Thousands of Malawian graduates leave university every year expecting careers, but shrinking formal employment opportunities are forcing many into informal work.
An estimated 12 000 to 15 000 university graduates enter the labour market annually, yet less than 12 percent of registered job seekers secure formal employment, exposing a growing mismatch between education, labour demand and economic planning.
Experts warn that unless education reforms, industrial growth, private investment and labour market planning move together, Malawi risks producing increasingly educated graduates whose qualifications yield little economic return, undermining the aspirations of Malawi 2063.
The United Nations Malawi Common Country Analysis: Horizon Scan 2026 warns that the formal sector remains unable to absorb growing numbers of educated youth, leaving many graduates with limited opportunities.
According to the report, more graduates are turning to informal self-employment because formal wage jobs remain scarce despite continued expansion of higher education.
The report says the economy is shifting towards low-productivity self-employment rather than wage-led growth, risking a growing working-poor class, weakening domestic demand and a shrinking tax base.
It attributes the trend to slow formal sector growth, macroeconomic instability, limited access to finance and persistent skills mismatches between educational outputs and private sector demand.
University of Malawi human resources management expert Tiyesere Chikapa said universities must equip graduates with skills that enable them not only to seek jobs but also to create them.
She said universities should align curricula to the skills gaps identified in Malawi 2063 to avoid producing graduates who do not fit the needs of the economy.
She noted that increasing numbers of graduates are entering the labour market against low labour demand, making them vulnerable to exploitation and poor working conditions.
“High supply against low demand reduces the value of graduates. Many end up accepting any type of job under any conditions as long as it puts food on the table,” she said.
Meanwhile, Employers’ Consultative Association of Malawi executive director George Khaki said many graduates leave college without practical workplace experience.
He attributed this to limited internship and apprenticeship opportunities that would allow students to apply classroom knowledge in real work environments before graduating.
“The graduates do not have the practical skills needed to perform optimally in their jobs,” Khaki said.
He recommended closer collaboration between industry and academia, including opportunities for lecturers and students to gain industry exposure while experienced professionals contribute to teaching.
Khaki also questioned whether some institutions adequately assess labour market needs before introducing academic programmes.
He added that creating jobs requires broader economic reforms beyond education.
“One of the issues leading to failure to create more jobs is the economic environment, which does not favour investment,” he said.
He said Malawi should promote the growth of small and medium enterprises because they have greater potential to create employment while gradually formalising the economy.
Youth rights activist Lucky Mbewe believes Malawi’s education system remains too focused on preparing graduates for white-collar employment instead of entrepreneurship and innovation.
“Our education system does not prepare young people to create their own employment and employ others,” Mbewe said.
He argued that countries such as China and Japan invest heavily in innovation, enabling young people to create businesses instead of relying solely on formal employment.
According to Mbewe, Malawi already has talented young innovators whose ideas fail to develop because supportive policies and investment remain inadequate.
The National Statistical Office 2024 Labour Force Survey found that 91.5 percent of employed Malawians work in the informal economy, leaving only 8.5 percent in formal employment.
The survey also found labour underutilisation at 55.5 percent, while young people continue to experience significantly higher unemployment and underemployment than older workers.
