The global labour market is undergoing a period of change. According to a report by the World Economic Forum, 23 percent of all jobs globally will change over the next five years due to increased use of technology, the green transition and macroeconomic events. At the same time, the health, geopolitical and economic crises of recent years have already affected employment worldwide, and demographic shifts are likely to lead to even more changes over the coming years.
Sub-Saharan Africa accounts for more than half of the global population growth expected by 2050. The world’s 46 least developed countries are expected to have the highest population growth by 2050. Some of these countries will double their population between 2022 and 2050, putting enormous pressure on resources and posing major challenges to the fulfilment of the SDGs. The UN has warned that it will become increasingly difficult to fight poverty, hunger and malnutrition and at the same time increase capacity in areas such as healthcare and education systems at the necessary pace.In parallel with population growth, more and more people are moving to cities. Africa is forecast to have the fastest rate of urbanisation in the world, with an additional 950 million inhabitants living in cities by 2050. Much of this increase is taking place in small and medium sized cities. While urbanisation brings opportunities for growth, digitalisation and innovation, it also presents challenges.
One challenge is that 600 million new jobs will need to be created by 2030. In addition, the majority of jobs will need to be created in developing countries, where the economic situation is difficult due to high inflation, subdued growth and high levels of debt. More than 72 million young people in Africa today are unemployed, the majority of whom are young women. Almost half of the continent’s young population has considered emigrating in search for work. In a survey by the research institute Afrobarometer, respondents were asked what their country’s biggest problem is. 40 percent answered unemployment. A majority of these people also said they would sacrifice their democratic rights in order to get a job.
Although the situation is challenging, there is considerable potential in the private sector, in which nine out of ten jobs are created. Every new job creates ripple effects and leads to positive development effects. Employment is the single most important way out of poverty, and every job supports on average between five and seven people. Parallel efforts are necessary to create more jobs. Policy reforms are needed to create favourable conditions, combined with investments in the public sector to build human capital and in the private sector to enable businesses to grow and employ more people. A positive trend can be seen in the increasing levels of education. The proportion of young people in Africa with upper secondary or post-secondary education could reach 34 percent by 2040, compared to 23 percent in 2020.
Trade is another important aspect of job creation and economic growth. Trade spreads ideas and innovations that contribute to sustainable development. However, it is currently both expensive and time-consuming to conduct trade on the African continent. Investment in infrastructure is therefore urgently needed to link countries and regions together. In addition to improved infrastructure, companies need to be able to grow to contribute to sustainable growth. Micro, small and medium enterprises account for 70 percent of all formal jobs in developing countries. Sub-Saharan Africa has a strong entrepreneurial spirit and its population has the highest percentage of people running start-ups. Promoting entrepreneurs’ access to information, capital and markets creates good opportunities for job creation and growth.
