Senegal faces employment challenges amid IMF agreement

Senegal is grappling with significant labor market difficulties despite the economic sovereignty ambitions of President Bassirou Diomaye Faye. Data from the National Agency of Statistics and Demography (ANSD) for the second quarter of 2026 indicates a decline in the labor market participation rate to 55.9%, down from 56.5% the previous year. The employment rate also saw a slight decrease to 41.4%.

The labor market is characterized by a high prevalence of self-employment, which accounts for 60.8% of those employed, while salaried employment has dropped to 41%. The broad unemployment rate stands at 19.1%.

As Senegal enters a $2.2 billion, 36-month program with the International Monetary Fund (IMF) under the Extended Credit Facility, concerns are rising regarding the impact of fiscal austerity. While the agreement aims for macroeconomic stability, debt sustainability, and private sector growth, experts warn that job creation may be overlooked in favor of budget adjustments and subsidy reductions.