More jobs in manufacturing, less in trade
Unit labour costs up
More jobs in manufacturing, less in trade
Employment in manufacturing rose year-on-year in the past quarter, while it decreased in the wholesale and retail trade sector.According to the BoN’s latest Quarterly Bulletin, the manufacturing sector employed 0.9% more workers in the past quarter compared to the same period in 2022.
In contrast, the wholesale and retail trade sector witnessed a decline, with employment dropping by 0.8% year-on-year (y/y).
The downturn in the wholesale and retail trade sector was particularly pronounced in clothing and vehicle subsectors, the BoN said.
On a quarterly basis, the manufacturing sector continued its upward trajectory, registering a 1.7% increase in employment. Meanwhile, the wholesale and retail trade sector faced a 0.3% decline in employment during the same period.
Wages
The wholesale and retail trade sector saw substantial growth in nominal wage bills and average wages on a yearly basis, increasing by 5.9% and 4.7%, respectively.
This uptick aligns with the sustained growth in real turnover within the sector during the quarter, indicating consistent consumer demand for goods, according to the BoN.
However, on a quarterly basis, while the nominal wage bill increased by 3.2%, average wages experienced a 1.5% decrease.
Similar wage dynamics were observed in the manufacturing sector during the past quarter.
Y/y, the nominal wage bill and average wages in the manufacturing sector rose by 2.2% and 1.3%, respectively.
However, on a quarterly basis, the nominal wage bill increased by 0.8%, while average wages saw a slight decrease of 0.9%.
Unit labour costs
A critical factor affecting the manufacturing sector's competitiveness in the export market is the unit labour costs.
In the past quarter, the manufacturing sector faced a substantial y/y increase of 10.6% in unit labour costs, primarily driven by a decline in output per worker and increased average wages in various subsectors, according to the BoN.
However, quarter-on-quarter, there was a marginal decrease of 0.6%.
This rise in unit labour costs poses challenges to the competitiveness of Namibian products in the global export market, the BoN said.