The economic evils of poverty and unemployment are now more pronounced in towns than upcountry, a new government report based on 2002/3 and 2005/6 surveys, shows. It could not, however, be inferred from the statistics if the fall in joblessness and poverty incidence in rural households implies villagers largely enjoy better wellbeing than urban dwellers. But anxiety is fast rising over a possible dip in the future productivity of Uganda's labour force after the report issued by Uganda Bureau of Statistics reveals that some 1.3 million Ugandans are "under-employed."

This means that one out of every 10 (12 per cent) of the 10.9 million employed Ugandans are working below their full potential, scaling back output at work place - and perhaps making employers pay more in wages for less productivity. Ubos, the government institution responsible for collecting, analysing and interpreting socio-economic data for predicting future development trends, says a combined 1.7 million Ugandans within the industrious 14-64-year age bracket, are either unemployed or under-employed.

Although the labour force grew by some 1.1 million persons from 2002/3 to 2005/6, job openings did not expand by a commensurate rate, locking out thousands of mainly qualified youth. However, civil service jobs increased by six per cent in 2008, possibly due to creation of new Districts, but the new opportunities were grossly inadequate to absorb the 400, 000 job seekers churned by educational institutions every year.

Other official records show that annually, the country creates only 18,000 new jobs.

"Availability of productive employment opportunities generally reduce poverty," notes the June 2009 Statistical Abstract, this year's major annual publication by Ubos, and detailing consolidated findings of surveys done in 2002/3 and 2005/6.

Within the three years reviewed, it was observed more urban dwellers were jobless compared to villagers, a phenomenon attributed to the still popular notion of rural-urban population drift propelled largely by the anticipation for better opportunities. This migration has now ironically resulted in worsening poverty levels in towns.

The most startling findings perhaps was that only about 545, 000 of Ugandans (5 per cent of total labour force) hold permanent jobs, indicating temporary or contract employees plus those in the informal sector largely power the country's 7 per cent GDP growth. The latest report follows a recent World Bank warning that an increase in joblessness, during the pressing times of economic downturn, could trigger an explosion in crime commission, resulting in civil unrest.

Although government has in recent years trumpeted huge growth in the manufacturing and service sectors, Ubos found out that some 70 per cent of productive Ugandans still engage in mainly subsistence agriculture for survival.

The 252-page report highlights a significant drop in household poverty levels, especially in rural areas in the Western Mbarara District whereas as many as 400, 000 new people in northern Uganda slid into the below-poverty line bracket, an apparent manifestation of the failure of various poverty reduction government interventions there. "The decrease in poverty is most marked in western region where the headcount declined by 12.4 percent (from 32.9 per cent to 20.5 per cent), much higher than the average national [poverty reduction] of 7.7 per cent with positive changes happening more in rural areas," says the report.

The report, using three poverty measurement indices (P0, P1 and P2) concluded that northern Uganda is an area with the most widespread poverty, and the poorest of the poor are also more concentrated there.

A bridging in income disparities, especially among urban dwellers, was found to have resulted in many more households affording similar basket of household items, reflecting a near-levelling in the welfare of Ugandans within particular income brackets.

Although formal jobs went down by some 2 per cent 2002/3 and 2005/6, actual spending by employers on wages and salaries surged due to improvements in workers' pay to contain effects of two-digit inflation. The breweries and tobacco industries, whose products are considered both luxury and toxic goods, were found to offer best remuneration package for employees, paying an average monthly salary of Shs1.4 million.

The report indicated mass exploitation particularly in the hospitality sector where waiters/waitresses are forced to work for longer hours than legally permitted, but grossly underpaid. Other badly-rewarded employees, according to the report, are security guards, drivers and cleaners.