A recent study has revealed why 2.01 million of the unemployed 2.97 Kenyans are no longer looking for work.
According to the Kenya National Bureau of Statistics (KNBS), the number of retrenched workers and recent graduates who have given up looking for active employment has increased from 1.3 million in the quarter to June 2020 when businesses shed jobs and froze hiring at the peak of Covid-19 economic hardships.
The study further reveals that the majority who have given up on employment are aged between 20 and 24 and account for 580,281 Kenyans followed by 25 to 29-year-olds at 351,125.
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The 20-24-year-old demographic consists mostly of fresh graduates whose job-seeking efforts are hurt by a lack of experience and a mismatch between skills and job openings.
The 20-24-year-old demographic consists mostly of fresh graduates whose job-seeking efforts are hurt by a lack of experience and a mismatch between skills and job openings.
The large number of new entrants into the job market every year has also led to limited opportunities, forcing many to seek alternatives such as setting up small businesses.
Since March 2020, many businesses have been reluctant to take more workers as they recover from the economic problems caused by the Covid-19 pandemic, which triggered lay-offs and wage cuts to survive.
“This can be attributed to a combination of both cyclical unemployment and structural unemployment,” said Ken Gichinga, chief economist at Mentoria Economics.
“Cyclical unemployment occurs when the business cycle is facing an economic downturn and there is reduced demand for goods and services, while structural unemployment exists when there is a mismatch between the jobs that are available and the people for work.”