Unemployment in South Africa

 

Unemployment could be referred to a situation where a person actively searches for employment but is unable to find work. South Africa’s unemployment rate rose to 34.4% in second quarter from 32.6% in just three months from March. Meanwhile, according to an expanded definition of unemployment, which includes people who are available for work but not searching for a job, the percentage rose to 44.4% from 43.2% in the first quarter.

 

What are the causes of Unemployment in South Africa?

• A lack of education and training is considered the root cause of unemployment in South Africa. According to data, the percentage of university drop outs in South Africa is between 50-60%, which means majority of students do not graduate due to reasons ranging from financial or other causes. This hereby reduces the labour capacity of the country, as there are limited number of people with the required skills for current job skill level.

 

• Lack of proper Orientation for graduates and Youth. Currently, the world is shifting from physical working environment to remote working environment and with most people moving towards the self-employment way. Lack of emphasis and orientation on Self-employment skills and opportunities lead to lack of personal growth, skill shortage and lack of experience.
• The labour demand and supply mismatch. The number of jobs available simply does not accommodate for all of those entering the market.

• The global recession in 2008 and 2009 caused many to lose their jobs. The more recent draught will also have a significant impact on the unemployment rate.
• The role of trade unions is significant in South Africa and displays strong political and bargaining power. Higher wage demands will lead to a decline in employment and strikes will discourage investment leading to a further decline in employment.
• Lack of interest and support for entrepreneurs. In 2014, only 6% of the youth population was involved in entrepreneurship due to Government legislation being complicated and costly, making it close to impossible for the average South African to start a business.
• The impact of Covid-19.

 

How we can solve the problem of unemployment In South Africa?

Policy regarding seasonal unemployment:

• Seasonal unemployment is found in the agriculture sector and agro-based industries. To remove it:
• Agriculture should have multiple cropping.

• Plantations, horticulture, dairying, and animal husbandry should be encouraged.
• Cottage industries should be encouraged.

• More Orientation on Self-employment and employment Opportunities.

 

• More Job Opportunities should be created by private sector and the Government.

More employment exchanges should be opened. Information regarding employment opportunities should be given to people. Also, better media Awareness and publicity on job opportunities should be done.

 

• More assistance to self-employed people:

They are engaged in agriculture, trade, cottage and small scale industries etc. These persons should be helped financially, providing raw materials and technical training. Establishment of more Loan providers and provision of adequate loans.

 

• Full and more productive employment:

The main objective of the county’s employment policy should be to increase employment opportunities and the productivity of labour. Govt. should adopt a policy that provides employment to all people.

 

• Increase in Production:

To increase employment, it is essential to increase production in the agriculture and industrial sectors. Development of small and cottage industries should be encouraged.

 

• Workshops and more orientation on employment opportunities:

In five year plans more importance should be given to employees. The programmes like irrigation, roads, flood control, power, agriculture, rural electrification can provide better employment to people with the right training.

 

• High rate of capital formation:

The rate of capital formation in the country should be accelerated. Capital formation should be particularly encouraged in such activities which generate greater employment opportunities. The capital-output ratio should be kept low.

 

• Raising taxes to subsidize the employment of young South Africans.