Private sector optimistic on jobs as economy recovers

The Central Bank of Kenya head office. FILE PHOTO | NMG

By CHARLES MWANIKI
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Summary

• Private sector firms and banking institutions optimism over jobs growth for this year has grown compared to two months ago, helped by expectations of increased economic activity and public infrastructure spending.
• A poll by the Central Bank of Kenya (CBK) in its January markets perceptions survey found that on average 42 per cent of firms expect either an increase or strong increase in the number of people employed in 2021 relative to 2020.
• The continued recovery of the economy from the downturn caused by the Covid-19 pandemic has seen companies increase their labour force in line with rising business.

Private sector firms and banking institutions optimism over jobs growth for this year has grown compared to two months ago, helped by expectations of increased economic activity and public infrastructure spending.

A poll by the Central Bank of Kenya (CBK) in its January markets perceptions survey found that on average 42 per cent of firms expect either an increase or strong increase in the number of people employed in 2021 relative to 2020, up from 36 percent in a similar survey done in November 2020.

The continued recovery of the economy from the downturn caused by the Covid-19 pandemic has seen companies increase their labour force in line with rising business.

A separate CBK survey on flower farms also done last month found that their worker numbers have now exceeded the pre-Covid levels (February 2020) by 13 percent, as a result of a growing orders.

“Reasons given for the expected increase in staffing levels included strong business prospects expected with increasing demand following easing of Covid-19 containment measures, improved market optimism, expected increase in government spending on development infrastructure and expected increase in economic activity,” said CBK in the markets perceptions survey.

“However, some companies expect to leverage on ICT and therefore maintain the current staffing levels.”

The survey that was done ahead of the January 26 Monetary Policy Committee meeting, had respondents comprising 38 commercial banks, one mortgage finance institution, 13 micro-finance banks and 158 other non-bank private sector firms.