NAIROBI, Kenya, Apr 3 – Over 20,000 formal jobs may be lost this year, with many more layoffs expected in the informal sector due to COVID-19, a new report says.
According to the report by NCBA Bank, Kenyans should expect job losses in the coming months as business activity slows down, especially in the private sector.
The informal sector will also see negative growth as demand weakens further with declining incomes.
Currently, the economy is facing disruptions in supply chains and containment measures including curfews, which should further weaken job prospects as businesses’ operating capacity decline.
Overall, the report estimates a decline in GDP growth to 2.3 percent this year, which will come with no new jobs in both the formal and informal sectors.
This comes at the back of a Kenya National Bureau of Statistics study released Thursday revealing that 4 million youths have no jobs.
In the first quarterly labor data by the Bureau, 34.27 percent of the 11.8 Kenyan youths were jobless as of December 2019, accounting for one in every three Kenyan youths.
“The youth aged 20-34 had the highest proportion (14.2 percent) of the unemployed. On the other hand, those aged 60-64 years had negligible unemployment rates,” KNBS says in the Quarterly Labour Force Report.