Digital Connectivity and Labour Market Outcomes in Sub-Saharan Africa

Abstract

This study examines how digital connectivity impacts the performance of labour markets in ten countries in SSA in terms of total unemployment, youth unemployment, and employment-to-population ratios using data sourced from world development indicators (WDI) from 2000 to 2025. The random-effects panel model is used as estimation technique. The variables used as proxies for digital connectivity are internet penetration, mobile cellular subscriptions, and fixed broadband subscriptions; while GDP per capita, secondary-school enrollment, and urbanization rates are used as control variables. The findings revealed anegative and statistically significant relationship between mobile connectivity and unemployment in SSA. Conversely, increased internet penetration is associated with the short-term rise in unemployment, which signals skills mismatch in SSA. This study concludes that unemployment is reducedsignificantly by digitalization in SSA highlighting the advantages of agglomeration. This study recommends thatgovernments in SSA shouldimplement policies that will increase the use of mobile-based platforms, by ensuring that educational curricula is aligned with digital labour requirements, enhancing urban employment centres, and focusing on the contribution of the youth. This will ensure a digital transformation in SSA that will support inclusive and sustainable growth.