Solving Africa’s Skills Shortage
with Labor Market Data
By: Chané Fraser
Sub-Saharan Africa is facing a massive demographic shift, with the working-age population expected to hit 600 million by 2030 and potentially grow to 2.5 billion by 2050. Despite this growth, many young Africans are finding themselves ill-prepared for today’s workforce, and even less so for the future workforce shaped by emerging technologies. Schools and education systems are not equipping students with the skills needed to thrive in the world of work tomorrow. A study exploring education systems in six African countries—Côte d’Ivoire, Ethiopia, Ghana, Niger, Rwanda, and Uganda—highlights how labor market information systems (LMIS) can be used to align education with labor market needs and improve job prospects for young people.
Key Findings on Access to Secondary Education and Skills Gaps
The study identified three critical findings related to education systems in Sub-Saharan Africa, focusing on their ability to prepare students for the Fourth Industrial Revolution (4IR). This revolution, driven by advancements in robotics, artificial intelligence, 3D printing, and the internet of things, is transforming how industries operate and what skills are needed in the workforce.
1. Education Systems Are Not Preparing Students for 4IR Needs
One of the most pressing issues highlighted in the study is that African education systems are not preparing students with the technical, cognitive, and soft skills required for the 4IR. Employers in the six countries surveyed reported that nearly half of graduates lack essential technical skills, with about a quarter stating that new graduates need additional training, especially in Information and Communications Technology (ICT). As Africa moves toward a more tech-driven economy, this skills gap is becoming an increasingly urgent issue.
2. Labor Market Information Systems Are Underused
Labor market information systems (LMIS) have the potential to map skill shortages and predict future workforce needs. However, the study found that many African countries are not fully utilizing these systems. In Rwanda, for example, the Rwanda Development Board has developed a skills database that tracks the skills of Rwandan students studying abroad. However, this data does not link directly to the development of secondary school curricula. Côte d'Ivoire also lacks a formal LMIS, relying on labor market surveys primarily to design internship programs rather than aligning secondary education with job market demands.
3. Informal Employment Is Often Excluded from LMIS
While many countries have developed LMIS, these systems often overlook the informal and self-employed sectors, which make up a significant portion of the workforce. For example, Ethiopia's Kora job portal only tracks formal sector employment, leaving the majority of workers in the informal economy without proper representation. Similarly, Uganda lacks a comprehensive system to track employer needs, leading many industries to rely on private recruitment agencies and other ad-hoc methods to meet their labor demands.
Niger: A Case Study in Effective Labor Market Alignment
One of the standout examples in the study is Niger, where the government has successfully used labor market data to drive curriculum development. In 2012, Niger established the National Observatory for Employment and Vocational Training (ONEF), which collects and shares labor market data to inform educational policies. This system has been instrumental in aligning the country's education and training programs with current and future market needs. Based on labor market insights, Niger implemented a "work-linked training strategy," which combines classroom learning with practical, on-the-job training for students. This strategy is helping better prepare graduates for the workforce, making them more employable in a rapidly changing job market.
Moving Forward: Leveraging Data to Align Education and Labor Markets
The study’s findings emphasize the importance of using labor market information systems to create more effective education and training programs across Africa. With young people making up a large portion of the population, it is crucial to equip them with the right skills for the jobs of the future. Governments and educational institutions must collaborate with industries to ensure that curricula are aligned with labor market demands, particularly in the tech-driven sectors of the economy.
As Africa’s working-age population continues to grow, the need for robust education systems and labor market data will only become more pressing. By leveraging LMIS and aligning education with market needs, African nations could better prepare their youth for the opportunities and challenges of the Fourth Industrial Revolution.
⁎ Reference Article Link: https://acetforafrica.org/research-and-analysis/insights-ideas/articles/african-youth-lack-the-skills-to-thrive-in-the-future-world-of-work-labor-market-information-systems-offer-a-solution/