Employment in the Service Sector in Sub-Saharan Africa

Abstract

One characteristic which all countries presently hold in common — whatever their level of income — is the tendency for a growing proportion of the population to be employed in the ‘service sector’ of their economies rather than in ‘secondary’ or industrial activities. The purpose of this short article is to suggest that a consideration of certain features of the expanding employment in services in low-income countries may help to evaluate two commonly identified situations. First, in regard to manufacturing activities there has been a persistent tendency towards increasing capital intensity, despite the frequent assertion that resort should be made to more labour intensive technology in order to ‘spread’ jobs more widely. Secondly, the pace of urbanisation has continued to accelerate, despite widespread concern over high rates of urban unemployment and under-employment that seem a consequence of excessive migration to the cities.