Transport, hotel sectors worst hit as Kenya’s employment contracts 4.1 pc

NAIROBI, Kenya, Sept 9 – Kenya’s employment contracted by 4.1 percent in 2020, the Kenya National Bureau of Statistics (KNBS) has revealed, with workers in the hotel, transport, and education sector worst affected due to the effects of the coronavirus pandemic which was reported a year ago.

The figure, which excludes employment in small-scale agricultural and pastoral activities, dropped from 18.1 million recorded in 2019 to 17.4 million.

The 2021 economy survey, which was released by Treasury Cabinet Secretary Ukur Yattani, noted that employment in the hotel sector fell by 38.7 percent followed by administrative and support service activities, transportation, and education whose figures dropped by 25.0, 21.5, and 20.8 percent respectively.

Wage employment in the modern sector went down by 6.4 percent while informal sector employment currently stands at 14.5 million jobs, accounting for  83.4 percent of the total employment.

“The drastic fall could mainly be attributable to public health measures instituted by the Government. Some of these measures led to the closure of entertainment businesses and eateries forcing most establishments within the sector to lay off workers,” the survey added.

Manufacturing, agriculture,  wholesale and retail trade accounted for the highest wage employment in the private sector with 15.8, 15.1, and 13.5 percent respectively.

While the private sector wage employment recorded a decline of 10.0 percent, employment in the public sector, nonetheless registered a slowed growth of 2.2 percent in 2020 compared to a growth of 2.7 percent in 2019.

Education had the highest share of employment in the public sector accounting for 43.2 percent, followed by public administration and defense.

Meanwhile, human health and social work activities recorded the highest employment growth of 5.8 percent in 2020, mainly attributable to the hiring of more health workers to enhance the fight against the spread of COVID-19.

Overall, KNBS said the country’s economic growth is projected to grow over six percent in 2021 after declining by 0.3 percent in 2020.

The survey noted that the economy was somewhat supported by accelerated growths in construction activities and health services which reported an 11.8 percent and 6.7 percent growth rate.

Hospitality, education, and transport were among the hardest hit sectors in 2020 recording 47.7 percent, 10.7 percent, and 7.8 percent decline respectively.