As Uganda joins the rest of the world to celebrate International Labour Day to recognise and appreciate workers’ contributions to national development, Labour State Minister Esther Nyakuni has has challenged government to address current low labour productivity.
According to the Minister in absolute terms, labour productivity in Uganda remains significantly below both global and Sub-Saharan African averages. In purchasing power parity (PPP) terms, real GDP per person employed in Uganda stood at US$ 6,162 in 2021, compared to US$ 10,278 for Sub-Saharan Africa and US$ 41,510 globally.
“As we commemorate International Labour Day, it is imperative to reflect on the latest national data to better appreciate the opportunities and challenges within our labour market,”Anyakuni said while addrssing the Media In Kampala ahead of national labour day celebrations, at Nkoyoyo Boarding Primary School Grounds, Matale, Buikwe District, under the theme: “Safeguarding Uganda’s Progress: Empowering the Workforce and Promoting Decent Work for Competitive Enterprises.”
According to the National Population and Housing Census (NPHC) 2024, Uganda’s population stood at 45.9 million, and over 73% of the population is below the age of 30, underscoring the country’s predominantly youthful demographic structure. This demographic structure presents both an opportunity and a challenge, as the country must generate sufficient productive and decent jobs to absorb the rapidly growing labour force.
According to the 2025 Labour Market Survey, the working-age population stands at approximately 26.4 million (58.1%), with an unemployment rate of about 12%. Labour force participation remains relatively low at 43.2%, reflecting structural constraints in labour market absorption. Youth exclusion is particularly pronounced, with 42.6% of those aged 15–24 not in employment, education, or training (NEET). Unemployment is also higher among females than males, pointing to persistent gender disparities.
Anyakun noted that Uganda’s labour market is largely informal, with the sector contributing about 54.5% of GDP and employing nearly 88% of the workforce as a result, the majority of workers remain in vulnerable employment with limited access to labour protection. This is compounded by gaps in awareness and enforcement of labour rights, as a significant proportion of workers continue to face hazardous conditions and workplace abuses.
The minister also pointed out that Social protection coverage remains limited “Although 3.2 million workers are registered under retirement benefits schemes, with most under the National Social Security Fund, only a fraction are actively contributing, leaving many workers exposed to income insecurity in old age,”she stated.
“On productivity, performance has been mixed. While industry and services have exceeded their targets and agriculture has shown improvement, overall labour productivity remains below both regional and global averages. This underscores the need for sustained efforts to enhance productivity across all sectors in line with the ambitions of the Fourth National Development Plan,”Anyakun explained.
She said Ministry of Gender will continue to implement programmes to promote decent work and enhance productivity such as Implementation of the National Apprenticeship Programme (NAP).The Programme aims to develop a pool of skilled manpower with practical and market-relevant skills. Since 2022, Government has supported 1,134 apprentices and 242 Graduate Volunteers, achieving an employment transition rate of 71.73 percent.
“The Programme will continue to expand placements across districts, cities and municipalities to enhance youth employability and support the creation of an industry-ready workforce,”Anyakun stressed.
She further said government will also empower Informal Businesses into Formal Growth (Jua-Kali Programme and enhance Labour Productivity for National Competitiveness and Human Capital Development
According to the the minister creation of decent work and productive employment opportunities remains central to Uganda Vision 2040, which seeks to transform the country into a competitive upper-middle-income economy. Furthermore, decent work entails productive and fairly remunerated employment, safe and secure working conditions, respect for labour rights, and access to social protection.
