Harare Leads Formal Jobs Recovery in Zimbabwe: Employment Index Soars

• Harare leads formal jobs recovery in Zimbabwe with an Employment Volume Index of 102.73.
• Masvingo follows closely behind with an index of 101.71.
• Mashonaland East registered the lowest reading at 92.36, while Midlands and Bulawayo stood at 95.72 and 95.88, respectively.
• Nationally, the provincial employment index eased to 99.10 in the fourth quarter, representing a 1.34 percent annual decline.

Harare's performance reflects its diversified economic base, but it also presents an opportunity for policymakers to strengthen growth poles in other provinces.

Harare's dominance in formal employment is not surprising, given its status as Zimbabwe's economic hub. The city hosts the bulk of high-value economic activity, including corporate headquarters, financial institutions, and service-oriented industries. This concentration of businesses has created a robust labour market, with Harare recording the strongest employment performance among provinces during the fourth quarter of 2025. According to ZimStat's Employment Index, Harare's Employment Volume Index stood at 102.73, the highest in the country. Masvingo followed closely behind with an index of 101.71.

While Harare excels in formal employment, other provinces struggle to keep pace. Mashonaland East registered the lowest reading at 92.36, while Midlands and Bulawayo stood at 95.72 and 95.88, respectively. Nationally, the provincial employment index eased to 99.10 in the fourth quarter, representing a 1.34 percent annual decline. However, ZimStat noted that employment levels across provinces largely remained close to the base level, suggesting overall stability in the formal labour market. Labour expert Mr Lionel Zororo attributes Harare's success to its diversified economic base and strategic location.

Economist Mr Lester Mbiba sees Harare's performance as an opportunity for policymakers to accelerate decentralised economic development. By investing in infrastructure, industrialisation, and value-addition projects, the government can help spread formal employment more evenly across the country. Ongoing investments in mining, agriculture, manufacturing, and tourism across various provinces could gradually narrow regional employment disparities over time. Mr Mbiba views the data as a benchmark rather than a cause for concern, highlighting Zimbabwe's continued investment in productive sectors.

Lawyers and compliance officers should watch for the potential impact of decentralised economic development on employment opportunities and investment in other provinces, which could lead to more evenly distributed formal employment across the country.

Source: Original reporting via Zimpapers