Unemployment rises in Rwanda

Unemployment in Rwanda has increased by 2.2 percentage points over the past year, reaching 15.6% in August 2026 according to a survey by the Rwanda National Institute of Statistics (NISR). The data, published in October 2026, shows a growing challenge in the country’s labor market.

Women and young people most affected

The unemployment rate is higher among women (18.3%) than men (13.3%), and it is even more pronounced among young people aged 16 to 30, who face an unemployment rate of 18.8%. This is significantly higher than the 13.1% rate among adults.

Rural areas see higher unemployment

Unemployment is also more common in rural areas, where the rate stands at 16%, compared to 14.8% in urban areas. The overall employment rate has also declined, dropping from 57% in 2025 to 54% in 2026, with both men and women affected.

Economic progress but challenges remain

Despite a high activity rate and progress in reducing poverty, as noted in a 2025 report by the Seventh Comprehensive Survey on Living Conditions of Households (EICV7), Rwanda faces challenges in improving the quality of employment and ensuring inclusive growth. The United Nations Development Programme (UNDP) has highlighted these issues.

Informal jobs and skill gaps

In November 2025, the UNDP reported that 90.4% of jobs in Rwanda are in the informal sector. Many young people are either underemployed or working in unproductive jobs, and there are reported gaps in practical, digital, and behavioral skills. Training institutions are also said to be disconnected from the needs of the private sector.

Government focuses on job creation and education

In response, the Rwandan government has included the creation of productive jobs, improving the relevance of training, and aligning education with labor market needs in its Second National Transformation Strategy (NST2), which runs from 2024 to 2029. These priorities aim to address structural barriers to decent work and reduce inequality.