EDI and Partners Validate Labor Market Study To Advance Employment In Dire Dawa

The Entrepreneurship Development Institute (EDI), in collaboration with the Ministry of Labor and Skills (MoLS), the Dire Dawa Administration Bureau of Labor and Skills (BoLS), and the International Organization for Migration (IOM), validated a comprehensive Labor Market Assessment (LMA) in Dire Dawa City on July 2, 2026, designed to transform employment pathways in the region.

The study provides an empirical baseline for the project titled “Strengthening Job Placement and Self-Employment Systems for Returnees and Vulnerable Youth in Dire Dawa.” By gathering direct evidence on local economic needs, the joint initiative establishes a systematic link between training providers and employers to create sustainable wage employment and self-employment opportunities.

Opening the session, Deputy Bureau Head of the Dire Dawa Administration Bureau of Labor and Skills, Fetum Mustefa, emphasized the structural shift toward market-driven economic support "Dire Dawa stands as a vital trade, manufacturing, and transport corridor, which naturally positions us at the center of significant migration and demographic movements.

This reality presents unique socioeconomic pressures, particularly for our returnees and unemployed graduates who often face barriers. By transitioning from assumption-based training to demand-driven, evidence-based systems, this project allows us to align our TVTs and Job Centers precisely with what employers need, ensuring no vulnerable youth or woman is left behind."

On behalf of IOM Ethiopia, Mr. Zerihun Yeshitila focused on how the data improves systemic coordination to support vulnerable demographics "Sustainable reintegration and job placement for returnees cannot happen in a vacuum. It requires deep institutional coordination between public structures, private entities, and community actors. The evidence generated by this assessment helps us to address institutional bottlenecks and design localized, targeted pathways that effectively transition vulnerable individuals from displacement or unemployment into secure, productive livelihoods."

Representing EDI, Mr. Mesfin Kinfu outlined how these findings will be translated into immediate, practical tools for the community "For EDI, this Labor Market Assessment is the foundation upon which all our subsequent interventions will rest. We are not just describing market conditions; we are using these actionable insights to directly adapt our entrepreneurship curricula, train local trainers, and establish clear operational guidelines for self-employment and wage employment. Our goal is to equip people with the soft, digital, and technical competencies that local businesses are actively seeking."

During the workshop, lead researcher Dr. Kindye Essa presented the core findings of the assessment, identifying high-potential growth sectors and specific skills mismatches between employer requirements and the current profiles of local jobseekers. The assessment team noted that gathering data in dynamic economic hubs involves navigating unique structural complexities. These included fragmented private sector records regarding future hiring plans, data gaps in fast-evolving industries, and tracking challenges within highly mobile returnee populations.

To ensure institutional validity and precision, the assessment triangulated data from multiple primary and secondary sources across diverse stakeholder groups. The validated data will now be used to adapt entrepreneurship curriculum materials, design upcoming Training of Trainers (ToT) programs, and guide cascading training packages across the Administration.

The underlying study comprehensively evaluated both the demand side of the market including private sector employers, industrial leaders, and the Chamber of Commerce and the supply side, focusing on returnees, women, low-income youth, and persons with disabilities.

To build long-term local ownership and consensus over the data, a wide coalition of local institutions participated in the session. Attendees included representatives from the Bureau of Labor and Skills, local Job Centers and One-Stop Shop (OSS) structures, the Bureau of Women, Children and Social Affairs (BoWSA), the Youth and Women Council, local Technical and Vocational Education and Training (TVT) colleges, industrial parks, trainers, the Chamber of Commerce, the Bruh Tesfa Returnee Association, and the Dire Dawa City IOM Migration Response Center (MRC).