Namibia’s unemployment challenges are nuanced and remain a key driver of the systemic inequality challenge. The National Labour Force Survey of 2018 indicated that workers in small highly productive sectors (less than 2% of the workforce) such as mining and financial services earn wages that are over 400% higher than workers in the sector with the most labour absorption capacity (agriculture), which employs close to 30% of the country’s wage earners. A high prevalence of low wages, low labour market participation rates and high unemployment are all symptoms of a lack of opportunities in the job market, hampering the aspirations of Namibian citizens and prospects of inclusive growth and shared prosperity. More well-paying formal sector jobs will help to reduce the observed income and inequality gap, reduce the level of unemployment, and incentivize labour participation. Additionally, a productive and inclusive private sector will reduce pressures on the public wage bill and release scarce financial resources that can be leveraged to effectively pursue other strategic social objectives. In recognition of the complexity of the labour dynamics in Namibia, this activity supports productive employment creation, as a key objective in the activities related to the economic recovery. The following items will be championed in HPPII: