Increase in unemployment explained

Published by IGIHE
On 30 May 2017 saa 01:59
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The Director of the National Institute of Statistics of Rwanda (NISR),Yusuf Murangwa has explained that the more the number of people get education in Rwanda, the more the increase in unemployment tendency.

Murangwa has revealed this today in a consultative meeting held at the parliamentary building bringing together all bodies concerned with promoting employment in Rwanda.

It was also attended by government officials, parliamentarians, and representatives of civil societies, National Youth Council, women and disabled people among others.

The discussion kicked off with analysis of current policies to promote labor and challenges.

Murangwa presented international labor transformations related to the new definition of employment and unemployment which clearly highlights the extent of unemployment.

He explained that International Labor Organization(ILO) changed the definition of unemployment along with statistics of those registered as business people.

Murangwa shared that whoever worked at least one hour per week earning means of survival was in the past considered as employed person but it was amended where criteria qualifying someone as employed defines him/her as ‘ someone receiving salary for the job or having enough agricultural harvests enabling the individual reserve some for the market.’

This means unpaid farmers who don’t make enough harvests to reserve for the market are considered as unemployed but people having occupation.

“Serving with the new definition we find national unemployment rate standing at 13.2% as of February 2016 but the old definition rates unemployment at 2.8%. Our previous researches applied the old definition that is why we would see unemployment rate standing at 2% or 3%,”he said.

“This explanation on new measurements indicates that we are properly respecting measures. It doesn’t mean unemployment increased,it essentially means that new parameters capture the situation better. This was a pilot study. However, by the end of this year we will be publishing regular and detailed statistics on employment,” he added.

Urban unemployment stands at 16% and 12.6% in rural areas. The rate of people having occupation stands at 42.8% under new definition while the old one rated the latter at approximately 80%.

“The rate of unemployment stands at 13% for men and 14% for women. Considering unemployment rate by level of education attainment in Rwanda, the rate of unemployed people who are not educated stands at 10%, unemployment among secondary school graduates stands at 23% while unemployment among university graduates is extremely high. They want to find good jobs in offices, with good salary and abandon it if he/she doesn’t find a job meeting such desires, “said Murangwa.

Murangwa explained that people at Rwanda’s labor market are not highly educated because university graduates representation stands at 5% while the rate is 30% in developed countries.

Today, 50% people work less than 30 hours per week compared to the required nine hours a day.

The Senate president Bernard Makuza said that unemployment rate is currently measured twice a year in February and August and plans are underway to measure it quarterly by 2019.

Rwanda targets creation of 200,000 per annum by 2020 from the current 140,000.

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The Director of the National Institute of Statistics of Rwanda (NISR),Yusuf Murangwa

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