Unemployment In South Africa Case Study

1.1) The current Unemployment statistics in South Africa according to:

• The General Population

South Africa’s unemployment rate stands at 25.2%, creeping up by 1.1% from last year. There are now more than 5m people without work

• Youth Unemployment

Unemployment among the youth (15-34 years) is a staggering 52.20%.

1.2) Factors that contribute to these Unemployment Statistics:

GENERAL POPULATION

• Political – Unequal Education

From a political standpoint, it is evident that apartheid had robbed many individuals of proper and basic education. Although, Black Economic Empowerment (BEE) programmes were initiated post-apartheid, it is evident today that the inequalities BEE were meant to address have not been dealt with efficiently.

The decline of the coal mines due to a lack of competitiveness meant that many coal miners were unemployed. However, they found it difficult to get jobs in new industries such as computers despite a growing economy

YOUTH UNEMPLOYMENT

• Political – Apartheid

A political factor which aids the explanation of unemployed youth is that of apartheid. Despite it being twenty-four years after apartheid, racial inequality still exists. Graham & De Lannoy (2017), comment that black and coloured youth have more difficulty finding a job compared to their white and Indian youth counterpart.

• Social – Cultural

Youth unemployment is often highest amongst deprived areas where there is pessimism over job prospects. It is often higher among people who have a history of broken families, drug use or criminal record. Youth unemployment is also higher amongst ethnic minority groups with inadequate education, lowering the pass mark level which will result in insufficient knowledge and understanding.

Economic – Hysteresis

This is the idea that past unemployment trends are likely to cause future unemployment. If young people have been unemployed in the past, it becomes increasingly difficult to get a job. This is due

Entrepreneurship-education is a global phenomenon and a proven solution to combat youth unemployment. It’s a tool that can arm young people not only to start businesses and create jobs, but also to be opportunity-focused. It provides youth with the ability to think like entrepreneurs and to act like business owners, the ability to be problem solvers and the capacity to be adaptable, comfortable and self-directed in unclear situations.

In South Africa, most individuals exit secondary education with basic skills resulting in a select few moving onto tertiary education to further their studies in a focused field. Entrepreneurship encourages individuals not to rely on a traditional job in the workplace of South Africa that could possibly, in the future, become redundant but instead, create and innovate to become business men and business woman that work for themselves. By individuals choosing to become entrepreneurs, they are able to explore their creativity and generate income while creating employment opportunities for others.

Entrepreneurship development is the most powerful weapon of the youth; with it they could lead their state towards