Causes Of Unemployment In South Africa

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Unemployment data shows a maintained and, increasing unemployment rate in South Africa since 1975 - in spite of the business
cycle upswings in the periods 1978 - 1981, 1983 - 1984, 1986 - 1989 and since the middle of 1993. Unemployment growth appears to be at regular and normality. This demonstrates that a huge part of the South African unemployment doesn’t respond much to cyclical changes in the level of production and economic activity.
However, this unfortunately means that the majority of the South African unemployment rate is of permanent nature. In other words,
South Africa is mainly characterized by structural unemployment. Cyclical variations in production and employment, actual amount to leads to underlying, enduring unemployment. …show more content…
The following is a list of possible causes and driving forces of unemployment: The labor market is not a singular market. It is in reality a segmented market, including of a number of sub-markets.
Labor mobility between these market segments is restricted workers who become disposable in one segment of the market will not actually find a job in another segment, even if there is a shortage of workers n that segment, and even if the person wants to work at a lower salary.
These segments vary with regards to the required level of training, education, and specialized skills,
In addition, an example would be the agricultural labor in comparison to the industrial labor market, or one could look at agricultural labor markets that differ. In white-collar jobs there are even more strict barriers to versatility between segments.
A skilled and experienced employee who becomes unemployed in one segment does not necessarily have the required skills to find employment in an vastly different section of the market, in any case, not in the near future or without some form of retraining or additional education . Labor is simply not consistent and the demand for labor can based on skill and education …show more content…
Skills transfer and job preparation for those who have the skills but are unemployed because of lack of experience this should mainly focus on the unemployed graduates Vocational training (cold be implemented through programs or vocational schools ) for out of school youth and unemployed people without any skills 4. Refocus from BEE(mainly because after 20 years of democracy current BEE programs do not assit with unemployment) to Entrepreneurship development as government policy for redressing South Africa’s inequality. 5. Focus on creating a very large small business sector in South Africa 6. Provide funding to entrepreneurs enabling creativity and productivity, assisting others to start their own businesses
Supporting informal-sector operators as a large number of unemployment originate from this sector

7. Prevent government officials, especially the ruling party from being directors in companies that do business with government in order to root out tender entrepreneurship and corruption. Changes in tax structure could also be implemented 8. Establish business incubators and technology
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