KAMPALA — Uganda’s economy is growing, but its potential is being held back by one glaring, persistent problem: the underutilisation of women in the workforce. A new policy brief released on April 23 by the Economic Policy Research Centre (EPRC) lays bare the multiple and interlinked barriers that continue to exclude women from full participation in the labour market—and the cost to the country is rising.
The report, Understanding Women’s Labour Market Challenges in Uganda, examines a wide range of data and paints a troubling picture. Despite accounting for half of Uganda’s working-age population, only 39.3 percent of women were actively engaged in the labour force as of 2021, compared to 57.9 percent of men. This 18.6 percentage-point gender gap is not just a statistical anomaly—it reflects deeply rooted social norms, caregiving burdens, and unequal access to education and job opportunities.
Uganda’s working-age population has grown significantly, from 20.2 million in 2018/19 to 23.5 million in 2021. But that growth has not been matched by greater gender equality in work. While women have made some inroads into industrial jobs—rising from 5.8 percent participation in 2016/17 to 12.2 percent in 2021—the majority are still concentrated in low-skilled, labour-intensive roles. In places like Mbale Industrial Park, for example, women are mostly involved in packaging and simple assembly work, with little opportunity for promotion or technical training.
The wage gap is another sharp indicator of inequality. Women earn less than men across every level of education—even among those who’ve completed secondary school or university. This disparity is not just due to qualifications, but to the systemic undervaluing of work typically done by women, as well as their exclusion from high-paying, male-dominated fields like engineering and finance. Cultural bias and occupational segregation—where men and women are funneled into different types of jobs—continue to shape economic outcomes.
Moreover, a large number of women work informally, meaning they’re self-employed without contracts or protections, often in small-scale farming or petty trade. More than 55 percent of working women, and over 61 percent in rural areas, fall into this category. These women have no access to health insurance, paid leave, or pension savings. Banks and financial institutions often see them as high-risk, denying them credit and further stalling their chances for economic mobility.
A particularly alarming statistic in the EPRC report is the percentage of young women aged 18–30 who are classified as NEET—Not in Employment, Education, or Training. This group, which should represent the future of the workforce, is being left behind. Over 52 percent of young women fall into this category, compared to 28 percent of young men. Many are early mothers or victims of a school system that fails to retain girls. Uganda’s median age of marriage is 18.8 years, and women still have an average of 5.2 children—trends that contribute to delayed or interrupted entry into paid work.
Unpaid care work is another invisible barrier. On average, Ugandan women spend 29.7 hours per week caring for children, the sick, or doing domestic chores—more than twice the 13 hours spent by men. This unpaid labour limits their availability for formal employment, and yet it is rarely acknowledged in economic planning. Without affordable childcare services or flexible work policies, women are locked out of productive roles simply because they are the default caregivers at home.
Education is another area where the gaps begin early. Sixteen percent of Ugandan women have never attended school—nearly double the rate for men. Only 10.8 percent of women complete secondary education or higher. These numbers directly correlate with poor job prospects, especially in a knowledge-driven global economy.
All these barriers feed into a cycle where women are overrepresented in vulnerable work and underrepresented in high-paying, stable careers. And despite various reforms in tax, trade, and infrastructure, Uganda’s social protection policies have largely failed to address the unique risks faced by informal women workers. Most lack access to any form of government-supported safety net.
The EPRC report is not just a diagnosis—it also offers practical solutions. It calls for tailored vocational training programmes, especially for women and girls transitioning into industrial work. These should be linked directly to market demand to improve employability. The authors also recommend expanded social protections, such as portable pensions and micro-insurance schemes, that can follow women even when they move between informal and formal jobs.
For younger women, particularly those classified as NEET, the report urges the government to introduce return-to-work schemes, workplace flexibility, and childcare support, especially for mothers under the age of 35. These steps would help address the motherhood penalty—the economic cost women pay for having children. Moreover, the report highlights the need for stronger coordination between ministries and non-governmental organisations to deliver holistic solutions.
Equally important is the call for reforming how tax and credit systems treat small-scale women entrepreneurs. Financial policies must shift from penalising informality to incentivising formal registration, offering low-risk credit tools and easing compliance for small businesses.
But implementation is the real test. Uganda’s economic policies have often been ambitious on paper but falter in execution due to limited resources, weak inter-agency coordination, and shifting political priorities. What the EPRC is calling for—a fundamental rebalancing of opportunity and access—requires sustained political will and investment.
The urgency cannot be overstated. With Uganda’s population projected to grow rapidly in the coming decades, failing to harness the economic power of half the population would be a critical missed opportunity. Reducing gender inequality in the labour market is not just a women’s issue—it is a national development imperative.
If Uganda is serious about inclusive growth, closing the gender gap in work, pay, education, and social protection must be a top priority. Otherwise, the promise of shared prosperity will remain out of reach for millions of women—and for the country as a whole.
