The Four Causes Of Unemployment In South Africa

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1. South Africa is facing unemployment for the past few years. There are four types of unemployment in South Africa. There are many causes of unemployment. Unemployment have a relationship with inflation and low economic growth .According to the economists South Africa is facing Stagflation. There are possible solutions to decrease unemployment. 2. Unemployment is the number of people in the work force who want to work but do not have a job or state in which people are without work but are actively seeking employment. It calculated by dividing the number of people who are unemployed by the total work force, it is expressed in percentage. The work force is made up of those people who want to work; it excludes people who are retired, disabled,…show more content…
Structural unemployment is an unemployment caused by a gap between the skills demanded by workers and skills that the workers can offer and also caused by fundamental change in an economy and improved by various factors such as technology, competition and government.
8.There are many causes of unemployment in South Africa are lack of formal skills and training, which means people who don’t have appropriate skill for specific job they don’t get jobs. Discrimination based on race, gender, disability and age .Substituting capital for labour, for an example when security is no longer needed because of installed cameras and remote gate. Slow economic growth can also cause unemployment.
9. There is a relationship between unemployment and inflation. Inflation is general increase in the prices of goods and services and decrease in purchasing value of money. Is usually expressed in percentage. If unemployment raise the inflation rate will likely decrease. Higher unemployment will make it difficult for unions and employees to bargain for higher wages. This is because if they ask for high salaries, employers will not allow that. Therefore, wage inflation is likely to be muted when unemployment increase. This will reduce cost push inflation and demand pull
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According to the economists South Africa is facing stagflation. Stagflation occurs when prices of good increases while unemployment increases and spending decrease. South Africa is facing stagflation because goods and services are expensive while most of people are unemployed, which decrease spending power.
12. There are possible solutions to reduce unemployment in South Africa. People must create their own jobs, entrepreneurs must create jobs, full funds to community college and expand current mentoring program. Government must subsidies all people who want to start their own businesses. Change in education system, for example students must study at tertiary level for free.
13. Some other ways to reduce unemployment like seasonal unemployment, agriculture should have multiple cropping, plantation, dairying and animal husbandry should be encouraged. Frictional unemployment can be reduced by reduction of gap between net wage and gross wage, relocation of industry and services, facilities to increase availability and flexibility, education advice and information on available jobs. Lower taxes to increase labour demand, improve export competitiveness and boosting human

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