The employement problem in Kenya tread causes and policy implication

Abstract

Lack of adequate job opportunities in Kenya's monetary sector is a 'problem' that pessimists feel has deteriorated since independence. Kenya's economic rate of growth has been described as one of the fastest in the third world, but so has also been its population growth rate. To what extent has the labor-absorptive capacity of the economy expanded to cope with the growing population? 'Employment Problem' was defined as lack of adequate jobs in the monetary sector and its magnitude measured in terms of the number of persons in the working-age who do not have jobs in this sector. Excluded from this number were those in the working-age but undergoing training in Academic Institutions. As a proportion of total population, the magnitude was found to be a growing function of time. However, when measured as a proportion of the labor-force it was found to be approximately constant although at a high level about 79%). The X2 - tests performed showed that the 'employment problem' is significantly large in the economy . .Two main causes postulated and tested were found to be operative. First, people do not have access to as many jobs as are created in the economy. This was especially so in technical and specialized fields; and the reason was that potential workers generally lack 'experience' and appropriate skills. Secondly, the rate at which population is expanding is such that the number entering the working-age each year is growing faster than that of jobs not only created but also availed to those demanding them. Underemployment was also found to be prevalent in the economy and is most significant in the agricultural sector.