A study conducted by the Central Statistics Agency (CSA) revealed that the rate of youth unemployment in urban areas sat at 23.1pc in February 2021. The Agency considers people aged between 15 and 29 years as youth, and the highest rate of youth unemployment was recorded in Addis Abeba (22.1pc) followed by Dire Dawa (15.9pc), while the lowest unemployment rate was registered in Benishangu Gumuz Regional State (4.3 pc). Unemployment has been a hotly debated topic among policymakers and scholars for decades in Ethiopia. With at least two million people joining the workforce yearly, the number of jobs available, especially in urban areas, has been limited, leaving many youths across the country out of work. To avert this, several policies, including channeling of funds to those organised as small and medium enterprises, have been implemented. In 2017, a revolving fund for the youth was introduced, though the result was disappointing as many beneficiaries failed to repay their loans. The new report, which excluded Tigray Regional State due to the war in the region, revealed youth unemployment declined in the last two years by almost three percentage points. The majority of unemployed persons attended primary education (35pc), followed by those who have never received any formal schooling (33pc).

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