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No. 3 / 2026 — Autumn

Peer-reviewed articles in economics, finance, public policy, and sustainable development.

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Theoretical and Applied Economics
No. 4 / 2025 (645), Winter

Poverty, unemployment, and mental health: differential impacts among university graduates in Kenya, South Africa, Uganda, and Zambia

Julius OKELLO
University of KwaZulu-Natal, South Africa

Abstract. This paper examines the relationship between poverty, unemployment, and mental health outcomes among unemployed graduates in Kenya, South Africa, Uganda, and Zambia, using a cross-sectional World Bank dataset. Poverty and unemployment remain persistent challenges across Sub-Saharan Africa, undermining graduate transitions into labour markets and contributing to mental health burdens. Aim: The study seeks to explore how different levels of education intersect with unemployment and poverty to influence the prevalence of depression and mental health problems among graduates. Method: Descriptive and comparative statistical analysis was conducted on unemployment, poverty, and mental health indicators, stratified by education level, to identify patterns of differential exposure and vulnerability across the study countries. Results: The findings demonstrate significant disparities: graduates with advanced degrees experienced unemployment of 11.4%, poverty at 17.7%, and mental health challenges at 71.0%; bachelor’s degree holders recorded unemployment at 21.4%, poverty at 15.6%, and depression at 62.9%; those with some college education faced unemployment of 39.8%, poverty of 17.3%, and mental health challenges of 42.8%; while individuals with high school education or less experienced the highest unemployment at 50.6%, poverty at 12.1%, and mental health difficulties at 37.3%. These outcomes suggest that both highly educated and less educated graduates remain vulnerable, though the nature of risks differs by group. Conclusion: Unemployment and poverty have a disproportionate influence on graduates’ psychosocial well-being, with education level shaping the extent of exposure and vulnerability. Contribution: The study underscores the need for integrated policy responses that jointly address economic insecurity and mental health outcomes, thereby informing human capital development strategies in Sub-Saharan Africa.

Keywords: poverty, unemployment, depression, mental health.

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