Transport, services sectors expect decline in jobs

Chief Executive Officers in the transport and services sectors expect to see fewer jobs this year compared to 2021, according to a new survey.

The market perceptions survey by the Central Bank of Kenya (CBK) shows all other sectors expect employment to either increase or remain the same over the same period.

The weakness in job expectations in the two sectors is partly tied to the continued automation via digitization.

“Increased employment is expected from new hires supported by increased business operations post COVID-19 and post-elections,” noted the CBK survey.

“However, some business entities indicated that they expect to leverage on ICT to reduce manual operations.”

One third of CEOs in the transport and services sector or 33 per cent expect a decline in employment levels this year.

In contrast, only eight per cent of CEOs in manufacturing see job cuts this year.

CEOs in the agriculture and tourism sectors are more optimistic of job prospects going to the end of the year with 57 per cent of business leaders in tourism, for instance, seeing employee additions going into the last three months of the year.

The jobs optimism has been backed by rebounding economic prospects which have been attributed with the return of activity and investor confidence following the end of the electioneering period.

“Respondents attributed their optimism about the country’s economic prospects to easing political uncertainty following a peaceful conclusion of the elections,” the survey added.

Nevertheless, the respondents who included CEOs from 355 private sector firms including local banks have listed high inflation and high interest rates as risks to the optimism of economic prospects in the next 12 months.