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Full Employment: A Key Labour Market Concept Explained by the ILO

Full Employment: A Key Labour Market Concept Explained by the ILO
Thursday, 26 February 2026 10:52
  • ILO says full employment includes frictional unemployment

  • OECD flags widespread informal, low-productivity jobs in Africa

  • 350 million African youths to reach working age

Full employment does not correspond to zero unemployment, according to the International Labour Organization (ILO). The concept includes a certain level of frictional unemployment linked to normal job transitions or the entry of young people into the labour market. The challenge instead lies in ensuring that everyone can access productive and safe employment. This framework emphasizes the quality of jobs as much as their quantity, as low-productivity or unstable employment benefits neither economic growth nor workers’ well-being.

Even when official unemployment is low, the 2024 Africa’s Development Dynamics report from the Organisation for Economic Co-operation and Development (OECD) highlights that a large majority of workers in Africa hold informal or low-productivity jobs. These positions offer limited opportunities for income or skills growth. The report notes that such roles rarely provide access to ongoing training or income security.

The ILO stresses that productivity and job security are essential dimensions of full employment. They shape the contribution of work to economic growth and social cohesion. A labour market may absorb workers without necessarily offering opportunities for development or long-term stability.

Full employment is a relevant concept for Africa

The relevance of this concept in Africa is primarily driven by demographic trends. The continent has the youngest population in the world, with a median age of around 19, and it continues to grow rapidly.

More than 350 million young people will reach working age over the next twenty years, according to a joint analysis by the International Labour Organization and the African Union. By 2050, nearly one in three young people worldwide will be from sub-Saharan Africa, implying an influx of millions of new entrants into the labour market. This demographic expansion requires the creation of additional jobs each year to prevent labour force growth from worsening job insecurity and socio-economic inequalities.

Furthermore, full employment is part of a broader process of structural economic transformation. In many African countries, most jobs are still concentrated in low-productivity sectors. This includes subsistence agriculture, which in some countries employs between 60% and 85% of the labour force without delivering significant income gains. For the ILO, shifting labour into more productive and formal sectors — such as light industry, high-value-added services, or modernized agriculture — is essential to reduce poverty, raise incomes, and strengthen economic stability.

Félicien Houindo Lokossou

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