Challenges and Policy Recommendations

Women and youth make up a significant portion of Tanzania’s workforce, yet they face major challenges in accessing formal employment, securing decent wages, and overcoming social and economic barriers. According to the 2025 Employment Study, women and youth account for over 60% of informal employment, highlighting the urgent need for policy interventions to improve job opportunities and workforce inclusion.

This article examines the barriers affecting women and youth in employment, presents statistical insights, and offers policy recommendations to promote greater economic participation.

Employment Status of Women and Youth in Tanzania

• 65% of women and 72% of youth are employed in the informal sector, where wages are lower and job security is minimal.
• Only 20% of women and 25% of youth have formal jobs, mainly in education, healthcare, and administrative roles.
• Unemployment among youth (33%) is nearly twice as high as the national average, highlighting the difficulty young people face in finding jobs.

Key Challenges Facing Women and Youth in Employment

1. Gender Discrimination and Societal Expectations

Women face discriminatory hiring practices, lower wages, and limited leadership opportunities.

• 29% of women cited gender-based hiring discrimination, making it harder to access high-paying jobs.
• 26% struggle with balancing work and family responsibilities, as childcare support is limited.
• 18% face financial barriers, preventing them from starting businesses or investing in skills training.

2. Limited Access to Skills Training and Education

Many young workers and women in rural areas lack technical skills, reducing their job prospects.

• 72% of formally employed women and 80% of formally employed youth have a bachelor’s degree or higher, showing that education plays a key role in accessing formal jobs.
• However, many young workers (88%) lack post-secondary education, limiting their access to structured employment.

3. High Unemployment Among Youth

Young people struggle with job market entry, as employers prefer experienced workers.

• 60% of young workers with less than one year of experience are in informal jobs, as formal employment requires prior experience.
• Only 5% of inexperienced youth find formal jobs, highlighting the need for internship and apprenticeship programs.

4. Financial and Business Challenges for Women and Youth Entrepreneurs

Many women and youth prefer self-employment, but lack financial resources to grow their businesses.

• 31% of women and youth entrepreneurs struggle to access capital for business expansion.
• 25% cite high-interest rates, making loans unaffordable.

Opportunities for Improving Women and Youth Employment

1. Expanding Technical and Vocational Training Programs

Providing job-specific skills can help women and youth access higher-paying employment.

• 37% support digital and ICT skills training, as tech-related jobs provide higher wages and flexible work opportunities.
• 32% prefer entrepreneurship training, enabling women and youth to create businesses.

2. Expanding Financial Access for Women and Youth

Providing affordable credit and microfinance services can support entrepreneurial growth.

• 38% of respondents support low-interest business loans to help young entrepreneurs grow.
• 34% prefer government-backed grants, reducing financial risks for startups.

3. Strengthening Workplace Gender Equality Policies

Companies should enforce policies that promote equal pay, leadership opportunities, and workplace safety.

• 40% job growth expected if companies enforce equal pay policies.
• 35% increase projected if workplaces offer childcare support.

Conclusion and Policy Recommendations

Women and youth remain marginalized in Tanzania’s labor market, facing high unemployment, financial challenges, and limited access to skills training. Addressing these barriers will create a more inclusive workforce.

Key Policy Recommendations:

1. Expand Vocational Training – Strengthen ICT, digital marketing, and entrepreneurship programs.
2. Improve Financial Access – Provide low-interest loans and microfinance for women and youth-led businesses.
3. Strengthen Job Market Entry Programs – Promote internships, apprenticeships, and mentorship programs.
4. Enhance Workplace Gender Policies – Enforce equal pay, leadership training, and flexible work arrangements.

NOTE:

The research and case studies presented in this report were conducted by Tanzania Investment and Consulting Group Limited (TICGL) to analyze employment trends, macroeconomic stability, and job creation dynamics in Tanzania. The study covered a sample size of 2,500 respondents, representing diverse economic sectors and geographic regions. A mixed-methods approach was employed, integrating quantitative surveys (85%), structured interviews (10%), and focus group discussions (5%) to gather both statistical data and qualitative insights. The research was conducted across six key regions: Dar es Salaam (25% of respondents), Mwanza (18%), Arusha (15%), Dodoma (14%), Mbeya (12%), and Morogoro (16%), ensuring a balance between urban and rural employment patterns.

The findings indicate that Tanzania’s workforce is 71.8% informal (25.95 million workers) and 28.2% formal (10.17 million workers), highlighting a significant divide in job security, wages, and access to social protection. Among the 2,500 surveyed individuals, formal employment accounts for 23% (550 individuals), predominantly in government (32% of formal jobs), banking and financial services (25%), manufacturing (18%), and education and healthcare (15%). On the other hand, informal employment constitutes 49% (1,170 individuals), with key sectors including agriculture (35% of informal workers), small businesses and trade (28%), transportation (15%), and casual labor (12%). The remaining 27% (650 individuals) were unemployed, with youth unemployment (ages 18–35) reaching 33%, significantly higher than the national average of 9.2%.

Employment trends indicate that formal employment is projected to rise to 38% by 2030, driven by industrialization, digital transformation, and policy reforms. However, major barriers continue to slow the transition, including limited job availability (42%), skills mismatches (26%), and bureaucratic challenges (21%). The study also found that women make up 65% of the informal workforce, primarily due to barriers in accessing formal jobs, while 72% of youth are engaged in informal employment due to limited entry-level job opportunities.

To bridge the gap between formal and informal employment, Tanzania must focus on expanding SME growth, strengthening vocational training programs, improving access to financial services for small businesses, and reducing bureaucratic hurdles for business registration. This report emphasizes the key trends, challenges, and opportunities shaping Tanzania’s employment landscape and highlights the role of public-private partnerships, investment in digital workforce expansion, and targeted policy interventions in creating a more structured and inclusive workforce by 2030.