Unemployment in PNG 2023 Update: Causes, Effects, and Statistics

Papua New Guinea (PNG) is a country with abundant natural resources and a diverse culture. Despite its rich resources, the country faces high unemployment rates that have become a significant concern. 

This article explores the unemployment situation in PNG, including the causes, effects, and statistics related to unemployment in the country.

What is the unemployment rate in PNG?

The unemployment rate in PNG has been on the rise in recent years. However, PNG statistical office does not have the latest (and up-to-date) facts and figures.

According to Trading Economics, the unemployment rate in PNG was at 4.87% in 2019, which increased to 7.12% in 2020. 

The COVID-19 pandemic and the global economic downturn have contributed to this increase in unemployment rates.

What are the causes of unemployment in PNG?

• Lack of economic opportunities in the country: There are several causes of unemployment in PNG. One of the primary reasons is the need for more economic opportunities in the country. The country heavily relies on extractive industries, such as mining and logging, which do not provide enough jobs to meet the demand. Additionally, PNG has a limited market, which makes it difficult for businesses to expand and create more job opportunities.

• Lack of education and skills training: Another cause of unemployment in PNG is the lack of education and skills training. The education system in PNG is underdeveloped. Many people do not have access to education or vocational training, which limits their job opportunities. Furthermore, the country faces a high rate of youth unemployment due to the lack of job opportunities and a mismatch between the skills of young people and the demands of the labour market.

How many people are unemployed in Papua New Guinea?

The number of unemployed people in PNG is a significant concern. According to Macrotrends, the number of unemployed people in PNG was 238,000 in 2020. This figure includes both the unemployed and those who are underemployed or working in part-time jobs.

In a recent article, the Post Courier article highlighted the high unemployment rate in the NCD, which was reported to be over 20% of the city's population, according to the National Statistical Office. The article cited a lack of job opportunities and skills training as major factors contributing to the problem, and calls for urgent action to address the issue.

What is the female unemployment rate in Papua New Guinea?

The female unemployment rate in PNG is higher than the male unemployment rate.

According to PNG National Research Institute (PNG NRI), the female unemployment rate was at 10% in 2019, which is significantly higher than the male unemployment rate of 6.2%. 

This is due to several factors, including gender inequality, lack of education and skills training, and the cultural bias that favours men over women.

Examples and facts about unemployment in PNG

PNG NRI has reported that the youth unemployment rate in PNG is high, with approximately 17% of young people aged between 15-24 years being unemployed. This is a concern, given that young people make up a significant portion of the population in PNG. 

The report also highlights that the lack of job opportunities for young people is a major concern, as it can lead to social unrest and increased crime rates.

In another report by ABC News, it is revealed that the youth unemployment crisis in PNG has been exacerbated by the booming youth population in the country. 

The report states that the number of young people in PNG is expected to double by 2040, which highlights the urgency of addressing the youth unemployment issue.

Conclusion

Unemployment in PNG remains a significant concern, with high rates of youth and female unemployment. 

The lack of economic opportunities and education and skills training are among the primary causes of unemployment in the country. 

It is crucial for the government and other stakeholders to address these issues and create more job opportunities for the people of PNG. By doing so, the country can harness its vast resources and create a prosperous future for all.

How to Invest in Stocks and Bonds in PNG: A Beginner's Guide

Papua New Guinea (PNG) is a rapidly growing economy that offers opportunities for investors who are willing to take on some risk. Investing in stocks and bonds in PNG can be a great way to diversify your portfolio and potentially earn high returns. 

In this beginner's guide, we'll cover everything you need to know about how to invest in stocks and bonds in PNG.

Choose a Broker

The first step in investing in stocks and bonds in PNG is to choose a broker. There are several reputable brokers in PNG, including 

• Kina Securities, 
• BSP Capital, and 
• Capital Markets. 

It is important to choose a broker that is licensed and regulated by the Bank of PNG to ensure that your investments are safe and secure.

Understand the Fees

When you invest in stocks and bonds in PNG, you will incur brokerage fees, which are charged by the broker for executing trades on your behalf. 

Brokerage fees vary depending on the broker and the size of the trade, but they typically range from 0.25% to 1% of the trade value.

Know the Stocks Available on POMSoX

The PNG Stock Exchange (POMSoX) is the only stock exchange in PNG, and it lists several companies in various sectors, including banking, telecommunications, and mining. 

Some of the stocks available on POMSoX include:

• Bank South Pacific Limited (BSP), 
• Credit Corporation (PNG) Limited (CCP),
• NGIP Agmark (NGP)
• Kina Securities Limited (KSL),
• Newcrest Mining Limited (NCM) and
• City Pharmacy Limited (CPL).

Check out the complete list of companies on POMSox website. 

If you want to find out how to invest in stocks, check out this article I wrote in 2017.

Differentiate Between Stocks and Bonds

Stocks and bonds are two different types of investments that offer different benefits and risks. 

Stocks represent ownership in a company and offer the potential for high returns but come with high risk due to market volatility. 

Bonds, on the other hand, represent debt and offer a fixed rate of return but come with low risk due to their stability.

Understand Government Bonds

Investing in government bonds is a low-risk investment option that offers a fixed rate of return over a set period. 

The Papua New Guinea government issues several types of bonds, including Treasury Bills, Inscribed Stock, and Inscribed Stock Indexed. 

These bonds can be purchased through a broker, and the minimum investment amount is usually PGK 5,000.

Visit the Central Bank of PNG website for more info on Treasury Bill and Government Bond.

(Screenshot Central Bank of PNG Bills and Bonds Rates)

SWOT Analysis of Stocks and Bonds Investments in PNG

Strengths:

• High potential returns in a growing economy
• Diversification opportunities to spread risk
• Government policies to promote investment

Weaknesses:

• Market volatility with fluctuating prices
• Limited options and lack of reliable information
• Currency risk due to exchange rate fluctuations

Opportunities:

• Growing economy with abundant natural resources
• Infrastructure development priorities
• Emerging markets for new investment opportunities

Threats:

• Political instability and natural disasters
• Currency risk and exchange rate fluctuations

Conclusion

Investing in stocks and bonds in PNG can be a lucrative opportunity for investors who are willing to take on some risk. 

By following the steps above, investors can choose a reputable broker, understand the fees, research available stocks, differentiate between stocks and bonds, and understand government bonds. 

With careful consideration and a long-term investment strategy, investors can potentially earn high returns in a growing economy. 

However, it is important to be aware of the risks and threats associated with investing in PNG and to seek advice from professional brokers before making any investment decisions.