Somalia’s Youth Unemployment Crisis–A Crisis of Relevance

Somalia faces a profound youth unemployment crisis, one of the world’s most severe, with a youth unemployment rate of 34.28% in 2023, according to the World Bank, significantly higher than the global average of 13% and Sub-Saharan Africa’s 32.6%. This crisis, rooted in a disconnect between education and the job market, is compounded by historical legacies of civil war, systemic nepotism, and inadequate vocational training.

With a median age of 18 and 75% of the population under 35, Somalia’s youthful demographic could drive economic transformation, yet over 60% of young Somalis are not in employment, education, or training (NEET), a figure far worse than the Sub-Saharan average. The nation’s literacy rate, at 54% in 2022 (a 48.6% increase from 1972), remains low, with only 45.3% of women literate compared to 63.6% of men, exacerbating gender disparities in employability.

Historical context and civil war legacy

Somalia’s labor market challenges stem from decades of civil conflict following the 1991 state collapse, which dismantled formal economic institutions and disrupted education systems. Pre-1991, Somalia boasted a robust workforce, with industries like agriculture and manufacturing contributing significantly to GDP, and the country was a net exporter of goods.

The civil war decimated this infrastructure, leaving 65.5% of the population without formal education and only 5% completing secondary school by 2022. The destruction of technical schools, once a cornerstone of Somalia’s skilled labor force, has left a lasting skills gap. Unlike pre-war Somalia, where local production thrived, the country now relies heavily on imports, even for basic goods like fruits, undermining economic self-sufficiency and job creation.

Education and skills mismatch

Somalia’s education system is misaligned with labor market demands, producing graduates rich in theoretical knowledge but lacking practical skills. By 2024, over 240,000 students were registered in higher education database system HEMIS, with 39,000 sitting for grade 12 exams in June 2025, yet 64% of graduates lack essential employability skills like digital literacy, teamwork, and problem-solving.

Key sectors like agriculture, ICT, healthcare, and engineering face acute shortages of skilled workers, while the service sector is dominated by foreigners from neighboring African countries and Asia due to local skills deficits.

Over 50 accredited Technical and Vocational Education and Training (TVET) institutions exist, but many use outdated curricula and equipment, failing to meet modern industry needs. Somalia’s lack of career counseling exacerbates the problem, with course choices driven by peer influence rather than market needs.

Cultural and structural barriers

Nepotism and political influence dominate Somalia’s job market, undermining meritocracy and sidelining qualified graduates. Connections often trump credentials, particularly in the bloated civil service, which absorbs many young people seeking job security but cannot accommodate the growing labor force.

Cultural stigmas also deter youth from entering sectors like textiles, beauty, hospitality, tourism, and mechanical engineering, perceived as low-status despite their economic potential. Somali diaspora returnees, accustomed to diverse job markets abroad, express pride in these sectors and highlight a cultural disconnect, as local youth avoid roles they view as undesirable. Gender disparities further complicate the crisis, with young women facing barriers like household responsibilities and discrimination, reflected in their lower literacy rates and labor force participation (only 10% of women are employed compared to 30% of men).

Economic and fiscal implications

The unemployment crisis deprives Somalia of revenue critical for recovery, as low productivity limits tax collection and economic growth. Agriculture, employing 60% of youth, remains subsistence-based, vulnerable to climate shocks like droughts, which disrupt rural jobs. The government’s reliance on aid and limited budget constrains investments in education and job creation. The informal sector, comprising over 80% of employment, oYers low-wage, insecure jobs, with two-thirds of the labor force self- employed due to scarce formal opportunities. Conversely, the creative “Orange Economy” (e.g., arts, culture) generates 30 million jobs globally and could be a model for Somalia, leveraging youth creativity for revenue and social cohesion.

Global and African comparisons

Somalia’s youth unemployment rate of 34.28% dwarfs the global average (13%) and is among the highest in Africa, though lower than South Africa’s 50% but higher than Kenya’s 20%. Unlike Somalia, countries like Kenya have introduced youth enterprise funds, creating thousands of jobs through entrepreneurship. Globally, advanced economies use internships and quotas to integrate youth into formal jobs, achieving low unemployment rates. Somalia’s NEET rate (over 60%) is also worse than Sub-Saharan Africa’s average, where 37% of girls and 32% of boys miss out on education or employment. These comparisons underscore Somalia’s unique challenges, including post-conflict recovery and limited institutional capacity.

Opportunities for reform

To transform this crisis into an opportunity, Somalia must align education with market needs. The government’s National Transformation Plan (2025) aims to increase TVET enrollment from 8,701 to 30,000 and higher education from 94,500 to 300,000, with a focus on gender parity. Reviving pre-1991 technical schools, as proposed in a 2022 feasibility study, could target agriculture, fisheries, nursing, and automotive engineering, sectors with high demand. Investments in digital literacy, STEM, and entrepreneurship, as recommended by the World Bank, could emulate successful models like the African Development Bank’s Coding for Employment Program, training 234,000 youth in ICT.

Public-private partnerships, like those in UNHCR’s TVET programs, could integrate refugees and youth into high-demand sectors like ICT and healthcare.

Conclusion: From crisis to opportunity

Somalia’s youth unemployment crisis is a crisis of relevance, driven by an education system disconnected from market needs, compounded by nepotism, post-conflict recovery challenges, and cultural stigmas. With 75% of its population under 35, Somalia has a demographic dividend that could fuel growth if harnessed through targeted reforms. By modernizing TVET, fostering entrepreneurship, and aligning curricula with sectors like ICT, healthcare, and agriculture, Somalia can emulate successful African models while leveraging its diaspora’s expertise. Without urgent action, the crisis risks deepening poverty and instability, but with strategic investments, Somalia’s youth can transform the nation into a hub of innovation and economic resilience.

Osman Mohamed Noor is a long serving humanitarian practitioner, local governance expert and human rights activist with 14+ years’ experience in humanitarian sector. He can be reached at bgarow55@gmail.com.