The number of unemployed people in Mozambique increased by 4.3% between the first and second quarters of 2025, rising from 203,528 to 212,303 people, according to the Employment and Productivity Index published by the Foundation for Business Competitiveness (FUNDEC).
This increase comes in a context marked by high levels of informality, underemployment, vulnerable employment and low incomes. For the Foundation, these indicators illustrate the persistent difficulty of the Mozambican economy in converting economic growth into productive jobs, income and competitiveness gains.
Alongside the rise in unemployment, the number of people who secured a new job increased sharply. It rose from 33,469 in the first quarter to 73,948 in the second quarter of 2025.
This development reflects an increase in labor market participation, but the main challenge, according to FUNDEC, remains turning this momentum into more productive, better-paid jobs that create greater value.
Women’s Participation on the Rise
The report also highlights a positive trend in women’s participation in economic activity, reflecting their growing presence in the labor market.
However, the Foundation believes that insufficient job creation remains one of the main constraints facing the Mozambican economy.
According to FUNDEC’s analysis, the labor market is not generating enough opportunities to absorb the increase in the working-age population. This situation is explained in particular by low labor productivity and the significant weight of the informal economy.
In this regard, the Foundation points out that "thousands of workers and businesses operate outside formal systems of protection, credit and taxation,” thereby limiting their access to mechanisms that could support their development.
SMEs Face Structural Constraints
Small and medium-sized enterprises (SMEs) are also among the main areas of concern. FUNDEC estimates that most of them operate below their potential and have limited capacity to adopt new technologies.
In this context, the Foundation considers that the challenge for business competitiveness is no longer limited to increasing the number of jobs. The goal now is to promote the creation of more productive jobs capable of generating more income and added value.
Improving productivity, reducing informality and strengthening the capacities of SMEs therefore appear to be essential levers for better responding to the growth of Mozambique’s working-age population.