Sectoral shifts and labour market outcomes in sub-Saharan Africa

Using the Economic Transformation Database, this paper attempts to assess the magnitude of structural transformation and the effects of sectoral shifts due to structural transformation on the labour market performance of 18 sub-Saharan African countries over the period from 1990 to 2018. The first part of this study examines some patterns of structural transformation in Africa, focusing on sectoral output shares, sectoral employment shares, and the relative labour productivity of sectors. We find that Africa is gradually advancing towards structural transformation but at a very slow speed. The empirical analysis indicates that the sectoral shift has a significantly negative impact on the labour market, whereas gross domestic product growth and population density reduce unemployment and non-employment.