Source: Harare leads formal jobs recovery – herald
Tapiwanashe Mangwiro-Senior Business Reporter
Harare continues to anchor Zimbabwe’s formal employment landscape, recording the strongest employment performance among the country’s provinces during the fourth quarter of 2025, according to the latest Employment Index released by the Zimbabwe National Statistics Agency.
The report paints a picture of a labour market that remains broadly stable, despite modest declines in formal employment during the quarter.
Harare and Masvingo emerged as the only provinces to post employment indices above the baseline level, underscoring the capital’s enduring position as the country’s economic hub.
Harare recorded an Employment Volume Index of 102.73, the highest in the country, followed by Masvingo at 101.71. Mashonaland East registered the lowest reading of 92.36, while Midlands and Bulawayo stood at 95.72 and 95.88, respectively.
The Employment Volume Index is a measure of how the number of formal jobs changes over time. An index above 100 means employment has grown compared with the base period, while an index below 100 indicates that fewer people are employed than in the base period.
Nationally, the provincial employment index eased to 99.10 in the fourth quarter, from 100.45 a year earlier, representing a 1.34 percent annual decline, while quarter-on-quarter employment slipped 1.11 percent from 100.21.
Even so, ZimStat noted that employment levels across provinces largely remained close to the base level, suggesting overall stability in the formal labour market.
The report also showed that Harare made the largest positive contribution to national employment movements during the quarter, at 0.83 index points, offsetting declines recorded in Mashonaland East, Midlands and Bulawayo.
Labour expert Mr Lionel Zororo said Harare’s performance was not unexpected, given the concentration of corporate headquarters, financial institutions, Government departments and service-oriented industries in the capital.
“Harare has always been the country’s largest formal employment centre because it hosts the bulk of high-value economic activity.
“As businesses continue to adjust to changing economic conditions, employers are naturally prioritising operations where markets, infrastructure and support services are strongest,” he said.
Mr Zororo said the relatively modest differences between provincial indices also suggested that Zimbabwe’s labour market remained resilient, despite prevailing economic headwinds.
“The encouraging aspect is that most provinces are still clustered around the baseline index. This indicates that, while some regions experienced slower hiring, there has not been a widespread collapse in formal employment. The focus should now be on creating conditions that attract more private sector investment into the provinces.”
Economist Mr Lester Mbiba said the latest figures highlighted the importance of accelerating decentralised economic development to broaden employment opportunities beyond the capital.
“Harare’s performance reflects its diversified economic base, but it also presents an opportunity for policymakers to strengthen growth poles in other provinces.
“Continued infrastructure investment, industrialisation and support for value-addition projects can help spread formal employment more evenly across the country,” he said.
Mr Mbiba said ongoing investments in mining, agriculture, manufacturing and tourism across various provinces could gradually narrow regional employment disparities over time.
“The data should be viewed as a benchmark rather than a cause for concern. Zimbabwe continues to see investment in productive sectors across the country, and, as these projects mature, they are expected to translate into additional formal employment opportunities.”
Across industries, formal employment remained relatively stable, although the overall Employment Volume Index slipped to 98.89 in the fourth quarter, reflecting a 1.50 percent decline from the corresponding period in 2024.
Employment gains were strongest in electricity supply, arts and recreation, and water supply services, while manufacturing, wholesale and retail trade, transport, and information and communication recorded lower employment levels than the base period.
ZimStat concluded that employment across both industries and provinces remained largely stable over the review period, although a modest contraction was recorded during the final quarter of 2025.
The agency said the index continues to provide an important short-term measure of developments in Zimbabwe’s formal labour market.
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