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‘Questionable unemployment stats may impact national planning’

… political parties accuse NSA of ‘cooking data’, eroding trust

Various political parties fear the recent unemployment statistics released by the Namibia Statistics Agency (NSA) could affect the country’s planning and budgeting for job creation.

Their concerns come after economists argued this week that the delayed statistics fail to capture the true extent of joblessness in the country, and that the unemployment rate is above 50%.

The NSA announced this week that the country’s unemployment rate rose to 36.9% in 2023, up from 33.4% in 2018.

NSA statistician general Alex Shimuafeni told The Namibian yesterday that the NSA would issue a statement regarding the disputed figures today.

More than half (55.4%) of employed Namibians earn less than N$5 000 per month, with only 2.6% earning over N$40 000, reflecting a significant income gap in the labour market.

Interpreting the NSA’s results and methodology, First National Bank predicts the Namibian unemployment rate to be around 54%.

Only 46.2% of the working-age population (1.88 million people) are active in the labour market, with a notable gender disparity of 51.1% of men versus 41.9% of women.

Using the 2023 definition, the unemployment rate is 36.9% but would rise to 54.8% under the broader 2018 definition, indicating significant underemployment and discouraged workers.

According to census data, 41.9% of youth (15-24 years) are not in education, employment or training, contributing to a high level of discouraged workers, particularly in rural areas where the figure rises to 59.5%.

‘COOKING STATISTICS?’

Spokesperson of the Independent Patriots for Change Imms Nashinge yesterday said his party needs to see “the real unemployment statistics from the NSA”.

He said unreliable data impacts the planning and budgeting required to address unemployment.

“You cannot cook statistics; we need the real statistics to help us wake up, even if it doesn’t make those in power look good,” he said.

Nashinge added that the NSA should be held accountable for producing a false narrative that does not align with the issues faced by those struggling with unemployment.

“This is unacceptable, the NSA should be held responsible for compromising data to safeguard the interests of those who want to remain in power.”

Landless People’s Movement youth leader Duminga Ndala said the potentially incorrect numbers will have a drastic impact.

“It will cause public trust erosion. The citizens will pass a vote of no confidence in public institutions and will no longer trust this institution,” she said.

She added that “incorrect data may lead to poor decision-making by policymakers”.

Popular Democratic Movement parliamentarian Inna Hengari added that the key point of conducting a census is to inform national planning and policymaking.

“Institutions must serve their mandate without fear or favour… such misinformation [coming] from a high office with such a serious mandate should be condemned and be met with the contempt that it deserves.”

Hengari questioned the point of conducting the census if the NSA can delay the release of results.

“Things are much worse, and life in Namibia only keeps getting more expensive by the day … what is the point of these unemployment statistics from 2023 in 2025? What is the relevance?”

REJECTED REALITY

Kalimbo Iipumbu, vice president of the Namibia Economic Freedom Fighters, says altering the unemployment figures could lead to political unrest driven by unhappy citizens, similar to events in Mozambique and the Democratic Republic of Congo.

“Just because you think you have peace today, does not mean that it will be there tomorrow. Hungry people can’t be at peace,” he says.

“The youth are qualified and educated but they are unemployed. As a nation this is unacceptable to the majority of Namibians?”

He adds that by providing false data on unemployment, the NSA rejects the daily realities faced by young people who are experiencing the hardship of unemployment.

‘WE’RE WORRIED’

Ephraim Nekongo, the secretary of the Swapo Party Youth League says “the figure is alarming. Whether it is now 36% or 50%, we are equally worried”.

He suggests, however, that it is necessary to take a closer look at the circumstances under which the data was gathered.

The years prior to the census had been marred the impacts of by Covid-19, and many businesses had to close their doors during this time, leading to increased unemployment.

In turn, he suggested that his party was hopeful for the future.

“As a party, we are a step ahead in what we want to see in the next five years”. He suggested that the advent of Namibia’s first female president would prove a positive change.

Regional governors for Omusati and Kavango East regions are advocating for a renewed focus on agriculture as a crucial strategy to combat the nation’s persistent high unemployment rates. The regions were listed by the NSA among those with the highest unemployment rates.

They believe that investing in and developing the agricultural sector holds immense potential for job creation, economic growth and food security.

Kavango East region governor Bonifatius Wakudumo says his region is blessed with a perennial river, fertile soil and the climate is conducive for agricultural projects which could employ many people.

Wakudumo says the region also has small commercial farms which need to be developed to provide food and employment to the youth.

“If we were to put up tomato and juice factories in the Kavango East region, we would create more jobs for our unemployed youth”.

His Omusati counterpart, Erginus Endjala, says his region plans to set up a brick factory and tomato processing plant to address the high unemployment rate in the region.

According to Endjala, most young people in the region are employed at the Etunda irrigation project.

“We have convinced investors to invest in our region, that’s why now we grow grapes and asparagus to absorb more people,” Endjala says.

YOUTH LEFT BEHIND

Meanwhile, the Economic Association of Namibia (EAN) warned yesterday that high unemployment, especially among young people, not only hurts the economy but also threatens social stability.

EAN stressed that young Namibians are being denied opportunities, limiting their potential and preventing them from contributing to the nation’s growth.

“The EAN calls on the government, private sector and civil society to work together to tackle this crisis,” the EAN said.

In addition, the EAN said it stands ready to support efforts to address unemployment through evidence-based research, policy recommendations and collaboration with stakeholders.

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