Friday September 25, 2020 – A survey by the Federation of Kenya Employers (FKE) has painted a grim picture on the impact that Covid19 pandemic has cost the country.
The survey indicated that 80% of all jobs created in the modern private sector since 2015, have been wiped out in the wake of the Covid-19.
This is a huge loss considering that for the last 5 years since 2015, only 218,800 jobs had been created in the sector.
According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2020, the formal private sector had lost 173,743 jobs in five months, from March to July.
The survey established that 51% of the private sector enterprises did not have enough resources to meet their staff costs in the next six months.
“Only 30% of the companies studied indicated that they had enough resources to meet their wage obligations in the next six months.”
“This indicates that more job losses are expected.”
“If the Government does not intervene in helping enterprises in improving their cash flows, then more than a million formal sector workers are at risk of losing their current incomes on jobs,” reads an excerpt of the report.
In addition, 71% of the respondents indicated that labour costs and employment entitlement benefits constrained their recruitment decisions.
In order to grapple with the youth unemployment challenge, the respondents stated that there is need for greater collaborative work among social partners to stabilize the work environment and maintain competitive labour costs.
The Kenyan DAILY POST