Population growth has increased considerably since the last census was conducted, and has placed even greater pressure on the government to deliver essential services.
Labour and Employment Minister Kessy Sawang made this statement last week, when announcing the release of the population estimates for 2021.
She commended the National Statistical Office, UNFPA and the Australian Government for supporting this initiative, saying with the population estimates for 2021 now available, it is time to conduct the population and household census.
“I am pleased that the Minister for Finance and Implementation, Rainbo Paita has confirmed that this will be done next year,” Sawang said.
Population data is of vital importance, as it helps the government make budget plans on how and where to spend government funding, to achieve minimum standards of services such as health and education, and infrastructure services.
“This data allows informed consideration of the redrawing of electoral boundaries, assessment of the conduct of the last general elections and even fiscal equalisation grants from national to subnational government,” Sawang added.
However, the Minister was alarmed at the implied average annual rate of population change of 4.9% between 2011, when the last Census was conducted and 2021.
“An average annual population growth of 4.9% places Papua New Guinea amongst the fastest growing population in the world.”
The minister further added that her Ministry has commenced using the population estimates to better understand the labour market and employment.
“Our country has a significant challenge to deal with a rapidly growing young population and that this is now an even greater priority. The implications of the new population growth rate for economic growth are stark it reveals that average income per person, after adjusting for inflation, has been falling since 2016,” Minister Sawang said.
Average income per person outside of the mineral and petroleum sectors has been falling for even longer, since 2012.
Using the 2023 National Budget forward estimates, which are conservative, the outlook is for this to continue over the period up to 2027.
The Labour Minister said if this trend is not reversed we will not meet the targets and aspirations in our development plans and strategic goals leaving people with a poorer quality of life.
“This underscores the need to implement the MTDP IV carefully and in a coherent and robust manner to achieve its goals of moving our economy onto a higher, inclusive and sustainable growth path,” Sawang added.
The minister said this must be a call to action.
“We must urgently reinvigorate and concentrate our efforts to create income and jobs, especially for our young adults and for women. We need to grow our economy outside of the mineral and petroleum sectors as only they can provide the opportunities to absorb the large number of our youths.”
The minster also highlighted the need to support private sector growth, to provide more job opportunities.
“We can do this by lowering the cost of doing business and providing coherent, sensible and stable policies,” Sawang said.
“I will seek stronger coordination with my fellow Ministers to advance appropriate education, training and skills development programs that will prepare our people to enter the formal workforce and that will build national productivity to lift economic growth.”
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