Poverty alleviation would remain a crucial part of the overall development agenda in Ethiopia in the years to come.
The economy is among the most vulnerable in sub-Saharan Africa and with per capita of only US$100. Ethiopia is one of the poorest countries in the world. Nearly 50 per cent of the country’s GDP originates from agriculture, which has suffered from recurrent droughts and extreme fluctuations of output. The agricultural sector is dominated by smallholder households who produce and cultivate more than 94% of the agricultural output. Small farm households depend for their survival on agricultural production. The main objective of the study was, therefore, to examine the relationship between labor market conditions, sectoral growth, and poverty in the Ethiopian context. The study used various types of analysis, including a descriptive and econometric analysis of cross-section and time series data, and employment decomposition approach.
