How Does Unemployment Affect Businesses in South Africa
What is called unemployment?
Unemployment is a term referring to individuals who are employable and actively seeking a job but are unable to find a job.
What are the types of unemployment?
1. Frictional unemployment
2. Structural unemployment
3. Classical or real-wage unemployment
4. Voluntary unemployment
5. Demand deficient or “Cyclical unemployment”
What are the causes of unemployment?
1. Low level of education
2. Mental issues
3. Physical health problems
4. Gender discrimination
5. Mobbing
6. Vocational Unfitness
7. Technological Advancements
8. Age Factor
Why is the main cause of unemployment in South Africa?
In South Africa, unemployment is thought to be primarily caused by a lack of education and training.
What is the unemployment rate in South Africa?
According to Quarterly Labour Force Survey issued by Stats SA, unemployment rate in South Africa today is 34.5 percent in 2022.
What are the reasons for the high rate of unemployment in South Africa?
1. The lasting effect of apartheid.
2. Increased unionization.
3. High labor supply and low labor demand.
4. The effect of the Great Recession.
5. Low levels of entrepreneurship.
What are the effects of unemployment in South Africa?
1. financial hardship and Poverty
2. Social exclusion
3. Inequality
4. Crime and social instability
5. Low levels of economic growth
6. Health issues such as headaches, high blood pressure
How does unemployment affect South African businesses?
Higher unemployment means lower income for many households. As a result many businesses will experience lower sales as people will spend less. Unemployment also leads to a high rate of crime, such as burglary and robbery of goods at business premises, resulting in losses.
What can the government do to alleviate South Africa’s unemployment problem?
1. Encourage the migration of highly skilled workers.
2. Implement an expansionary monetary policy.
3. Encourage entrepreneurship education programmes.
