Employment Creation Potential for Youth in the Kenyan Economy
Date
2022-08
Authors
Onsomu, Eldah
Munga, Boaz
Nyabaro, Violet
Munene, Bonface
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Abstract
Job creation is a key development objective for most economies, Kenya included.
However, expansion of employment opportunities has not kept pace with the rapidly
expanding working age population. The main objective of this study was to evaluate
the sectors with high potential of creating employment opportunities for the youths
in Kenya. The study utilized Input-Output approach using Social Accounting Matrix
(SAM) 2015 to determine sectors with highest job creation potential. The findings
indicate that agriculture, transport, trade, construction, and education have the
highest potential to create jobs for the youth. The employment multipliers were
as follows: agriculture (2.1); transport (1.74); trade (1.89); construction (1.84); and
education (1.85). Activities with high potential to create jobs include livestock,
vegetables (horticulture), rice production, textile and footwear production, and hotels
and restaurants. Further, the results imply that the sectors of the Kenyan economy
are interdependent and diverse, spanning agriculture, services, and manufacturing.
Expansion of one sector has backward and forward linkages with the other sectors.
It would, therefore, be important to adopt a comprehensive multisectoral approach
in job creation strategy for the country. There is great opportunity to create jobs by
supporting further developments in agriculture and services sectors and putting in
place robust strategies to enhance investments in manufacturing.
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Keywords
Economic sectors; Youth employment potential; Constraints; Kenya.