The Ugandan government faces a twin problem: the need to generate sufficient jobs to match labour force growth, and to ensure that these jobs are of good quality. An estimated 700,000 individuals enter the labour market each year, but the economy can only absorb just over 200,000, according to the National Planning Authority (NPA).
For long, much of the debate – and government programmes – have focused on generating jobs. Initiatives such as the Parish Development Model (PDM), Operation Wealth Creation (OWC), Emyooga, and the Youth Livelihood Programmes (YLP) are intended to generate employment. Other sweeteners such as tax breaks; land offerings are given on the premise that companies will offer employment opportunities to Ugandans. However, there is an emerging concern about the quality of jobs created. This is a contemporary issue both locally and internationally where treaties by bodies like the International Labour Organisation (ILO) and the United Nations (UN); and Agenda 2030 Sustainable Development Goal 8(SDGs) implore governments to ensure that citizens receive good quality jobs.
Over 80% of Uganda’s workforce remains informal, according to Uganda Bureau of Statistics (UBOS). For instance, agriculture, which employs nearly 70% of Ugandans, remains largely subsistence-based with low quality jobs. Whereas informal employment provides crucial income, it rarely offers income security and social protection which are key traits of decent employment. This leaves millions without safety nets such as health insurance or pensions.
Young men packing processed sugar at Kakira Sugar Factory. Photo/EPRC
Focusing exclusively on increasing job numbers without addressing job quality is insufficient. Low-quality jobs provide limited long-term benefits, whereas quality jobs ensure fair wages, job security, social protection, and career growth. Workers earning sustainable incomes are more likely to invest in their families, health care, and education, creating a more skilled and resilient workforce. Additionally, decent jobs enhance purchasing power, drive demand for goods and services, and support industrial development. Without improving job quality, Uganda risks perpetuating a cycle of working poverty where individuals remain employed but unable to live decent lives.
To achieve sustainable development, there must be an intentional balance between job quantity and quality. Policymakers need to consider various approaches. Firstly, the informal sector, while key to Uganda’s economy, operates largely outside labour regulations, exposing workers to exploitation. Providing incentives such as tax breaks, financial aid, and business training can encourage small enterprises to formalise.
Stronger enforcement of the employment laws and regulations will help ensure fair wages, workplace safety, and workers’ rights. Strengthening compliance with mandatory health insurance and pension schemes, such as the NSSF, can further bridge the gap between informal and formal employment.
Investing in sectors which employ many Ugandans such as agriculture, textiles among others can generate large-scale jobs with better pay and security. Increasing the number of industries, modernising infrastructure, ensuring a reliable energy supply, and business hubs will attract private-sector investment, facilitating the creation of formal jobs that offer competitive wages and long-term stability.
Additionally, Small and Medium-sized Enterprises (SMEs) account for over 80% of private-sector employment in Uganda but face significant obstacles, including informality, limited access to funding, inadequate business skills, and weak market linkages. Government programmes should make it easier to provide financial assistance and training to SMEs. This will promote innovation, digital transformation, overall growth, and consequently high-quality employment opportunities.
Another critical aspect of balancing job creation and quality is addressing regional employment disparities. Urban areas typically provide greater access to formal, higher-paying jobs, while rural regions rely heavily on informal and subsistence employment. Reducing this divide requires targeted investments in infrastructure such as paved roads, reliable electricity, and education in underprivileged areas. Establishing rural industrial clusters focused on agro-processing or artisanal production can generate improved opportunities for rural workers.
However, striking a balance between job quantity and quality presents significant challenges. Government constraints, economic structural weaknesses, and rapid population growth complicate efforts to achieve sustainable employment solutions. Uganda’s dependence on agriculture and informal labour further complicates the situation. While expanding job opportunities is essential, ensuring these jobs are productive, sustainable, and offering decent working conditions remains equally critical.
Young people doing plumbing. Job quality is important for people to live decent lives. Photo/Courtesy
Increasingly, countries are tasked not to just create jobs but to ensure that the quality of jobs is good.