ADDRESSING LABOR MARKET GAPS AND WORKING POVERTY IN RWANDA
ADDRESSING LABOR MARKET GAPS AND WORKING POVERTY IN RWANDA
November 3, 2025
The EICV7 Economic Activity Thematic Report highlights that Rwanda has sustained high labor force participation and made remarkable progress in poverty reduction. At the same time, continuing efforts are needed to further enhance the quality of employment and promote inclusive economic growth in Rwanda. The EICV7 data, published in May 2025, offers a foundation for continued analysis of decent work and inclusive growth in Rwanda.
The data indicate that many workers, especially those located in rural areas and employed in agriculture, remain below the poverty line despite their employment status. Informal employment constitutes more than 90.4 percent of total employment while ongoing disparities in earnings and education continue to limit economic opportunities for women. Spatial inequalities between urban and rural areas, high youth underemployment, and the persistence of child labor further underscore the structural barriers that hinder the achievement of decent work for all.
This policy brief identifies key labor market gaps and proposes targeted areas where UNDP Rwanda and other UN agencies can contribute to transformative change. These include supporting the transition from informal to formal employment, promoting gender-responsive skills development, enhancing rural enterprise and agricultural productivity, strengthening child protection systems, and improving labor market data systems. By working with government institutions and civil society, UNDP can help advance inclusive employment, economic resilience, and equitable development contributing directly to the goals of NST2, Vision 2050, and the Sustainable Development Goals.