Uganda’s workforce surpasses 2.1 million as private sector drives job creation amid rising demand for skills — UBOS Human Resource Report

Uganda’s labour market is expanding, youthful, and increasingly driven by the private sector, but beneath the growth lies a complex picture of inequality, job insecurity, and evolving workplace standards.

These are some of the key insights emerging from the newly released National Human Resource Survey 2023/24 by the Uganda Bureau of Statistics, launched Thursday at Statistics House in Kampala.

The report, only the second of its kind since 2016/17, provides one of the most comprehensive snapshots of the country’s human resource landscape, tracking everything from employment patterns and skills gaps to workplace conditions and training pipelines.

A Private Sector–Driven Workforce

The survey shows that Uganda had over 2.14 million employees in formal establishments by 2023/24, with the private sector dominating employment.

Out of this total, more than 1.6 million workers are employed in private enterprises, compared to just over half a million in government institutions.

This imbalance underscores a long-standing reality: Uganda’s job market is increasingly reliant on private business growth.

Speaking at the launch, Stephen Mukitale, Deputy Chairperson of the Executive Board of the National Planning Authority, emphasized the need to strengthen private enterprises.

“With limited opportunities in government, empowering the private sector is critical if we are to create sustainable jobs,” he said.

Education Sector Leads Employment

One of the standout findings is the dominance of the education sector, which employs the largest share of workers in formal establishments, over 1.3 million people.

It is followed by trade, manufacturing, and financial and insurance services.

This reflects both the expansion of Uganda’s education system and the growing demand for skilled labour, particularly in teaching and training institutions.

At the same time, the survey highlights a strong pipeline of future workers. Enrolment in tertiary institutions rose sharply from about 364,000 in 2021 to nearly 485,000 in 2023, while graduates increased to over 241,000 in the same period .

A Young but Uneven Workforce

Uganda’s workforce remains overwhelmingly youthful. Employees aged 18 to 30 form the largest share, followed by those between 31 and 64 years.

However, the data also reveals a persistent gender imbalance.

Men dominate employment across nearly all sectors and job categories, including professional, managerial, and technical roles. This trend cuts across both permanent and temporary employment structures, pointing to ongoing challenges in achieving gender parity in the workplace.

Rise of Contract Jobs

The nature of employment is also shifting.

The survey found that fixed-term contracts are now the most common form of employment, accounting for over 1.19 million workers. Permanent employees number about 939,000, while casual workers form a much smaller segment.

This trend suggests increasing labour market flexibility—but also raises concerns about job security, benefits, and long-term career stability.

Skills Match, and Gaps

On a positive note, the majority of employees, about 85 percent, believe their jobs match their education or training. However, the survey also identifies notable skills gaps, particularly in communication, customer care, IT and digital competencies, as well as innovation and creativity.

These gaps are most pronounced among service workers and technical professionals, indicating a mismatch between training outputs and labour market needs.

Informal Sector Still Dominates

While the formal sector employs just over 2 million people, the informal economy remains Uganda’s largest employer by far.

The survey estimates over 7.1 million people working in informal non-household establishments, many of them self-employed or engaged in small-scale enterprises .

Women slightly outnumber men in this segment, especially in self-employment and family-based work—highlighting both entrepreneurial resilience and the lack of formal job opportunities.

Improving but Uneven Work Conditions

Workplace conditions are gradually improving, according to the report.

The proportion of organisations with occupational safety and health policies rose significantly, from 19 percent in 2016/17 to 53 percent in 2024. The report also highlights notable progress in workplace standards, with the adoption of ICT in organisations now exceeding 80 percent, the introduction of gender policies reaching 57 percent nationally, and more than 70 percent of workplaces putting in place measures to address sexual harassment.

However, awareness remains a challenge. Only 26 percent of employees reported being informed about workplace dangers, suggesting gaps in communication and enforcement.

A Workforce in Transition

Overall, the National Human Resource Survey paints a picture of a labour market in transition, growing in size, diversifying in structure, but still grappling with structural challenges.

Uganda is producing more graduates than ever before, yet the dominance of contract work and the persistence of informal employment raise questions about job quality.

The private sector continues to carry the burden of job creation, even as calls grow for stronger policy support and better working conditions.

For policymakers, the message is clear: sustaining economic growth will depend not just on creating jobs, but on improving their quality, inclusivity, and alignment with the country’s evolving skills base.

As Mukitale noted at the launch, the future of Uganda’s workforce will hinge on how well the country empowers its businesses, and equips its people, to meet the demands of a changing economy.