unemployment rate in namibia pdf

The Journal of Middle East and North Africa Sciences, Global Research Network, American Journal of Economics and Business Management, Is Monetary Policy or fiscal policy more effective in Economic Growth in Pakistan. Download. More, Rasna (2010) used Cointegration and Granger causality econometric analysis to determine the applicability of the Phillips Curve to Bangladesh by employing the macroeconomic time series data running from 1995-96 to 2009-2010 to test whether there exists a short-run or a long-run Phillips curve in Bangladesh. Some workers are looking for jobs, and some employers are looking for workers. Empirical results showed evidence of a long run positive effect of fiscal deficit on inflation in Namibia. Journal of Economics and Behavioral Studies, This paper examines how government expenditure and money supply affect unemployment in Namibia. Additionally, an evidence of both long and short-run causality from government expenditure and money supply to unemployment is found. The public sector wage bill remained high, taking public debt to 67% of GDP. In Year 2 the total labor force numbers 23.4 million workers; therefore the unemployment rate is 2.4/23.4 = 10.3%. Figure 5.4 Computing the Unemployment Rate. American Economic Review, 50(2), 177194. Ogbokor (2005) related his findings to the actual situation when inflation and unemployment were instantaneously increasing. The results reveal a trade-off between the variables, confirming the existence of the Phillips Curve in Namibia. PDF Namibia QER Q4 2020 A pairwise Granger causality test was used to establish the causal relationship between inflation and unemployment. Phillips curves, expectations of inflation and optimal employment over Economica, 34 (135), 254-281. How Fiscal Policy Affects Non-Oil Economic Performance in Azerbaijan? Still, 2022 marked the second consecutive decline of the youth unemployment. While unemployment was very low in the beginning of the twentieth century, fluctuations were observed through two recessions in 1915 and 1921 (ILOSTAT database 2021). The Bureau of Labor Statistics defines a person as unemployed if he or she is not working but is looking for and available for work. Asides from that, Dritsaki and Dritsaki (2013) investigated the relationship between inflation and unemployment in Greece using annual data from 1980 to 2010 to examine the long-run relation for the case of Greece. PDF Space-time Modelling of Unemployment Rate in Namibia a Thesis Submitted This study comes at an important time in Nigeria when the economy just exited a recession and is still experiencing low production and rising unemployment. A worker who has been cut back to part-time work still counts as employed, even if that worker would prefer to work full time. Journal of Asian Finance, Economics and Business, 6(2), 269-275. Define three different types of unemployment. Many state agencies, for example, serve as clearinghouses for job market information. Unemp = _0 + _1 Inf, where _0 is the constant while _1 represents the coefficient of the variables. Making your research visible helps you leap into new research opportunities. Each variable is independent of the other, and, Two-way causality between inflation and unemployment. Over the past five years, the Namibian economy registered an average growth rate of 4.3 percent. This paper examined the impact of fiscal deficit on inflation in Namibia. Similarly, a unit increment in the unemployment rate is interlinked with a decrease of about 8% in the inflation rate. What is their evidence? The loss of a job can wipe out a households entire income; it is a more compelling human problem than, say, unemployed capital, such as a vacant apartment. Enter the email address you signed up with and we'll email you a reset link. 2.3 Applications of the Production Possibilities Model, 4.2 Government Intervention in Market Prices: Price Floors and Price Ceilings, 5.1 Growth of Real GDP and Business Cycles, 7.2 Aggregate Demand and Aggregate Supply: The Long Run and the Short Run, 7.3 Recessionary and Inflationary Gaps and Long-Run Macroeconomic Equilibrium, 8.2 Growth and the Long-Run Aggregate Supply Curve, 9.2 The Banking System and Money Creation, 10.1 The Bond and Foreign Exchange Markets, 10.2 Demand, Supply, and Equilibrium in the Money Market, 11.1 Monetary Policy in the United States, 11.2 Problems and Controversies of Monetary Policy, 11.3 Monetary Policy and the Equation of Exchange, 12.2 The Use of Fiscal Policy to Stabilize the Economy, 13.1 Determining the Level of Consumption, 13.3 Aggregate Expenditures and Aggregate Demand, 15.1 The International Sector: An Introduction, 16.2 Explaining InflationUnemployment Relationships, 16.3 Inflation and Unemployment in the Long Run, 17.1 The Great Depression and Keynesian Economics, 17.2 Keynesian Economics in the 1960s and 1970s, 19.1 The Nature and Challenge of Economic Development, 19.2 Population Growth and Economic Development, 20.1 The Theory and Practice of Socialism, 20.3 Economies in Transition: China and Russia, Nonlinear Relationships and Graphs without Numbers, Using Graphs and Charts to Show Values of Variables, The Aggregate Expenditures Model and Fiscal Policy. The Relationship Between Inflation and Unemployment in Namibia Within the Framework of the Phillips Curve. Namibia Unemployment Rate | Moody's Analytics Published by the Namibia Statistics Agency P.O. They argue that during the recession permanent rather than temporary layoffs predominated and that it takes longer for firms to hire workers into new positions than to hire them back into former jobs. In Year 1 the total labor force includes 22 million workers, and so the unemployment rate is 2/22 = 9.1%. Learn more about how Pressbooks supports open publishing practices. The current overall unemployment rate stands at an alarming 51.2%. Even if employment is at the natural level, the economy will experience frictional and structural unemployment. Samuelson, P. A., & Solow R. M. (1960). The applicability of the Short-run Phillips curve to Namibia. Namibia unemployment rate for 2021 was 21.68%, a 0.23% increase from 2020. The unit root tests indicate that the variables were stationary in their level forms, implying the absence of the long-run relationship. Lastly, the t-statistic tests the null hypothesis where the coefficient of zero for the regressor implies that it has no effect on the regressand. The paper employed Autoregressive Distributed Lag Model (ARDL) and Granger causality approach using quarterly data for the period 2002 - 2017. Nepal Rastra Bank has to emphasize monetary policy instruments that help to increase the money supply in the long run and the Ministry of Finance (MoF) should be encouraged to increase spending on capital overheads to broaden and enhance the growth of the economy. MATEC Web of Conferences, 150, 1-5. PREFACE . Therefore, this study was conducted to validate the applicability of the Phillips Curve based on the arguments of these theories with special reference to the Namibian economy. Practical policy implications indicate that in order to effectively combat unemployment problem in Namibia, the study recommends that there is a need for policy makers to ensure that the goal of employment creation is mainstreamed in all relevant fiscal and monetary policies responses in the country. The results support the hypothesis that government expenditure and money supply can be used to contain unemployment. Business cycles may generate additional unemployment. Mapped: Unemployment Forecasts, by Country in 2023 Investigating the relationship between the bank rate, unemployment and inflation: The Phillips Curve in Namibia. Therefore, the Phillips Curve depicts that an increase in one variable results from a decrease in the other variable, denoting the impossibility of simultaneously lowering unemployment and inflation rates (Shaari et al., 2018). Reference to the main document may be mentioned when necessary. If the answer is no, that person is not counted as a member of the labor force. Their results show a negative relationship between inflation and unemployment rates in both the short and long run, validating the notion of the Phillips Curve in high-income countries. Background: Money supply, inflation, and capital expenditure along with others are major issues of consideration for policymakers in developing countries given the need to spark internal demand and to encounter the government's massive fiscal obligations to alleviate poverty and achieve sustainable economic growth. Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Figure 5.5 The Natural Level of Employment. Source: Erica L. Goshen and Simon Potter, Has Structural Change Contributed to a Jobless Recovery? Federal Reserve Bank of New York Current Issues in Economics and Finance 9, no. As expected, direct income tax is inversely related and statistically significant in determining economic growth in the long run. In a nutshell, the relationship between inflation and unemployment is inconclusive for the Namibian economy. His results invalidated the Phillips curve notion by showing a direct relationship between inflation and unemployment in the short run that reflects the presence of stagflation. We see that it has fluctuated considerably. This study is set out to investigate the impact of fiscal policy variables (capital expenditure, recurrent expenditure and direct income tax) on economic growth in Nigeria. (2019) quantitatively examined the nexus between inflation and unemployment rates in Indonesia using the Vector Error Correction Model (VECM) to determine the causality between the variables. The U.S. 2001 recession was mild by historical standards, but recovery in terms of increased employment seemed painfully slow in coming. Deliberately, the study excluded the periods of 2007-2008, as well as 2020-2021, although the data were readily available to avoid misleading results based on the influences of the economic annus horribilis of the financial crisis and Coronavirus disease (COVID-19) pandemic where one variable can rise without a reduction in the other. According to global macro models and analysts at Trading Economics, the youth unemployment rate in Namibia is projected to be around 47.4% in 2023. Even though the study of Ogbokor (2005) did also not encompass the period of the crises, it used a shorter period compared to the period of this study. Mar/23. Following a time of . In this example, both the number of people employed and the unemployment rate rose, because more people (23.4 22 = 1.4 million) entered the labor force, of whom 1 million found jobs and 0.4 million were still looking for jobs. Youth unemployment is a great concern in Namibia due to the increasing rates of unemployment in the country between the periods of 2000-2008. "The Relationship Between Inflation and Unemployment in Namibia Within the Framework of the Phillips Curve.". Nautwima, J.P. and Asa, A.R., 2021. Unemployment Rate - Countries - List | Africa - TRADING ECONOMICS Structural unemployment can also result from geographical mismatches. Also, the findings reveal a significant long-run positive relationship of government spending on education with literacy rate, net primary and gross tertiary enrolment rate. It is discovered that all the variables are integrated at I(1). (2013). In this regard, the study failed to reject the null hypotheses to imply that unemployment does not granger cause inflation and inflation does not granger cause unemployment. Namibia . Keywords: Phillips Curve, Inflation, Unemployment, Unit Root, OLS, Granger, Namibia.

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