structure of Uganda’s labour market, which is heavily dominated by the services sector, employing 51 percent of those working for pay or profit.
Agriculture, forestry, and fishing remain the backbone of rural livelihoods, largely at subsistence level, while the industrial sector employs the smallest share of workers despite being predominantly male-driven.
Overall, only 46 percent of Ugandans aged 15 and above are engaged in employment for pay or profit, while about four in ten are involved in subsistence agriculture. The employment-to-population ratio stands at roughly two in five, pointing to limited absorption of labour into more productive sectors.
Speaking at the launch, State Minister for Finance Amos Lugoloobi stressed the need to improve labour productivity, noting that low output per worker continues to undermine the country’s economic competitiveness.
Meanwhile, the Permanent Secretary at the Ministry of Gender, Labour and Social Development, Aggrey David Kibenge, raised concerns over poor working conditions and weak enforcement of labour standards.
He said these challenges discourage skilled workers from entering or remaining in the job market.
Kibenge revealed that government has allocated an additional Shs10 billion to support apprenticeship programmes aimed at easing young people’s transition into employment.
UBOS Executive Director Chris Mukiza said the bureau plans to release labour market data more frequently, including quarterly updates on unemployment, to strengthen evidence-based policymaking.
UBOS Board Chairman Albert Byamugisha described the report as a critical tool for national planning, noting that it provides key indicators to track progress in economic growth, job creation, and gender equality.
Government officials and stakeholders have been urged to use the findings to design targeted interventions aimed at reducing unemployment, curbing informality, and improving job quality.
The Labour Market Survey Report 2025 is expected to play a central role in shaping Uganda’s employment policies and improving livelihoods across the country.
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