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According to a recent Geopoll survey, Kenya has reported an unemployment rate of over 42%, while Ghana has reported an unemployment rate of over 40%.
These high rates of unemployment highlight the challenges that both countries are facing in terms of job creation and economic opportunities for their citizens.
It is crucial for the governments of these countries to take proactive steps to address these issues and create an environment that supports job growth and economic development.
In Kenya, our survey findings indicate that 42.42% of the respondents are unemployed, 35.55% are employed, and 22.04% own their own businesses. Ghana stands out with a more favorable employment scenario, with 50.22% stating they are employed, 40.61% are unemployed, and 9.17% own a business.
A significant proportion of respondents in Kenya, totaling 40.79%, receive a monthly income within the range of Kes. 10,000 ($61) to Kes. 50,000 ($305). Close behind, 36.81% earn less than Kes. 10,000 ($61). Additionally, 13.67% report earnings between Kes. 50,000 ($305) and Kes. 100,000 ($610), while 5.97% fall into the income bracket of Ke. 100,000 ($610) to Kes. 200,000 ($1,219). Finally, a modest 2.75% indicates earning more than Kes. 200,000 ($1,219).
A distinct trend emerges in Ghana, where 49.34% of respondents earn a monthly salary of 1000 Ghana Cedis ($80). Following closely, 37.55% fall into the income range of 10,000 Cedis ($800) to 50,000 Cedis ($4,000), with a mere 1.75% indicating an income exceeding 20,000 Cedis ($1,600).
The survey listed the below causes of high unemployment rate in these countries.
Economic recession: The GeoPoll survey highlighted that economic recession is a major cause of unemployment in both Kenya and Ghana. A downturn in the economy can lead to businesses cutting costs and reducing their workforce, resulting in higher unemployment rates.
Lack of skills and education: The survey also found that a lack of skills and education is a significant factor contributing to unemployment in both countries. Many young people in Kenya and Ghana may not have the necessary education or training to secure jobs in their desired fields, leading to high levels of unemployment.
Limited job opportunities: Another key reason for unemployment in Kenya and Ghana, according to the GeoPoll survey, is the limited job opportunities available in both countries. The job market may be saturated, especially in certain sectors, making it difficult for individuals to find employment.
Corruption and nepotism: The survey highlighted that corruption and nepotism are also factors contributing to unemployment in Kenya and Ghana. Many individuals may struggle to find jobs due to unfair hiring practices or bribery within the job market.
Rural-urban migration: The GeoPoll survey suggested that rural-urban migration is a cause of unemployment in Kenya and Ghana. Many individuals may move to urban areas in search of better job opportunities, leading to increased competition for a limited number of jobs.
Political instability: Political instability was identified as a cause of unemployment in both countries, according to the GeoPoll survey. Uncertainty and instability in the political environment can deter investment and economic growth, leading to higher levels of unemployment.
Financial Fortune is a digital financial news website and print business magazine published in Nairobi by Fortune & Transit Publishers Ltd and covers the financial services sector through news, views and extensive people coverage since 2018. Email: info@financialfortunemedia.com
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