c) Economic fluidity
d) Recession
SECTION B
[26]
Question 2: Read the extract below and answer the questions that follow:
According to the 2008 Namibia Labour Force Survey, Namibia has one of the highest
unemployment rates (broadly defined) in the world, particularly among its youth population.
This means more than half of Namibia's economically active population is unemployed, posing
major social, political and economic risks, as such high unemployment can yield devastating
effects on social exclusion, crime, and economic welfare, erosion of human capital, death,
misery and social instability.
On the hand, those who are working are said to be struggling to make ends meet. Although
earning a salary, most of the Namibian workers are lowly paid, making it difficult to cover basic
needs for themselves and their dependants. Labour market data display that the majority of
these workers are depressed, disengaged and unmotivated.
Adopted from: Mwinga, (2012, First Capital working papers)
2.1 Identify the social issue mentioned in the case study?
( 1)
2.2 The question of whether to introduce a national minimum wage is being discussed in the
Namibian labour market. Discuss what could be the benefits of introducing a national minimum
wage in Namibia.
(10)
2.3 There are many actors and stakeholders in the employment relationship. Explain how the
following primary actors can minimise the social problem you mentioned in 2.1.
(15)
a) The state
b) Youth
c) Employed persons
3