Ministry of Labour, Skills and Innovation through its regional and district labour offices registered 47 083 job seekers in 2025, Malawi Government figures show.
The 2026 Malawi Government Annual Economic Report shows that only 1 841 were successfully placed in employment, representing 3.91 percent. This means 42 742 were left on the waiting list.
“The need for deliberate efforts to create jobs is, therefore, highly pitched,” reads the report in part.
While some job seekers opt not to go through the labour offices in their quest for employment, the figures show the extent to which Malawi continues to grapple with high unemployment levels.
The International Labour Organisation (ILO) and the World Bank put Malawi’s unemployment rate at between five percent and 5.5 percent.
To effectively address the situation, the annual report states that the Ministry of Labour, Skills and Innovation is in the process of implementing institutionalisation of employment impact assessments in both the private and public sectors.
The process seeks to assist in the calculation of the potential number of jobs to be created from various projects.
Malawi’s economy is approximately 89 percent informal and 11 percent formal, with the majority working in vulnerable, low-productivity jobs without social protection.
About 10.3 percent of the population holds permanent jobs with 66 percent of youths unemployed, according to ILO.
Economics Association of Malawi (Ecama) president Bertha Chikadza says to effectively address Malawi’s high unemployment situation, there is need for decisive and coordinated reforms to restore macroeconomic stability, unlock export-led growth and generate jobs.
She says there is also need to create an enabling environment for private sector growth and targeted fiscal measures.
Chikadza, a senior macroeconomics lecturer at the University of Malawi in Zomba, argues that this would allow industries to expand production and generate more jobs, expand the formal sector and reduce informality.
“High unemployment places a fiscal strain on the government since tax revenues shrink while at the same time increasing social pressures requiring more government spending on safety nets,” she says.
“In the end, this breeds a frustrated population, perpetuation of poverty, social unrest, crime and also migration, both legal and illegal in search of opportunities.”
ILO statistics show that 38.8 percent of working age adults are employed with 61.2 percent unemployed.
Bangara-Chikadza says the situation means the country is wasting most of its valuable human resource, which entails a cycle of economic stagnation due to reduced consumption.
For Consumers Association of Malawi executive director John Kapito, the current economic environment does not offer any hope as regards addressing Malawi’s high-level unemployment status.
He says: “For a long time, the economy has been sluggish with both no direct foreign and local investment and this affects any chances for foreign investment.
“When we start getting good statistics on economic growth, reduction on inflation and gain on the kwacha with increased production, maybe then we can begin to see improvements on the labour market.”
In his State of the Nation Address at the opening of the second meeting of the 52nd Session of Parliament and the 2026/27 Budget Meeting on February 13, President Peter Mutharika hinted on strategies on creating jobs.
“My government will intensify support for local production to further drive down commodity prices, create jobs and grow the economy,” he said.
But Human Rights Defenders Coalition chairperson Michael Kaiyatsa argues that without deliberate action, unemployment will continue to fuel poverty, inequality and social frustration, especially among the youth.
He says: “Job creation must become a top national priority.”
Kaiyatsa says the labour statistics also highlight a deeper structural problem in Malawi’s economy where thousands of young people finish school annually and enter the labour market while the economy is not creating jobs at the same pace.
As a result, Kaiyatsa says the number of job seekers continues to grow while opportunities remain limited.
Meanwhile, the private sector continues to face numerous structural and practical constraints that continue to limit its capacity to absorb new entrants.
Employers Consultative Association of Malawi executive director George Khaki says the constraints continue to create a massive and growing gap between job seekers and available opportunities.
He said the constraints include economic pressures, high operational costs and limited access to financing.
Khaki suggests the need for stronger collaboration between industry and training institutions to align curricula with market needs and implement policies that reduce the cost of doing business.
