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About the Tanzania Jobs Scenario
The National Bureau of Statistics’ latest labour force survey indicates that employment in the informal sector increased from 22 percent of total jobs in 2014 to 29.4 percent in 2020/2021.
Employment in rural areas increased from 9.1 percent to 19.6 percent during the same period, while in urban areas it increased from 39.7 percent to 52.5 percent, according to the data agency.
Dar es Salaam has the highest number of informal jobs, which increased slightly from 61.5 percent to 62 percent, according to the Integrated Labour Force Survey.
Economists and other stakeholders who spoke in separate interviews said the surge in informal sector employment is a concern, implying that the country has yet to fully utilise its labour force through the formal sector.
The private sector needs to join the government’s efforts in creating more employment opportunities so that more youth can be absorbed into the formal sector.
The State needs to formulate policy and legal frameworks that would recognise activities involved in the informal sector.
“One of the means is to include them in infrastructure planning, such as through allocating for specific business areas for hawkers which will be recognised legally, and thus ensure stability for those involved,”