Private sector now Uganda’s biggest employer, new UBOS report shows

By Skika Reporter

A new report from the Uganda Bureau of Statistics (UBOS) has revealed that most formally employed Ugandans now work in private companies rather than government institutions, highlighting a growing shift in the country’s job market.

The findings, contained in the 2023/2024 National Human Resource (Manpower) Survey and released in Kampala on April 23, 2026, estimate that Uganda’s formal employment stands at about 2.2 million people. Of these, roughly 1.7 million are employed in the private sector, while just over 503,000 work in public service.

Officials say this confirms the private sector’s increasing dominance in job creation and its expanding role in driving employment growth across the country.

Education leads in employment numbers

The education sector remains the largest employer, accounting for more than 1.3 million workers. It is followed by trade (218,770), manufacturing (180,216), and finance and insurance activities (127,931).

Other sectors contributing to formal employment include hospitality (79,762), health and social work (75,347), public administration (54,810), administrative services (45,193), and information and communication (16,222), among others.

Job types and workforce structure

The report shows that most workers are on fixed-term contracts, numbering about 1.19 million. Permanent employees follow at 939,259, while casual workers account for 73,282.

In terms of age distribution, the majority of workers (74.2%) are between 31 and 64 years old. Youth aged 18 to 30 make up 24.7%, while those above 65 years represent less than 1% of the workforce.

Job growth and labour trends

Between 2023 and 2025, the economy is estimated to have generated more than 618,000 new jobs, reflecting continued expansion in formal employment.

UBOS Executive Director Dr Chris Mukiza said the report is intended to guide national planning and policymaking by providing updated data on labour trends, skills gaps, and employment distribution.

He urged stakeholders to use the findings to improve investment decisions, job creation strategies, and workforce development programmes.

Women and informal sector participation

The report also highlights strong female participation in informal employment. Out of more than 4.7 million self-employed workers, women account for over 2.5 million.

However, in paid employment, men still outnumber women, with about 1.03 million male employees compared to 725,000 females.

National Planning Authority board member Steven Mukitare described women’s growing presence in informal work as a positive development for household welfare and economic empowerment.

Calls for youth inclusion and skills development

Female Youth MP-elect Mercy Kanyesigye raised concern over low youth representation in formal employment, noting that only about a quarter of workers are in formal jobs.

She called for increased internship opportunities and deliberate efforts to integrate young people into government and formal institutions to prepare them for leadership roles.

Officials also emphasized the need to strengthen soft skills such as communication, marketing, and public relations, arguing that modern workplaces now require versatile and adaptable employees across all professions.