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By Ben Musanje
Uganda’s labor market is defined by a sharp divide between a relatively small formal workforce and a vast informal sector, with new findings highlighting both the scale of employment and the evolving conditions under which people work.
The National Human Resource Survey 2023–2024 estimates total formal employment at 2,204,918 in 2023. Within this segment, the private sector dominates, employing more than three times the number of workers in the public sector, whose growth remains largely flat.
Men make up the majority of formal employees, totaling about 1,326,825, while women account for the remainder. The workforce is largely concentrated in the 31 to 64 age group, followed by youth aged 18 to 30. A small proportion—0.5 percent—of workers in the private sector fall within the 14 to 17 age category, while government employment records none in this group.
Presenting the data at Statistics House in Kampala on Thursday, UBOS statistician Dunstan Aguta pointed to the private sector as the main driver of employment, noting its significantly larger share compared to the public sector.
Employment is concentrated in key sectors including education, trade, manufacturing, and financial and service industries. Within workplaces, professionals form the largest occupational category, while managerial positions remain relatively few.
Contractual arrangements reveal that most workers are employed on fixed-term contracts lasting three months or more, followed by permanent staff, with casual workers forming the smallest group.
The survey also sheds light on job quality and skills alignment. Eight in every ten employees meet the educational requirements for their roles, with the figure rising to nine in ten among managers, professionals, and technicians. However, employers report persistent gaps in critical skills, particularly in information technology, communication, innovation, creativity, and customer care.
Between 2023 and 2025, the private sector created 618,503 new jobs, underscoring its central role in absorbing labour market pressures and supporting economic activity.
Workplace conditions have improved in several areas. The proportion of establishments with occupational health and safety policies has risen from 19 percent in 2016–2017 to 53 percent. About 26 percent of employers inform workers about potential workplace dangers, while nine in ten have measures in place to mitigate risks.
Policies addressing worker welfare are also becoming more common. Workplaces with stress management policies have increased from 9 percent to 37 percent, while those with HIV policies have risen from 9 percent to 33 percent. Gender policies are now present in 47 percent of establishments, and disability policies in 32 percent, up from 18 percent.
Seven in ten workplaces have measures to address sexual harassment, while the adoption of ICT in work processes has climbed from 54 percent to eight in every ten establishments. Contributions to social security have also improved, increasing from 27 percent to 53 percent.
Beyond the formal sector, the informal economy remains the dominant source of livelihoods, employing about 7.1 million people. In this segment, business owners form the largest group, followed by paid workers and contributing family members.
In contrast to the formal sector, women outnumber men in the informal workforce. The majority are youth aged 18 to 30, followed by those between 31 and 59, with most workers having primary education and others secondary education.
Together, these figures paint a picture of a labor market where formal employment is growing but still limited, while the informal sector continues to absorb the majority of workers, shaping the reality of employment in Uganda.
