Without education, is it hard to find a paying job, and a high unemployment rate decreases South Africa’s chances of progressing in the future. Poverty also has social effects. When people are in poverty and are unemployed and homeless, it leads to them stealing and high crime rates create many problems within the society. (Cleveland, 2014) What are the causes of poverty in South Africa? Some major causes of poverty in South Africa is lack of infrastructure, lack of skill and experience, many diseases like HIV/AIDS and TB and lack of education.
According to the Social Policy and Development Division, unemployment and underemployment lies at the core of poverty. They argue that “for the poor, labor is often the only asset they can use to improve their well-being. Hence the creation of productive employment opportunities is essential for achieving poverty reduction and sustainable economic and social development.” If poverty is rife within a country, unemployment levels will be high as well. This is mainly due to the fact that poor countries do not have the capital to pay much needed wages or salaries, hence high unemployment levels. Kirby (2011) argues that it doesn’t take an economist to notice that there are key fundamental differences between the economies of developed and developing nations.
The country wants low rate of unemployment because high unemployment brings some costs in an economy. Firstly, those who are unemployed will not receive any wages, means they face money crisis. Secondly, it can lead to government costs; increase in unemployment means that they need to give unemployed people for some social welfare. On the other hand, tax revenue will decrease because there are less tax payers. The unemployment also causes to increase crime rate, homeless people and poverty.
Introduction: Unemployment occurs when a person who is actively seeking for work is unable to find work. The measurement of unemployment is unemployment rate. Unemployment rate is the percentage of the labour force that is unemployed. Unemployment rate is often use to measure the health of the economy. There are 3 types of unemployment which are frictional, structural and cyclical unemployment.
It is a well-known fact that unemployment represents one of the most important problems in the society worldwide. Specifically, it has become a worrisome subject in the European Union, due to the constant high rates of unemployment existing in most of its countries if we compare them with some other countries like Japan or even the United States, who presents low unemployment rates. But what does exactly unemployment means? Looking for a precise definition, we find that there is not a common meaning for this concept: it is a little bit ambiguous. On the one hand, many professionals in economy defines unemployment as the disposition of the people to be employed at a specific wage.
Unemployment is one of the most profound issues a nation or an economy may face on a macroeconomic level. At an individual level, unemployment may cause severe impact on the living standard followed by psychological distress as well. Economists tend to focus on the causes of unemployment to reduce its repercussions and find solutions for the unemployed workforce. Different reasons and causes could lead to unemployment, and therefore the economists have divided unemployment into three main types. If it is caused by the time it takes to find a new job or a graduate student looking for his first position, then it is called frictional unemployment.
There are very limited healthcare facilities and resources made available to these people. Due to the fact there is need for love and attention people establish high- risk behaviour such as drug and alcohol abuse and sexual promiscuity. These are ways for people to cope but inevitably isn’t ineffective (M. C Potgieter, 1998). Unemployment Another factor that could contribute to poverty is unemployment. The Development Bank of South Africa believed that around 2,5 million unemployed people in South Africa in 1991 and that figure had increased substantially since 1980 (M.C Potgieter, 1998).
A low level of unemployment is one of the main macroeconomic goals of every country. This is because a low unemployment rate is a sign of improved health of an economy. Unemployment (or joblessness) is defined as people of working age who are without work, available for work and actively seeking employment . Unemployment rate is the number of people who are unemployed expressed as a percentage of the total labour force . Statistically, the number of unemployed people in 18-member Eurozone drop for about 22, 000 in March when compared to February.
The first thing that needs to be seriously put into action is creating stable working environments with no restrictions. There should be free training offered by the many new businesses that are helping many people who are stuck under the poverty line to climb their way over it. There is a huge lack of funding in South Africa for all these new businesses and free training, the best way to deal with this problem is to either take the funds only out of taxes and fundraising or print out new money with the intention of developing South Africa. Therefore leads to the question about salaries, people should be paid the amount their skills are linked to; you cannot have a doctor getting paid the same as a