Read the following extract and then answer the questions below
Background of Unemployment in Botswana
Between 1991 and 1996, the labour force was growing at 3.4 percent per annum, while rate of
formal sector employment was much lower, at one percent per annum. As a result of this mismatch
between the supply of labour and its demand, unemployment has been on the rise in the 1990s.
The 1991 Population and Housing census reported an unemployment rate of 13.9 percent. This
increased to 21.6 percent in 1994, where it remained almost stable at 21.5 percent in 1996 (CSO,
1997, 1998). The labour force survey shows that 182, 703 of the total labour force or 34.6 percent
were unemployed. Of these unemployed persons, 88,175 or 48 percent were discouraged job
seekers. The survey further revealed that 55 percent of unemployed were in the rural areas. Among
those who were actively seeking employment, 59 percent were in the urban areas, whereas among
the discouraged, 71 percent of them were found in the rural centres.
The problem in the labour market of Botswana is not only that of open unemployment, but there
is also significant underemployment. By Happy Kufigwa Siphambe)
a) State and discuss four (4) of any of the seven (7) major kinds of unemployment that
exist in Botswana (16 marks)
DIPLOMA Assignment
January-June BLR 612 –Labour- Relations
© BOU 2024 Page 8 of 8
b) The case study stated unemployment and underemployment. Differentiate between
unemployment and underemployment. (4 marks)
a) Four major kinds of unemployment that exist in Botswana are:
1. Frictional Unemployment: This is unemployment that occurs when people are in between jobs or are searching for new jobs. In Botswana, this could be due to factors such as mismatch between skills and available job opportunities.
2. Structural Unemployment: This type of unemployment occurs when there is a mismatch between the skills of the workforce and the requirements of the jobs available. This can be seen in Botswana where the labour force is growing at a faster rate than formal sector employment opportunities.
3. Seasonal Unemployment: Seasonal unemployment occurs when certain industries or sectors of the economy experience fluctuations in demand based on seasonal factors. In Botswana, this could be seen in industries such as tourism or agriculture.
4. Youth Unemployment: This type of unemployment specifically affects young people who are entering the workforce for the first time. In Botswana, youth unemployment may be a significant issue due to lack of job opportunities for new entrants to the labour market.
b) Unemployment refers to a situation where individuals who are willing and able to work are unable to find suitable employment. This can be due to various factors such as lack of job opportunities, mismatch between skills and available jobs, or economic downturns.
Underemployment, on the other hand, refers to a situation where individuals are working in jobs that do not fully utilize their skills, qualifications, or abilities. This could be due to factors such as part-time work, being overqualified for the job, or not being able to find full-time employment.
In summary, unemployment is the inability to find suitable employment, while underemployment is working in jobs that do not fully utilize one's skills or qualifications.