COVID-19: Rwanda’s unemployment rate drops after reopening of economy

Rwanda has seen a significant drop in its unemployment rate, with the latest figures from the National Institute of Statistics showing a decrease to 16% in August from 22.1% in May 2020. CNBC Africa's Tessie Kavan recently sat down with Ivan Murenzi, the Deputy Director General of the National Institute of Statistics of Rwanda, to discuss the positive trend. Murenzi explained that the decline in unemployment can be attributed to the reopening of the economy post-lockdown and the resumption of various economic activities. Sectors such as construction, trade, and businesses have seen a revival, leading to new employment opportunities and a boost in economic growth. However, some sectors, particularly the hotel and tourism industry, are still struggling to reach pre-pandemic levels, causing a slight increase in the unemployment rate compared to before the lockdown. Murenzi highlighted the resilience of the private sector in bouncing back and credited the government's guidance for facilitating the recovery. The recovery in Rwanda's economy has also been characterized by a rise in self-employment, with small and micro-businesses playing a significant role in driving economic activity. Murenzi noted that individual businesses, such as carpenters and welders, have resumed operations, contributing to the overall employment landscape. While gender disparities persist in the labor market, with a higher unemployment rate among women compared to men, Murenzi identified sectors like construction and transport as contributing factors to the gender gap. Despite the challenges, Rwanda's efforts to address these disparities and promote inclusive growth remain a key focus for the government. Overall, the decline in the unemployment rate in Rwanda reflects a positive trend towards economic recovery and resilience in the face of challenges brought about by the COVID-19 pandemic. As the country continues to navigate the post-lockdown phase, efforts to support all segments of society, including marginalized groups and women, will be crucial in ensuring sustainable and inclusive growth.