By Marius Aiyehela Shomeya
Unemployment has haunted Namibia since independence in 1990, and despite countless promises, the problem persists.
Today, Namibia ranks among the most unequal countries in the world, with official unemployment at 36.9% and over 50% when discouraged workers are counted. Every administration has pledged to create jobs, but the question remains: can the government realistically be the primary employer? Global evidence and Namibia’s own experience say no.
The solution lies not in expanding the public payroll, but in empowering the private sector to drive sustainable job creation.
The World Bank defines unemployment as the share of the labour force that is without work but available for and seeking employment. It also notes that definitions of labour force and unemployment differ by country. In Namibia, the latest report from the Namibia Statistics Agency (NSA) places the unemployment rate at 36.9%.
NSA defines the labour force as all persons of working age who are either employed or unemployed. Those outside the labour force include students, caregivers, discouraged workers (those who searched for work but gave up), and people who have never worked and have no intention of working.
Importantly, discouraged workers are not counted as unemployed. According to Cirrus Capital, if discouraged workers are included, Namibia’s unemployment rate jumps to 54.8%, an alarmingly high figure.
Unemployment has been a priority for every administration since independence in 1990. The current administration aims to create 500,000 jobs, but is that feasible? Can the government really absorb most of the unemployed people?
History is well documented on that proposition, and we should learn from it. Globally, even the most developed economies do not rely on government employment to drive job creation. So, it makes zero sense for a new economy like Namibia to deviate from what has proven to work.
According to Forbes, Norway has the highest government employment levels at 30% of total employment. Other Scandinavian countries like Denmark (29.1%), Sweden (28.6%), and Finland (24.9%) follow closely. In North America, Canada employs 18.2% of its workforce in the public sector, while the U.S. stands at 15.3%. Namibia is no different. As of 2023, the government and state-owned enterprises (parastatals) employ approximately 15% of the total workforce. This clearly shows that the government cannot be the primary employer.
It’s no coincidence that there are reports that Namibia has lost nearly two-thirds of its employers in just five years, and at the same time unemployment skyrocketed to over 50% during the same period.
One of the most impactful examples of private sector job creation comes from the SME sector. Over 40,000 SMEs across the country employ more than 200,000 people. The numbers speak for themselves: the government cannot be the primary employer. Its role must evolve into that of a facilitator, creating policies, infrastructure, and financial systems that allow businesses to flourish. It must focus on creating an enabling environment for the private sector to thrive and generate jobs.
By supporting private sector growth, Namibia can unlock sustainable job creation, reduce unemployment, and build a resilient economy. The future of employment lies not in how many jobs the government can offer, but in how well it can empower others to create them.
