According to the Labour Force Survey (LFS 2025 Q2) released on Tuesday, July 29, the employment-to-population ratio (EPR) rose to 53.8% in May 2025, up from 52.0% in May 2024. This indicates that over half of Rwanda’s working-age population—defined as individuals aged 16 and above—were employed, marking a 1.8 percentage point increase compared to the previous year.

The working-age population was estimated at 8.5 million. Among them, 4.5 million were employed, around 710,000 were unemployed, and about 3.2 million were not in the labor force. This last group includes individuals who are students, retirees, prisoners, people with severe disabilities, or those not actively looking for work.

The national unemployment rate decreased to 13.4% in May 2025 from 16.8% a year earlier, showing a 3.4 percentage point reduction. Compared to May 2019, during the aftermath of the COVID-19 pandemic, unemployment has declined by a substantial 15 percentage points.

However, unemployment remains more prevalent among certain groups. Women continue to experience higher unemployment than men, with rates of 15.3% and 11.8% respectively. Youth aged between 16 and 30 also face significant unemployment at 15.4%, compared to 12.1% for adults aged 31 and above. Urban areas record a slightly higher unemployment rate (13.7%) than rural areas (13.3%).

Despite overall gains in employment, gender gaps persist. Men had a higher employment rate at 61.7%, while the rate for women stood at 46.8%. Encouragingly, employment increased for both genders, with men gaining 1.3 percentage points and women 2.2 percentage points. This narrowed the gender gap in employment to 14.9%, down from 15.8% in May 2024.

The services sector continues to be the largest source of employment in Rwanda, employing 45.6% of the workforce up from 44% the previous year. The share of workers in agriculture, forestry, and fishing declined to 38% in May 2025, down from 39.3% in May 2024. Employment in industry also saw a slight drop.

Within key sectors, wholesale and retail trade, along with automotive repair, accounted for 15.6% of employment. Construction employed 8.3% of workers, transport 6.7%, manufacturing 5.7%, education 4.2%, domestic work 4.1%, and the accommodation and food services sector (including hotels and restaurants) accounted for 4% of employment.

However, low-productivity work remains widespread in Rwanda’s labor market. According to NISR, 57.1% of employed people are engaged in jobs considered to be of low productivity such as subsistence farming and informal work representing a 3.2 percentage point increase from the previous year. Women are disproportionately represented in this group, making up 64.3%, compared to 49.5% among men. The youth are similarly affected, with 57.2% of them working in low-productivity jobs, while older adults are close behind at 57.0%.

The report reflects commendable progress in Rwanda’s employment landscape. The country has increased its employment levels and significantly reduced unemployment over the past year. Yet, challenges remain particularly in reducing gender disparities, tackling youth unemployment, and transitioning more Rwandans into productive and formal jobs. Continued investment in job creation, skills development, and inclusive economic policies will be crucial in addressing these gaps.