Report reveals mismatch between workforce and labour market

Chamwe Kaira

A new report on the state of skills supply and demand in Namibia in 2025 has found a persistent mismatch between the skills held by the workforce and those required by the labour market. 

The gap, driven by weaknesses in the education system and fast-changing global trends, continues to limit economic growth, diversification, productivity and competitiveness.

The report was compiled by the Namibia Investment Promotion & Development Board (NIPDB) and its partners. 

It assesses the alignment between skill supply and labour market demand, identifies gaps, evaluates education and training outcomes, supports job creation efforts, and highlights priority areas for skill development.

Namibia’s economy is expected to grow by 3.9% in 2025 as it transitions from a simple to a more complex structure. 

Key growth areas include renewable energy, MSME development, and transport and logistics, as well as the rollout of Fourth Industrial Revolution technologies. 

Despite this, unemployment remains high at 36.9%. Youth unemployment stands at 44.4%, while many sectors still report shortages of critical skills.

The report notes that Namibia’s dependence on imports and a less complex economy limits demand for advanced capabilities and specialised knowledge.

While access to education has improved, concerns remain about quality and relevance across basic education, Technical and Vocational Education and Training (TVET) and higher education. 

Completion of secondary education increased from 20.5% in 2011 to 24.8% in 2023. Tertiary education attainment rose from 5.8% to 11.8% over the same period but remains short of labour market needs.

High underperformance in national exams continues to weaken the supply of qualified learners. 

Nearly 80% of candidates failed the Namibia senior secondary certificate ordinary (NSSCO) and Namibia senior secondary certificate advanced subsidiary level (NSSCAS) exams in 2023, shrinking the pool of candidates ready for further study or skilled jobs.

The TVET sector, central to skills development, also struggles with low throughput. In 2020, only about 14% of enrolled students graduated. 

TVET provides skills in manufacturing, construction, administration and tourism, but curriculum alignment with emerging labour market demands, especially digital technology, remains limited.

Higher education faces similar challenges. Graduation numbers remain low and inconsistent, pointing to system inefficiencies. 

The report found an oversupply of graduates in business management, health and social services, education and training, and public administration. 

At the same time, high-growth sectors such as agriculture, wholesale and retail trade, and manufacturing lack skills in agriculture and nature conservation, engineering, manufacturing and physical planning.

The report says stronger cooperation between government, training institutions, industry and the public is needed to close the skills gap and support the country’s development goals.

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A new report on Namibia’s skills supply and demand shows an oversupply of graduates in fields such as business management, health and social services, and education and training.

  • Photo: Contributed

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