Focus on technology, informal sector to create jobs, say experts

Dar es Salaam. Experts yesterday highlighted technology as a promising avenue to empower the youth and address the rising cost of living amid the looming global unemployment.

The World Employment and Social Outlook for 2024 report, published by the International Labour Organisation (ILO) on January 10, 2023, calls for innovative solutions in regions like sub-Saharan Africa to change the tide.

“While the formal sector may see a decrease in jobs due to advancements like artificial intelligence, the rapid development of technology opens up opportunities for our youth in the informal sector,” Lecturer of Economics at the College of Business Education, Dr Abdul Juma, said.

He said the venture was a potential for young people to leverage their technological skills, positioning themselves as consultants in the formal sector, ultimately paving the way for self-employment.

“In this era of limited formal employment, technology provides the gateway for young people to become entrepreneurs, thriving in the informal sector,” Dr Juma explained. “To achieve this, a national strategic plan is essential to encourage the youth to delve into software development and ICT programmes.”

The ILO report reveals a concerning discrepancy in employment conditions, particularly in Sub-Saharan Africa. Last year, 22 percent of the 15.8 million Africans who secured employment earned less than the global average hourly pay.

Shockingly, the extremely working poor in this region constituted 32.8 percent of all employed individuals, a stark contrast to the global average of 6.9 percent.

The statistics from 2023 show that 86.5 percent of all those employed in Africa worked in the informal sector, while globally, only 58 percent were informally employed.

This imbalance, according to him, reflected the challenges faced by the growing working-age population in Africa, where entry into the labour market is fraught with difficulties in securing decent and productive work.

Another expert on youth issues and employment from the University of Dodoma, Dr Jane Momanyi, added her perspective on the transformative potential of technology.

“Despite limited formal education, short courses in ICT can revolutionise the informal sector, providing employment opportunities for many,” she states.

She emphasised the importance of recognising the expertise in technology that exists within the informal sector, urging governments to invest in opportunities for young individuals to address social problems through technological solutions.

The ILO report projects a modest rise in global unemployment in 2024, highlighting the need for proactive measures.

As labour force participation rates decline and employment growth slows, global unemployment is expected to increase by two million, pushing the global unemployment rate from 5.1 percent in 2023 to 5.2 percent in 2024.

The report highlights that the global jobs gap remains elevated at close to 435 million, posing challenges to structural and labour market adjustments.

In the Tanzanian context, experts advocated for a shift in focus towards the informal sector. “Technology adoption in the informal sector is not just a solution; it’s a necessity,” said a technology policy analyst, Dr Grace Mwakyusa from the Dar es Salaam Institute of Technology.

“Empowering the youth with digital skills can bridge the gap between formal and informal employment, creating a more inclusive and resilient workforce.”

The outlook insists on the urgency of addressing youth unemployment, with at least 63 million young Africans, aged between 14 and 24, out of employment, education, or training in 2023.

To combat disillusionment and labour market detachment, experts said there is a growing consensus among experts that investing in technology education and skill development is paramount.

They suggested that the government formulate comprehensive policies that encourage the integration of technology in the informal sector.

“A strategic collaboration between educational institutions, government bodies, and private enterprises is crucial to ensuring that our youth are equipped with the necessary skills to thrive in the digital economy, where they can survive,” technology education advocate Dr Sarah Mgonja told The Citizen.