Africa’s unemployment price seems to be comparatively low by international requirements. In 2025, the continent’s price stood at 6.3%. But that determine tells solely a part of the story. More than a 3rd of employed Africans stay in working poverty; they’re employed however stay under the poverty line of $2.15 a day. Most employees are informally employed, and fewer than one in 5 folks have social safety protection.
Having a job doesn’t essentially imply incomes sufficient to assist a family, escaping poverty, or having safety when issues go incorrect. To perceive the African labour market, it is essential to look past unemployment to look at the kind of work folks do and the way safe their livelihoods are.
Most Africans work, however most work informally
The International Labour Organisation (ILO) defines employment rate because the share of the working-age inhabitants who’ve labored at the least an hour for pay or revenue throughout a reference interval of 1 week or seven days.
Under this definition, an individual could be thought of employed even when they work for less than a brief interval. The measure captures whether or not somebody has work, but it surely doesn’t, by itself, set up whether or not that work offers a safe livelihood.
Africa has a rising working-age inhabitants, with extra younger folks getting into the labour market annually. The World Bank estimates that Sub-Saharan Africa must create round 15 million jobs yearly to soak up its rising working-age inhabitants. When formal employment doesn’t broaden rapidly sufficient, folks nonetheless must make a residing. Many flip to self-employment or discover work in agriculture, commerce, transport, building, meals companies and different actions.
Much of this work takes place within the casual financial system. In 2025, an estimated 84.4% of employed folks in Africa had been informally employed, the best share of any area. While informal employment doesn’t essentially imply a job is poorly paid, when it dominates a area, it raises essential questions on employees’ earnings, safety, and entry to social safety.
Africa’s labour market varies sharply by area
Continental averages conceal totally different labour realities throughout Africa’s areas. In a number of African subregions, low unemployment coincides with excessive casual employment. In West Africa, the unemployment price stood at 2.9% in 2025, whereas 91.2% of employment was casual. Central Africa recorded an unemployment price of 6.8% alongside a casual employment price of 93.1%. In Southern Africa, nevertheless, the unemployment rate was 31.1%, considerably increased than the remainder of Africa, whereas casual employment accounted for less than 40% of employment within the area.
The regional variations turn out to be clearer when working poverty and social safety are thought of alongside unemployment and casual employment.
In Central Africa, 57.7% of employed folks had been residing in working poverty, whereas solely 7.8% of the inhabitants was lined by at the least one social protection profit, reminiscent of healthcare, pensions, unemployment assist or maternity advantages. Despite having a excessive unemployment price, Southern Africa’s working poverty stood at 15.3%, whereas social safety protection reached 59.1%.
For Western, Eastern and Central Africa, low unemployment coexists with widespread casual employment and restricted social safety. Meanwhile, Southern Africa has considerably increased unemployment however decrease informality, much less working poverty and broader social safety protection.
Women face a wider hole in job safety
Employment is totally different for women and men. Africa is the one area the place extra ladies are informally employed than males. In 2025, 88.6% of employed ladies in Africa had been in casual employment, in contrast with 81.2% of employed males.
Women are additionally extra prone to expertise working poverty and have decrease social safety protection.
Women in Africa additionally carry a disproportionate share of unpaid care and home work. The OECD estimates that ladies spend round 4.1 instances as a lot time as males on these actions. This burden can restrict the time obtainable for paid work and cut back the alternatives ladies can pursue.
Measuring work means trying past unemployment
As Africa’s working inhabitants grows, the variety of jobs created will likely be essential. But what is much more essential is the standard and safety of these jobs and whether or not employment improves the lifetime of a mean African employee.
This has implications for a way Africa measures progress within the labour market. Policymakers must pay nearer consideration to job high quality, productiveness and social safety as these measures give a fuller image of whether or not financial development is translating to raised livelihoods.
As new types of work emerge and know-how modifications how we work, the objective would wish to transcend creating extra alternatives for work. It also needs to embody guaranteeing that these alternatives can assist a extra productive financial system and safer livelihoods.
True scale calls for transferring past surface-level integrations to strong execution. We’ve filtered the noise out of Moonshot 2026, optimising the convention strictly for high-calibre connections between startup founders, international monetary operators, enterprise leaders and people rewiring Africa’s technical frameworks. Get 20% off Early Bird tickets for a limited time.
