The Paradox of Growth Without Jobs: A Qualitative Analysis of Employment Policies and Unemployment Trends in Kenya

Abstract

This study looks into the contradiction between sustained economic growth and the high levels of unemployment in Kenya, especially youth unemployment. While GDP growth has been strong, particularly in capital-intensive activities like infrastructure and services, employment growth has lagged. Previous studies attribute this mismatch to structural problems such as skills mismatch, lack of absorption in the labor market, and high informal sector employment with low-quality jobs. Policy interventions have tried to solve the challenges through skills development and promotion of entrepreneurship, including the Kenya National Youth Development Policy (2019), but issues have been raised on their effectiveness due to poor implementation, lack of access to finance and inefficiencies in institutions. This study is qualitative in nature with an archival and desk-based approach to analyzing important policy documents and relevant literature. The study looks at frameworks like Vision 2030, as well as scholarly and institutional sources, evaluating the employment policies in a critical way against the realities of the labor market. The results are meant to elaborate on the structural and policy dimensions that underlie the “growth without jobs” phenomenon, and ultimately lead to better-informed and effective policies and strategies for youth employment in Kenya.