Ethiopia is one of the youngest nations in the world, with over 70% of its population under the age of 30 (UNFPA, 2023) and approximately 2 to 3 million young people entering the labour market every year (World Bank, 2023; ILO, 2022). Yet, job creation has struggled to keep pace, leaving many young people, particularly women, facing persistent unemployment and underemployment.
To better understand and address these challenges, SOS Children’s Villages in Ethiopia commissioned a comprehensive Assessment of Barriers to Youth and Women Employment in Addis Ababa and Adama cities under the Sustainable Training for Employment Promotion (STEP) project. Conducted by Arsi University researchers, the study provides critical evidence to guide more effective youth empowerment interventions.
Key Findings: Deep Rooted and Interconnected Barriers
The assessment reveals that youth and women unemployment in Ethiopia is driven by multiple, overlapping challenges:
-
Skills and Experience Gaps: More than 57% of respondents cited lack of relevant technical skills, while 58% cited insufficient practical experience as major barriers. Many graduates possess theoretical knowledge but lack the job-ready competencies demanded by employers (Arsi University Assessment, 2025).
-
Limited Access to Finance: 82% of respondents identified lack of startup capital and collateral requirements as significant obstacles to self-employment (Arsi University Assessment, 2025).
-
Gender-Specific Constraints: Women face additional burdens including unpaid care responsibilities, discriminatory hiring practices, workplace harassment, and concentration in low-paying informal sectors.
-
Systemic Weaknesses: Weak job-matching systems, information gaps, fragmented coordination among institutions, and macroeconomic pressures further limit employment outcomes.
These findings confirm that while employment opportunities exist in sectors such as services, agriculture, construction, and emerging industries, access and alignment remain the core problems.
A Strategic Shift: Dedicated Focus on Youth Empowerment
SOS Children’s Villages in Ethiopia has established Youth Empowerment as a distinct programmatic portfolio, separate from Family and Community Strengthening Programme. This decision reflects the organization's commitment to giving greater strategic focus, resources, and specialised attention to youth issues.
The move builds on years of experience implementing youth projects and responds to the growing need to address the unique economic and developmental challenges facing young people in Ethiopia. By creating a dedicated portfolio, SOS Children’s Villages in Ethiopia aims to:
-
Provide more focused leadership and expertise in skills development, employability, entrepreneurship, and labour market linkages.
-
Scale up successful models such as the STEP project while developing new innovations in career guidance, mentorship, enterprise incubation, and private sector engagement.
-
Strengthen collaboration with TVET institutions, government bodies, financial institutions, and the private sector.
-
Better address the specific needs of vulnerable young people, including young women, persons with disabilities, and those affected by displacement.
SOS Children’s Villages in Ethiopia has already taken leadership of several key initiatives, including Innovative Training Partnership for More Youth Employment, Sustainable Training for Employment Promotion (STEP), Leave No Youth Behind, Green Growth, Go Teach, Learnio, ICT4D and Rise and Help.
Collectively, these programs form a comprehensive and integrated youth empowerment portfolio that addresses both the economic and social dimensions of young people’s development. To date, they have reached and supported over 18,000 young people across diverse contexts, delivering a combination of market relevant skills training, employment facilitation, entrepreneurship development, sexual and reproductive health services, and psychosocial support.
These interventions have not only expanded access to opportunities but have also contributed to building resilient and adaptable young people. Emerging evidence and early results indicate encouraging outcomes, including improved employability prospects, increased income generation and self-employment initiatives, and a notable boost in self-confidence, agency, and future outlook among participating youth.
Furthermore, the diversity of approaches ranging from green economy initiatives to digital learning platforms positions SOS Children’s Villages in Ethiopia as an innovative actor capable of responding to evolving labour market demands while ensuring that the most vulnerable young people are not left behind.
Why This Focus is Timely
Ethiopia’s demographic reality makes this strategic shift both urgent and important. With millions of young people entering the workforce annually, creating meaningful opportunities is essential to harness the country’s demographic dividend, reduce poverty, and promote long-term social stability.
Globally, the International Labour Organization (ILO) reports that nearly one in four young people (aged 15–24) are not in education, employment, or training (NEET) (ILO, 2024). In Ethiopia, urban youth unemployment remains particularly high, with young women facing even greater disadvantages (Arsi University Assessment, 2025; CSA & IOM, 2021).
Moving Forward: Evidence Based Recommendations
The recent assessment provides valuable evidence to further strengthen this portfolio. SOS Children’s Villages in Ethiopia will prioritize the following:
- Demand-driven, market-aligned skills training with strong industry linkages, apprenticeships, and internships.
- Improved access to youth and women friendly financial products and startup support.
- Strengthened labour market information systems, career guidance, and job-matching services.
- Gender responsive approaches that address care burdens, workplace safety, and discrimination.
- Greater youth participation and voice in programme design and policy dialogue.
- Integrated support combining skills development, psychosocial wellbeing, mentorship, and entrepreneurship.
By establishing Youth Empowerment as a dedicated focus area, SOS Children’s Villages in Ethiopia reaffirms its commitment to walking alongside Ethiopia’s young generation equipping them with the tools, opportunities, and confidence to build brighter futures for themselves, their families, and their country.
Young people are brimming with energy, creativity, and ambition. They are ready to lead, innovate, solve pressing community problems, and build better lives for their families and their country. Yet far too many are held back, not by lack of talent or willingness, but by limited opportunities, inadequate resources, weak support systems, and the absence of role models and pathways to success. In a nation as young as Ethiopia, failing to empower this generation means missing one of the greatest opportunities for national transformation. By investing meaningfully in dedicated youth empowerment programmes, through skills development, entrepreneurship, mentorship, and inclusive employment pathways, we can unlock this vast potential and enable young people to become drivers of sustainable development and positive change. The time to act is now.
Support youth-focused initiatives and help shape Ethiopia’s future.
Check out the full assessment here: Employment Barriers Brief