Unemployment is high and growing rapidly, especially in the urban areas and among youth

Nearly all the countries of the world suffer from unemployment problems. In Tanzania, there is mainly cyclical unemployment, in which people might work but they are unable to do so due to unavailability of work or fluctuations in the economy. Also, there is frictional unemployment in the country. Students are not able to find jobs after graduating from universities. Structural unemployment is also found there.

Some policy interventions to mitigate unemployment in Tanzania are:

• For reducing structural unemployment, education and training should be increased.
• Geographical subsidies should be given for encouraging industries to set up in the country.
• Investment in human capital need to be increased.