Addis Ababa 's economy is growing rapidly and become leading among cities in Ethiopia. Over the last two decades, the city shifted to development-oriented programmes and privatization.
Meanwhile, youth unemployment, lack of sufficient infrastructure in transport and poor housing, and sanitation management have appeared as core problems. Addis Ababa has enormous industrial parks that primarily focus on the manufacturing sector. Over the last two decades, the city saw rapid socioeconomic changes and physical transformation marked by development-oriented government and the private sector. However, the city has experienced infrastructure, transport, services, youth unemployment and displacement problems.
In , wholesale and retail trade was the leading employer in Addis Ababa closely followed by manufacturing The high percentage of the "private household with employed persons" sector for Addis Ababa reflects the highest share of domestic workers in the city. According to official statistics from the federal government, some , people in the city are engaged in trade and commerce; , in manufacturing and industry; 80, homemakers of a different variety; 71, in civil administration; 50, in transport and communication; 42, in education, health and social services; 32, in hotel and catering services; and 16, in agriculture.
The government has constructed more than , housing units since despite unaffordable for poorest communities. There are also flooding, landslides and fire hazards that can affect the housing quality in some areas.
Overall, the city experienced rapid population growth, with density of built spaces, infrastructure development and restructuring of industrial areas in the peripheral part of the city. In and , the city used different components of urban green infrastructure UGI during the last two structural plan revision periods.
