Opinion – Namibian unemployment: A system failure?

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Opinion –  Namibian unemployment: A system failure?

 Emilia Gabriel

Since independence, Namibia’s unemployment rate has been a problem, especially among the youth. This has undoubtedly led to many social, psychological and economic problems, to mention but a few. The current rate of 38.41% is alarming because, even after 34 years of independence, not much has changed nor has employment risen. 

With a small population in our country, one would assume unemployment could be avoided.

With so many graduates having difficulties finding a job, one would wonder: Is the problem with the graduates or is the system failing the job-seekers?

You hear comments like young people are lazy, or young people do not want to work, sharpen your skills, youth need more training to improve their skills, and all kinds of things, but is the government doing enough to make sure jobs are created for the skills people are trained for? Is the job market secure?

How can an economy have nearly 9 000 qualified teachers without jobs, for example?

Are we saying these teachers are not qualified enough, or are we admitting that not enough teaching jobs have been created?

Are institutions producing skilled labour that is not relevant for the current market then? Does the economic system allow for more job-creation? Are there enough initiatives to create jobs or promote entrepreneurship? All these are a few of the questions most Namibians have, although they remain unattended.

It is my worry that the employment policies in Namibia are not suitable to address the current unemployment situation, and the classical approach of cutting labour costs to increase employment has proven futile in Namibia. If care is not taken, unemployment will shatter this small economy.

Therefore,  reducing employees’ salaries will only result in lower disposable income, which will lower consumers’ purchasing power, and therefore reduce the demand for what is being produced in the economy. The consequence of this is that companies’ sales revenue will decrease, which will involuntarily lead to lower demand for labour.

It’s cause for concern that government resources are being misappropriately allocated. How can we reduce unemployment if the government, which is supposedly an employer, is not making enough provisions for employment-creation? How does an economy have more graduates than job offers? Clearly, the system is failing the nation. Either the education system or the economic system is failing, but the one who suffers most is the graduate without a job and a family that looks up to him or her.

It is already draining for one to study with limited resources, spend several years in tertiary education just to graduate, and stay at home with the only benefit of a graduation ceremony. Unemployment can have detrimental consequences for peace and stability in Namibia, and increase the crime rate (which is not justified, but a reality in Namibia), among others.

With the upcoming presidential elections, do candidates have realistic solutions and approaches to creating jobs?

How much longer should we wait before we address unemployment in the country? Much research about unemployment has already been conducted in Namibia, but are the recommendations taken seriously? It should be of paramount importance that the economy is diversified to promote sectors with high potential for job-creation, for example, tourism and renewable energy for employment.

Resources should be made available to create enough jobs. The government should allocate enough money to reduce unemployment, not cut expenditures. Unemployment in Namibia occurs because not enough jobs are created to match the level of desire, skills and willingness to work. Barriers to accessing finance must be removed so that people can open businesses and create employment.

 The government, civil society, international partners and the private sector should work closely to create a supportive employment ecosystem. I therefore call on trade unions, policymakers and all relevant stakeholders to investigate this matter with urgency.

I will end with this quote that is based on the ideas within the Centre for Full Employment and Equity as cited by Mitchell and others in their macroeconomic textbook: “No amount of training and motivational speeches can resolve the unemployment problem; the only solution is to provide more jobs.”

Over to you, Namibia.

 

*These are the views of Emilia Gabriel, and not necessarily of the institution she is studying at or the union she represents.