As Rwandans join the world to mark International labour day on May 1st, a new report shows that more Rwandans are working and unemployment is declining, but high informality and labour underutilisation continue to shape the country's job market.
This year's theme, "Partnering for skills, powering job creation, fostering local economic resilience" aligns with the National Strategy for Transformation (NST2, 2024-2029) and the National Employment and Skills Strategy (NESS).
ALSO READ: Rwanda's services sector leads in job creation
The government targets 1.25 million decent and productive jobs over five years, or 250,000 annually.
Keep up with the latest headlines on WhatsApp | LinkedIn
Employment trends
According to the Rwanda Labour Force Survey Annual Report 2025 by the National Institute of Statistics of Rwanda (NISR), the working-age population (16+) reached about 8.5 million in 2025.
Of these, 4.8 million were employed, while 676,000 were unemployed but actively seeking work. Another 3.1 million were outside the labour force.
The unemployment rate stood at 12.4 per cent, about one in eight people, down by 2.5 percentage points from 2024.
However, disparities persist. Women recorded higher unemployment at 14.2 per cent compared to 10.8 per cent among men. Youth unemployment stood at 14.7 per cent, also above the 10.8 per cent recorded among adults.
ALSO READ: Rwanda sees drop in unemployment rates
Underutilisation remains high
Beyond unemployment, labour underutilisation, a measure of people willing and able to work but not fully engaged remains a concern.
In 2025, the rate stood at 56 per cent, up from the previous year.
Women were more affected at 63.1 per cent, compared to 48.5 per cent among men. Youth also recorded slightly higher levels than adults.
Participation rising
The employment-to-population ratio (EPR) rose from 53.5 per cent in 2024 to 55.9 per cent in 2025, indicating increased labour market participation.
Men remain more likely to be employed, with 63.6 per cent of working-age men in jobs compared to 49 per cent of women, equivalent to 64 out of 100 men versus 49 out of 100 women.
Sectoral shifts
The services sector is now the largest employer, accounting for 44.4 per cent of jobs, up from 42.9 per cent in 2024. Employment in agriculture and industry remained largely stable.
Economist John Bosco Kalisa says while agriculture still absorbs many workers, long-term job creation depends on expanding manufacturing and services.
"Manufacturing provides more durable and higher-paying jobs," he noted.
Informality dominates
Rwanda's labour market remains largely informal. About 3.8 million workers--81.3 per cent of the employed population--operate in the informal sector.
Market-oriented agriculture accounts for 47 per cent of informal jobs. Other sectors include wholesale and retail trade (16.7 per cent), construction (9.8 per cent), transport and storage (7.9 per cent), and manufacturing (5.3 per cent).
TVET outcomes improve
Technical and Vocational Education and Training (TVET) graduates are increasingly finding jobs faster than their peers in general education.
A recent tracer study shows 68 per cent of technical secondary graduates secured jobs within six months.
Among short-course graduates, 80 per cent found work within three to six months, while 70 per cent of polytechnic graduates secured employment within three months.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Overall, employment among TVET graduates rose from 58.2 per cent in 2021 to 68 per cent in 2025, outperforming general education graduates, whose employment rate increased from 39.7 per cent to 52.4 per cent.
Key sectors employing TVET graduates include construction, mechanics, electrical works and industrial technology.
Inclusion gains
Labour force participation among persons with disabilities rose to 33.6 per cent in 2025, up seven percentage points from 2024. About 29.7 per cent were engaged in paid work or profit-generating activities.
Their unemployment rate stood at 11.5 per cent, slightly lower than the national average.
Outlook
While Rwanda is creating more jobs and improving participation, high informality and underutilisation highlight ongoing challenges. Expanding quality jobs, particularly in manufacturing and services remains key to building a more inclusive and resilient labour market.
