Observation (CEACR) - adopted 2024, published 113rd ILC session (2025)

Employment Policy Convention, 1964 (No. 122) - Uganda (Ratification: 1967)

Articles 1 and 2 of the Convention. Coordination of employment policy with poverty reduction. The Committee refers to its previous comment requesting information on the active labour measures taken and the implementation of the National Development Plan (NDP) III for 2020/21–2024/25. It notes the information provided by the Government, including the employment measures implemented in response to the COVID-19 pandemic. The Government indicates that NDP III emphasizes sustainable industrialization for inclusive growth, employment and sustainable wealth creation. Under the Human Capital Development Programme, there is a stronger focus on creating a skills-based, job-rich economy that is competitive and meets the needs of both the national and global economies. The Government adds that the vision statement of the employment policy under review is “a competitive labour force for Uganda’s socio-economic transformation”. This amendment to the employment policy aligns with Uganda’s Vision 2040, which aims to transform Ugandan society from an agrarian economy to a modern and prosperous nation, emphasizing factors that define a country’s productivity level. The Committee notes that the position of the Government on employment is to leverage the private sector’s contribution as an engine of growth, given that the public sector can currently generate 200,000 jobs per year. This figure remains significantly below the 1.2 million Ugandans who enter the labour market annually. Consequently, many school leavers remain unemployed or accept positions for which they are overqualified. Regarding employment statistics, the Government indicates that the labour market information system is being developed to capture labour market information and trends. This has been a consultative process lasting several years and is now in the final stages of system approval following the completion of its initial development. The Committee notes the statistics provided by the Government indicating that the 2021 Labour Force Survey shows an increase in percentage of the working age population employed in positions for which they are overqualified (from 6 per cent in 2019–20 to 9 per cent in 2021). The labour force participation rate stands at 48 per cent (39 per cent for women and 58 per cent for men), reflecting an increase from the 43 per cent reported in the Uganda National Household Survey 2019–20. Uganda’s unemployment remains high, with the long-term unemployment rate at 49 per cent (2021 Labour Force Survey), significantly higher than the sub-Saharan Africa average of 32.7 per cent. The Committee notes that, according to the ILOSTAT database, the overall unemployment rate in Uganda stood at 12.7 per cent in 2021 (10.9 per cent for men and 15.3 per cent for women). The Committee notes in addition that, in 2023, in collaboration with the Ministry of Gender, Labour and Social Development, the ILO delivered capacity-building training to support the revision of Uganda’s National Employment Policy and its alignment with the Fourth National Development Plan (2026–2030) and to forge a resilient employment framework that fosters sustainable economic growth for job creation and inclusion.

Recognizing the ongoing challenges highlighted above, the Committee requests the Government to provide detailed information on the new National Employment Policy, once adopted, and to indicate how it aims to address these, including the large size of the informal economy that negatively impacts labour rights enforcement, and a level of economic growth that has so far not resulted in sufficient job creation. The Committee also requests the Government to indicate measures taken with a view to strengthening labour administration and mainstreaming groups in vulnerable situations into employment policies, which are crucial for an inclusive approach to job creation. The Committee requests the Government to indicate how the new policy aims at securing implementation through effective coordination, budgeting and accountability within the Government. The Committee also requests the Government to provide updated information on the impact of the employment measures taken, including those addressing the long-term unemployed as well as youth unemployment, which is a major issue requiring new indicators and a focus on opportunities for young people. The Committee also requests the Government to indicate how the new policy addresses the issue of the mismatch between skills and labour market demands, including through better responding to the needs for vocational training. Also, noting the orientation towards job creation and entrepreneurship, the Committee asks the Government to indicate whether the new National Employment Policy foresees the inclusion of financial mechanisms to support job creation, including by small and medium-sized enterprises. Lastly, the Committee also requests the Government to provide information on the completion of the labour market information system, as well as updated statistics on current trends regarding employment, unemployment and underemployment, disaggregated by sex, age, religion, economic sector and region.

Informal economy. According to the statistics provided by the Government from the 2021 Labour Force Survey, the overall level of informality in the economy remains high at 87.9 per cent. The Committee notes from the 2024 ILO Rapid assessment of digital skills gaps and the feasibility of microwork employment opportunities in Uganda that a large share of the country’s economy is informal and comprised of self-employed persons, with a great many economic operations driven by small enterprises. The high degree of informality does not facilitate a response to market demands. It depends on people’s capacity to deliver services. This implies that the success of the informal sectors in meeting market demand depends on the skills, resources and other capacities of the individuals who run businesses in those sectors. The Committee further notes that informality was reduced with increasing levels of education completed, ranging from 98 per cent for those with lower than primary level education, to 49 per cent for persons who completed a degree (university graduates) and above (Diagnosis on informality in targeted intervention areas of the PROSPECTS programme in Uganda, ILO, 2021).

In this respect, the Committee points out that, in order to effectively combat informality, the Government may refer to the guidance provided by the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204). This Recommendation establishes the strategic vision developed by the ILO tripartite constituents securing transitions to the formal economy by building and implementing integrated policy frameworks that include, inter alia, labour, tax and social security laws. Such integrated policies are indeed essential to promote sustainable growth that creates jobs and benefits people living in poverty. In view of the above, the Committee requests the Government to provide detailed and updated information on the employment policy measures adopted and their impact on promoting the transition from the informal to the formal economy, in coordination with other public policies, including, for example, social protection, education, and fiscal and rural development policies. In particular, the Committee requests the Government to indicate whether the measures taken or envisaged include the following: (i) strengthening the legal framework to ensure laws are conducive to formalization and are effectively enforced; (ii) supporting entrepreneurship, along with enhancing access to microfinance to provide the necessary resources for small businesses to grow and become part of the formal economy; (iii) investing in skills and vocational training to equip workers with the skills needed in the formal economy, while expanding social protection to offer a safety net for informal workers; (iv) fostering private sector-led growth, so as to create formal employment opportunities, and implementing, in parallel, targeted programmes to reduce informality; (v) engaging in social dialogue with employers’ and workers’ organizations in the design and implementation of formalization strategies, while advancing gender parity in the labour market to ensure that women have equal opportunities to transition to the formal economy; and (vi) using direct and indirect policy measures to enhance trust in authorities.Noting the high levels of employment in the informal economy in Uganda and the importance of an integrated strategy for the formalization of employment, the Committee recalls that the Government may avail itself of the ILO’s technical assistance.

Promotion of youth employment. The Committee previously requested information on measures envisaged or adopted to reduce the unemployment rate of young people, as well as the proportion of young people in informal employment. The Government refers to key indicators from the 2021 Labour Force Survey, which show that youth employment stands at only 36.5 per cent, while 41.1 per cent of youth are not in employment, education or training. In this respect, the Committee notes the Government’s efforts to address unemployment through initiatives, such as the National Green Jobs Strategy and the National Youth Employment in Agriculture Strategy, along with other measures aimed at creating gainful employment opportunities for young people. The Government has also created programmes designed to equip young people with skills and start-up kits, encouraging productivity. These programmes include the Parish Development Model, which was launched in 2022 to empower local communities, particularly young people; the Regional Presidential Innovation Hubs to promote youth skills development; and the Jua Kali programme that focuses on skilling youth and providing start-up kits for job creation. The Committee requests the Government to provide more specific information on the impact of the measures taken to address high youth unemployment, including the skills mismatch, and measures to anticipate the future needs of the labour market in the provision of education and training programmes. It also requests the Government to provide up-to-date statistics on youth employment and unemployment rates, disaggregated by sex, age, urban versus rural areas and education level.

Promotion of women’s employment. In its previous comments, the Committee requested information on measures to combat persistent occupational segregation based on sex and to increase the participation rate of women in the formal labour market. The Government refers to its efforts to promote employment, including initiatives such as the Uganda Women’s Entrepreneurship Programme, and other initiatives aimed at creating income-generating opportunities for people. The Committee notes that the United Nations Committee on the Elimination of All Forms of Discrimination against Women, in its concluding observations of 1 March 2022 on the combined eighth and ninth periodic reports of Uganda, noted the efforts made by the Government to lift rural women, who constitute 75 per cent of the female population, out of poverty and to support entrepreneurship among rural women through various programmes and plans. It added that it was concerned, however, that 39 per cent of the predominantly women-headed households still rely on the subsistence economy, in particular in agriculture, with limited access to the country’s rich natural resources and basic services, such as healthcare and social protection (CEDAW/C/UGA/CO/8-9). Referring to its comments adopted under the Equal Remuneration Convention, 1951 (No. 100), and the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Committee requests the Government to provide more detailed information on the impact of the measures taken to promote access for women to full, productive and freely chosen employment. Noting that no statistics were provided, the Committee once again requests the Government to provide information on the results achieved through such measures, including statistics on the participation rate of women, including women with disabilities, in the informal and formal labour market.

Article 3. Consultations with the social partners. The Committee notes the Government’s indication that, at the national level, the standard practice for developing legislation in Uganda involves official consultations with the social partners throughout the process of drafting and finalizing legalisation. These consultations occur through formal written communications, as well as workshops and seminars, in which stakeholders are invited to provide input into policy documents and other governmental efforts. The Government also refers to the Tripartite Charter, which recognizes the importance of cooperation among the Government, employers and workers in creating employment and enhancing productivity and competitiveness through consultation and negotiation based on mutual trust and understanding. These parties have agreed to establish a National Productivity Centre to promote industrial peace and harmony, which is essential for enhancing productivity and competitiveness. Furthermore, the social partners support and cooperate with the Government in implementing programmes aimed at promoting decent employment and job security for labour productivity and competitiveness. The Committee requests the Government to provide further information on the content and outcome of the consultations held with employers’ and workers’ organizations in the formulation and implementation of employment measures, particularly concerning the new National Employment Policy.