Zanzibar recorded an important declinein urban poverty, while rural poverty did not change, andpoverty increased on the island of Pemba Basic needs povertyand extreme poverty both declined by 4.5 and 1 percentagepoints, respectively, at the national level in Zanzibarsince 2010. Consumption also increased disproportionatelyamong the poor, yet the absolute gains accruing to the poorand people in the bottom 40 percent remained limited.Poverty reduction was concentrated in urban areas, which wasthe main driver for Zanzibar’s overall poverty reduction.The main drivers of such a reduction in poverty wereincreases in returns to both the education and economicactivity of the poor. Despite these improvements, householdswith large families and dependents employed in agriculture,and with lower education and lower access to infrastructure,continued to suffer from prevalent poverty. Basic needspoverty rates showed higher poverty in Zanzibar than inMainland, but poverty measures based on the internationalline revealed lower poverty in Zanzibar. The services sector(including trade and public administration) accounted for asignificantly larger share of employment in Zanzibar than inMainland, while employment in agriculture was considerablyhigher in the latter. Besides being more diversified than inMainland, the labor market in Zanzibar also offered higherincomes. In both Zanzibar and Mainland, less-educatedworkers were generally concentrated in agriculturalemployment, while those with superior education were engagedin the services sector. Middle skilled workers with lowersecondary education were more engaged in trade, the privateservices sector, and manufacturing; while higher educatedworkers, with upper secondary and university degrees, weremore involved in wage employment, mainly in public administrations.
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