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Employment Policy Convention, 1964 (No. 122) - Namibia (RATIFICATION: 2018)

The Committee notes the Government’s first report.

Articles 1 to 3 of the Convention. Formulation and implementation of an active employment policy. Consultations with the social partners. The Committee observes that, according to the Harambee Prosperity Plan II 2021-2025 (HPPII), despite stable economic growth, Namibia faces a high prevalence of low wages, low labour market participation rates and high unemployment. For instance, mining and quarrying represent 10 per cent of GDP and 56 per cent of exports, but only 2 per cent of employment. At the other extreme, agriculture, forestry and fishing represent 7 per cent of GDP and approximately 30 per cent of employment. The Committee notes the set of measures adopted by the Government in the framework of different national policies with a view to promoting employment and sustainable economic growth. The Government refers to the launching of the National Employment Policy (NEP) in 2013 under the theme of “creating productive and decent employment for all our people”. The Government indicates that the NEP was designed to operationalize the “Namibia Vision 2030-Policy Framework for Long-Term National Development” (hereinafter Vision 2030) and its National Development Plans (NDPs). The NEP objectives were also taken into consideration in the formulation of the Harambee Prosperity Plans I and II. The Government adds, however, that the goals the NEP were not attained, as illustrated by the increase in the unemployment rate. The Committee observes that Vision 2030, adopted in 2014, outlines Namibia’s overall development goals and strategies and guides its five-year development plans. It includes among its main goals achieving full and gainful employment and providing full and appropriate education at all levels. These objectives are outlined in the Fifth National Development Plan (NDP5), which was implemented between 2017–18 and 2021–22. The NDP5 provided for the implementation of measures to grow the economy, create employment and reduce poverty and inequality, and to create a skilled workforce. The NDP5 established as a target reducing unemployment from 28 per cent in 2014 to 24 per cent in the period 2021–22. According to information available on the website of the Office of the President, the formulation process of the Sixth National Development Plan (NDP6) was launched on 22 June 2023, and broad consultations took place in this regard from 2 August to 30 September 2023. The Committee further notes the implementation of the Harambee Prosperity Plan (II) 2021-25 (HPPII), which sets out short- to medium-term goals and strategic actions to accelerate national development toward Vision 2030. The HPPII envisages the adoption of measures aimed at enhancing productivity of priority economic sectors, such as identifying and prioritizing investment into projects with high employment creation opportunities and unlocking the economic potential of the agricultural sector. Moreover, the Namibian Decent Work Country Programme (DWCP) (2019–23) envisages the implementation of measures to promote employment creation, including improving policies and programmes to support decent employment and economic opportunities, particularly for youth and women; and strengthening institutional mechanisms for employment promotion initiatives. Lastly, the Committee observes that, according to information available on the United Nations (UN) Namibia website, a training workshop to inform Namibia’s 3rd National Employment Policy (NEP3) was held from 1 to 4 March 2022 in Windhoek with the support of, among other actors, the ILO and UN Namibia. During the workshop, it was agreed the development of a roadmap towards the formulation of the NEP3. The Committee requests the Government to provide detailed updated information on the impact of the measures adopted in the framework of the Harambee Prosperity Plan (II) 2021–25 (HPPII), and the Namibian Decent Work Country Programme (DWCP) (2019–23), as well as other active labour market measures adopted with the objective of creating opportunities for decent, productive, and sustainable employment.It also requests the Government to provide information on the status of the adoption of the Namibia’s 3rd National Employment Policy (NEP3) and the Sixth National Development Plan (NDP6), and to provide copies once these have been adopted. Lastly, the Committee requests the Government to continue to provide information on the manner in which the experience and views of the social partners and representatives of persons affected by the measures (such as women, young persons, persons with disabilities, rural workers, and ethnic minorities) have been taken into account in the formulation and implementation of employment policies and programmes, and the outcome of this process.

Informal economy. Harnessing the potential of micro, small and medium enterprises (MSMEs) formalization. The Committee notes from the DWCP, that in the absence of formal employment opportunities, informal employment has grown significantly over the years. According to the 2018 Labour Force Survey (LFS), 57.7 per cent of the population was in informal employment (61.2 per cent for women and 54.1 per cent for men). By sectors, informal employment was particularly widespread in agriculture (87.6 per cent), private households (91 per cent), aaccommodation and food service activities (68.6 per cent) and construction (65.3 per cent). The DWCP envisages the development, adoption and implementation of a national policy and programme for facilitating transition to formality, and the adoption of key legislative or regulation reforms to promote an enabling environment for sustainable enterprises. The Committee further notes from the DWCP that, despite the sizeable increase MSMEs and their contributions to jobs, most MSMEs are fragile and experience challenges that discourage investment, entrepreneurship, job creation, and firm competitiveness. The NDP5 highlighted that the challenges include limited access to business development services and financing due to high interest rates and lack of information on the availability of financial services and products. Against this background, the NDP5 provided for the implementation of measures to create a conductive business environment by the establishment of accessible one-stop business service centres, to ensure efficient business processes, and to accelerate SME development through providing government-sponsored services to support and incubate new business, to raise awareness about how to start and grow an SME, and to improve access to financing for entrepreneurs. The Committee also notes that an Enabling Environment for Sustainable Enterprises (EESE) assessment carried out in 2017 identified as key business environment improvements, the need to create an enabling legal and regulatory environment and to build an entrepreneurial culture among Namibians, especially among young persons.

The Committee observes that with nearly 60 per cent of the employed population in informal employment, the majority of which being women, there is clear evidence of a growing enclave economy characterized by the co-existence of two radically distinct parts, a modern or formal segment employing a small proportion of the economically active and a growing informal economy employing the bulk of the economically active working-poor. In such circumstances, the Committee considers it of utmost importance to mobilize the potential offered by an integrated employment policy relayed by an effective network of employment services and data collection capacities. The Committee emphasizes that it is also crucial to coordinate employment policy with other public policies such as, notably, tax and social protection policies, in order to create favorable conditions incentivizing productive units and their workers to transit from the informal to the formal economy. In this context, it notes with interest the above measures announced by the Government as well as the National Policy on Micro, Small and Medium Enterprises in Namibia (2016-2021) aiming at fostering sustainable employment creation and income generation through training, improved access to finance, technology and markets, enhanced capacity to innovate, and improved entrepreneurial skills. Considering the strong formalization potential as well as productivity increases resulting from MSMEs emergence, the Committee requests the Government to provide detailed updated information on the nature and the impact of the measures taken to support MSMEs and formal job creation in this sector, including statistical information on the number and type of MSMEs established and the number of jobs created.It also requests the Government to indicate the results of such measures in reducing informality. Finally, the Committee also draws the Government’s attention to the guidance provided in the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204) and requests the Government to provide detailed updated information on the size and composition of the informal economy as well as on the nature and the impact of the measures adopted to facilitate the transition to the formal economy, including in rural areas.

Rural employment. The Committee notes the recognition by the NDP5 that rural economic development is crucial since most farming and tourism activities take place in rural areas and more than half of the population live in these areas (57.9 per cent). The NDP5 consequently calls for the adoption of measures to improve rural development through sustainable infrastructure and developing and promoting community-based and social enterprises. The DWCP envisages the adoption of measures to support the implementation of programmes for mass employment creation in the informal and rural economies, and to explore opportunities in the green economy. The Committee requests the Government to provide information on the impact of the measures taken to generate growth and create jobs in rural areas, particularly to promote self-employment and entrepreneurship for women and men, including those adopted in the framework of the DWCP.

Article 2. Labour market statistics and information. The Government indicates that the Namibia Statistics Agency (NSA) conducts labour force surveys every two years, in collaboration with the Ministry of Labour, Industrial Relations and Employment Creation (MLIREC). The Committee notes that Vision 2030 provides for the adoption of measures to strength the existing institutions responsible for generating data and information for development planning; and to ensure an integrated statistical system that provides quality and sound data and statistics. The Committee notes from the DWCP that, despite the efforts undertaken by the NSA and other actors such as the ILO to meet the demands of labour statistics at the national level, there are still significant gaps in decent work indicators, particularly in relation to the growing informal economy. In this regard, the DWCP sets out among its outputs the strengthening of the labour market statistics and information systems using international statistical standards. With regard to the labour market trends, according to the Namibia Labour Force Survey (LFS) 2018 Report, in 2018, there were 752,742 employed persons (361,508 men and 364,234 women). The employment-to-population ratio (EPR) was 47.4 per cent (49.6 per cent for men and 45.3 per cent for women). In urban areas, the EPR was 50.2 per cent, while in rural areas was 44.1 per cent. By region, the highest employment-to-population ratio by region was in Erongo (56.9 per cent), Khomas (52.6 per cent) and Ikaras (50.1 per cent), while the lowest was in Kavango East (32.9 per cent), Ohangwena (41.4 per cent) and Kunene (41.8 per cent).The sector of elementary occupations had the highest share of employed persons (29.1 per cent), followed by skilled agriculture (15.2 per cent), services, and sales (14.6 per cent) and craft and related trade (12.3 per cent). Concerning the unemployment rate, the Government indicates that, in 2018, it was at 33.4 per cent (32.5 per cent for men and 34.3 per cent for women). In rural areas, the unemployment rate was 33.5 per cent and 33.4 per cent in urban areas.

The Committee wishes to recall that coupled to an integrated and transformative employment policy and an efficient public employment service, effective and reliable data collection mechanisms represent a key component of the set of measures conducive to formalization and to achieve full, productive and freely chosen employment. Respectively, the Employment Service Convention, 1948 (No. 88), and the Labour Statistics Convention, 1985 (No. 160), jointly with the present Convention and the Private Employment Agencies Convention, 1997 (No. 181), provide (together with their respective accompanying Recommendations) key guidance in putting in place the measures needed to secure sustainable economic growth and promote decent work creation. The Committee therefore wishes to draw the Government’s attention to the possibility to mobilize the potential of recently launched ILO tools such as the Employment Policy Design Lab, which was created as a space to showcase approaches, tools and good country practices that can support policymakers develop and implement more effective employment policies compliant with ILO standards in this subject area. This new tool comprises special thematic focuses on key areas for policy innovation, including as regards the use of employment services to support transitions but also more broadly on designing pro-employment macroeconomic, sectoral policies and budgeting as well as employment policies conducive to green recovery and youth employment and that harness the potential of digitalization. The Committee welcomes the measures adopted by the Government so far and would like to receive information about future measures aimed at ensuring the best possible organization of the employment market as an integral part conducive to the achievement and maintenance of full employment and the development and use of productive resources (Articles 1 and 2 of the Convention), in cooperation with the social partners (Article 3). More particularly, the Committee requests the Government to provide detailed updated information on the impact of measures taken to improve the labour market information system. It also requests the Government to indicate the manner in which the labour market information obtained is used, in collaboration with the social partners, for the formulation, implementation, evaluation and modification of evidence-based active labour market measures. The Committee further requests the Government to continue to provide up-to-date statistical information on employment trends, including on employment, unemployment, and visible underemployment, disaggregated by sex and age.

Contribution of the employment service to employment promotion. The Government refers to the Employment Service Act, Act No. 8 of 2011, establishing the National Employment Service (NES) to provide professional labour market services to achieve full, productive and decent employment. The Government provides a copy of the 2019/20 Annual Report of the Employment Services Board, which contains information on the activities undertaken by the NES. These activities included the development of a communication strategy to create more awareness and understanding of the services provided; the drafting of proposed amendments to the Employment Service Act; and the provision of training to employers and relevant institutions on their obligation to report job vacancies in accordance with the Employment Service Act. Measures were also taken with ILO assistance to enhance the public employment services, including upgrading and strengthening the online job matching system (NIEIS). According to the 2019/20 Annual report, between the period 2018/19 and 2019/20, 9,708 jobseekers were registered on the NIEIS for job matching, while 1,841 vacancies were reported, and 395 jobseekers were placed. The Employment Services Bureau registered 158 designated employers required to report vacancies to the Bureau.

Taking note of the above, the Committee wishes to emphasize that having an efficient public employment service capacitates countries to provide more intensive support for disadvantaged groups, especially those working in the informal economy or at risk of slipping into long-term unemployment or continued inactivity. In addition, partnerships with workers’ and employers’ organizations, even if they are informal, also ensure that skills training provided by the employment service is tailored to the immediate and medium-term needs of the labour market. Civil society organizations can play a helpful role too, since they often have a close connection to target groups and possess the agility to communicate and try out solutions on the ground. Moreover, the Committee observes that a number of countries have introduced income support schemes for informal workers falling into unemployment and which register with the public employment service. In low- and middle-income countries, where a large proportion of economic activities are informal, employment services often provide support as regards entrepreneurship and self-employment. With reference to the above, the Committee requests the Government to continue to provide information on the nature of the measures adopted to improve the quality and the use of employment placement and guidance services, including in rural areas, as well as information disaggregated by age and sex on the impact of such measures. It also requests the Government to provide information on the status of the revision of the Employment Service Act, and to provide a copy once it is adopted. The Committee further requests the Government to provide information on whether and how the public employment service, in combination with active labour market policies, is used as a means to foster the transition from the informal to the formal economy.

Education and training. The Committee notes from the DWCP that Namibia has a shortage of qualified workers in the labour market, and education and training outcomes remain below expected standards. The DWCP emphasizes that the technical and vocational education and training (TVET) system is fragmented between different providers and has weak linkages with basic and higher education, and between its own components. According to the NDP5, a major issue is the lack of technical skills in the labor force. Enrolment in TVET represents half of the enrolment of the country’s three universities, and TVET provision is inadequate in terms of access and, in many cases, quality. Against this background, the NDP5 provided for the implementation of measures to raise TVET’s brand identity and profile, and make it more accessible by expanding existing Vocational Training Centres (VTCs) and Community Skills Development Centres (COSDECs) and creating new ones. The NDP5 also contemplated engaging the industry to improve participants’ employability by offering work-based learning opportunities (such as apprenticeship and trainee schemes) and initiating partnerships between TVET centres and enterprises. The HPPII also envisages the implementation of measures to improve and expand education infrastructure and to improve the quality of higher education and TVET, including the adoption of the National Human Resource Development Strategy and its Implementation Plan, the establishment of Industry Skills Committees within all universities to enable private sector contribution to curriculum reform, and the establishment of new TVET centers with production hubs at Khorixas, Nkurenkuru, Keetmanshoop, and Omuthiya. Concerning access to higher education opportunities, the NDP5 emphasizes that they are low, particularly for students from poor and rural communities and marginalized groups. In addition, higher education linkages with the labour market are weak, which impacts negatively on the relevance of the training programmes and the students’ employability. The NDP5 provided for the adoption of measures aimed at widening access to higher education through equity and inclusion; improving quality of teaching and learning in universities; and promoting private sector investment in higher education. Lastly, the Government indicates that Sector Skills Committees have been established to meet the requirements for key industry sectors and overcome skills mismatches. The Committee requests the Government to provide detailed updated information on the impact of the programmes and measures adopted in the fields of education and training and to explain how they will contribute to the promotion of future employment opportunities, including those adopted in the framework of the HPPII. It also requests the Government to provide information on the nature and impact of the measures adopted to improve the employability of groups vulnerable to decent work deficits (such as young persons, women, persons with disabilities and members of marginalized groups). In addition, the Committee requests the Government to provide information on the functioning of the Sector Skills Committees and the status of adoption of the National Human Resource Development Strategy and its Implementation Plan, and to provide a copy once they have been adopted.

Groups vulnerable to decent work deficits. The Committee notes that the Government refers to the Affirmative Action Act, Act No. 29 of 1998, which establishes measures to redress through appropriate affirmative action plans the conditions of disadvantage in employment experienced by persons in designated groups arising from past discriminatory laws and practices, and instituting procedures to contribute towards the elimination of discrimination in employment. Section 18 of the Act establishes as preferential groups: racially disadvantaged persons, women, and persons with disabilities. Section 17(2) provides that affirmative measures may include identifying and eliminating employment barriers against persons in the designated groups, adopting positive measures to further their employment opportunities, and implementing reasonable accommodation in the workplace for persons with disabilities. In this regard, the Committee refers to its 2022 observation concerning the implementation of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), where it noted that Act No. 29 of 1998 was in the process of being amended. The Committee further notes that the NDP5 included among its targets to increase women’s employment rate and to ensure that women are integrated into the formal economy. To achieve these objectives, the NDP5 envisaged implementing measures to, inter alia, mainstream informal businesses led by women by ensuring financial inclusion for women in MSME, especially in agri-business, blue economy and extractive industries. In addition, the NDP5 highlighted that the San, Ovatue, and Ovatjimba are community groups disproportionately affected by poverty and provided for the adoption of measures to improve education and training of these communities and to ensure their sustainable livelihood. Lastly, the Committee notes from the DCWP that unemployment among persons with disabilities is higher than the national average leading to higher rates of poverty and increased dependency. The Committee requests the Government to provide detailed updated information, including statistical data disaggregated by sex, age and region, on the nature and impact of the measures and programmes implemented to promote the employment of groups vulnerable to decent work deficits, including women, persons with disabilities and members of theSan, Ovatue, and Ovatjimba communities. The Committee refers to its 2022 observation concerning the implementation of Convention No. 111, and requests the Government to provide information on: (i) the actions taken to promote access to employment and occupational training for designated groups and the measures put in place to review regularly the affirmative action measures to assess their relevance and impact; and (ii) the progress made towards the revision of the Affirmative Action (Employment) Act 1998, amended in 2007.

Young persons. The Committee observes that, according to ILOSTAT, in 2018, the youth unemployment rate was 38 per cent (37.5 per cent for men and 38.5 per cent among women), and the share of youth not in employment, education and training (NEET) was 31.9 per cent (29.4 per cent among men and 34.3 per cent among women). The Committee notes that the NDP5 provided for the implementation of measures to strengthen youth enterprise development and sustainability, such as improving youth access to credit through introducing new and equitable financial instruments and mentorship programs, and coordinating the different services provided by institutions promoting youth enterprise development. Moreover, the DWCP envisages the implementation of measures to facilitate young persons’ access to information and opportunities in the labour market through apprenticeships and entrepreneurship development, and to identify their skills gaps that prevent them from transitioning from school to work. The Committee requests the Government to provide information on the impact of measures taken to promote decent, productive, and sustainable employment for young persons, particularly as regards women, persons with disabilities and unskilled young people. It also requests the Government to provide statistical data, disaggregated by age, sex, and economic sector, on trends in employment, unemployment, and underemployment for young persons.