Jobs massacre witnessed in 2020
Jobs massacre witnessed in 2020

Jobs massacre witnessed in 2020

Only about 23% of total retrenchments last year were Covid-related, the rest could mainly be attributed to Namibia’s flailing economy.
Jo-Mare Duddy Booysen
Jo-Maré Duddy – More than 12 000 workers lost their jobs last year as the on-going recession and impact of Covid-19 forced nearly 1 000 employers to cut back or close down.

According to quarterly reports released by the ministry of labour, industrial relations and employment creation, 9 884 or 427% more workers were retrenched in 2020 than the previous year. A total of 12 201 people were retrenched last year.

The ministry’s reports show the second quarter from April to June, which included the national lockdown, saw the most severe haemorrhage of jobs.

In total, 388 employers retrenched 5 748 workers – an increase of more than a 1 000% compared to the same quarter in 2019 when only 485 workers were retrenched by 68 employers.

The impact of the pandemic, however, wasn’t the main culprit, the stats show.

Only 32% of retrenchments or 1 816 job losses were due to Covid-related reasons, the ministry’s executive director, Bro-Matthew Shinguadja, said in his report. The remaining 3 932 were “due to other reasons”, he said, describing the total number of retrenchments as “massive”.

Only about 23% of total retrenchments last year were Covid-related, the ministry said.

STRUGGLE CONTINUES

The ministry’s data show businesses’ uphill battle already started intensifying in the last quarter of 2019 when retrenchments jumped to 853 from 465 and 485 in the previous two quarters. “The economic turndown still hunts the country, as many people find themselves retrenched by their employers,” Shinguadja commented in the report.

The first three months of 2020 saw 1 946 retrenchments by 144 employers, the biggest number in a single quarter in the past five years.

“The world has been economically challenged by the emerging of Covid-19, which has directly affected the economies. Therefore, a lot is anticipated in labour and employment sector, unless the situation is contained rapidly,” Shinguadja said at the time.

From July to the end of September, 320 employers retrenched 3 484 workers in total, spiking by nearly 650% compared to the third quarter of 2019. According to Shinguadja: “The impact of Covid-19 on employment in the country is evident enough and the retrenchment still haunts the workforce due to Covid-19 and other contributing factors.”

The last three months of 2020 saw the lowest number of retrenchments with 146 employers cutting back on 1 023 workers in total. Compared to the fourth quarter of 2019, jobs were reduced by nearly 20%.

SEEKERS

Registration on government’s database for jobseekers shows the ongoing battle of the unemployed.

In 2019, a total of 10 139 jobseekers were registered on the Namibia Integrated Employment Information System (NIEIS) of the ministry. Last year, registrations totalled 9 339.

The Employment Services Act of 2011 requires all employers in Namibia with 25 or more employees to report vacancies or new positions to the Employment Service Bureau (ESB) at the ministry, which then distributes the information.

Last year, 3 215 vacancies were reported. The ministry, however, could only place 9.2% or 297 registered jobseekers.

In 2019, 1 808 vacancies were reported to the ESB, of which 523 jobseekers or 29% were placed.

UNEMPLOYMENT

Analysts agree that around 40% of Namibia’s workforce currently is unemployed following years of negative or poor economic growth, exacerbated by the impact of the Covid-19 pandemic.

“We could easily see the number of unemployed in the region of 430 000 people, given the unemployment rate was around 33.4% in 2018, the [subsequent] increase in unemployment and the increase in the working-age population,” IJG Securities told Business7.

This is nearly 70 000 more than in 2018 when the Namibia Statistics Agency (NSA) conducted its last labour force survey. The average household in Namibia has four people, implying that about 1.7 million people could be affected by an unemployment rate of 40%.

A survey conducted last year by the Economic Policy Research Association (EPRA) found that 63% of businesses believe unemployment will increase substantially over the next five years.

According to the United Unemployed Educators Movement (UUEM), backed by the Teachers Union of Namibia (TUN), 400 applicants are invited for interviews for a single teaching post.

The group last month handed over a petition to the Office of the Prime Minister (OPM) bemoaning its predicament, Nampa reported.

New Era this week reported that 400 applicants attended preliminary interviews for a cleaner position at Omuthiya in the Oshikoto region.

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Namibian Sun 2024-05-10

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Katima Mulilo: 13° | 33° Rundu: 13° | 33° Eenhana: 14° | 34° Oshakati: 16° | 33° Ruacana: 17° | 34° Tsumeb: 17° | 31° Otjiwarongo: 15° | 31° Omaruru: 18° | 32° Windhoek: 16° | 28° Gobabis: 16° | 30° Henties Bay: 14° | 20° Wind speed: 24km/h, Wind direction: S, Low tide: 10:44, High tide: 04:42, Low Tide: 22:59, High tide: 17:11 Swakopmund: 15° | 17° Wind speed: 31km/h, Wind direction: SW, Low tide: 10:42, High tide: 04:40, Low Tide: 22:57, High tide: 17:09 Walvis Bay: 16° | 23° Wind speed: 36km/h, Wind direction: S, Low tide: 10:42, High tide: 04:39, Low Tide: 22:57, High tide: 17:08 Rehoboth: 16° | 29° Mariental: 18° | 30° Keetmanshoop: 13° | 29° Aranos: 18° | 30° Lüderitz: 13° | 27° Ariamsvlei: 10° | 25° Oranjemund: 13° | 20° Luanda: 25° | 28° Gaborone: 15° | 31° Lubumbashi: 14° | 30° Mbabane: 16° | 25° Maseru: 11° | 25° Antananarivo: 13° | 23° Lilongwe: 16° | 28° Maputo: 18° | 29° Windhoek: 16° | 28° Cape Town: 13° | 17° Durban: 19° | 24° Johannesburg: 17° | 26° Dar es Salaam: 23° | 31° Lusaka: 17° | 30° Harare: 14° | 28° Currency: GBP to NAD 23.04 | EUR to NAD 19.85 | CNY to NAD 2.55 | USD to NAD 18.41 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.31 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.66 | ZWL to NAD 0.04 | BRL to NAD 3.58 | RUB to NAD 0.2 | INR to NAD 0.22 | USD to DZD 133.93 | USD to AOA 834.06 | USD to BWP 13.6 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1439.8 | USD to ZAR 18.42 | USD to ZMW 26.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 77539.13 Up +0.47% | Namibian Stock Exchange (NSX) Overall Index 1733.43 Up +1.10% | Casablanca Stock Exchange (CSE) MASI 13478.23 Up +0.44% | Egyptian Exchange (EGX) 30 Index 26003.16 Up +0.05% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 369.26/OZ UP +0.96% | Copper US$ 4.61/lb UP +0.96% | Zinc US$ 2 944.60/T UP 0.88% | Brent Crude Oil US$ 84.55/BBP DOWN -0.0014 | Platinum US$ 997.76/OZ UP +1.26% Sport results: Weather: Katima Mulilo: 13° | 33° Rundu: 13° | 33° Eenhana: 14° | 34° Oshakati: 16° | 33° Ruacana: 17° | 34° Tsumeb: 17° | 31° Otjiwarongo: 15° | 31° Omaruru: 18° | 32° Windhoek: 16° | 28° Gobabis: 16° | 30° Henties Bay: 14° | 20° Wind speed: 24km/h, Wind direction: S, Low tide: 10:44, High tide: 04:42, Low Tide: 22:59, High tide: 17:11 Swakopmund: 15° | 17° Wind speed: 31km/h, Wind direction: SW, Low tide: 10:42, High tide: 04:40, Low Tide: 22:57, High tide: 17:09 Walvis Bay: 16° | 23° Wind speed: 36km/h, Wind direction: S, Low tide: 10:42, High tide: 04:39, Low Tide: 22:57, High tide: 17:08 Rehoboth: 16° | 29° Mariental: 18° | 30° Keetmanshoop: 13° | 29° Aranos: 18° | 30° Lüderitz: 13° | 27° Ariamsvlei: 10° | 25° Oranjemund: 13° | 20° Luanda: 25° | 28° Gaborone: 15° | 31° Lubumbashi: 14° | 30° Mbabane: 16° | 25° Maseru: 11° | 25° Antananarivo: 13° | 23° Lilongwe: 16° | 28° Maputo: 18° | 29° Windhoek: 16° | 28° Cape Town: 13° | 17° Durban: 19° | 24° Johannesburg: 17° | 26° Dar es Salaam: 23° | 31° Lusaka: 17° | 30° Harare: 14° | 28° Economic Indicators: Currency: GBP to NAD 23.04 | EUR to NAD 19.85 | CNY to NAD 2.55 | USD to NAD 18.41 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.31 | EGP to NAD 0.38 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.66 | ZWL to NAD 0.04 | BRL to NAD 3.58 | RUB to NAD 0.2 | INR to NAD 0.22 | USD to DZD 133.93 | USD to AOA 834.06 | USD to BWP 13.6 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1439.8 | USD to ZAR 18.42 | USD to ZMW 26.97 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 77539.13 Up +0.47% | Namibian Stock Exchange (NSX) Overall Index 1733.43 Up +1.10% | Casablanca Stock Exchange (CSE) MASI 13478.23 Up +0.44% | Egyptian Exchange (EGX) 30 Index 26003.16 Up +0.05% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 369.26/OZ UP +0.96% | Copper US$ 4.61/lb UP +0.96% | Zinc US$ 2 944.60/T UP 0.88% | Brent Crude Oil US$ 84.55/BBP DOWN -0.0014 | Platinum US$ 997.76/OZ UP +1.26%