Wednesday, October 8
  • Africa’s labor force is not only the fastest-growing in the world but also increasingly urban and digitally connected, offering unparalleled potential for innovation, industrialization, and regional economic influence.
  • Over 60% of Africa’s population is under 35, giving the continent an unmatched demographic edge that global industries are beginning to recognize.
  • Labor productivity has risen nearly 20% since 2015, supported by reforms in manufacturing, digital trade, and regional integration.

Deep Dive!!

Lagos, Nigeria, Wednesday, October 8, 2025 – Beyond demographic expansion, Africa’s labor strength in 2025 signals a new era of economic potential and transformation. With the world’s youngest and fastest-growing workforce, the continent now holds one of the greatest concentrations of untapped human potential. Current estimates show that Africa’s labor pool has surpassed 540 million people, a figure projected to double by 2050. This growth is not occurring in isolation. It is unfolding alongside industrial diversification, urban migration, and a new wave of regional infrastructure that is gradually shaping where and how people work.

The structure of employment across the continent, however, reflects both opportunity and constraint. Agriculture continues to absorb the majority of workers, but new employment corridors are emerging around logistics, manufacturing, digital services, and construction. The informal economy still dominates, accounting for more than 80% of total jobs yet governments are taking clearer steps to formalize enterprises and improve labor conditions. According to the International Labour Organization, Africa’s working-age population is expected to expand by nearly 450 million by 2035, underscoring both the urgency and the potential of its labor challenge.

Continental and national reforms are increasingly directed at turning this scale into strength. The African Development Bank’s Jobs for Youth in Africa program, launched to create 25 million jobs by 2025, has helped drive skills training and enterprise development in multiple countries. Governments are investing in technical and vocational education, while regional blocs like ECOWAS and SADC are harmonizing qualifications and labor mobility policies. Infrastructure and energy projects like special economic zones and renewable power corridors are linking skills to industry at an unprecedented scale. Africa’s 2025 labor landscape is therefore not just a demographic reality but a coordinated effort to build a productive, employable, and competitive workforce fit for the next global economy.

10. Ghana 

Ghana’s labor force, recorded at 14,887,000 in the 2025 Global Firepower assessment, reflects a steady rise in participation driven by population growth and structural economic shifts. According to the Ghana Statistical Service, the country’s working-age population continues to expand by over 2% annually, supported by improved access to education and urban job opportunities. This growing workforce has become one of West Africa’s most stable, contributing to national productivity while strengthening domestic demand in key sectors such as construction, retail, and energy.

Ghana’s gradually diversified labor force sets it apart. The service sector now employs nearly half of the active labor population, while agriculture and industry share the rest. Over the past decade, Ghana has experienced consistent job growth in telecommunications, banking, logistics, and digital services, reflecting an economy that is learning to transition beyond commodity dependence. However, informal work still dominates, with over 80% of workers engaged in unregistered enterprises or self-employment. This structure limits tax revenue and productivity but also demonstrates the resilience of a population finding alternative means of livelihood amid limited formal job openings.

Government-led programs are reshaping this outlook. Initiatives such as the Ghana CARES (Obaatanpa) program and the National Entrepreneurship and Innovation Programme (NEIP) continue to promote industrial diversification and enterprise growth. Vocational reforms under the Commission for Technical and Vocational Education and Training (CTVET) are aligning skills development with labor market demand, while ongoing infrastructure investments are expanding the base for manufacturing and logistics employment. Combined with digital skills programs targeting young entrepreneurs, these policies are gradually steering Ghana’s workforce toward a more structured and productive economy with an evolution that reflects the broader transformation now defining Africa’s labor story.

9. Mozambique 

Mozambique’s labor force, measured at 15,191,000 in the 2025 Global Firepower report, represents one of Southern Africa’s most steadily expanding workforces. With an annual population growth rate of roughly 2.7% and a median age of 17, the country’s demographic structure is heavily youth-driven. World Bank and ILO data indicate that nearly 75% of Mozambicans of working age are economically active, although most operate within informal and subsistence sectors. The nation’s labor base continues to grow faster than formal employment opportunities, creating both a demographic advantage and a policy challenge as urban centers absorb thousands of new job seekers each year.

Beneath the numbers, Mozambique’s employment pattern is shaped by its geography and natural resource economy. Agriculture remains the backbone of the economy, employing close to 70% of the labor force, primarily in smallholder and seasonal farming. Yet, new drivers are emerging in extractives, energy, and construction, particularly in the liquefied natural gas (LNG) sector in Cabo Delgado and the infrastructure corridors connecting Beira, Nacala, and Maputo. These projects have spurred demand for skilled technicians, engineers, and service workers, gradually creating a more diversified employment structure. Meanwhile, women continue to form a significant portion of the workforce, often concentrated in informal trade and agriculture, where access to credit and mechanization remains limited.

Reform efforts in Mozambique have increasingly focused on job creation through industrial and vocational channels. The government’s Economic Acceleration Package (EAP), introduced in 2023, set out to boost private-sector confidence and employment by easing investment procedures and promoting small-enterprise financing. Complementing this, the National Employment Policy (PNE) prioritizes youth employment, skills development, and agricultural modernization, aiming to shift informal work toward more productive forms. Partnerships with the African Development Bank and the International Labour Organization have further supported the rollout of technical training centers and women’s empowerment schemes across provinces. These interventions are gradually linking education with employment, a crucial step as Mozambique positions its young, expanding labor force for participation in both traditional and emerging industries.

8. Angola 

Angola’s 2025 labor force, estimated at 15,223,000, reflects the country’s steady demographic and economic transition. With one of the youngest populations in Southern Africa and an urbanization rate above 66%, the size and distribution of its workforce are evolving in tandem with post-oil diversification efforts. The National Institute of Statistics (INE) estimates that Angola’s working-age population exceeds 20 million, with labor participation remaining strong despite persistent underemployment. Youth account for the majority of job seekers, a sign of both potential and pressure on the formal sectors that still struggle to absorb new entrants.

The structure of Angola’s labor market is deeply influenced by its oil legacy. For years, oil exports have dominated national revenue, but they have employed less than 2% of the labor force, leaving most Angolans in sectors such as low-income services, agriculture, or informal trade. Over the past decade, however, a quiet transition has been underway. The non-oil economy, especially construction, retail, agribusiness, and transport, has grown its employment share, driven by urban demand and government-led infrastructure projects. Small and medium enterprises (SMEs) now employ a rising number of workers in Luanda, Huambo, and Benguela, where economic activity is increasingly tied to domestic production and services rather than imports.

To convert its labor volume into sustainable employment, Angola has adopted reforms aimed at diversification and skills alignment. The National Employment Plan (Plano Nacional de Emprego) prioritizes vocational training, youth apprenticeships, and rural job creation through the development of agricultural clusters. Alongside this, the PRODESI initiative (Production Support, Diversification, and Import Substitution Program) supports local manufacturing and processing industries to expand domestic employment. International partnerships such as the World Bank’s Angola Economic Diversification Project are further boosting job creation in fisheries, light manufacturing, and logistics. While unemployment and informality remain high, these ongoing initiatives demonstrate a gradual yet deliberate restructuring of Angola’s labor market toward greater inclusiveness, stability, and long-term productivity.

7. Uganda

Uganda’s labor force, listed at 18,881,000 in the 2025 Global Firepower ranking, represents one of East Africa’s most rapidly growing workforces. With a population exceeding 48 million and a median age of about 16, Uganda’s demographic profile is among the youngest in the world. The Uganda Bureau of Statistics estimates that more than 700,000 Ugandans enter the labor market each year, with most seeking employment in the informal economy. This youthful expansion gives the country immense labor potential, yet it also intensifies pressure on job creation, skill development, and wage stability in both rural and urban sectors.

Agriculture remains the anchor of Uganda’s labor structure, employing nearly 65% of the workforce. However, the landscape is gradually changing as non-agricultural employment gains traction in sectors such as trade, construction, manufacturing, and information technology. The informal sector continues to dominate, accounting for more than 80% of total jobs, but its productivity has been rising due to improved access to markets and microfinance. Kampala and regional hubs such as Mbarara, Gulu, and Jinja have become focal points for small-scale industry, logistics, and services, reflecting a slow but steady shift from subsistence activities to semi-formal enterprises. Additionally, Uganda’s role as a regional trade corridor for South Sudan and the Democratic Republic of Congo has created jobs in transport and warehousing. At the same time, cross-border business continues to absorb part of the urban workforce.

Government and institutional efforts to strengthen employment quality have accelerated in recent years. The National Employment Policy (NEP) and Uganda Green Jobs Programme promote sustainable industrialization and rural enterprise development. Meanwhile, the Skilling Uganda Strategy, implemented through the Ministry of Education and Sports, is overhauling vocational training to match labor market demands. Reforms in agriculture, particularly under the Parish Development Model (PDM), are targeting job creation through value-chain expansion, storage infrastructure, and agribusiness investment. International partners, including the World Bank, UNDP, and the African Development Bank, are supporting youth incubation centers, ICT innovation hubs, and rural entrepreneurship projects. These combined interventions are gradually repositioning Uganda’s large and youthful labor force as an engine for inclusive growth rather than a demographic burden.

6. South Africa 

South Africa’s labor force, estimated at 25,158,000 in the 2025 Global Firepower data, reflects both the country’s large population and its highly structured economy. With a working-age population of roughly 38 million, South Africa faces the dual challenge of high labor potential and persistent unemployment pressures. The South African Reserve Bank and Statistics South Africa report that despite modest annual growth in employment, roughly 25% of the labor force remains unemployed, with youth unemployment exceeding 40% in urban centers. These figures highlight the structural complexity of the workforce,e that while quantity is significant, matching skills to opportunities remains critical.

South Africa’s labor market is relatively diversified compared to most African nations. Services, manufacturing, and mining absorb the largest share of workers, with logistics, finance, telecommunications, and construction sectors providing both formal and semi-formal employment. Industrial clusters in Gauteng, KwaZulu-Natal, and the Western Cape act as employment hubs, while agricultural employment has declined over time due to mechanization and urban migration. Despite the depth of the formal sector, the informal economy still engages a sizable share of workers, especially in townships and peri-urban areas. Skills gaps and historical inequalities continue to shape labor participation, influencing wages, mobility, and productivity across sectors.

Efforts to improve employment quality and productivity are ongoing. South Africa’s National Skills Development Strategy (NSDS V) aims to upskill workers in technical trades, digital services, and green industries. Public-private partnerships under programs such as Operation Vulindlela and the Youth Employment Service (YES) are providing structured pathways for young people to enter both formal employment and entrepreneurship. Investments in infrastructure, renewable energy projects, and industrial parks are gradually creating new opportunities in logistics, manufacturing, and clean energy. By aligning training, investment, and labor policy, South Africa is leveraging its large workforce not just for domestic production but as a competitive element in regional trade, manufacturing, and service sectors, demonstrating how labor scale can be paired with structural sophistication.

5. Kenya 

Kenya’s labor force, recorded at 25,502,000 in 2025 by Global Firepower, positions the country as one of East Africa’s most significant providers of human capital. With a working-age population of over 30 million, the nation faces a dual dynamic of a youthful, rapidly expanding labor force and persistent challenges in creating formal employment. The Kenya National Bureau of Statistics notes that over 750,000 new entrants join the labor market annually, primarily in urban centers like Nairobi, Mombasa, and Kisumu, intensifying demand for structured employment opportunities and skills development.

Kenya’s workforce structure is heavily influenced by agriculture, which still employs approximately 65% of the active workforce, predominantly in smallholder farming. However, the service and industrial sectors have expanded rapidly, reflecting deliberate diversification. Manufacturing, ICT, logistics, and construction now absorb an increasing number of workers, particularly in special economic zones and industrial clusters along the Mombasa–Nairobi–Naivasha corridor. Informal employment remains high, particularly in the trade and micro-enterprise sectors. Still, the rise of digital platforms, mobile money services, and local logistics networks has gradually improved labor productivity and income generation for a significant portion of the population.

Government initiatives and reforms are increasingly aligning Kenya’s labor potential with economic demand. The Kenya Vision 2030 and the Youth Empowerment Program are driving skills development, entrepreneurship, and employment creation in high-demand sectors. The National Industrialization Policy targets the manufacturing sector, linking vocational training with industrial employment, while public-private partnerships in ICT and infrastructure are creating pathways for young workers. Moreover, labor mobility reforms under the East African Community framework facilitate cross-border employment opportunities, enhancing skill utilization and market integration. These combined efforts are gradually transforming Kenya’s large and growing workforce into a more structured, productive, and regionally competitive labor pool.

4. Tanzania 

Tanzania’s labor force, estimated at 31,219,000 in the 2025 Global Firepower report, represents one of the largest and youngest workforces in East Africa. With a population surpassing 65 million and a median age of 18, Tanzania continues to see strong labor market growth, with roughly 800,000–900,000 new entrants each year. While labor participation rates are relatively high, significant challenges persist in translating this growing workforce into formal, productive employment, especially in rural areas where agriculture dominates economic activity.

Agriculture employs the majority of Tanzania’s labor force, particularly smallholder farmers producing maize, cassava, and cash crops such as coffee and cashew nuts. However, urban centers like Dar es Salaam, Mwanza, and Arusha are seeing rapid growth in services, construction, manufacturing, and logistics, reflecting structural shifts in employment patterns. Informal work remains prevalent, with many workers engaged in trading, artisanal production, and small-scale services. Meanwhile, increasing investment in transport corridors, industrial zones, and energy infrastructure has begun to create pockets of formal employment that are gradually absorbing skilled and semi-skilled labor from the urban youth population.

Policy and programmatic interventions aim to maximize labor productivity and formal employment opportunities. The government’s National Employment and Labour Policy emphasizes industrialization, vocational training, and entrepreneurship, while the Youth Development Fund and Skills Development Project provide financing and technical training for young workers. In addition, partnerships with international organizations such as the African Development Bank and the ILO are supporting initiatives to formalize informal enterprises, expand access to finance, and improve sectoral productivity in agriculture, manufacturing, and services. These coordinated efforts are gradually transforming Tanzania’s large and youthful labor force into a more structured, skilled, and competitive component of the national economy.

3. Egypt

Egypt’s labor force, estimated at 33,431,000 in 2025 by Global Firepower, represents one of the largest and most diversified in Africa. With a working-age population exceeding 60 million and a median age of 24, Egypt continues to see steady growth in labor participation, particularly among women and urban youth. Despite these numbers, challenges remain in integrating this workforce into productive, formal employment, as unemployment rates persist at around 9–10%, concentrated mainly among young graduates and semi-skilled urban workers.

The composition of Egypt’s labor market reflects a relatively advanced economic structure for the region. Services account for the largest share of employment, particularly in finance, telecommunications, tourism, and public administration. Manufacturing and construction employ significant portions of the workforce, driven by infrastructure expansion, industrial zones, and export-oriented projects such as the Suez Canal Economic Zone (SCZone). Agriculture, while employing fewer workers proportionally than in other African nations, remains crucial in rural areas, with programs focusing on mechanization and value-chain development. Informal employment persists, especially in urban micro-enterprises, but recent growth in formal industrial and service sectors is gradually improving labor absorption and productivity.

Government reforms and targeted programs are central to enhancing labor effectiveness. Egypt’s Structural Reform Phase II Program emphasizes industrial competitiveness, skills alignment, and private-sector-led job creation. Vocational training initiatives under the Ministry of Education and Technical Education are linking technical skills to high-demand sectors, while programs like Decent Life (Hayah Karima) and SME support initiatives are fostering employment in both urban and rural regions. Public-private partnerships and FDI inflows in renewable energy, logistics, and manufacturing are further expanding formal employment opportunities. These coordinated efforts are gradually converting Egypt’s large labor pool into a productive, skilled, and globally competitive workforce, positioning the country as a continental employment leader.

2. Democratic Republic of Congo

The Democratic Republic of Congo’s labor force stands at 35,983,000 in 2025, making it one of the largest on the continent. With a population exceeding 102 million and a median age of just 17, the DRC possesses a vast and youthful workforce. Approximately 1.5 million new workers enter the labor market annually, mostly in informal, rural, and low-productivity sectors, reflecting the challenge of matching sheer labor volume with formal employment opportunities. Despite underemployment, this demographic advantage gives the country significant long-term potential if structural reforms and skills alignment are effectively implemented.

The DRC’s labor market is deeply shaped by its natural resource base and geographical diversity. Mining remains a cornerstone, employing thousands in cobalt, copper, and industrial mineral extraction, yet most labor is concentrated in small-scale artisanal operations with limited productivity and formal protections. Agriculture employs the majority of the population, primarily in subsistence farming and smallholder cash crop production. Emerging sectors, including transport, logistics, and urban construction, are gradually absorbing workers from rural migration flows. Informal trading networks, particularly in Kinshasa, Lubumbashi, and Goma, also continue to play a central role in livelihoods, providing both income opportunities and entrepreneurial experience for a growing young population.

To harness this labor potential, the DRC government has undertaken targeted reforms. The National Employment and Skills Development Strategy focuses on vocational training, technical skills acquisition, and youth entrepreneurship, aiming to integrate informal workers into more productive sectors. Investment in industrial parks, infrastructure corridors, and port facilities is expanding job creation in logistics and light manufacturing. International partnerships, including support from the African Development Bank, ILO, and UNDP, have helped establish technical training centers, promote women’s economic inclusion, and enhance labor market governance. While significant challenges remain, these initiatives signal a deliberate effort to transform the DRC’s vast and youthful labor force into a productive engine for national development.

1. Nigeria

Nigeria’s labor force tops Africa in 2025, with 75,721,000 active workers, reflecting the country’s large population of over 230 million and a median age of just 18. The workforce is growing rapidly, with more than 3 million entrants annually, predominantly youth, placing significant pressure on job creation, skill development, and income opportunities. This vast labor pool, if effectively mobilized, represents a strategic advantage for domestic productivity, industrial capacity, and regional economic influence.

The composition of Nigeria’s workforce is highly diverse. Agriculture remains a primary employer, engaging over 30% of workers, particularly in rural areas, producing staples like cassava, yams, and maize. However, the formal economy is increasingly absorbing labor in services, manufacturing, logistics, ICT, and energy sectors. Lagos, Abuja, Port Harcourt, and Kano are major hubs for industrial, digital, and financial employment, while informal sectors like retail, artisanal production, and transport continue to provide livelihoods for millions. Despite high labor availability, challenges such as skills mismatches, infrastructure gaps, and underemployment affect productivity, highlighting the need for strategic workforce planning and sectoral alignment.

Nigeria has implemented significant reforms to harness its labor potential. The National Skills Development Framework and Youth Employment and Entrepreneurship Programme (YEEP) provide training and financing to align workforce skills with industrial and service sector demands. Investment in industrial clusters, free trade zones, and infrastructure projects such as the Lekki Deep Sea Port is expanding formal employment opportunities. Public-private partnerships in ICT, renewable energy, and manufacturing are creating structured pathways for youth employment. Additionally, initiatives like the Nigeria Startup Act and vocational training programs are linking education outcomes with market needs, aiming to transform Nigeria’s immense labor pool into a competitive, productive, and globally engaged workforce.

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https://www.africanexponent.com/top-10-african-countries-with-the-largest-labor-force-in-2025/

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