How to Reduce Unemployment in Namibia

What is an unemployment?

Unemployment, according to the OECD, is persons above a specified age not being in paid employment or self-employment but currently available for work during the reference period. Unemployment is measured by the unemployment rate, which is the number of people who are unemployed as a percentage of the labour force.

Where and how to Reduce unemployment in Namibia

Fiscal policy can decrease unemployment by helping to increase aggregate demand and the rate of economic growth. The government will need to pursue expansionary fiscal policy; this involves cutting taxes and increasing government spending.

Frequently Asked Questions

How do you decrease unemployment rate in Namibia?

There are two main approaches to reducing unemployment: demand-side policies and supply-side policies. When there is a rise in cyclical unemployment caused by a recession, it is considered demand-deficient unemployment and addressed by demand-side policies.

What are the causes of unemployment in Namibia?

The study found that unemployment in Namibia is affected by actual output, inflation, investment and aggregate demand. Their findings support the original Phillips curve relationship between unemployment and inflation, which suggests that there is a negative relationship between these variables.

What are the problems faced by unemployment?

• The problem of unemployment gives rise to the problem of poverty.
• The government suffers extra borrowing burden because unemployment causes a decrease in the production and less consumption of goods and services by the people.
• Unemployed persons can easily be enticed by antisocial elements.

What are effects of unemployment in Namibia?

The personal and social costs of unemployment include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence and self-esteem, the atrophying of work skills and ill-health

What is the conclusion of unemployment in Namibia?

Unemployment is a serious issue for any economy. It creates negative affects to unemployed as they are jobless and suffer from worse prospects to find new job and those who are employed feel less secure to keep their jobs in future.

Why is unemployment bad for the economy in Namibia?

The unemployment rate is the proportion of unemployed persons in the labor force. Unemployment adversely affects the disposable income of families, erodes purchasing power, diminishes employee morale, and reduces an economy’s output.

What are the four strategies to overcome unemployment in Namibia?

• Education and training.
• Reduce the control and power of the trade union.
• Employment subsidies.
• Improve the “labour market” flexibility.

What is a healthy unemployment rate in Namibia?

Many consider a 4% to 5% unemployment rate to be full employment and not particularly concerning. The natural rate of unemployment represents the lowest unemployment rate whereby inflation is stable or the unemployment rate that exists with non-accelerating inflation.

What are the causes of youth unemployment in Namibia?

THE ever-increasing rate of youth unemployment in Namibia is caused by the mismatch of skills and poor career choices. This was said by labour minister Errki Nghimtina at the launch of the fifth edition of the Careers in Namibia Guide 2018/2019.

What was the lowest unemployment rate in Namibia?

The national unemployment rate fell by 0.3 percentage point over the year, to 3.5 percent, the lowest jobless rate since 1969.

Is unemployment a global issue?

Around the world, unemployment affects 67.6 million young people. While the global youth unemployment rate currently stands at 13.6%, the number varies drastically by region. Youth unemployment is highest in Northern Africa at an alarming rate of 30%, or more than twice the global rate.

How does unemployment impact the economy in Namibia?

Unemployment has costs to a society that are more than just financial. Unemployed individuals not only lose income but also face challenges to their physical and mental health. Governmental costs go beyond the payment of benefits to the loss of the production of workers, which reduces the gross domestic product (GDP).

How many millionaires are there in Namibia?

There are 3,300 US$-millionaires in Namibia, 1,400 of which live in the capital Windhoek.

What is the unemployment rate in Namibia 2021?

Unemployment Rate in Namibia is expected to reach 36.80 percent by the end of 2021, according to Trading Economics global macro models and analysts expectations.

What is the social impact of unemployment in Namibia?

Unemployment has both individual and social consequences that require public policy interventions. For the individual, unemployment can cause psychological distress, which can lead to a decline in life satisfaction. It can also lead to mood disorders and substance abuse.