HUMAN RESOURCE PLANNING

TERM IV PAPER: ECONOMIC GROWTH & ITS IMPACT ON EMPLOYMENT GENERATION IN NAMIBIA MARTIN TUHAFENI MWAETAKO ROLL # 24

1. Introduction
Labour force surveys Namibian households Income inequality Poverty Vision 2030

2. Objectives of the Paper

Analyse the relationship between economic growth and employment; Examine the employment situation in Namibia; Investigate attempts aiming at employment creation; Evaluate the impact the global economy has on the Namibian labour market; and Suggest immediate and long-term solutions to unemployment.

3. Does Economic Growth Impact Employment Levels?

3.1 Graphical Presentation of Real Economic Growth and Unemployment

Table 2: Trends of Economic Growth and Unemployment Rates (%)

Namibia Economic Growth Unemployment Rate

2000 4.0

2004 4.8 (real = 0.8) 36.7 (real = 2.9)

2006 4.6 (real = -0.2)

2007 3.6 (real = -1.0)

2008 2.9 (real = -0.7) 51.2 (real = 46.0)

33.8

5.3 5.2 (real = -31.4) (real = -0.1)

3.2 Interpretation of Table 2

Insufficient information For example 2004: positive response to growth While 2006: negative response to economic downturn 2008 infancy of the global economic crisis = unemployment skyrocketed

3.3

Examination of Employment Situation in Namibia

NLFS definition Total employed people declined from 401 203 in 1997 to 385 329 in 2004 and further to 331 444 in 2008 20 000 young people entered the LM p.a. Dramatic increase in unemployment from 2000 to 2008 Situation far worse for women and the youths

3.4 Attempts to Create Jobs

Expanded civil service and army, Support programme for SMEs Limited public works programmes Creation of an investor-friendly environment Trickle-down effect

3.5 The Global Economy

Rapid technological and scientific advancement Smaller businesses are forced to close Micro-economic (factory) efficiency Large corporations took over Enterprises with the most advanced technologies or those with command over the lowest wages survive

4. Conclusions Continuing the current path is unsustainable GDP does not translate into more jobs Redistributive interventions African countries New approach

5. Recommendations
5.1 Immediate Interventions Large-scale public works programme A BIG Systematic support 5.2 Structural Changes Extractive activities geared towards exports Promotion of labour-intensive Co-operatives and workers-run factories

REFERENCE
Jauch, Herbert (2010) Unemployment Situation in Namibia: http://namibian.me/forum/topics/unemployment-situationin. Retrieved on 7 December 2011. Indexmundi (2011) Historical Data Graphs per Year: http://www.indexmundi.com/g/g.aspx?c=wa&v=66. Retrieved on 7 December 2011.

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