The latest Labour Force Survey for the fourth quarter of 2024 has revealed that the services sector generated the highest number of jobs in Rwanda, surpassing both agriculture and industry. According to the National Institute of Statistics of Rwanda (NISR), which publishes the survey, the services sector accounted for 42.6 per cent of total employment in Q4 2024, up from 39.4 per cent in the same period in 2023. Meanwhile, the agriculture sector employed 41 per cent of the workforce, down from 46.2 per cent in Q4 2023, while the industry sector expanded its share to 16.3 per cent, up from 14.3 per cent in the previous year. ALSO READ: Four key findings about Rwanda's agriculture labour force in new survey The data highlights a long-term transformation in Rwanda’s employment landscape. In 2019, agriculture accounted for 37.3 per cent of jobs, rising to 43.1 per cent in 2020. During the same period, the services sector declined from 45.5 per cent to 37.4 per cent, while industry employment increased from 17.2 per cent to 19.5 per cent. Economic analysts attribute the resurgence of the services sector to post-pandemic recovery efforts. Straton Habyarimana, an economic expert, explained that while agriculture remained resilient during the Covid-19 pandemic, the services sector suffered significant disruptions due to restrictions on tourism, transport, and hospitality. “The government had prioritized job creation in agriculture, but the pandemic severely impacted the services sector, with hotels shutting down, transport services reduced, and tourism halted,” he told The New Times. “With the reopening of hotels, tourism, and events, the sector has bounced back.” ALSO READ: Rwanda records over 21,000 hotel rooms Habyarimana also highlighted that online platforms and e-commerce have created new employment opportunities. “Digital businesses and service exports have fueled job creation, helping drive the sector’s growth.” Rwanda’s national development strategy, which aims to diversify employment beyond agriculture, has also played a critical role. Habyarimana noted that the government is professionalizing agriculture to enhance productivity, allowing more workers to transition into services. “Agriculture’s annual productivity growth is about 4%, while the services sector is growing at a rate of 6% to over 10% in some areas,” Habyarimana said, adding that this gap in productivity explains why services are now the dominant employer in the country. ALSO READ: Rwanda sees drop in unemployment rates Youth participation in agriculture remains low, with many opting for opportunities in technology and tourism. As the services sector continues to expand, youth unemployment is expected to decline, further stimulating economic growth. “We are now exporting services, particularly technological expertise to Western and Southern Africa, as well as e-commerce solutions that reach international markets. This brings in foreign currency and helps narrow the trade deficit,” he noted. ALSO READ: The fight against unemployment in Africa Tourism fuels growth Tourism, a major component of the services sector, has played a pivotal role in its expansion. “The more visitors we attract, the more foreign currency we earn, strengthening our economy,” Habyarimana said. Methode Tuyisenge, Economic Statistics Specialist at NISR, emphasised that the sector’s dominance in employment aligns with trends observed throughout 2024. “The data indicates a clear recovery in business activities outside of agriculture following the disruptions caused by Covid-19. This recovery mirrors the employment patterns seen in all quarters of 2019, prior to the pandemic,” he said. Tuyisenge identified key sub-sectors driving employment growth, including information and communication (up 108 percentage points), real estate (up 71 percentage points), transport (up 54 percentage points), and wholesale and retail trade (up 35 percentage points). Overall, the employment-to-population ratio, which measures the proportion of a country's working-age population, increased to 54.6 per cent in Q4 2024, up from 49.9 per cent in Q4 2023. “This positive trend is supported by a 16% rise in the number of business establishments, as reported in the 2023 Establishment Census,” Tuyisenge noted. As of November 2024, agriculture, forestry, and fishing remained the largest employers, accounting for 41.1 per cent of the workforce. Wholesale and retail trade accounted for 14.5 per cent, construction 8.7 per cent, transportation and storage 6.8 per cent, manufacturing 5.6 per cent, education 4.2 per cent, household employment activities 3.6 per cent. Accommodation and food services accounted for 3 per cent per cent. Among the fastest-growing sectors, transportation and storage saw a 53.7 per cent increase in employment, followed by wholesale and retail trade 31.2 per cent and manufacturing 23.2 per cent. Meanwhile, agriculture remained relatively stable during this period.
