HAPPY LABOR DAY: ARE WE FULLY UTILISED?

 1st May is the day when the world celebrates the human workforce. This is noble because without a qualified human resources other resources can not be discovered and effectively utilized. All countries that have developed intentionally develop and utilize their human resources. A case in point is Singapore which is landlocked but its leadership intentionally developed a skilled labor force.

Uganda has one of the world's youngest population in the world. Over 70% of the population is below 30 years. This youthful population can either be a curse or a blessing. In my career as a Master Trainer with Bank of Uganda, I have interacted with several youths especially at higher institutions of learning to shape their destinies regarding employability and prudent financial management, I have picked up a number of lesson . One is that Uganda's youths are very enterprising and hardworking. Many strive to set up businesses but there are a number of bottlenecks in the environment that hamper their growth. The lack of access to affordable capital is one of the reasons they give for their lack of progress. The other one are the structural constraints in operating businesses and this explains the prevalence of a big informal sector.

We need to address the issue of mindset of the youths if Uganda is to attain its Middle Income Status. The government has put in place a number of programmes aimed at combatting youth unemployment. The latest is the Parish Development Model. Recent reports show that a number of youths diverted the funds to unplanned ventures. This is a signal that we should upscale financial literacy training if we are to redeem the youths from financial darkness. A number of youths prefer handouts to capacity building. They would prefer immediate money instead of being trained on how they can use the little they have to build sustainable businesses. It is high time we trained the youth to embrace a long term perspective towards business growth and financial literacy.

Over 400,000 graduates are churned out every year from the over 40 universities. The job creation rate is about 90,000 formal jobs per year. The question is where do the rest go? The question is why should a student and their parent struggle and at the end they fail to get a job? It is a really frustrating experience. The other day on the news I saw a group of medical doctors appealing to government to enable them to get jobs abroad. Previously medicine and law were courses where the graduate was immediately guaranteed of a job. The question is what went wrong? The government has been proactive in reforming the curriculum to a competency based model and this is a step in the right direction. All countries that have developed ensure that the graduate also acquires a practical skill that can enable them to become an entrepreneur. This is the case in Germany and the youth unemployment rate is lower than in Uganda. 

There is a tendency of students focusing to pass exams as a gateway to a successful work life. Having been in the corporate space for the last 10 years it has come to my attention that the transcript is not enough to enable a graduate to get a job. There is a need to create awareness among the youths that demonstrating leadership capacity starts at a young age. Many young people disrespect voluntary work yet this is an avenue to acquire much need skills that can enable them thrive in the highly competitive market. The university students have a hope that their academic degree is enough to secure them the coveted job but this is proving to be a myth. Many successful entrepreneurs who have not stepped into university are setting up companies that are employing graduates. This means there is a need for a paradigm shift where graduates see their university degrees from an entrepreneurial lens. 

The Psalms Industries is a prime example of a student who built their idea from university and today the company is a household name. It is solving community challenges. It is important that we support the emerging entrepreneurs not to give up on their pursuits because even big companies such as Equity Bank started small.

We need to ensure that the youths discover their purpose at a young age . I have interacted with university students who are still doubting the courses that they studied. Some choose courses because they are cheap and others are helped by friends. At the end some graduates have castigated why they graduated. 

Another common theme that I have seen emerge is that many youths desire get rich schemes to the extent that some university students divert tuition money to gambling with the thinking that they can earn abnormal returns in a short time. This has created a generation of youths who want to get rich but do not work to work hard. This has led to social tension because many young boys resort to robbery as a means of survival.

The advent of Artificial intelligence is also a blessing. The question is how are Uganda's youths embracing the technology as a medium for social economic development. Technology is ruling the world and the youths should embrace it as a movement for social transformation.

The youths should embrace unity and diversity. Rather than seeing themselves as competitors, they should collaborate to add value to society. I know of a group of university students who formed an investment club after university and the investment club is in billions of investments. They have diversified and are engaged in real estate. If this can happen to a group of university students, it can be scaled up. 

The youths should be proactive and seek for opportunities such as mentorship programs provided by private sector companies such as National Social Security Fund. Equity Bank has a youth loan where they provide financial literacy training and access to affordable loans to enterprising youths. These are opportunities that require individual initiative.

Uganda is a country with one of the youngest populations in the world. As we celebrate the International Labor Day, the key question is, Is Uganda's labor force fully utilized?

For individual and corporate financial literacy training contact :


Phillip Kiryowa

Personal Finance Coach(CMA)

Master Trainer, Financial Literacy, Bank of Uganda 

Advanced Empowerment Link

For Financial Freedom and Sustainable Enterprises

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