Report: Working but poor, hidden crisis in Africa’s youth labour market

Africa’s youth are working in record numbers, but a new continental outlook warns that high employment rates are concealing a deepening jobs crisis marked by informality, low wages and entrenched poverty.

The Africa Youth Employment Outlook 2026 shows that about 57 per cent of young Africans, an estimated 304 million people aged between 15 and 35 are currently employed, a higher proportion than the global average of 48 per cent.

However, the report cautions that this apparent strength in labour force participation masks serious structural weaknesses in job quality and income security.

“Africa stands at a pivotal moment. The continent is home to around 532 million young people, and that number will continue to rise rapidly in the coming decades. Whether this demographic surge becomes a dividend or a destabilising force depends on the quality of jobs created,” the report stated.

Contrary to common assumptions, unemployment is not the defining feature of Africa’s youth labour market.

Instead, many young people enter work too early, often before completing basic education.

As of 2025, nearly as many adolescents aged 15–17 were working as they were studying, according to the outlook.

Among working adolescents in that age group, 96 per cent are in informal jobs, and 40 per cent live below the international poverty line of $2.15 a day.

The report notes that 42 per cent of these working adolescents have not completed primary school, while another 26 per cent have only primary education, a trend that risks locking them into low-paying, low-productivity work for life.

“Early entry into low-skilled agricultural work may provide short-term income, but it often comes at the cost of education and long-term opportunity,” the report observes.

“Without adequate schooling and skills development, young workers face limited prospects of transitioning into formal, higher-paying employment.”

Agriculture remains the dominant employer of young people, accounting for 47 per cent of youth employment, about 143 million workers.

However, the sector is projected to grow more slowly than services, and by 2033, services are expected to overtake agriculture as the largest employer of young Africans for the first time.

Service jobs are more likely to be formal, with about 22 per cent classified as formal employment compared to just 3 per cent in agriculture.

In countries where income data is available, young people working in services earn on average 2.6 times more than their counterparts in agriculture.

Still, the shift does not automatically translate into improved livelihoods, as many new service jobs, particularly in accommodation, food services and household activities, remain informal and low-productivity.

The most striking paradox, the report finds, is that high employment does not guarantee economic security.

Of the 304 million young Africans who are working, about 104 million, roughly one in three, live in households classified as extremely poor.

Overall, 90 per cent of employed youth, or 273 million people, are in informal jobs without contracts, social protection or income stability.

“Youth employment in Africa is primarily agricultural and informal. More than a third of employed young people live in households below the international poverty line. Employment alone is not sufficient to lift millions out of poverty.”

The link between employment and poverty is particularly pronounced for young women. Young women account for nearly 61 per cent of youth not in employment, education or training.

Care responsibilities remain a major barrier: in Sub-Saharan Africa, 28 per cent of women outside the labour force cite care duties as the primary reason, compared with just 3 per cent of men.

Only about 9 per cent of young Africans have completed tertiary education, leaving the vast majority underprepared for higher-productivity roles in economies increasingly shaped by digitalisation and specialised skills.

At the same time, job creation is not keeping pace with the continent’s demographic growth. More than 10 million young Africans enter the labour market each year, but current economic growth patterns generate only around 3 million formal jobs annually.

To meet demand, Sub-Saharan Africa alone would need to create an estimated 15 million new jobs each year by 2030.

With Africa’s youth population projected to grow by 132 million this decade and a further 147 million in the 2030s, the stakes are high.

While many regions of the world face shrinking youth populations, Africa’s expanding workforce represents a rare demographic opportunity.

“The choices made today will determine whether Africa’s youth dividend becomes a foundation for shared prosperity. Without faster formal job creation, stronger social protection, gender-inclusive policies and education systems aligned to labour market demand, high employment rates will continue to mask a deeper crisis of working poverty,” the report stated.