In Zambia, like most other African countries, unemployment has remained at extremely high levels despite efforts to promote development by the government. Unemployment has been caused, inter alia, by the diminishing formal economy. Instead, the informal sector has become the principal source of employment and livelihood. However, wages and conditions of service in the informal economy are generally poor and therefore contribute little to poverty reduction.As a solution to the problems of the formal sector, the government embarked on the privatisation of both the mining and manufacturing sectors. Privatisation raised expectations of improvement in the employment situation. Mining is once again expected to play a catalytic role in reviving the economy. This research aimed at uncovering what has happened to the employment situation in the manufacturing and mining sectors after the completion of the privatisation process. This work also assesses the conditions under which labour is employed. Lastly, the research gives a basis for serious policy considerations not only for government but also learning and training institutions; a must read for policy makers, scholars and researchers.