Can We Agree to Redefine the Meaning of Unempolyment?

In the brave new world of data, it is important to understand a few things. First, before you believe what statistics say, ask what they are not saying. The graph below is a great example that stresses this point.

?

A quick look at the graph suggests that unemployment rates (5.9%) are at an all-time low in Zambia, and we have a more satisfied population. But is that the case? I doubt.

?

While Zambia’s low unemployment rates might appear positive on the surface, they mask deeper issues of underemployment, informal work, and labor market mismatches.

?

Currently, youth unemployment in Zambia hovers around 20%, and for STEM graduates, it’s even more challenging. In a class of 10 students, 3 may end up underemployed or unemployed, 5 will likely work in unrelated fields, and only 2 may secure jobs aligned with their studies. (Sources: World Bank, International Labour Organization, UNESCO, Zambia National STEM Foundation)

Sobering, right?

?

As Zambia produces more graduates through its growing higher education system, their challenges in finding relevant, formal-sector jobs become more pronounced. However, these challenges are not reflected in the overall unemployment rate because many graduates end up in informal or temporary work, while some choose to delay entry into the labor market by pursuing further education or training, which excludes them from being classified as unemployed.

?

So, while it appears that we have low unemployment rates, there are more graduates coming into the labor market but not doing the work they trained for. This could speak to how we have more young people complaining about being unemployed and asking politicians to change the situation. They are unsatisfied because their expectations do not match the reality in the labor market.

?

To be honest, the definition of unemployment and how it is measured does not help either. Perhaps it is time for people who make these definitions to reconsider this particular one.

?

What do you think about the current data about unemployment in Africa? Does the data reflect reality? Does the current definition of unemployment do justice to capture reality?