How much do Namibians earn?
Statistics on income distribution in Namibia highlight inequality in the country, with approximately 55.4% of employed individuals earning less than N$5 000 in gross monthly income.
An increase in the number of graduates in the country has not contributed to higher income growth and only 2.6% of the workforce reportedly earns more than N$40 000 per month.
“These figures indicate that a large portion of the workforce is employed in low-wage jobs,” say researchers Helena Mboti and Cheryl Emvula from FNB Namibia.
After the Namibia Statistics Agency (NSA) announced the long-awaited unemployment statistics last week, the bank’s economists delved deeper into Namibia’s labour landscape, and their findings paint a grim picture.
While up to 36.6% of the population attained secondary school education in 2023 – an improvement from 26.3% in 2011 – FNB’s research indicates a significant gap between education levels and available job opportunities.
Despite 76.7% of working individuals having at least a high school qualification, a large portion of the workforce is employed in jobs that require lower skills, the bank’s economists found.
Job dissatisfaction
Mboti and Emvula revealed that 40.2% of workers with a secondary school education or lower are employed, with 13.4% working in service professions, while 46.9% are involved in elementary occupations, crafts and trades, or service and sales positions.
“These types of roles typically offer lower wages and require fewer skills."
In contrast, only 30.3% of workers are employed in higher-skilled positions, such as professionals, managers, technicians or associate professionals.
"This disparity between educational achievement and job opportunities that align with those qualifications highlights a misalignment in the labour market, which can lead to worker discouragement and hinder overall economic productivity,” the economists pointed out.
Few opportunities
According to FNB’s analysis, Namibia’s labour market shows a strong dependence on salaried employment, with only 9.2% of all workers being self-employed and just 2.8% of these entrepreneurs able to employ others. The researchers concluded that there is little opportunity for entrepreneurship and self-employment.
Youth unemployment is an even greater concern for the economists, as NSA statistics indicate that only 24.8% of Namibia’s young people are employed. Furthermore, 41.9% of individuals between the ages of 15 and 24 are neither employed nor in school.
"Combined with the high percentage of people in the potential workforce (53.6%), this indicates a worrying trend, especially considering that youth make up 71.1% of the overall population,” FNB’s report states.
Informal employment may offer a more viable option, but aspects such as working conditions, work hours and job types were not included in the national census. However, the researchers did confirm a notable gender disparity, with 51.1% of men employed compared to 41.9% of women in Namibia.
‘Highest’ unemployment rate globally
FNB’s report further explains the difference between the definition of unemployment used in the 2023 analysis and the broader definition used in 2018.
"The difference between these definitions highlights the extent of underemployment, as discouraged workers are excluded from the official (2023) figures."
Officially, unemployment currently stands at 36.9%, but if the broader definition is applied, the percentage rises to 54.8% – “one of the highest in the world,” according to FNB’s report.
"Regardless of the measure, the rise in unemployment is concerning,” Mboti and Emvula note.
NSA digs in
The NSA has strongly defended the credibility of its 2023 labour force report, dismissing allegations of data manipulation and reaffirming that the official unemployment rate of 36.9% meets international standards.
Statistician-general and CEO of the NSA, Alex Shimuafeni, assured the public that the report aligns with the standards of the International Labour Organisation (ILO) and the requirements of the Statistics Act, making it a reliable source for national planning.
“The unemployment rate of 36.9%, released by the NSA on January 29, is the official figure according to ILO standards, based on the 19th International Conference of Labour Statisticians (ICLS). When international organizations request Namibia’s official unemployment rate, this is the figure that will be provided,” Shimuafeni said.
An increase in the number of graduates in the country has not contributed to higher income growth and only 2.6% of the workforce reportedly earns more than N$40 000 per month.
“These figures indicate that a large portion of the workforce is employed in low-wage jobs,” say researchers Helena Mboti and Cheryl Emvula from FNB Namibia.
After the Namibia Statistics Agency (NSA) announced the long-awaited unemployment statistics last week, the bank’s economists delved deeper into Namibia’s labour landscape, and their findings paint a grim picture.
While up to 36.6% of the population attained secondary school education in 2023 – an improvement from 26.3% in 2011 – FNB’s research indicates a significant gap between education levels and available job opportunities.
Despite 76.7% of working individuals having at least a high school qualification, a large portion of the workforce is employed in jobs that require lower skills, the bank’s economists found.
Job dissatisfaction
Mboti and Emvula revealed that 40.2% of workers with a secondary school education or lower are employed, with 13.4% working in service professions, while 46.9% are involved in elementary occupations, crafts and trades, or service and sales positions.
“These types of roles typically offer lower wages and require fewer skills."
In contrast, only 30.3% of workers are employed in higher-skilled positions, such as professionals, managers, technicians or associate professionals.
"This disparity between educational achievement and job opportunities that align with those qualifications highlights a misalignment in the labour market, which can lead to worker discouragement and hinder overall economic productivity,” the economists pointed out.
Few opportunities
According to FNB’s analysis, Namibia’s labour market shows a strong dependence on salaried employment, with only 9.2% of all workers being self-employed and just 2.8% of these entrepreneurs able to employ others. The researchers concluded that there is little opportunity for entrepreneurship and self-employment.
Youth unemployment is an even greater concern for the economists, as NSA statistics indicate that only 24.8% of Namibia’s young people are employed. Furthermore, 41.9% of individuals between the ages of 15 and 24 are neither employed nor in school.
"Combined with the high percentage of people in the potential workforce (53.6%), this indicates a worrying trend, especially considering that youth make up 71.1% of the overall population,” FNB’s report states.
Informal employment may offer a more viable option, but aspects such as working conditions, work hours and job types were not included in the national census. However, the researchers did confirm a notable gender disparity, with 51.1% of men employed compared to 41.9% of women in Namibia.
‘Highest’ unemployment rate globally
FNB’s report further explains the difference between the definition of unemployment used in the 2023 analysis and the broader definition used in 2018.
"The difference between these definitions highlights the extent of underemployment, as discouraged workers are excluded from the official (2023) figures."
Officially, unemployment currently stands at 36.9%, but if the broader definition is applied, the percentage rises to 54.8% – “one of the highest in the world,” according to FNB’s report.
"Regardless of the measure, the rise in unemployment is concerning,” Mboti and Emvula note.
NSA digs in
The NSA has strongly defended the credibility of its 2023 labour force report, dismissing allegations of data manipulation and reaffirming that the official unemployment rate of 36.9% meets international standards.
Statistician-general and CEO of the NSA, Alex Shimuafeni, assured the public that the report aligns with the standards of the International Labour Organisation (ILO) and the requirements of the Statistics Act, making it a reliable source for national planning.
“The unemployment rate of 36.9%, released by the NSA on January 29, is the official figure according to ILO standards, based on the 19th International Conference of Labour Statisticians (ICLS). When international organizations request Namibia’s official unemployment rate, this is the figure that will be provided,” Shimuafeni said.
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