The Plight Of Unemployment In Afghanistan: A Complex Economic Challenge

Afghanistan has one of the highest unemployment rates in the world. The unemployment rate in Afghanistan has been steadily increasing over the years, with the rate for 2022 at 14.1%, a 2.03% increase from 2021. The International Labor Organization (ILO) has raised concerns over the rate of unemployment in the country, stating that it is one of the reasons behind insecurity and could create more challenges in terms of security if not addressed. While estimates vary, with the ILO placing the rate between 25% and 30%, and the Ministry of Labor, Social Affairs, Martyrs and Disabled placing it at 35%, it is clear that unemployment is a significant issue in Afghanistan.

Unemployment rate in Afghanistan in 2022

Afghanistan has been facing an unemployment crisis since the Taliban takeover in 2021. The country's economy has been "paralysed", with huge losses in jobs and working hours. The unemployment rate in Afghanistan for 2022 was 14.10%, a 2.03% increase from 2021. This is a concerning rise from an unemployment rate of 11.08% in 2019.

The International Labour Organization (ILO) reported that more than 500,000 Afghan workers lost their jobs in the third quarter of 2021, and this number is expected to reach between 700,000 and 900,000 by mid-2022. The crisis has been exacerbated by the Taliban's restrictions on women's participation in the workplace, with women's employment levels expected to fall by 16-28% by mid-2022. The sectors that have been hit the hardest include agriculture, the civil service, and construction.

The lack of employment opportunities has had a devastating impact on the Afghan people, with 8.7 million on the brink of starvation and a rise in child labour. The UN Secretary-General, António Guterres, has urged the international community to provide funding, release Afghanistan's frozen assets, and kickstart its banking system to prevent economic and social collapse.

The unemployment crisis in Afghanistan is a critical issue that requires immediate attention and support for stabilization and recovery. The ability to provide employment opportunities and stimulate economic activity is key to Kabul's sustainable future and the improvement of average livelihoods.

Unemployment rate in Afghanistan in 2023

Afghanistan has long struggled with high unemployment rates, which have been exacerbated by various economic and political challenges in recent years. While the official unemployment rate for 2023 is not yet available, several sources indicate that the rate has likely increased since 2021.

According to Afghanistan's National Statistics and Information Authority (NSIA), about 49.7% of the country's 34.4 million people are eligible for employment. However, the International Organization for Migration (IOM) estimated a staggering 72% unemployment rate in 2020, and the International Labor Organization (ILO) projected that nearly 900,000 people would be unemployed until June 2023. The political change in August 2021 and the subsequent restrictions on working women have further contributed to the rising unemployment rates.

The high unemployment rate in Afghanistan has detrimental economic and social consequences. It leads to increased poverty, a decline in living standards, a brain drain, public discontent, political crises, and economic stagnation. The country's economic output collapsed by 20.7% in 2021, and despite tentative signs of recovery, such as a stable exchange rate and increasing exports, the restrictions on women continue to threaten aid flows and growth.

To address the unemployment crisis, the Afghan government has proposed several measures, including investing in mining projects, gas extraction, and urban development, which are expected to generate thousands of new jobs. Additionally, there is a focus on strengthening the economy, empowering the private sector, and supporting the agricultural sector, which employs approximately 80% of Afghans. However, without continuity for girls' education and women's ability to work, the prospects for the country's recovery remain grim.

Youth unemployment rate in Afghanistan

Afghanistan has one of the highest youth unemployment rates in the world. Youth unemployment refers to the percentage of 15–24-year-olds who are part of the labour force but are unemployed. In 2023, the youth unemployment rate in Afghanistan was 19.8%, a 2% increase from 2022. This is the highest it has been in the observed period.

The average youth unemployment rate in Afghanistan from 1991 to 2020 was 12.3%. The rate fluctuated during this period, with a minimum of 10.09% in 2014 and a maximum of 17.34% in 2019. The rate continued to increase in the following years, reaching 16.05% in 2020, 16.51% in 2021, and 17.84% in 2022.

The high youth unemployment rate in Afghanistan is a cause for concern as it can lead to insecurity and other social issues. The International Labour Organization (ILO) has warned that the Afghan government needs to address this issue and create more job opportunities for its people. Experts suggest that new models of employment should be used to help unemployed youth, and that the private sector should cooperate in creating job opportunities.

The overall economic outlook for Afghanistan remains uncertain, with a lack of GDP growth and declining external financing. This economic stagnation is expected to further deepen poverty and unemployment, with a decrease in job opportunities and an increase in food insecurity.

Unemployment rate in Afghanistan by gender

Afghanistan has a high unemployment rate, which refers to the share of the economically active population currently without work but seeking employment. In 2023, the unemployment rate in Afghanistan increased by 1.3 percentage points to reach 15.38%, the highest in the observed period. While gender-specific unemployment rates for Afghanistan are not readily available for 2023, historical data shows that female unemployment has been persistently high.

Between 1991 and 2023, the average female unemployment rate in Afghanistan was 12.37%, with a minimum of 10.31% in 2014 and a maximum of 29.19% in 2023. In comparison, the world average female unemployment rate in 2023 was significantly lower at 8.39%. The high female unemployment rate in Afghanistan is concerning, especially considering the other societal challenges women face in the country.

For instance, as of December 2020, only 38.6% of indicators needed to monitor Sustainable Development Goals from a gender perspective were available, with gaps in key areas such as unpaid care and domestic work, key labour market indicators, and information and communications technology skills. Additionally, 28.3% of women aged 20-24 were married or in a union before turning 18, and 34.7% of women aged 15-49 reported experiencing physical and/or sexual violence by an intimate partner in a 12-month period as of 2018.

Addressing female unemployment in Afghanistan is crucial, but it should be part of a broader effort to achieve gender equality and empower women in various aspects of their lives, including education, health, and personal security.

Solutions to unemployment in Afghanistan

Afghanistan has one of the highest unemployment rates in the world, with an estimated 35% of its population unemployed. This has been caused by a combination of issues, including political instability, conflict, drought, floods, and the Covid-19 pandemic.

Encourage entrepreneurship and private sector development

The Afghan government and the international community should actively support entrepreneurship and the private sector in Afghanistan. This includes streamlining the process of registering new startups and international companies, reducing bureaucratic barriers, and providing technological solutions to make it easier to do business. By promoting entrepreneurship and private sector growth, Afghanistan can create jobs, ensure economic stability, and bring peace to the country.

Implement effective job creation programs

The Afghan government should prepare and implement effective programs to create jobs for its citizens. This includes encouraging youth to start their own businesses and providing them with the necessary resources and training. New models of employment should be explored to help the hundreds of thousands of unemployed Afghans find work. The private sector should also cooperate in this effort and create more job opportunities.

Address the root causes of poverty and hunger

Organizations like Human Concern International (HCI) are working to address the root causes of poverty and hunger in Afghanistan. They provide emergency food assistance, vocational training, and food packages to vulnerable communities. By addressing the basic needs of families, HCI helps individuals focus on acquiring new skills and finding employment. Similar initiatives can be implemented to empower Afghans to break the cycle of poverty and unemployment.

Improve education and skill development

Afghanistan should invest in education and skill development to empower its youth and prepare them for the job market. This includes improving the quality of teaching and ensuring that school-age children have access to education. Vocational training centers can play a crucial role in equipping individuals with practical skills that are in demand in the job market, such as tailoring, computer skills, carpentry, and mechanical skills.

Promote economic stability and international trade

Afghanistan should focus on promoting economic stability and international trade to create jobs and reduce unemployment. This includes supporting exporters and businesses looking for lucrative markets in America and Europe. By increasing exports and creating a trade surplus, Afghanistan can boost its economy and provide more job opportunities for its citizens.

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