Job Loss Looming as Agricultural and Manufacturing Sectors Brace for Difficult times Ahead

Agricultural and Manufacturing sectors are set to cut on their workforce owing to higher fuel and power costs, drought, and shipping delays for industrial goods which have affected higher power bills.

This is as a result of reduced production activity, interruptions due to shipping delays caused by the pandemic, cash flow challenges, unmet revenue targets, and stagnation in business activities.

The two sectors that are major constant consumers of diesel for the movement of goods and produce to the market have had it rough with the price surge.

Despite the duo being the most relied on sectors to generate a high number of jobs due to their long value chains that include input suppliers, producers, transporters, and retailers, the prospects of a recovery in employment in them have dimmed with the agriculture firms’ share of those expecting to reduce their headcount rising to 38% from 13% in July.

However, for the manufacturing sector, 50% of the polled manufacturing firms said expect to cut jobs this year, compared to just 11% who expected to do so in a similar poll in July.

The duo revealed to the Central Bank of Kenya (CBK) in a survey in last week’s monetary policy committee meeting, that they will also be cutting jobs to control costs in line with the low demand.

“Agricultural sector respondents reported expected decline in the number of employees in 2021 citing reduced production activity and the need to cut production costs,” the CBK disclosed.

According to the Kenya National Bureau of Statistics’ Quarterly Labor Force Survey for March 2021, jobless Kenyans aged between 15 and 64 who qualify for the labor force numbered 2.49 million from an earlier total of 2.29 million pre-covid.