Honiara’s unemployment rate at 13.5% signals urgent economic challenges
BY JENNIFER KUSAPA
THE 2019 Census analysis report, Honiara, the capital city of the Solomon Islands, finds itself grappling with the unfortunate distinction of having the highest unemployment rate in the region, standing at a significant 13.5 percent.
This alarming statistic brings into focus the city’s economic challenges and underscores the pressing need for targeted interventions.
This high unemployment rate is closely linked to the phenomenon of rural-urban migration, primarily among the youth, who often make their way to urban areas in search of employment opportunities.
The period from 2009 to 2019 witnessed an average annual urban growth rate of 5.9 percent, primarily driven by Honiara’s rapid expansion. However, a considerable number of migrants arriving in the city ultimately end up without jobs.
The unemployment rate is a crucial economic indicator that paints a complex picture of employment in the Solomon Islands. The combined agriculture, forestry, and fishery industry is the largest employment sector, providing jobs to 177,000 individuals, constituting a significant 68.4% of the employed population. Interestingly, this sector shows an 87.0% rural employment rate, closely mirroring the distribution of the population, with almost equal representation of male and female workers.
Assessing the overall performance of the labor market and the national economy, the report reveals that there are 22,127 unemployed individuals in the Solomon Islands, resulting in a national unemployment rate of 7.9 percent. Notably, the urban unemployment rate in Honiara stands at 12.06 percent, nearly double the rural unemployment rate of 6.25 percent. At the national level, the male and female unemployment rates are approximately equal to the overall national rate, highlighting the need for gender-specific employment strategies.
The high unemployment rate in Honiara is an urgent concern that demands targeted policies and initiatives to address this issue. Given that the agriculture, forestry, and fishery industries employ a significant portion of the workforce, efforts to enhance employment opportunities in these sectors could yield positive results. Furthermore, addressing the urban-rural disparity in unemployment rates is critical to achieving a more balanced and equitable labor market.
Therefore, unemployment situation in Honiara and the Solomon Islands as a whole is a matter of significant concern.
The government and relevant stakeholders should consider implementing comprehensive strategies to create more job opportunities, particularly in urban areas, and to promote gender-balanced employment across all sectors. These efforts are vital for improving the overall economic well-being of the nation and ensuring a brighter future for all Solomon Islanders.
