NSA: Re-submitted Analysis of Youth Employment and Unemployment Report

December 17, 2015, 8:14am

NSA

The Namibia Statistics Agency is pleased to re-submit the Analysis of Youth Employment and Unemployment Report to the nation.

Analysis of Youth Employment and Unemployment Report

The NSA is herewith re-submitting the Analysis of the Youth Employment and Unemployment Report 2012 and 2013. As per the analysis, high rates of youth unemployment have been a prominent economic and social feature in Namibia. Hence understanding the patterns, structure and causes of youth employment and unemployment is essential for designing appropriate policy interventions. The youth unemployment rates for 2012 and 2013 remain at 37.8 and 41.7 percent respectively. This is as per the Labor Force Surveys for 2012 and 2013 respectively. The findings of this study can be summarized in three domains: patterns of youth employment; causes of youth unemployment; and skills mismatch.

In terms of patterns of unemployment it became clear that having a high school education or higher, being married, or being between the ages of 30-34 years, as well as living in urban areas promoted youth employment. About half of the youth were employed in the informal sector. Transitions from spells of unemployment are uneven, with more youth absorbed into employment within a year after leaving school or in-between jobs.

With regards to youth unemployment, the analysis showed that youth unemployment is systemic and correlated highly with education levels and gender. It showed location disparities and manifested elements of skills mismatch. Unemployment and inactivity were more likely to occur among youth in rural areas; younger youths between 15-19 years of age; as well as among the youth with no education or only with primary education.

Interestingly, on skills mismatch, incidences of over-education and under-education were evident in Namibia. The likelihood of mismatch by occupation was higher in males, but under-education was relatively higher in females. Education mismatch had negative consequences on wages. There was a wage penalty for those over-educated as opposed to under-educated. With regards to permanent jobs, it was evident that employers were correctly matching jobs with education levels.

Due to errors observed in the way the youth labour forces participation rate and youth employment and unemployment rate was calculated, the report was retracted after release, it is now herewith corrected.

Photo: Andrew W. Rennie, Flickr