Business Reporter
ECONOMISTS from the First National Bank (FNB) of Namibia have weighed in on the Labour Force Survey launched by the Namibia Statistics Agency, stating that whereas utilizing the 2023 definition, the unemployment fee is 36.9% however would rise to 54.8% below the broader definition utilized in Namibia’s 2018 Labour Force Survey, indicating important underemployment and discouraged employees.
Economists at FNB, particularly Helena Mboti and Cheryl Emvula, defined that the 2023 Labour Force Report (NSA) primarily targeted on capturing employment and unemployment statistics, excluding an in depth inquiry into casual employment, working situations, hours labored, or job varieties.
“The primary limitation of the 2023 survey data stems from its strict definition of unemployment, which excludes discouraged workers—those who may want to work but have stopped actively seeking employment due to barriers such as skill mismatches or repeated rejections, or who looked for work outside of the specific reference period. Additionally, the survey did not capture informal employment or working conditions, which are key factors that could significantly impact the overall employment picture, particularly since informal employment patterns are perceived to be on the rise in urban areas,” the economists stated.
They stated that because of this, Namibia’s labour power has decreased by 222,906 labourers since 2018.
Mboti and Emvula additional stated that Namibia’s labour market stays below important pressure, exacerbated by the nation’s rising inhabitants, which reached 3,022,401 in 2023.
“While the working-age population is substantial (1.88 million people or 62% of the general population), only 46.2% are active participants in the labour market. This low participation rate points to a significant underutilisation of the available labour force, particularly in rural areas, where participation rates are notably lower (33.4%),” the economists stated.
The two additional pressured that youth unemployment statistics are notably alarming. According to the NSA, solely 24.3% (455,030) of the working-age inhabitants is estimated to be a part of the youth labour power.
Within the labour power, 24.8% of youth are employed, and 19.8% of youth are unemployed. The NSA additionally reported that 53.8% of the working-age inhabitants (1,008,875 folks) should not in search of jobs.
“This suggests that a large portion of Namibian youth are discouraged by the system and have effectively withdrawn from the labour force,” Mboti and Emvula stated.
They additional stated that the employment-to-population ratio (EPR) in Namibia stands at simply 29.1%, which means lower than a 3rd of the inhabitants is employed.
“This low EPR places a heavy tax burden on the existing tax base, as a smaller number of taxpayers must support the costs of social services for a larger population. According to Cirrus Capital, less than 3.8% of the population (115,000 people) represents the taxpayer base for Namibia,” Mboti and Emvula stated.
They concluded by stating that the findings from the 2023 Labour Force Survey paint a sobering image of Namibia’s labour market.
“With high levels of unemployment, particularly among the youth, and a large proportion of discouraged workers in general, the country faces significant challenges in achieving inclusive and sustainable long-term economic growth. While sectors like agriculture and services remain major employers, job quality is poor, and key industries, including agriculture, are suffering from adverse economic conditions. Without targeted interventions to stimulate job creation, address regional disparities, and better align skills with market demands, Namibia’s labour market risks becoming a driver of social instability and economic stagnation,” Mboti and Emvula stated.