The State of the Industrial Workforce in Tigray: Binding Constraints and Potential Solutions

Abstract

Currently, the industrial sector particularly the manufacturing sector in Ethiopia including the Tigray region is characterized by low productivity, high labor turnover, skill-mismatch, and recently semi-skilled labor shortage. Mega-industrial parks such as Mekelle industrial park, Raya
valley agro-processing and Humera agro-processing are being built in earnest in Tigray as corridors of priority. This will lead to the massive demand of trained and trainable workforce. Hence, to attract, retain and expand the manufacturing sector and remain competitive, a motivated and productive industrial workforce is indispensable. For example, the Hawassa industrial park currently requires 1,000 workers every week, but manages to get only half of them. Moreover, about 250 workers leave the factories every week. This shows the extent of the challenge ahead the industrial parks in Tigray would face. Valuable data were collected from relevant bodies and sectors in Tigray and analysed to substantiate the actual status. This article, therefore, presents current binding constraints of the industrial labor market and suggests possible solutions. Implied from the identified binding constraints, priority solutions such as implementing impactful packages for attitudinal change, demand driven skill development, University/TVET-Industry linkage, workforce database management, genuine industrial relations, labour welfare, and dedicated institution for workforce coordination are recommended.