Africa is on the brink of a labour market revolution. By 2030, more than 375 million young people will be employed in the job market in Africa, and this demographic boom is expected to increase to more than a billion people in the next decade.
- Africa is facing a labor market revolution with the employment of more than 375 million young people by 2030
- Denis Pennel, a labor market expert, highlighted the importance of skills and education for Africa’s growing workforce
- Regulatory changes and investment in skills and education are crucial for Africa’s labor market
- The rise of AI will create new opportunities and workers who adapt and reskill will thrive in the labor market
This presents both an opportunity and challeng on what the future of work will look like for the promising continent. How will technological advancements, demographic shifts, and regulatory changes shape the future of employment? To explore these pressing questions, Business Insider Africa spoke with Denis Pennel, a globally recognized labor market expert, at the Global Labor Market Conference (GLMC). His insights offer a roadmap for how Africa can seize emerging opportunities and navigate the challenges ahead.
A Changing Global Employment Landscape
Africa’s better‑educated and growing population is not immune to the global trends reshaping employment. Pennel in his interview identified three major forces driving the future of work:
- Record employment levels: “We are seeing the highest number of people employed globally—3.2 billion. While unemployment still exists, this is a positive signal.”
- Demographic imbalances: “Some countries like Japan, Germany, and the U.S. are seeing declining working populations, while Africa’s young workforce is expanding. This presents a major opportunity for the continent.”
- Technological transformation: “AI is disrupting the world of work. While some jobs will disappear, new ones will emerge. Adaptability and lifelong learning will be essential.”
According to Pennel, Africa’s educated and growing population is a major asset and the potential can only be realized through investment in skills and education. “The answer is simple: skills, skills, skills. A growing working population is an asset only if it is skilled. Without the right education and training, young people will struggle to meet industry needs.”
“Too many workers lack proper contracts and social protections,” Pennel notes. “While some countries, like Nigeria, are making progress with labor regulations, others still lag behind. Stronger policies are needed to ensure workers have stability and security.”
When asked about why multinational corporations have been increasingly attracted to developing countries, Pennel said, “Developed markets are saturated. Companies are now looking to emerging economies where there is a young, growing consumer base with unmet needs. Africa is becoming a key destination for business expansion, job creation, and innovation.”
Standoff over Remote Work vs. Office Work
Globally, the tension between companies that want staff back in the office and those embracing flexibility, has been a major debate in the labor market. Pennel calls this the ‘great mismatch.’ “Employees want more freedom, while some companies are reluctant to embrace remote work fully. However, remote work isn’t for everyone. Only about 40% of jobs globally can be done remotely. For most, in-person collaboration remains crucial for creativity and innovation.”
So what’s the best approach? We asked. “A hybrid model works best. Ideally, three days in the office and two days remote. This way, businesses retain collaboration while allowing flexibility.”
AI and Automation: A Threat or an Opportunity to Livelihoods?
The rise of artificial intelligence (AI) is affecting our lives more and more. While concerns about job losses persist, AI can also create new opportunities. When asked about his position, Pennel sounded optimistic. According to him, “AI will replace routine tasks, not necessarily entire jobs. Workers who learn to use AI will thrive. In fact, history shows that new technologies often create more jobs than they destroy. The key is to adapt, reskill, and focus on human-centric skills like creativity, problem-solving, and leadership.”
“Jobs won’t disappear—tasks within jobs will change. Those who embrace AI will future-proof their careers,” he added.
The Future of Work in Africa
As one of the youngest populations in the world, it is imperative that adequate investments are made in education and learning that holds value in the labour.
Africa’s labor market stands at a crossroads. To capitalize on its growing workforce, the continent must prioritize upskilling, digital transformation, and policy reforms. As Pennel points out, “The challenge now is to take decisive action to bridge the skills gap, embrace digital transformation, and create an inclusive labor market that benefits all.”
For businesses, policymakers, and workers alike, the future of work in Africa is being written now. The key question is: Will new opportunities open up for African countries to create jobs, improve incomes, reduce poverty and climb up the development ladder or will Africa be left behind?
