By: ThinkBusiness Africa
While Sub-Saharan Africa successfully generated 14.6 million jobs in 2025, the achievement was labeled “insufficient” by the International Labour Organization (ILO), as 15.4 million people were employed, leaving a deficit of 800,000 jobs.
In its latest World Employment and Social Outlook: Trends 2026 report, the ILO warns that the primary challenge is not just the quantity of roles, but a staggering deficit in quality, leaving millions of new workers trapped in precarious, low-paying labor.
The report highlights that the 14.6 million jobs created were largely concentrated in the informal sector, which lacks stability and social protections. The resulting “jobs gap”—the disparity between those seeking employment and the availability of decent work—continues to expand.
According to the report, Sub-Saharan Africa now accounts for the world’s largest and fastest demographic shift. With 15.4 million new employees and only 14.6 million jobs added, the region saw an immediate net increase in the number of unemployed or underemployed individuals.
Approximately 90% of employment in the region remains informal. Most of the 14.6 million roles created in 2025 consist of subsistence farming, street vending, or micro-trading.
“Sustained population growth in sub-Saharan Africa underscores the urgent need to create productive employment and decent jobs for new labour market entrants,” the report noted.
Currently, only 24% of new workers land formal, wage-paying roles. Consequently, over 60% of the regional workforce continues to live in “working poverty,” earning less than $4.20 per day.
A significant barrier to more robust job creation is a persistent “skills gap.” While the youth population is booming, the education systems have not yet pivoted toward high-growth sectors like digital services, green energy, or advanced manufacturing.
According to the report, nearly 28% of youth in low-income African countries are Not in Education, Employment, or Training (NEET). Only a minority of the 15.4 million new entrants have completed secondary education, making them ineligible for the formal roles that drive middle-class growth.
“21 of African youth aged 15 to 29 have never attended school or have completed only pre-primary education, while only 46% have completed primary or lower secondary education as their highest level of educational attainment,” the report stated
To move beyond “insufficient” job creation, the ILO and World Bank are urging regional governments to prioritize structural economic shifts. The report suggests that to stabilize the labor market by 2030, the region must:
- Lower Business Costs: Enable small and medium enterprises (SMEs) to scale and hire formally.
- Incentivize Industrialization: Move labor away from low-productivity agriculture toward manufacturing.
- Invest in “Talent Hotspots”: Use the region’s youthful energy to fuel global digital and service-based outsourcing.
The 14.6 million jobs created in 2025 were largely concentrated in low-productivity sectors. In contrast to high-income countries where Artificial Intelligence (AI) is the primary threat to employment, Africa’s challenge remains structural.
Youth unemployment globally climbed to 12.4% in 2025. In Africa, the situation is more acute, with roughly 28% of youth Not in Education, Employment, or Training (NEET).
Despite the current shortfall, the World Economic Forum reports that global employers are increasingly looking to Sub-Saharan Africa as a future “talent hotspot.” By 2030, the region is expected to provide half of all new global labor force entrants.
