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Journal of International Trade, Commerce, and Economics

Peer-Reviewed Academic Journal
Research Article

EMPLOYMENT SHIFTS IN ZIMBABWE’S URBAN METAL INDUSTRY: A CASE STUDY OF THE INFORMAL SECTOR

Authors & Affiliations
Tendai Mukanya Chikomo
Department of Economics, University of Zimbabwe
Published: December 6, 2024
Volume 12, Issue 4 (2024)
Article ID: 691
Peer-Reviewed
Open Access
Abstract

The informal sector plays a crucial role in the economic landscape of developing countries, contributing significantly to job creation, income generation, and poverty alleviation. In Zimbabwe, the informal sector witnessed notable growth during periods of economic upheaval, including the country's Economic Structural Adjustment Program (ESAP) and recent economic and political crises. ESAP was marked by widespread retrenchments in both the public and private sectors, while the more recent crisis led to a contraction in formal employment opportunities and a substantial decline in real wages, largely driven by hyperinflation. Consequently, the expansion of Zimbabwe's informal sector can be attributed to the diminishing formal employment prospects and the imperative to supplement formal incomes

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