Govt boosts job creation as unemployment falls to 6.2pc on investment surge

DODOMA:  THE government argues that its investment driven employment strategy is starting to bite, easing unemployment and setting the stage for a sharper surge in job creation over the next two years.

Presenting the 2025 state of the economy update and the country’s development plan for 2026/27 in Dodoma, Prof Kitila Mkumbo, Minister of State in the President’s Office (Planning and Investment), said Tanzania is positioning itself for a major scale up in employment generation.

According to him, the country is targeting about 1.7 million new jobs by 2026, up from 981,000 created in 2024, supported by a steady inflow of investment projects and improved economic conditions.

The minister disclosed that the unemployment rate has eased to 6.2 per cent in 2024 from 8.7 per cent in 2020/21, reflecting gradual recovery and expansion in economic activity.

“Annual employment growth has also strengthened to 7.8 per cent compared with 2.3 per cent in the earlier period,” he added.

According to him, the national labour force now stands at 27.3 million people, representing 73.2 per cent of the working age population. He added: “Of these, about 25.6 million are engaged in work or income generating activities.”

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Agriculture remains the largest employer at 54.2 per cent, followed by services at 35.5 per cent and manufacturing at 10.3 per cent, underscoring the structure of the economy.

According to him, a key driver of future employment is the Tanzania Investment and Special Economic Zones Authority (TISEZA), which registered 915 projects in 2025 valued at US$10.95bn, up from 901 projects worth US$9.3bn in 2024. “This represents a 17.74 per cent increase in investment value and a record level of project registration since the investment framework was established in 1996 and later restructured in 2025,” the minister affirmed.

The said projects span from manufacturing, construction, transport, tourism, to agriculture, sectors are thus expected to significantly expand job opportunities as implementation advances.

The government maintains that sustained reforms and investment attraction will remain central to reducing unemployment further. Ends.