africa

9. Africa’s Jobs Challenge
Haroon Bhorat
School of Economics, University of Cape Town
Karmen Naidoo
Development Policy Research Unit, University of Cape Town
9.1 Introduction
The global jobs challenge is disproportionately an African one. United Nations
demographic projections for the period 2015-30 show that at a regional level, Africa
will be a significant driver of future global population growth and, as a consequence,
the working-age population. Therefore, it is critical to take heed of such projections
and fully understand both the challenges and opportunities of Africa’s pending
demographic dividend.
Aside from the fast-growing working-age population, Africa’s jobs challenge is
complicated by its current labor market landscape. The working poor—defined as
those earning less than $2 a day—constitute almost two-thirds of the total employed
(defined as individuals involved in wage employment or self-employment). Therefore,
the need to pursue a growth and development path that is sufficiently job creating,
while also reducing the number of working poor in Africa, remains central to the
pursuit of prosperity on the continent.
This paper first analyzes Africa’s demographic transition in order to draw out the
implications for the size of the continent’s future labor force. Section 9.3 then provides
an overview of the global labor market, highlighting the unique nature of Africa’s labor
market segmentation. Section 9.4 positions the role of pursuing a jobs-intensive
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