Zambia is among many developing countries struggling to create adequate employment
opportunities for its people, especially in the formal economy. There is high youth
unemployment, especially in urban areas where it has surged to 40.4% for females and 35.6%
for males (CSO 2011, 95). Sender et al. (2005) attribute the high youth unemployment rates in
Zambia to the socio-economic crisis of the past two decades and the young and increasing
population that is producing an ever bigger youth labour force. Mayaka and Moyo (1999)
further observe that youth unemployment mainly affects those without skills.
A new challenge is the revised minimum wage legislation, which could influence youth
employment levels if formal sector employers opt to lay off excess labour in order to contain
labour-related costs of production.
Unless the challenge of youth unemployment is met, Zambia could face rising poverty levels in
the future. The new government has made pronouncements about expanding employment
opportunities for youths, but without good data and information about labour demand
dynamics, the government’s good intentions are likely to face severe challenges. Closing this
knowledge gap is a necessary step in identifying corrective policy measures.