The employment journey in Mozambique (poster)

KEY FINDINGS

• Many students find themselves facing inactivity, unemployment, and informal work [5 & 8].
• Women in TVET face more obstacles than men in labor transitions [2, 5 & 8].
• Peer salary information significantly influences young people’s wage expectations [3].
• Graduates overestimate future earnings due to job mismatches and lack of information [1].

EVIDENCE

In Mozambique, economic challenges lead to a shortage of high-quality jobs, affecting university and TVET (Technical and Vocational Training) graduates, with only 1 in 10 TVET having secured a stable job [Figure 2 & 3] [5 & 8].

Gender disparities persist in the labor market transitions, with men securing more job opportunities than women, especially in TVET [Figure 2 & 3].

Despite difficulties, the private sector remains the preferred employment option for University students, with almost 1 in 5 graduates being self-employed [Figure 4] [8 & 9].

The service sector is the main job market for University graduates, providing more employment opportunities [Figure 1] [8].

The expected average wage exceeds 26,500 MZN, which is 2.5 times higher than the highest sectoral minimum wage [9].

Peer salary information significantly influences young people’s wage expectations, reducing distortions by 13pp [3].

Currently, the job search strategies that lead to employment are mainly informal, for example, personal contacts [8].

Work sector
by round for University [5] – Figure. 01

Economic situation
by round and gender for University [8] – Figure 02

by round and gender for TVET [5] – Figure 03

Type of employer
by round (%) for University [8] – Figure  04

POLICY RECOMMENDATIONS

• Promote gender equality through educational policies, job opportunities, subsidy programs, and instigate cultural shifts against gender discrimination [7 & 8].
• Improve labor market efficiency by providing accurate information about job prospects and earnings [1].
• Forge partnerships between educational institutions, Government Agencies and businesses to support graduates’ transition [6].

REFERENCES

• Jones, S., Santos, R., & Xirinda, G. (2023). Employment Mismatches Drive Expectational Earnings Errors among Mozambican Graduates. The World Bank Economic Review, lhad018.
• Bischler, J., Egger, E.-M., Jasper, P., & Manhique, I. (2022). Determinants of gender gaps in youth employment in urban Mozambique (WIDER Working Paper 2022; WIDER Working Paper, Vol. 2022). UNU-WIDER.
• Jones, S., & Santos, R. (2022). Can information correct optimistic wage expectations? Evidence from Mozambican jobseekers. Journal of Development Economics, 159, 102987.
•  Jones, S.& Sen, K. (2022). Labour market effects of digital matching platforms: Experimental evidence from sub-Saharan Africa (WIDER Working Paper 2022; WIDER Working Paper, Vol. 2022). UNU-WIDER.
•  Jones, S., Santos, R., & Xirinda, G. (2021). Survey on the School-to-Work Transition of Technical and Vocational Training Graduates in Mozambique: Final Report.
• Jones, S., Santos, R., & Schnupp, A. (2020). Baseline survey on the school to-work transition of technical and vocational education graduates in Mozambique.
• Gradín, C., & Tarp, F. (2019). Gender Inequality in Employment in Mozambique. South African Journal of Economics, 87(2), 180–199.
• Jones, S., Santos, R., & Xirinda, G. (2019). Survey on the education employment transitions of University Finalists.
• Jones, S., Mambo, F., Mazive, E., Paris, Y., Santos, R., & Xirinda, G. (2018). Baseline Survey on the School-to Work Transitions of University Graduates in Mozambique.

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