As Namibia kicks off 2026, the nation’s job crisis has reached critical levels, with official statistics showing persistently high unemployment that threatens economic stability and social cohesion. 

These statistics, taken from the Namibia Statistics Agency’s (NSA’s) 2023 Labour Force Report, show that three years ago, the national unemployment rate climbed to 36.9%, up from 33.4% in 2018, leaving roughly 320 000 Namibians out of work. 

Only about 29.1 % of the working-age population at the time were gainfully employed, underscoring deep labour market deficiencies. 

Economists warn that the situation is even more difficult when discouraged workers, those who have stopped seeking jobs after repeated setbacks, are factored in. 

Using broader definitions that include these potential workers, the effective jobless rate soars to over 54%, among the highest in the world. 

Youth unemployment also remains alarmingly high. 

Nearly 44% of young Namibians aged 15 to 24 are without work, while labour force participation languishes at just 46.2 %, reflecting both limited opportunities and widespread discouragement. 

Against this bleak economic backdrop, the Namibian Employers’ Federation (NEF) has issued a stark warning that current policy trends could further undermine job creation and business viability in 2026. 

In a statement marking the start of the year, NEF president Elia Shikongo emphasised that employers are battling a “business environment characterised by modest growth, rising input and compliance costs and regulatory uncertainty”. 

“Economic growth remains below the levels required to absorb new entrants into the labour market,” Shikongo said. 

He noted that persistent unemployment places intense pressure on both businesses and policymakers. 

The federation noted that employers are committed to compliance and constructive social dialogue but urged that labour and economic policies must be grounded in affordability and practicality if they are to protect jobs rather than inadvertently cost them. 

Shikongo specifically pointed to the implementation of the National Minimum Wage and increasing regulatory complexity as potential constraints on business expansion, especially in labour-intensive and small and medium enterprises sectors. 

“Sustainable jobs depend on sustainable businesses,” he said. 

“When businesses are placed under excessive cost or compliance pressure, the risk to employment increases,” he added. 

NEF also called for predictable, structured policy engagement between government, employers and organised labour to ensure policy decisions are informed by real-world business capacity and economic realities. 

Analysts say the twin challenges of stagnant growth and entrenched unemployment will demand bold, coordinated action if Namibia is to reverse its slide into one of the region’s deepest jobs crises. 

Without a pragmatic policy aligned with business realities, critics warn that both investment and employment could remain subdued throughout 2026.