Youth workforce surges in Tanzania’s formal sector

Dar es Salaam. Youth aged 15 to 35 years now constitute the majority of Tanzania’s formal workforce, according to the Tanzania Formal Sector Employment and Earnings Survey 2022/23 Analytical Report.

The report indicates a significant demographic shift, with the proportion of young employees increasing from 45.9 percent in 2019/20 to 68.77 percent in 2022/23.

During this same period, the overall formal workforce expanded by 5.3 percent, rising from 3,450,053 employees to 3,635,755.

Analysts say this transformation reflects changing hiring trends, driven by a growing need for adaptability, innovation, and skills to meet the demands of a modern economy.

Global trends

Tanzania’s labour market transformation mirrors global trends. The World Economic Forum’s Future of Jobs Report 2025 highlights key factors reshaping the global labour landscape, including technological advancements, demographic changes, and the green transition.

Future skills deemed critical include artificial intelligence (AI), big data, creative thinking, analytical skills, and environmental stewardship.

Employers anticipate upskilling to be their primary workforce development strategy by 2030.

Jane Mihanji, Chairperson of the Researchers, Academicians, and Allied Workers Union (RAAWU), attributed the rise in youth employment to targeted government efforts.

“The government has implemented specific plans, such as equipping and upgrading vocational training institutions. This has enabled many young people to acquire skills that allow them to either find jobs or create their own employment opportunities. The government understands that skills are key to building a sustainable job market,” she stated.

Ms Mihanji also emphasised the role of interest-free loans offered to special groups, which have empowered young people to start businesses and grow professionally.

“These loans are a lifeline for young entrepreneurs. Once they stabilise their ventures, they repay the loans, allowing others to benefit as well,” she added.

She urged young people to embrace continuous learning and adapt to changes in the global market.

“As the world evolves, remaining stagnant is not an option. Positive change will secure young people in their careers and businesses,” Ms Mihanji advised.

Similarly, economist Dr Dickson Pastory linked the rise in youth employment to changes in market dynamics, where traditional industries are being replaced by customer-driven economies.

“Young people are more in tune with today’s demands, where businesses respond to customer needs rather than offering pre-designed solutions,” he explained.

Dr Pastory encouraged young people to adopt a forward-thinking mindset and seize opportunities created by the government’s curriculum reforms.

Tech enthusiast Dominick Dismas pointed to the growing adoption of generative AI as a driving force behind the rise in youth employment.

“Companies are actively seeking employees skilled in generative AI to remain competitive in an increasingly digital world,” he noted.

Despite these successes, the government faces major challenges in enhancing the curriculum to better equip young people to adapt to the ever-changing global markets.

Economic analyst Prof Abel Kinyondo called for a comprehensive overhaul of Tanzania’s education system to incorporate soft skills development.

“Soft skills like trust, collaboration, punctuality, and responsibility are crucial for workforce readiness. Unfortunately, our current curriculum prioritises hard skills while neglecting these vital attributes,” he shared.

Prof Kinyondo proposed the creation of a think tank comprising experts from diverse fields to monitor global labour trends and align educational strategies accordingly. “Our curriculum still relies heavily on outdated approaches, focusing on hard skills without addressing the soft skills that are increasingly crucial in today’s world,” he added.

As Tanzania’s workforce continues to evolve, experts stress the importance of strategic investments in education and skill development to ensure the youth are well-prepared to drive innovation and thrive in the global economy.