After a period of electoral tension marked by political uncertainty and demonstrations, the Mozambican labour market is facing the challenge of recovery. The downturn in job creation in the third quarter of 2024, driven by instability, has raised concerns about the pace of economic recovery. For human capital management consultant Vicente Sitoe, recovery will not be automatic and will depend on the implementation of concrete measures to encourage investment and boost strategic sectors. Tourism, construction and agriculture appear to be the fundamental pillars for boosting employability and restoring confidence in the labour market.
‘The impact of political instability on employability has already been felt. Now, the recovery of the labour market will depend on concrete measures to attract investment, firstly in reconstruction, and to stimulate sectors that generate mass employment, such as agriculture, construction and manufacturing industries,’ says Sitoe.
The electoral crisis has created a climate of uncertainty that has kept investors away and led many companies to postpone strategic decisions. For the expert, one of the key challenges will be to restore the confidence of local and foreign investors, a crucial factor for creating new jobs. ‘Investor confidence will be decisive in speeding up this recovery,’ he emphasises.
In a post-election economic recovery scenario, the sectors that show the greatest potential for boosting employability are those that require continuous investment and can generate jobs immediately. Tourism and construction, which are heavily dependent on infrastructure and logistics, stand out as priority sectors, followed by agriculture, which has a high potential for absorbing labour.
‘The sectors that could have an immediate impact would be tourism and construction (both with necessary investments in new infrastructure), logistics and agriculture,’ points out Sitoe. Despite the potential of emerging sectors such as technology and renewable energies, the expert emphasises that their ability to generate jobs in the short term is still limited in the Mozambican context.
Political and economic uncertainty has not only made it difficult to create new jobs, but has also affected the stability of companies in retaining talent. The market has an abundant supply of available professionals, but according to Sitoe, wage instability and a lack of financial predictability pose additional challenges.
‘Tourism and construction, which are heavily dependent on infrastructure and logistics, stand out as priority sectors, followed by agriculture, which has a high potential for absorbing labour’
‘The market has an abundance of free labourers available at prices that are, in some cases, lower than normal. However, wage limitations and economic instability make it difficult for companies to honour their labour commitments,’ warns the expert.
In this context, companies must adopt strategies to mitigate the effects of the crisis and guarantee the sustainability of their workforce. Sitoe recommends diversifying markets, strengthening organisational resilience and investing in employee training. ‘Companies should adopt strategies such as diversifying markets, strengthening resilient organisational cultures and investing in training their employees in resilience, risk management and business continuity,’ he says.
An alternative to reducing costs without compromising jobs could be to make labour regimes more flexible. Labour agency has emerged as a viable option for guaranteeing the continuity of business operations. ‘Moving some internal staff to the labour agency system could be a way of minimising fixed costs while preserving jobs,’ he suggests.
Digitalisation has played a key role in modernising the labour market, bringing new dynamics to recruitment and talent management processes. The adoption of digital platforms has significantly accelerated hiring times, making processes more efficient.
‘Recruitment times have gone from an average of three weeks per vacancy to a week and a half,’ emphasises Sitoe. As well as speed, digitalisation has brought greater transparency and a better experience for candidates. ‘These technologies help to humanise recruitment processes as they allow for personalised feedback to candidates,’ he adds.
The mismatch between academic training and the needs of the labour market continues to be one of the main obstacles to employability. The lack of alignment between academic curricula and the demands of the productive sector has made it difficult for young people to integrate into the labour market.
To mitigate this situation, Sitoe advocates strengthening the link between educational institutions and companies, ensuring that recent graduates acquire skills in line with market needs. ‘Internship programmes, technical training aligned with market needs and incentives for science, technology, engineering and mathematics (STEM) education are important steps.’

Vicente Sitoe is a professional with extensive work experience in strategic human resources management.
Among the most valued competences for 2025, the expert points to both technical and interpersonal skills. ‘The so-called digital skills will continue to dominate, as will the ability to work in a team, adapt and be flexible, empathetic communication, critical and innovative thinking and transformative leadership,’ he emphasises.
To ensure that young people are better prepared for the labour market, Sitoe suggests a curriculum reform that includes practical training and partnerships with companies.
‘Universities and technical education institutions need to revise their programmes to include practical training, introduce in-depth information technology teaching and foster partnerships with companies to offer real work experience,’ he recommends.
The growth of the informal sector has been a response to unemployment, but for Sitoe entrepreneurship should be seen as a structured solution and not just a palliative. The formalisation of small businesses and start-ups should be encouraged in order to create sustainable jobs.
‘Entrepreneurship can create jobs in the informal and formal sector, promoting local solutions to social and economic challenges. The key thing to ensure is that startups that begin as informal gradually migrate to become formal,’ he emphasises.
For the labour market recovery to be effective, Sitoe identifies three essential measures. The first involves investment in emerging sectors such as renewable energies and information technology. ‘The first would be investment in emerging sectors, such as renewable energies and information technology, mainly in Artificial Intelligence solutions,’ he suggests.
The second measure involves creating tax incentives to stimulate job creation. ‘It’s essential to create tax benefits for companies that create jobs, making the business environment more attractive,’ he argues.
Finally, the expert emphasises the need to strengthen technical training and public-private partnerships, ensuring that professional training has a direct practical application in the market. ‘This training should have a very strong practical component and clear outlets for pre-professional internships, creating a direct link between training and the job market,’ he concludes.
Text: Felisberto Ruco