Comprehensive Overview of Unemployment in Africa (2021)

Context

One of the major challenges ravaging the African continent is the issue of unemployment amongst it's employable population. It may seem quite sad as the number of youths without jobs or valuable sources of income has hit an all time high. When compared to other continents of the world, one might be faced with answering the rhetorical question, why Aftica?

The African continent is the second most populated continent in the world with its population numbering up to 1.4billion (approximately 18% of the world population) as at 2021.

This project takes a closer look at the unemployment situation in Africa, its trends and potential impacting factors with a direct focus on the year 2021.

Data Source(s)

The data used for this analysis was provided by 10alytics for its Global Hackathon, 2023.

The data contains global records for the unemployment rate across genders, country codes information, the expenditure on education by the government of different countries, strategies in place for youth employment, population's access to electricity and number of firms existing in each country. The data spans across tens of years.

Tool(s) Used

I relied solely on Microsoft Excel for every step of this analysis.

Processes

Connection to data source

Data cleaning and transformation

Analysis

Visualization and reporting

Connecting To The Various Data Sources, Data Cleaning and Transformation

Connecting to the 6 tables for this analysis was quite seamless as I leveraged the Power Query editor for connecting to the files containing these tables.

Upon successful connection, the tables were individually profiled to get a breakdown of the value distributions and statistics. This process provided a clear view of the anomalies and inconsistencies within the data after which data cleaning and transformation followed.

For the data cleaning, the tables were renamed and given better and more descriptive headers, the null values were removed, incorrect data types were corrected, outliers in the year fields were removed. Some of the tables were filtered to display details from 2011-2021 as this is the year range under consideration.

Merging of tables, conversion of rates to decimals etc. were some transformational processes that took place to enhance the data and ready it for effective analysis.

Data Model

To ensure accurate analysis, relationships were established between all 6 tables based on their common fields. The data modelling was done in Microsoft Excel's Power Povot functionality and the relationship captured as shown below 👇

Data Analysis using Microsoft Excel's Pivot Table functionality

To continue the analysis within Excel, its Pivot table feature was used extensively for data aggregation and summarization.

Insights from Analysis

Analysis of the unemployment rate by continents shows that the situation in Africa is devastating, with the continent currently having the highest unemployment rate among its labor force.

Addressing this critical issue requires a multifaceted approach. Efforts should focus on implementing targeted employment programs, fostering skill development initiatives, and creating a conducive business environment to stimulate job growth. Collaboration between governments, private sectors, and international organizations is essential to formulate comprehensive strategies that address the root causes of unemployment and pave the way for sustainable economic development across the continent.

With a focus on the African continent, further analysis reveals the ten African countries most affected by the high unemployment rate. South Africa, a nation known for its diverse economic landscape and significant contributions to various industries, stands at the top of the list. However, the challenges extend beyond South Africa, encompassing countries such as Djibouti, Eswatini, and others.

Addressing these specific regional disparities demands targeted interventions and collaborative efforts to foster sustainable solutions for employment and economic growth across the continent.

The significant gap in the unemployment rate between males and females in Africa, reaching as high as 4% in favor of the male population, emphasises the urgent need to minimize gender discrepancies in labor force considerations. Creating equal opportunities for everyone, irrespective of gender, is crucial for fostering a fair and inclusive job market.

By addressing these disparities, societies can harness the full potential of their diverse talents, contributing to more balanced and thriving economies.

Over the past decade (2011-2021), unemployment in Africa has been on the rise, especially with an 11.11% increase between 2019 and 2020 due to the impact of COVID-19. Lockdowns led to job losses and business closures, hitting the working class hard.

To tackle this, targeted efforts are needed. Governments and businesses can work together on initiatives for job creation, skill development, and supporting entrepreneurship. Investing in growing sectors like technology and green industries is crucial for future resilience. Additionally, establishing social safety nets can help those affected by job losses. By addressing these aspects, there's a chance to build a more sustainable and inclusive employment landscape in Africa.

Compared to other continents, Africa has the lowest number of countries with operationalized strategies for youth employment—a crucial factor for enhancing the employment landscape of both the continent and its nations. Unfortunately, the number of African countries meeting this standard is notably lower compared to counterparts in other continents.

In overcoming this challenge, fostering collaborative efforts and sharing best practices among African nations becomes imperative. Effective youth employment strategies can be established by drawing inspiration from successful models implemented elsewhere.

Analyzing the correlation between government expenditure on education and the unemployment rate across countries reveals no discernible relationship. This suggests that a country or continent's unemployment rate may not be significantly influenced by the amount spent on the education of its citizens.

Conclusively this analysis sheds light on Africa's employment challenges. The impact of COVID-19 on rising unemployment is evident, emphasizing the need for targeted strategies. Surprisingly, government spending on education doesn't show a clear link to unemployment rates. Additionally, the low number of countries with youth employment plans calls for collaborative efforts. To navigate these complexities, tailored solutions, investments in valuable education, and a focus on emerging sectors are key. Prioritizing youth employment strategies is vital for a resilient future. By working together, nations can create sustainable pathways to inclusive economic development and improved employment prospects.