Job losses in retail, manufacturing

Compared to the first quarter of 2020, employment in the wholesale and retail sector decreased by 3.7%, while manufacturing offered 8% less jobs.

07 October 2020 | Business

The surge in the total unit labour costs for the manufacturing sector renders the sector less competitive in the international market. - BoN

Jo-Maré Duddy – Two of the heavyweights in the economy – manufacturing, as well as wholesale and retail trade – suffered job losses in the second quarter of this year.

The latest data released by the Bank of Namibia (BoN) shows the two sectors were both on an annual and a quarterly basis.

Employment in the wholesale and retail trade sector decreased by 4.8% year-on-year and 3.7% quarter-on-quarter. In the manufacturing sector, employment was down 6.8% year-on-year and 8% quarter-on-quarter.

“The year on-year decline in employment in the wholesale and retail trade sector was mostly reflected in clothing and supermarkets, while in the manufacturing sector it was registered in most subsectors, but driven mainly by the fabricated metals and mineral processing subsectors,” the BoN says.

Figures released by the Namibia Statistics Agency (NSA) show manufacturing contracted by 30.8% in the second quarter, while wholesale and retail registered negative growth of 22.5%.

Manufacturing contributed 11.1% to the gross domestic product (GDP) in the second quarter, compared to 14% in the same three months in 2019. Wholesale and retail's contribution was 10.3% against 11.1% in 2019.

Wages

The nominal and average wages in the wholesale and retail trade sector decreased, both year-on-year and quarter-on-quarter, during the second quarter of 2020.

Nominal and average wages in the wholesale and retail trade sector decreased by 16.8% and 17.1% year-on-year respectively during the second quarter of 2020.

“The year-on-year reduction was more reflected in the furniture, wholesale and vehicle sales, caused largely by the Covid-19 pandemic-induced effects,” the BoN says.

Similarly, on a quarterly basis, the nominal wages and average wage bill in the wholesale and retail trade sector decreased by 16.2% and 13.3%, respectively, over the same period.

Nominal and average wages in the manufacturing sector increased, both year on-year and quarter-on-quarter during the second quarter of 2020.

The nominal and average wages in the manufacturing sector increased year-on-year by 3.8% and 11.4% respectively.

“Improved wages were observed in several subsectors of the manufacturing sector, led by beverages, food products, basic metals and textile, as well as clothing,” according to the BoN.

Similarly, on a quarterly basis, the nominal wages and average wage bill in the manufacturing sector increased by 3.9% and 13% respectively, over the same period.

Unit labour costs

Unit labour costs for the manufacturing sector increased both year-on-year and quarter-on-quarter during the second quarter.

Total unit labour costs for the manufacturing sector increased by 33.2% and 12.4% year-on-year and quarter-on-quarter, respectively.

According to the BoN, the year-on-year increase in the sector’s unit labour costs was primarily due to decreased output per worker registered in subsectors such as fabricated metals, beverages, printing and publishing, as well as textiles and wearing apparel.

“The surge in the total unit labour costs for the manufacturing sector renders the sector less competitive in the international market. Since output is due to recover after the pandemic, unit labour costs could be expected to normalise, at least to some extent,” the BoN says.

Similar News

 

Agra recovers from dry profit spell

1 day - 30 October 2020 | Business

A N$56-million increase in revenue from contracts with customers helped to boost Agra Limited's operating profit for its past financial year by nearly 7% to...

Company news in brief

1 day - 30 October 2020 | Business

SAA gets bail-out billionsThe South African government on Wednesday announced the release of R10.5 billion needed to fund a rescue plan for struggling state-owned South...

Good profit harvest for Agra

2 days ago - 29 October 2020 | Business

Jo-Maré Duddy – Agra Limited reported a profit after tax of about N$26.8 million for the year ended 31 July 2020, up nearly 11.7% from...

Construction industry coughing blood

2 days ago - 29 October 2020 | Business

JEMIMA BEUKESWINDHOEKAfter taking massive body blows over the last five years, the construction industry is now profusely bleeding jobs and on the verge of collapse,...

Airline revenues to drop by half

2 days ago - 29 October 2020 | Business

Airline industry revenues are expected to remain 46% lower in 2021 than the US$838 billion booked in the last pre-coronavirus year of 2019, industry body...

Company news in brief

2 days ago - 29 October 2020 | Business

Microsoft beats sales estimatesMicrosoft Corp beat Wall Street estimates for quarterly revenue and profit, powered by a slight uptick in growth in its flagship cloud...

VAT and Namibian tour operators

3 days ago - 28 October 2020 | Business

The VAT Act defines a “tour operator” as any person whose supply mainly consists of packaged holiday tours with all arrangements made at an inclusive...

Africa's miners face new TB threat

3 days ago - 28 October 2020 | Business

Kim Harrisberg - Vama Jele's heart dropped every time he heard that another migrant miner home from South Africa had died from tuberculosis (TB) due...

Company news in brief

3 days ago - 28 October 2020 | Business

IDC’s investments take big hitSouth Africa's state-owned Industrial Development Corporation (IDC) said it would diversify its equity investments after reporting on Monday a sharp decline...

Shifeta: Tourism revival ongoing

4 days ago - 27 October 2020 | Business

The latest relaxation of travel controls does not mean the end of the International Tourist Revival Initiative (TRI). This is according to tourism minister Pohamba...

Latest News

Agra recovers from dry profit...

1 day - 30 October 2020 | Business

A N$56-million increase in revenue from contracts with customers helped to boost Agra Limited's operating profit for its past financial year by nearly 7% to...

Okonjo-Iweala closer to making history

1 day - 30 October 2020 | Economics

Key WTO ambassadors have tapped Nigeria's Ngozi Okonjo-Iweala as the best pick to lead the organisation, but she was opposed by the United States. Washington...

How SME businesses can be...

1 day - 30 October 2020 | People

Johanna Kambala 1. Where to find tender opportunitiesThere are various procurement methods identified in the PPA, hence the type of procurement method will determine...

Going back to her roots

1 day - 30 October 2020 | People

Michelline NawatisesSybil Somaes is the managing director of Compli-Serve Namibia, based in Windhoek and has experience primarily spent in Namibian financial services. She was instrumental...

Saints and sinners

1 day - 30 October 2020 | Education

KENYA KAMBOWESHAMBYULearners at one of the top schools in the country, St Boniface College in the Kavango East Region, have described the school’s principal, Mary...

PDM MPs face the chop...

1 day - 30 October 2020 | Politics

STAFF REPORTERWINDHOEKSix Popular Democratic Movement (PDM) members are facing an exit from the National Assembly after the Supreme Court closed a matter in which the...

Tiaan Langenegger

1 day - 30 October 2020 | Art and Entertainment

YANDI DU PLESIS WINDHOEK While South African chef Tiaan Langenegger first made headlines in 2013 when he was crowned the co-winner...

The importance of domestic travel

1 day - 30 October 2020 | People

Michelline NawatisesThe property connoisseurs and award-winning travel bloggers, Lisette and Liselle So-Oabes, share their knowledge in a question-and-answer about travelling.The travel bug bit the two...

Bumper grape harvest expected

1 day - 30 October 2020 | Agriculture

ELLANIE SMITWINDHOEKThe strong growth experienced in the grape sector will not be sufficient to balance the effect of the weak performance of the livestock sector.Therefore,...

Load More