The Uganda Bureau of Statistics (UBOS) has released the Labour Market Survey (LMS) 2025 report, providing a comprehensive snapshot of labour supply and demand across the country. Disseminated on 16 April 2026 at Statistics House in Kampala, the survey marks a shift towards more frequent, timely labour data, with plans for quarterly releases to better inform policy-making.

Funded by the Government of Uganda, the LMS 2025 covers households, informal establishments, and formal establishments to capture both labour supply and demand dynamics in a rapidly evolving economy.

Working-Age Population and Labour Force Overview

According to the report, 57.6% of Ugandans aged 14–64 years constitute the working-age population. Males make up a slightly higher share (58.8%) compared to females (56.2%).

The survey highlights significant pressure on the labour market, with only about 11.8 million people employed out of a broader working-age population of around 26.4 million.

Unemployment Rate Stagnates at 12.2%

The national unemployment rate stands at 12.2% (using the 15 years and above classification). It is higher among:

• Women (13.9%) than men (10.8%)
• Urban areas (12.8%) than rural areas (11.8%)
• Youth (15–24 years): 17.9%
• Youth (18–30 years, national classification): 16.2%

A broader measure of labour underutilization — which includes the unemployed, time-related underemployed, and those available for work but not actively seeking jobs — paints a more concerning picture. Approximately 7.7 million Ugandans are underutilized, pushing the overall job distress rate to 41.6%, more than three times the headline unemployment figure. This gap is largely driven by underemployment in low-productivity sectors like subsistence agriculture and informal trade.

Services Sector Emerges as Uganda’s Largest Employer

A key highlight of the LMS 2025 is the shifting structure of employment:

• Services sector: 50.5% of total employment (the largest share). It employs more women (56.4%) than men (46.3%), underscoring women’s growing role in driving economic activity in trade, hospitality, education, health, and other services.
• Agriculture, forestry, and fishing: 37.1% (slightly higher among females at 37.4% than males at 36.7%).
• Industry sector: 12.4%.

This marks a notable tilt away from traditional agriculture dominance toward services, with women playing a central role in this transition.

Persistent High Informality

Informality remains a defining feature of Uganda’s labour market. 87.6% of non-agricultural employment is informal (rising to 95.1% among youth 15–24 years and 91.5% for youth 18–30 years).

Regional variations are stark:

• Highest informality: Karamoja (96.8%), Kigezi (93.7%), Teso (93.0%), Bunyoro (92.9%)
• Lowest: Kampala (73.5%)

On the establishment side, the formal sector employs about 2.37 million people, with 155,240 job vacancies reported. The informal sector employs a much larger 7.35 million people, with 305,364 vacancies.

Implications for Policy and Economic Transformation

UBOS Executive Director Dr. Chris N. Mukiza noted that the survey addresses the need for more regular labour statistics to reflect the fast-changing economy. It provides critical data on employment, unemployment, job creation, job losses, vacancies, and broader dynamics.

Minister of State for Planning, Amos Lugoloobi, emphasized the importance of utilizing the report for evidence-based planning, particularly to support government efforts toward job creation, skills development, and socio-economic transformation aimed at middle-income status and decent work for all.

The findings underscore the dual challenge facing Uganda: creating enough jobs to absorb a growing labour force (especially youth) while improving job quality by reducing informality and underemployment. Expanding formal sector opportunities in services and industry, alongside targeted skills alignment and support for women and youth, will be essential.

The full LMS 2025 report and presentation are available on the UBOS website (www.ubos.org). UBOS plans to release quarterly updates going forward, promising more timely insights into Uganda’s evolving labour market.