Executive Summary

This baseline study assesses the state of Somalia’s human resources, highlighting the main challenges and opportunities to employment in the country. The study used both quantitative and qualitative data collection methods in the form of a literature review, key informant interviews and focus group discussions.

This report starts with an overview of the historical labor and employment environment in relation to both labor supply and demand. The study then looks at the current state of the Somali workforce in both the public and private sector with specific attention to skills and technical and vocational education and training (TVET). The report concludes with key findings as well as strategies aimed at addressing challenges and enhancing opportunities in the labor sector.

The report identifies a number of major challenges for labor in Somalia, such as a mismatch between the skills taught at institutions of higher learning and those demanded by existing opportunities in Somalia’s productive sectors. Limited skills development and training opportunities also impede meaningful employment. Other challenges include lack of job opportunities, high salary expectations among graduates and a lack of merit-based recruitment practices. Women in particular face employment barriers due to a lack of education and skills development for girls as well as cultural impediments. Security challenges, political instability and the absence of an adequate policy and regulatory environment are also key hindrances to job creation. Finally, this study also found that there are almost 2.7 million people with disabilities (PWDs) in Somalia, for whom employment or educational opportunities are nearly nonexistent due to attitudinal, environmental and institutional barriers, leaving them at the very bottom of the economic ladder.

The baseline study proposes the following strategic interventions to address the constraints and challenges to the labor sector in Somalia:

● Organize multi-stakeholder efforts to address nationwide unemployment. Productive jobs could be created by developing the service sector, attracting and encouraging private sector investment to catalyze job creation, developing entrepreneurial skills, improving the capacity and competitiveness of entrepreneurs and revitalizing and developing public works programs.
● Develop micro small and medium sized enterprises (MSMEs) and improve their access to financial services to create self-employment opportunities.

● Address the current expensive, inefficient and unreliable electricity supply and services and develop affordable and renewable energy sources including solar power.

● Foster public-private partnerships for employment creation in productive sectors such as agriculture, fisheries and livestock.

● Establish collaboration among higher education institutions, private sector employers and government to produce a talented workforce, equipped with the required knowledge and skills for the labor market.

● Establish employment or job placement centers in all regions to promote youth employment.

● Implement a national internship program that allocates graduates (including TVET students) work in key sectors and allows them to acquire practical experience and develop an appreciation for the importance of vocational skills.

● Update and develop federal and harmonized national labor policies and legislation protecting the employment rights of women, disadvantaged groups such as internally displaced persons (IDPs) and PWDs.

● Develop and implement a transparent, merit-based recruitment system including an online system or portal for job openings to attract skilled jobs seekers and ensure equal opportunities for all. Create competitive exams or assessment tools to ensure qualified candidates with the right competencies are chosen for public jobs.

● Develop and promote government capabilities for effective regulations and harmonized national policies to guide labor markets and job creation and to protect workers rights.

● Develop, update, adopt and enforce national and state labor laws and regulations to ensure appropriate coverage and protection of all categories of workers (public and private).

● Develop specific policies on protecting local jobs.

● Develop and distribute comprehensive labor market information to help job seekers, employers and policymakers make informed decisions.