Labour Force outcome sobering, says FNB

FNB Namibia says the outcomes of the Labour Force Survey point to a worrying situation. The Namibia Statistics Agency (NSA) last month released the labour force survey, placing Namibia’s unemployment rate at 36.9%.

“The findings from the 2023 Labour Force Survey paint a sobering picture 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,” FNB Namibia said in a report prepared by its economists Helena Mboti and Cheryl Emvula.

According to FNB, Namibia’s labour market remains under significant strain, exacerbated by the country’s growing population, which reached 3 022 401 in 2023. While the working-age population is substantial, only 46.2% are active participants in the labour market.

“Namibia’s overall labour force participation rate for 2023 stands at 46.2%, which is relatively low compared to international standards, where healthy economies typically see participation rates of between 60% and 70%,” FNB said.

FNB said while the agricultural and services sectors were notable employers, job quality was found to be low.

“While sectors like agriculture and services remain major employers, job quality is poor, and key industries, including agriculture, are suffering from adverse economic

Conditions,” FNB said.

FNB Namibia called on the government to look at targeted interventions to stimulate job creation.

“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,” it said.