Free Access | September 2024

Creating Decent and Productive Jobs Through Digital Transformation in Uganda

Authors/Editors: Aida Kibirige Nattabi ,  Justine Luwedde ,  Regean Mugume ,  Mary Kajumba Muhuruzi

Abstract:

This study explores the role of digital transformation in creating productive employment in Uganda. This is critical given the global shift towards the fourth industrial revolution, whereby digitalisation offers opportunities to address unemployment and underemployment in developing countries. The study utilises a mixed method approach to address these research questions; a desk review to assess the digital transformation policy landscape in Uganda, and a quantitative approach which involves the analysis of secondary data that combines occupational data from the O*NET database and the National Labour Force Survey (2016-17 and 2021). The results reveal that Uganda has experienced a considerable yet varied transformation of occupations across all sectors largely due to differences in digital technologies diffusion in different jobs. Specifically, the digitalisation of jobs is lowest in mining and quarrying, and agriculture but highest in services sectors such as ICT, finance, media and professional services, and is more pronounced in the Eastern and Central regions. Notably, findings confirm that digital transformation enhances productive and decent employment across all sectors and is associated with creating new jobs in Uganda especially among medium digitalised jobs. By identifying enablers and barriers to digital transformation and creating decent and productive employment, the findings underscore the need for strategic implementation of digital policies, as well as investments in digital infrastructure and skills development. Addressing these challenges can foster a more inclusive and productive digital economy for sustainable employment in Uganda.