Zimbabwe Unemployment Rate

By the end of 2024, the expected unemployment rate in Zimbabwe is around 7.8%, which means people between the ages of 16 and 30 will witness a major setback in the coming months. It is not a new story for the Zimbabwe workforce, as the country has a history of high unemployment rate and inadequate economic policies.

However, there is much more to it. The high Zimbabwe unemployment rate is deeply rooted in its insufficient economic policies, state-dominated political policies, economic stagnation, and poor education. So, let us discuss the situation of unemployment in the country.

Trends in Unemployment Rate in Zimbabwe 2020-2024

The average unemployment rate in Zimbabwe has always been higher than its neighbors, and the last two years have witnessed the highest unemployment rate. In the country, most of the economically active population is out of work currently, increasing poverty and inflation. The International Labor Organization estimated the average unemployment rate to be 5.2% in 2016.

According to BBC News, 95% of the population is without jobs, which is ridiculously high. You can figure it out by the fact that the corresponding figure in South Africa (its neighbor) was approximately 24.9% for the past five years. Research done by CUT IR Home suggests that the higher unemployment rate is mostly credited to low industry capital utilization, policy inconsistencies, theory-intensive curricula, and economic stagnation.

In recent years, unemployment witnessed no prominent change, as it only decreased two points from 9.1 to 9.3, from 2022 to 2023. On average, the unemployment rate nationwide has been around 6.10 percent, much of which is determined by poor socio-economic policies and political expediency. Even before that, the unemployment rate experienced an average annual change of 0.40%, which is comparatively lower than what is required.

Why is Youth Unemployment High in Zimbabwe?

Zimbabwe’s workforce has experienced a major setback with the start of the 21st century, much of which comes down to inadequate economic policies, population growth, weak macroeconomic policy, and weak export performance. Plus, the land redistribution projects and AIDS situation have added to the joblessness. So, let us understand the influence of these factors one by one in detail.

Population Growth Rate and Age Structure

The foremost reason for high unemployability in Zimbabwe is the overwhelming population and reduction in job opportunities. It means there are more candidates for fewer jobs, leaving most fresh graduates jobless. Moreover, Zimbabwe is a land-locked country with no access to the sea, meaning it depends only on primary products, leaving thousands of young people looking for limited jobs.

Weak Export Performance

After population growth, the factor that is responsible for high unemployment is the high elasticity of the domestic supply of exports. In 2003 alone, tobacco volume in the country’s exports reduced significantly, however, the prices remained the same, making it a staggering exchange. Thereby, with few goods for export, the country is generating a weak foreign currency flow, indulging in the black market.

Poor Macroeconomic Policy Environment

A country’s macroeconomic policy is crucial for its success, as it usually determines the credit and capital market. However, Zimbabwe in this scenario has been ignored, accredited to political expediency. Hence, many sectors get hit by the overwhelming indirect and direct exchange rates, causing a reduction of jobs and an increase in unemployment.

Unfriendly Business Climate

As a result of poor macroeconomics, the country’s profitability also gets affected significantly. The simple rule of thumb says that the more profitable the business investments are in the country, the more firms will operate and bring new money into the market.

In reality, Zimbabwe’s business climate is not sufficiently equipped to attract the type of foreign direct investments. Part of it comes down to regulations regarding capital repatriation and dividend remittability. Thereby, it discourages foreign investors from putting their money into new projects.

Tertiary Education

Across Zimbabwe, there are many tertiary institutions offering higher education; however, the existing infrastructure is not sufficient enough to absorb a higher number of young people seeking new training opportunities. This is evident through the massive increase in crime rates and high unemployment. Having limited industry-related jobs in the market influences job seekers and results in a condition of joblessness nationwide.

Land Resettlement

Contrary to popular opinion, the land reforms nationwide initiated by the war veterans and government officials have produced more losses than benefits. According to statistics, more than half a million farm workers have lost their jobs and source of income from the redistribution projects in the country. It overburdens the job marks, which adds to the problem, rather than solving it.

In conclusion, understanding the high unemployment rate in Zimbabwe is a bit challenging, as most of it comes down to the economic policies of the government. The country has a history of a politically-motivated economic market, resulting in a high unemployment rate and joblessness. I hope this guide was helpful for anyone trying to understand the high unemployment in the country.