THE UNEMPLOYMENT DRAMA IN MOZAMBIQUE: WHILE THE MINISTRY OF LABOR PRIORITIZES INSS BONUSES, DEMOGRAPHIC INDICATORS ANNOUNCE IMMINENT CHAOS

Alípio Freeman "

The employment crisis in Mozambique has become one of the main structural challenges facing the national economy. Young people, who are increasingly qualified, face enormous difficulties in entering the formal job market, while the informal economy is expanding as the only alternative for survival. The presence of foreign employers in the commercial sector, with precarious labor practices, further aggravates this situation, limiting opportunities for Mozambicans and perpetuating a model of exploitation that benefits a small group of investors to the detriment of the working population.

The argument that foreign investment fosters job creation and boosts the local economy does not hold up when faced with the real conditions faced by workers. Most foreign employers operating in Mozambican trade favour informal practices, characterised by low wages, precarious contracts and a lack of social benefits. These companies operate outside of labour regulations, exploiting the vulnerability of the local workforce, which, faced with a lack of options, accepts any working conditions to ensure its subsistence. The result is a work environment marked by insecurity, instability and exploitation, where professional growth is virtually non-existent.

The lack of effective public policies to generate jobs has been one of the main factors driving the growth of the informal sector. Faced with a lack of opportunities in the formal market, thousands of Mozambicans resort to street vending and second-hand goods trading as a means of subsistence. Selling imported second-hand clothing, for example, has become an essential economic activity for many families, while also representing a response to the lack of access to new, quality products at affordable prices. However, this improvised solution also poses challenges, since informality prevents workers from receiving social protection and hinders the development of a more structured national trade.

The growth of informal work reflects not only the state’s inability to generate jobs, but also the lack of an industrial policy that favors local entrepreneurs. While Mozambican entrepreneurs face difficulties in obtaining credit and investing in their businesses, foreign employers operate with considerable ease, often benefiting from weak tax and labor oversight. This dynamic creates an environment of unequal competition, in which foreign capital prevails over domestic capital, further limiting opportunities for Mozambican workers.

The State’s actions in this context have been widely questioned. Despite the existence of programs aimed at stimulating entrepreneurship and the professional integration of young people, their effectiveness is limited due to bureaucracy and a lack of adequate funding. Furthermore, while the informal sector grows uncontrollably, the workers who depend on it face constant repression by municipal authorities, who often confiscate goods and remove street vendors under the pretext of “urban organization”, without offering viable alternatives for economic reintegration. This contradiction reveals a punitive and disjointed approach by the State, which fails both to create formal jobs and to recognize the importance of the informal sector for the national economy.

Given this scenario, it is clear that the employment crisis in Mozambique cannot be resolved without a profound restructuring of public policies aimed at employment and the economy. The implementation of effective measures to monitor working conditions, regulate the activities of foreign employers and encourage national entrepreneurs is essential to ensure that the country's economic growth is inclusive and sustainable. Mozambican youth cannot continue to be held hostage by a system that favors exploitation and informality. Building a fairer and more equitable labor market requires coordinated action between the government, the private sector and civil society, with the aim of promoting economic development that values ​​and protects Mozambican workers.

2025/12/3