Contribution of Gross Domestic Product to employment levels in Kenya
Nzioki, Diana Mwikali
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It is in the interest of every country to ensure that national prosperity through economic growth and development is sustained, and the citizen’s share in the economic prosperity. In her quest to enhance the quality of life and living standards for the citizens, and to be competitive at the global stage, Kenya developed a growth roadmap titled ' Vision 2030' anchored on political, economic, and social pillars. Kenya, has been facing the big task of creating jobs in order to keep pace with a rapidly growing population. This study used secondary data from Kenya National Bureau of Statistics, Central Bank of Kenya, Ministry of Labour, International Labour Office, Vision 2030 Annual Reports, and World Development Reports. It analysed the overall employment elasticity of growth and Sectoral employment elasticity of growth in the following five key sectors; Agriculture, Manufacturing, Financial Services and Real Estate, Construction and Transport and Communication. It further analysed the employment elastic in the formal and informal sectors from the period I987 -20I7.The data was processed and analysed using both descriptive and inferential statistics with the help of data analysis software -STATA. The results were presented in charts and tables. The results established that there exists a relationship between overall growth in GOP and that some sectors are more likely to create jobs than others. The study recommends further studies on other determinants of employment elasticity. Further research work can be done in reviewing what the other determinants of employment elasticity are. In addition, research can be done on estimating the productive elasticity (productivity) in Kenya to determine to what extent this improves job creation in Kenya. The findings from this research will help to contribute to overall employment creation policies in the country and also Sectoral employment strategy that will boost job creation in the areas identified.