Employment diagnostics analysis - Uganda (EDA-U)

Analysis of the key labour market statistics documented by the Uganda Bureau of Statistics show that total population, total labour force, total employment and total Gross Domestic Product (GDP) have been growing over the years but at varying rates. With the economy rebasing in 2014, GDP expanded by 17.3 percent at 2009/10 market prices. Uganda’s economy has been relatively stable over the last twenty years within the context of several macro-economic reforms starting with the structural adjustment programs in early 1990s. However, these reforms have not created enough decent and productive jobs to absorb and keep up with a high population growth rate. Empirical evidence shows that for every one percent point increase in GDP, the economy has created less than a percent point in jobs (0.04). Hence, in an economy with excess labour supply, this result is a yardstick of ‘jobless growth’ and hence a potential cause of rising unemployment. It is against this background that an Employment Diagnostic Analysis (EDA) is proposed. This EDA process will involve the Ministry of Gender, Labour and Social Development (MGLSD), as the host but will have a National Steering Committee (NSC) composed of ILO tripartite constituents, relevant Ministries, Departments and Agencies (MDA’s), academia, civil society and the private sector who will play an oversight. This EDA will provide information support to the Labour Advisory Board (LAB) which is a statutory body whose key mandate is employment policy advice to government under the leadership of MGLSD. The MGLSD will provide overall oversight to the governance structure that will guide the process. The development objective of this EDA is to generate stakeholder understanding on job-rich inclusive economic growth and just structural transformation. It is important to note that structural information is explicitly acknowledged as a process that unfolds through deep-rooted and far-reaching interaction between different economic sectors. The EDA thus will incorporate a holistic approach that explores inter-sectoral relations, up- and downward linkages and dynamic spill-over effects. Acknowledging these complex relations, the proposed EDA specifically will help to; 1. Generate a holistic conceptual understanding on options for job-rich and inclusive economic growth and structural transformation 2. Secure participation and ownership of national policy makers and stakeholders in the EDA 3. Identify sectors and inter-sectoral linkages of strategic importance for job-rich growth and investment 4. Produce a comprehensive Employment Analysis for Uganda

Project symbol

UGA/16/01/SWE

Admin unit

CO-Dar es Salaam

Start date

01/07/2016

End date

30/11/2018

Total allocation

173436

Total expenditure

Status

Closed

165689

Development Partners

Sweden, Swedish International Development Cooperation Agency

Country/Countries

Uganda

Outcomes

More and better jobs for inclusive growth and improved youth employment prospects