Activation Policies for the Poor in OIC Member States
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There is a lack of data on the labour market because the last Manpower Survey, which collects
information on available jobs and the sectors these are in, was carried out in 1987. A new Manpower
Survey is being planned and input into the design of the survey is being provided by employer
organisations but the roll out of the survey has not yet been determined.
Uganda has seen a strong decrease in national poverty levels, from 56.4% in 1992/1993 to 19.7% in
2012/2013.104 However, there are strong disparities within the country when it comes to poverty
levels. Rural areas tend to be far poorer, with 22.8% of the rural population estimated as being poor,
compared to 9.3% in urban areas.105 The North in particular has high rates of poverty largely due to
the after effects of 20 years of conflict in the region. Some northern parts of the country still have
poverty rates as high as 49%.106 Furthermore, as poverty rates have decreased, inequality has
increased and nearly 40% of households remain vulnerable to poverty.107
77% of the population live in rural areas. 108 Unsurprisingly therefore, 72% of the Ugandan working
population is engaged in the agricultural and fishing activities.109 The proportion of the working
population engaged in agriculture has decreased in recent years though, falling from 72% in
2005/2006 to 66% in 2009/2010.110 This change is an indication of rural urban migration and the
growth of the service sector, which in 2012/2013 employed about 27% of the working population.
Unemployment rates are higher in urban areas than rural areas. In the 2012/2013 Uganda National
Household Survey (actually carried out in 2014 as previously mentioned), urban areas were found to
have an unemployment rate of 10% versus 8% in rural areas. The previous survey had reported a
rural unemployment rate of just 3%. Unemployment rates are higher for female workers than male
workers, at 11% compared to 8%.
The extractive industries are emerging in Uganda. The oil industry, for example, is set to take off in
2017, after one of Africa’s largest on-shore oil discoveries was made in the country in 2006.
Although the sector will contribute to job creation, with technicians and welders likely to be in
demand, it is unlikely to generate the significant number of jobs required to keep pace with the
growing population. This factor is discussed in more detail below.
3.4.2 Design and performance of the current activation policies and programmes
Activation in Uganda is recognised by the government as a priority. The young population and high
population growth rate means that job creation policies are required and government policies in this
regard are focused on encouraging entrepreneurship. Skills mismatch is also recognised as a
challenge and skills training policies are being developed to address this, as described below.
However, there is very little job search support available. Furthermore, given the other challenges
facing the country, the development of job creation, skills training and job search support is a
priority amongst many others. The activation projects implemented in recent years, such as the
Youth Venture Capital Fund, were described as reactionary and a response to unrest among the
unemployed. A more proactive approach is needed, and this has been recognised, but a lack of
funding prevents the implementation of innovative policy. Improvements must also be made in
targeting funds to ensure they have a greater impact on the beneficiaries who need them most.
104 The poverty line in Uganda is based on a 1993 consumption basket which computes the cost of basic needs in Uganda. It is set at
approximately 3,294 Ugandan UGX per day (or US$1.20 per day), and is updated for inflation (using the Consumer Price Index) for
each population census. Based on this poverty line, Uganda has a poverty rate of 19.7%. Although the poverty line is updated in line
with inflation, the contents of the consumption basket have not changed since 1993. A more up to date consumption basket on
which to base the poverty line may therefore be more appropriate, whilst the existing consumption basket could continue to be used
to measure extreme poverty. (World Bank, Inclusive Growth Policy Note 1, Poverty Trends in Uganda)
105 UBOS, Uganda National Household Survey 2012/2013
106 MGLSD, The Expanding Social Protection Programme – Project Profile
107 Ibid
108 IFAD, Rural Poverty Portal
109 ILO, Uganda Decent Work Country Programme 2013-2017
110 UBOS