Transformational change case: Information frictions in Ethiopia's labour market

Case study Sustainable Growth, Labour markets and economic transformation

"How do people look for jobs in Addis Ababa?" A simple but under-explored question with big implications for Ethiopia's future. In a country where more than 70% of the population are under 30 and experience high rates of urban unemployment, its young workforce represents both a potential engine for economic growth and a vulnerable cohort facing systemic exclusion from productive employment.

Between February and April 2025, we applied our Transformational Change methodology to analyse the Labour Market Information Frictions research cluster in Ethiopia. Information frictions refer to gaps or asymmetries in access to job-related information, such as where vacancies are posted, how to signal qualifications, or how to navigate application processes.

This work comprises five IGC-supported projects that have contributed to the country’s evolving labour market policies
by addressing both information frictions on labour market and structural barriers to employment.