• Ethiopia is placing technical and vocational training at the core of its growth strategy
• The policy targets youth employment amid high urban joblessness
• Skills gaps persist between education output and labor market needs

Ethiopia is putting technical and vocational education at the center of its development strategy to meet the needs of a modern economy. In a statement published on its X account on January 28, the Prime Minister’s Office said the policy aims to equip young people with practical skills to launch startups, enter the labor market, and support national growth.

SKILLS & STARTUPS

The Government of Ethiopia is investing in technical and vocational training programs that equip young people with practical skills needed to launch startups, enter the workforce, and thrive in a modern economy. By providing hands-on experience in trades,… pic.twitter.com/y1rW0j0EJj

— Office of the Prime Minister - Ethiopia (@PMEthiopia) January 28, 2026

To implement this approach, the country has expanded its technical and vocational programs to provide hands-on experience in trades, technology, and entrepreneurship. The government said it is investing in technical and vocational education and training programs that give young people the practical skills needed to start businesses, join the workforce, and succeed in a modern economy.

The strategy is designed to address youth unemployment and capitalize on Ethiopia’s demographic dividend. With a population of more than 120 million and a median age in the late teens, the country is seeking to turn its youth into drivers of job creation and economic growth. The Prime Minister’s Office said providing market-relevant skills not only improves individual livelihoods but also supports a more dynamic, job-creating economy, helping ensure that development benefits reach all parts of the country.

The initiative comes as Ethiopia’s education system faces structural challenges that limit the transition from schooling to employment. Despite a gross primary enrollment rate of 105.4% in the 2022–2023 academic year, official data show that education quality remains weak and only 65.9% of students progress to secondary school. These figures point to gaps in preparing young people for labor market demands.

According to Ethiopia’s statistics agency, the unemployment rate among people aged 15 to 29 in urban areas reached 27.2% in October 2024. A 2023 study by the International Growth Centre found that only 16% of job seekers in Addis Ababa had vocational training, while 32% of available jobs required that level of qualification.

Félicien Houindo Lokossou