A March 2024 European Commission report monitoring Malawi's economy says many people in Malawi depend on piecework for a living.
The report is titled 'Turning the Corner: Healthy Watersheds for a Strong Economy.'
It was published on March 1, 2024.
The report says that the Malawi economy is still struggling to recover fully from the impacts of recent pandemics.
It says this slow progress is being felt by the population.
According to the report, the share of Malawians working in information employment increased for the first time in nearly two years, driven primarily by an increased reliance on family farming and ganyu.
"There has been a slight uptick in the percentage of people working as casual labourers since May 2023, but it's still well below pre-pandemic levels," reads part of the report.
According to the report, this appears to be driven by an increase in people working on family farms rather than finding salaried jobs.
Commenting on the report, Scotland-based economist Velli Nyirongo said the trend highlights a worrying decline in formal opportunities, which have historically been a significant source of income for many Malawians.
The reduction in these jobs, along with their decreased financial rewards, indicates ongoing economic hardship.
He said to address these challenges, the government should prioritize initiatives that help informal businesses transition to the formal sector.
By providing access to credit, training and legal advice, these programs can empower informal business operators while also increasing the national tax base, he said.
He also said investment in rural development projects shows significant promise.
The report has suggested policy priorities like bolstering macroeconomic stability, tightening fiscal governance reforms and successful external debt restructuring as a route to creation of more formal job opportunities.
The report also highlights export-led growth as key to turning around the situation.
"Government should strengthen the functioning of agricultural markets," it says, adding that the implementation of the Disaster Risk Management Act of 2023 will be key to enhancing preparedness for future disasters and strengthening resilience.
