The Government of Uganda has unveiled plans to accelerate industrialization through the construction of additional factories across the country, as part of a broader strategy to tackle rising youth unemployment and stimulate economic growth.
The announcement was made by State Minister for Finance, Amos Lugoloobi, during the launch of the latest labour market report by the Uganda Bureau of Statistics (UBOS).
According to the report, Uganda’s unemployment rate currently stands at 12.2%, with urban areas recording a slightly higher rate of 12.8% compared to 11.8% in rural regions. The findings highlight persistent challenges in the labour market, particularly among young people, many of whom continue to struggle to secure stable and meaningful employment.
The report further reveals gender disparities, with female unemployment at 13.9%, significantly higher than the 10.8% recorded among males. It also underscores the dominance of informal employment, where the majority of Ugandans earn a living without job security or formal contracts.
Speaking at the launch, Minister Lugoloobi emphasized that expanding the industrial base is central to the government’s job creation agenda. He noted that increasing the number of factories would not only absorb the growing labour force but also reduce reliance on informal employment.
“We are prioritizing industrial development across regions to create sustainable employment opportunities, especially for the youth,” Lugoloobi said. He also raised concerns about the lack of formal employment arrangements, which leaves many workers vulnerable and without adequate protections.
The UBOS report identifies significant regional disparities in unemployment. The Bukedi sub-region recorded the highest rate at 23.7%, followed by Kampala at 14.7% and Busoga at 15%. Other regions such as Acholi (10.6%), Karamoja (10%), and Ankole (9.3%) reported relatively lower rates.
In terms of workforce structure, 57.6% of Uganda’s population aged between 14 and 64 falls within the working-age bracket. Of these, males account for 58.8%, while females constitute 56.2%.
The report also highlights that the services sector remains the largest employer, accounting for 50.5% of total employment nationwide. This sector employs a higher proportion of females (56.4%) compared to males (46.3%). Agriculture, forestry, and fishing follow at 37.1%, while the industrial sector employs just 12.4% of the workforce.
Informal employment remains widespread, particularly in regions such as Karamoja (96.8%), Kigezi (93.7%), Teso (93.0%), and Bunyoro (92.9%). Kampala recorded the lowest level of informality at 73.5%, reflecting relatively better access to formal job opportunities.
Minister Lugoloobi noted that the labour market report provides critical data to guide government policy and planning. He recommended that such surveys be conducted and released quarterly to enable timely, evidence-based decision-making.
As Uganda grapples with a rapidly growing youth population and limited formal employment opportunities, the government’s push toward industrialization is expected to play a pivotal role in shaping the country’s economic future and improving livelihoods.
