What is being done about unemployment in Lesotho?
Lesotho’s unemployment crisis poses a severe threat to its economic stability and social fabric, particularly among its youth. Official data from the 2024 Lesotho Labour Force Survey reveals an overall unemployment rate of 30%, a sharp rise from 22.5% in 2019, with youth aged 15-35 facing a staggering 39% rate. Alternative sources like the World Bank and ILO model estimates for 2024 place it lower at around 16.1%, reflecting discrepancies in measurement methodologies – such as inclusion of informal work or discouraged workers – but youth figures consistently hover near 50% in targeted reports. In a nation of roughly 2.3 million people, where over 60% are under 25, this translates to hundreds of thousands sidelined, fuelling poverty, migration to South Africa, and social unrest.
Structural factors underpin the crisis. Lesotho’s economy relies heavily on textiles (40% of exports, mostly to the U.S. via AGOA) and subsistence agriculture, sectors vulnerable to global shocks like post-COVID supply chain disruptions and South African import competition. The diamond mining sector, once a pillar, collapsed after 2020 due to depleted reserves at Letseng and Kao mines, shedding thousands of jobs. Youth unemployment exacerbates this: mismatched skills from an education system emphasizing theory over vocational training leave graduates uncompetitive, while only 48% internet penetration limits digital opportunities.
Gender disparities compound the issue – female unemployment stands at 18.32% versus 14.45% for males – tied to childcare burdens and cultural norms. Rural-urban divides are stark: highlands farming communities suffer seasonal joblessness, while Maseru sees informal vending saturation. External pressures, including climate change eroding arable land and energy shortages from unreliable Eskom supplies, stifle agro-processing growth. The 2024 survey’s 30% figure prompted a national disaster declaration in July 2025, valid for two years, unlocking emergency powers for interventions.
GOVERNMENT DECLARATION AND RESPONSE
Prime Minister Sam Matekane’s government declared unemployment a “state of disaster” to mobilize resources, echoing disaster responses to droughts or locusts. This enables fast-tracked funding, bypassing usual bureaucracy, with a focus on youth as the demographic timebomb. The Second National Youth Policy (2023-2028) prioritizes job creation, integrating with Vision 2030 for sustainable growth.
Key initiatives include the Youth Employment Stimulus Program (2020-2023 extension), which provided training and placements in textiles, tourism, and construction, reaching thousands despite COVID delays. In November 2025, the Ministry of Gender, Youth and Social Development launched YOMA, a UNICEF-partnered digital platform. YOMA offers personalized skills courses in coding, digital marketing, and entrepreneurship, building verifiable digital CVs linked to labour demands. It targets 15-35-year-olds, aiming to boost employability amid low internet access challenges.
AGRICULTURAL AND INFRASTRUCTURE PUSH
To revive farming, the government rolled out tractor financing in April 2026, subsidizing purchases for smallholders to modernize and scale production of maize, wool, and mohair – key exports. Public works programs, like the ongoing A4 road rehabilitation in Qacha’s Nek, generate short-term jobs while enhancing trade access. The National Manpower Development Secretariat expanded vocational centres, training 5,000+ annually in plumbing, welding, and solar installation, with private sector stipends for internships.
Entrepreneurship funding via the Lesotho National Development Corporation provides microloans and incubators, prioritizing women-led agro-processing ventures. Public-private partnerships target tourism: investments in Maletsunyane Falls and AfriSki ski resort aim to create 10,000 jobs by 2027, leveraging highlands scenery.
EDUCATION AND SKILLS REFORMS
Curriculum overhaul is central. Partnerships with South African TVET colleges introduce demand-driven modules, while free digital literacy drives via YOMA address the skills gap. The government mandates trainee programs across sectors, co-funding stipends and tracking conversions to permanent roles.
CHALLENGES AND CRITICISMS
Progress is slow. YOMA’s reach is hampered by rural connectivity, and textile layoffs persist amid U.S. policy shifts. Nepotism allegations in public hiring undermine trust, as noted by legal groups in February 2026. Critics argue the disaster declaration lacks bold private sector incentives, like tax breaks for youth hiring. Youth forums in June 2025 urged more focus on gig economy platforms and green jobs.
Forecasts predict modest decline to 16% by 2026, but sustained 39% youth rates risk instability. Success hinges on execution: monitoring via labor surveys and scaling successes like YOMA could halve youth joblessness by 2030.
In summary, Lesotho’s government wields innovative tools – from digital platforms to disaster powers – against entrenched unemployment. Yet, bridging skills gaps, diversifying beyond textiles, and ensuring inclusive growth remain imperative for Basotho prosperity.