Kenya’s unemployment rate was 5.57 percent in 2023. This represents a steady decline from the increase after the financial crisis. What is unemployment? The unemployment rate of a country refers to the share of people who want to work but cannot find jobs. This includes workers who have lost jobs and are searching for new ones, workers whose jobs ended due to an economic downturn, and workers for whom there are no jobs because the labor supply in their industry is larger than the number of jobs available. Different statistics suggest which factors contribute to the overall unemployment rate. The Kenyan context The first type, so-called “search unemployment”, is hardest to see in the data. The closest proxy is Kenya’s inflation rate. As workers take new jobs faster, employers are forced to increase wages, leading to higher employment. Jobs lost due to economic downturns, called “cyclical unemployment”, can be seen by decreases in the GDP growth rate, which are not significant in Kenya. Finally, “structural unemployment” refers to workers changing the industry, or even economic sector, in which they are working. In Kenya, more and more workers switch to the services sector. This is often a result of urbanization, but any structural shift in the economy’s composition can lead to this unemployment.

Unemployment refers to the share of the labor force that is without work but available for and seeking employment.

In 2023, around 20 million people were employed in Kenya, this was an increase of some 900,000 individuals from the previous year. The employees belonged mostly to the informal sector. Roughly 16.7 million worked in informal conditions, whereas close to 3.3 million were employed in the formal sector. The informal sector constitutes an important part of the Kenyan economy, being related to employment creation, production, and income generation. Trends in the informal labor market and economic sectors The largest employment activities for people in the informal sector were in wholesale and retail trade, as well as hotels and restaurants, with 9.32 million people employed in these areas in 2022. Moreover, the hospitality sector in the country was the fastest-growing economic sector with a quarterly growth rate of 21.5 percent of the GDP. However, the largest economic sector as an added value to the GDP was the agricultural sector. Navigating unemployment challenges in Kenya Kenya’s unemployment rate is following a decreasing trend, which dropped below five percent at the end of 2022. However, unemployment among the youth in the same period was fairly high at 13.4 percent. The cohort with the highest level of unemployment was among the age group between 20 to 24 years old, with an unemployment rate of over 15 percent.

Unemployment Rate in Kenya increased to 5.70 percent in the fourth quarter of 2023 from 4.90 percent in the fourth quarter of 2022. This dataset provides - Kenya Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

The youth unemployment rate in Kenya decreased to 12.23 percent compared to the previous year. Nevertheless, the last two years recorded a significantly higher youth unemployment rate than the preceding years.The youth unemployment rate refers to the share of the workforce aged 15 to 24 that is currently not working but is actively searching for work. It does not include the economically inactive population, such as the long-term unemployed or full-time students.Find more key insights for the youth unemployment rate in countries like Somalia and Burundi.

In 2021, the male labor force participation rate in Kenya was measured at 75.6 percent. This meant that nearly 77 in every 100 men aged 15-64 years were economically active. Among females, the rate was lower, at 71 percent.

In the fourth quarter of 2022, the unemployment rate in Kenya was higher among young people aged 20-24 years. The second most affected group was composed of Kenyans in the age range of 15 to 19 years. Among these, 10.9 percent were unemployed. In the same period, the overall unemployment rate in Kenya was measured at 4.9 percent.

Kenya Labour Force Participation Rate: Male: 5-Year Bands: Aged 65+ data was reported at 59.527 % in 2022. This records a decrease from the previous number of 67.068 % for 2021. Kenya Labour Force Participation Rate: Male: 5-Year Bands: Aged 65+ data is updated yearly, averaging 64.721 % from Dec 1999 (Median) to 2022, with 6 observations. The data reached an all-time high of 73.290 % in 2016 and a record low of 57.758 % in 1999. Kenya Labour Force Participation Rate: Male: 5-Year Bands: Aged 65+ data remains active status in CEIC and is reported by International Labour Organization. The data is categorized under Global Database’s Kenya – Table KE.ILO.LFS: Labour Force Participation Rate: By Sex and Age: Annual.

The total number of people in the labor force in Kenya increased by 0.8 million people (+3.23 percent) in 2023. Therefore, the number of people in the labor force in Kenya reached a peak in 2023 with 25.5 million people. Notably, the number of people in the labor force continuously increased over the last years.The labor force is the total number of people aged 15 and older currently employed, those unemployed but seeking work, and first-time job-seekers. It excludes individuals who are unemployed and not seeking employment, such as students and retirees.Find more statistics on other topics about Kenya with key insights such as rate of adult literacy as share of the country's population 15 years and above.

Kenya Employment: WE: PR: Agriculture, Forestry and Fishing data was reported at 289.800 Person th in 2017. This records a decrease from the previous number of 294.500 Person th for 2016. Kenya Employment: WE: PR: Agriculture, Forestry and Fishing data is updated yearly, averaging 290.200 Person th from Jun 2008 (Median) to 2017, with 10 observations. The data reached an all-time high of 299.900 Person th in 2013 and a record low of 285.900 Person th in 2009. Kenya Employment: WE: PR: Agriculture, Forestry and Fishing data remains active status in CEIC and is reported by Kenya National Bureau of Statistics. The data is categorized under Global Database’s Kenya – Table KE.G005: Employment: by Sector and Industry: International Standard of Industrial Classification Rev 4.

Kenya Employment: WE: PR: Mining and Quarrying data was reported at 14.400 Person th in 2017. This records a decrease from the previous number of 14.600 Person th for 2016. Kenya Employment: WE: PR: Mining and Quarrying data is updated yearly, averaging 8.500 Person th from Jun 2008 (Median) to 2017, with 10 observations. The data reached an all-time high of 14.600 Person th in 2016 and a record low of 7.600 Person th in 2009. Kenya Employment: WE: PR: Mining and Quarrying data remains active status in CEIC and is reported by Kenya National Bureau of Statistics. The data is categorized under Global Database’s Kenya – Table KE.G005: Employment: by Sector and Industry: International Standard of Industrial Classification Rev 4.

In 2022, the unemployment rate in Kenya decreased from 5.3 percent in the third quarter to 4.9 percent in the fourth quarter. In the second quarter of 2020, unemployment reached its peak at 10.4 percent among the population aged 15-64 years.

Kenya: Unemployment rate forecast: The latest value from is percent, unavailable from percent in . In comparison, the world average is 0.00 percent, based on data from countries. Historically, the average for Kenya from to is percent. The minimum value, percent, was reached in while the maximum of percent was recorded in .

Kenya Employment: WE: PR: Construction data was reported at 159.400 Person th in 2017. This records an increase from the previous number of 155.000 Person th for 2016. Kenya Employment: WE: PR: Construction data is updated yearly, averaging 105.150 Person th from Jun 2008 (Median) to 2017, with 10 observations. The data reached an all-time high of 159.400 Person th in 2017 and a record low of 64.600 Person th in 2008. Kenya Employment: WE: PR: Construction data remains active status in CEIC and is reported by Kenya National Bureau of Statistics. The data is categorized under Global Database’s Kenya – Table KE.G005: Employment: by Sector and Industry: International Standard of Industrial Classification Rev 4.

Kenya Employment data was reported at 19,996.300 Person th in 2023. This records an increase from the previous number of 19,148.200 Person th for 2022. Kenya Employment data is updated yearly, averaging 15,162.050 Person th from Jun 2008 (Median) to 2023, with 16 observations. The data reached an all-time high of 19,996.300 Person th in 2023 and a record low of 10,012.500 Person th in 2008. Kenya Employment data remains active status in CEIC and is reported by Kenya National Bureau of Statistics. The data is categorized under Global Database’s Kenya – Table KE.G005: Employment: by Sector and Industry: International Standard of Industrial Classification Rev 4.

Abstract

The Global Strategy to improve Agriculture and Rural Statistics (GSARS) and Kenya National Bureau of Statistics (KNBS) have administered a survey in three counties near Nairobi where most households are engaged in agriculture. The survey captured information on the household’s agricultural activities, as well as detailed information on individuals’ employment and work activities over the last week and the last year. In addition to employment and unemployment estimates, four different measures of underemployment are estimated. All four indicators are useful in depicting labour force performance. The time-related underemployment and skill-based underemployment indicators capture underutilization of labour across all levels of employment. On the other hand, the last two indicators: the measures based on the quality, and security of employment; better describe employment at the bottom of the employment spectrum. They are proxies for those who would be unemployed if formal safety nets were in place and unemployment was an option. In contrast to what is presented here, in a high-income European country where unemployment benefits are provided, the unemployment rate would probably be higher and the estimates for the last two indicators would be smaller.

Geographic coverage

Not representative

Analysis unit

Household and individual

Universe

Agricultural Households

Kind of data

Sample survey data [ssd]

Sampling procedure

For this survey, two stage sampling method was used. This involved the sampling of enumeration areas (EAs) and sampling of households. Three counties were selected purposively: Machakos, Murang'a and Kiambu. 36 EAs was sampled randomly: 12 in each county. After the listing, 15 households were sampled in each EA.

Mode of data collection

Computer Assisted Personal Interview [capi]

Research instrument

The questionnaire for the survey has the following sections:

Section 1 - Household identification and introduction Section 2 - Characteristics of the dwelling Section 3 - Characteristics of the holding Section 4 - Education Section 5 - Employment (Wage) Section 6 - Employment (Unpaid) Section 7 & 8 - Checks and temporary absence Section 9 - Job search Section 10 & 11 - Working time in actual and usual hours Section 12 - 19 - Main jobs Section 20 - Own use production work Section 21 - Credit

The unemployment rate among young people in Kenya varied in the fourth quarter of 2022, compared to the previous quarter. In the age group between 20 and 24 years, the rate stood at 15.6 percent, up from 14.2 percent in Q3 2022. Among young people aged 15 to 19 years, the unemployment level dropped to 10.9 percent, after reaching the highest level at 22.7 percent in Q3 2022.

Unemployment rate, 15-64 years of Kwale rocketed by 148.08% from 5.2 % in 1989 to 12.9 % in 1999. Since the 148.08% surge in 1999, unemployment rate, 15-64 years remained constant by 0.00% in 1999.

8,4 (%) in 1999.

Abstract

The STEP (Skills Toward Employment and Productivity) Measurement program is the first ever initiative to generate internationally comparable data on skills available in developing countries. The program implements standardized surveys to gather information on the supply and distribution of skills and the demand for skills in labor market of low-income countries.

The uniquely designed modules in the Employer Survey aim to assess the structure of the labor force; the skills (cognitive skills, behavior and personality traits, and job-relevant skills) currently being used; the skills that employers look for when hiring new workers; the propensity of firms to provide training (including satisfaction with education, training, and levels of specific skills) and the link between skills and compensation and promotion. The survey also captures background characteristics (size, legal form, industry, full time vs. non-standard employment and occupational breakdown), performance (revenues, wages and other costs, profits and scope of market), key labor market challenges and their ranking relative to other challenges, and job skill requirements of the firms being interviewed.

The questionnaire can be adapted to address a sample of firms in both informal and formal sectors, with varying sizes and industry classifications.

Geographic coverage

Capital Nairobi and other urban areas.

Analysis unit

The units of analysis are establishments or workplaces - a single location at which one or more employees work. The larger legal entity may include multiple establishments. The firms on the list will have been randomly chosen, with probability proportional to the number of employees in the firm.

Universe

The universe of the study are non-government businesses registered with the Kenya National Bureau of Statistics (KNBS), from 2016. Firms with at least five employees were selected from the following sectors: Manufacturing, Trade and Other Services.

Kind of data

Sample survey data [ssd]

Sampling procedure

The sampling objective of the survey was to obtain interviews from 500 non-government enterprise workplaces in the capital and urban regions of Kenya. Firms with less than five employees were excluded from the target population.

Two-stage stratified random sampling was used in the survey. A list of businesses registered with the Kenya National Bureau of Statistics (KNBS) from 2016, served as the sampling frame.

Detailed information about sampling is available in the Kenya Employer Survey Design Planning Report and Kenya Employer Survey Weighting Procedure, provided as Related Material.

Mode of data collection

Computer Assisted Personal Interview [capi]

Research instrument

The Questionnaire for the STEP Employer Survey consists of five modules:

Section 1 - Work Force Section 2 - Skills Used Section 3 - Hiring Practices Section 4 - Training and Compensation Section 5 - Background

In the case of Kenya, the questionnaire was adapted to the Kenya context and published in English and Swahili. It has been provided as Related Material.

Cleaning operations

STEP Data Management Process:

1) Raw data is sent by the survey firm

2) The World Bank (WB) STEP team runs data checks on the Questionnaire data. Comments and questions are sent back to the survey firm.

3) The survey firm reviews comments and questions. When a data entry error is identified, the survey firm corrects the data.

4) The WB STEP team again check to make sure the data files are clean. This might require additional iterations with the survey firm.

5) Once the data has been checked and cleaned, the WB STEP team computes the weights. Weights are computed by the STEP team to ensure consistency across sampling methodologies.

Response rate

An overall response rate of 72% was achieved in Kenya STEP Survey. Detailed distribution of responses by stratum can be found in the document Kenya Employer Survey Weighting Procedure, available as Related Material.