Labour Day Reflections: The Illusion of Progress Amid Rising Unemployment

We began the month on a hopeful note, marking Labour Day with the usual speeches, celebrations and tributes to the hardworking citizens who keep the wheels of our economy turning. On the surface, there seems to be some progress. Experts are saying the economy is growing, some reports suggest that the cost of living is easing and the Kenyan shilling is holding steady against the dollar. But beneath these announcements companies continue to close, layoffs are increasing and more businesses are folding under economic pressure. And while we may downplay it in public, the persisting crisis of youth unemployment is growing too large to ignore. There is a big disconnect between economic indicators and actual lived experiences – many Kenyans (especially the youth) are struggling.

The Unemployment Crisis at Home.

Young people comprise more than up 80% of Kenya’s population, and they are the most affected by the deepening unemployment crisis. While the overall unemployment rate in Kenya currently stands at 12.7%, the picture for young people is far more dire. As of 2025, unemployment among those aged 15–34 stands at 67% according to Youth Employment | The Federation of Kenya Employers (FKE)). That’s more than two-thirds of an entire generation without stable employment. And each year, approximately 50,000 university graduates, full of potential enter the job market, only to find an economy that cannot absorb them. The majority end up in informal, insecure, and low-paying jobs.

These are young Kenyans who studied hard, acquired skills, and remained hopeful to land jobs, only to find the gates to opportunity shut. In some cases, the gates do not exist. Meanwhile, over one million people are entering Kenya’s labour market every year. Innovative and energetic youths expend their efforts tarmacking (seeking employment) for years on end, without the promise of eventually landing anything meaningful. And it is not that Kenya’s various industries and sectors have taken to their capacity; on the contrary, there is huge underinvestment them. The system as it is is broken.

Labour Export: Between Hope and Hype

The government has made a bold promise: to send one million Kenyan workers abroad in 2025 to help fill labour shortages in wealthier nations. On paper, it sounds like a win-win as remittances would go up, youth unemployment would ease and young people would get new opportunities. And to be fair, over 200,000 Kenyans have already secured overseas jobs, a staggering 1,280% increase from just two years ago (GOVERNMENT SECURES 200,000 FOREIGN JOBS FOR KENYANS , AIMS FOR ONE MILLION ANNUALLY. | Labour and Skills Development). But behind the impressive numbers lies a much darker reality. Thousands of desperate job seekers have been conned out of their life savings by fraudsters, some of them allegedly operating within government systems, under the guise of processing fees and travel documentation. Take a keen look a these jobs and you notice that they are mostly menial, with only but few professionals being absorbed abroad. Human rights groups have raised serious concerns, pointing out that many of these workers are being treated inhumanely. Too often, they end up facing exploitation, abuse, and even trafficking risks in foreign countries. To make matters worse, growing anti-immigration sentiment in host countries threatens to slam shut the door. As unemployment rises and businesses continue to shut down, many young Kenyans are being pushed to chase uncertain futures abroad often into unsafe and unstable conditions.

To truly address the crisis facing Kenya’s workforce, we must shift from reactionary measures like labour exportation to long-term, homegrown solutions that build resilience from within. This begins with prioritizing investment in sectors that can sustainably absorb skilled youth such as technology, agribusiness, manufacturing and green and orange economy (read out thoughts on this here:https://thellesi.org/youth-unemployment-in-kenya-why-the-orange-economy-is-the-answer/). The government needs to partner with the private sector to create quality jobs and reform education to better align with labour market demands. Additionally, stronger regulatory oversight is urgently needed to curb exploitation in foreign job placements. Most importantly, citizens must hold leaders accountable and demand transparency, not just during elections but consistently through civic engagement. Kenya’s youth deserve more than empty promises, they deserve a future in which their potential is valued, their rights protected, and their dignity upheld. That future begins with bold policy choices, inclusive economic planning, and a collective will to rebuild from the inside out.

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