UNEMPLOYMENT DATA IN SOUTH AFRICA UNEMPLOYMENT DATA IN SOUTH

Description: Proposal to introduce the Unemployment Insurance Fund for unemployed youth in South Africa. A type of Dole System ( minimum wage). This assignment must be written like a feature article for a newspaper, journal and be very coherent in its arguments. Also use graphs and table's where applicable. 1. Do a problem statement of unemployed youth in S.A 2. Contextualize unemployment among young people 3. why this issue was not agreed during 1999- 2004 during the first term presidency of Thabo Mbeki 4. Give analysis and present current statistics on youth unemployment in South Africa 5. Making the case to put this matter back on the national agenda, in order to build a more humine, just and social cohesion society 6. This can be done by creating a wealth tax ( south africa is a very rich country in mineral resources) explain how this can be done, and do a few comparisons with other countries 7. Construct a good narrative to convince the public 8. Also in the article deal with the

Running head: UNEMPLOYMENT DATA IN SOUTH AFRICA
UNEMPLOYMENT DATA IN SOUTH AFRICA
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Author Note:

1UNEMPLOYMENT DATA IN SOUTH AFRICA
Introduction:
The aim of this paper is to discuss the unemployment issue in South Africa and
finding out the reasons of this particular social and economic problem and introduce an
unemployment insurance scheme/ program for young people between the ages of 18 to 35
years of age in South Africa. There are some factors which allow the government of the
country to solve this particular issue and develop a multi-pronged strategies for raising
employment as well as support the inclusion and social cohesion. A high youth employee
refers to the fact that the young people from 18 years to 21 years are not requiring any
additional skills for contributing in the economy of the country. This inhibits the economic
development of the country and imposes large burden on the state for providing the social
assistance. Now according to the data published by the labour force survey, more than 63.4 %
of the South Africans aging between 15 and 34 are unemployed by the first quarter of 2019.
This is not only affecting the capabilities of the human resource but also wasting it. The
contribution of the young generation of the country is therefore nullified due to inability of
the government to bridge the gap between education process and creating job vacancy in the
market.
Problem statement of unemployed youth in South Africa:
Youth unemployment in the country of South Africa reached a critical proportions
and has been sharply increasing. There are three main issues which are related to this
particular problem of unemployment in South Africa. These are mainly related to the
problems of policies of the government and unethical work practices related to the inequality
in the South African society. The inequality present in the socio economic level is the first
and foremost problem that the youths in the country have been suffering intensely. The
corruption level at the government and administrative layer of the politics supported by the

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ministers of the country have augmented this particular issue. The policies starting form the
educational policies and system to the creation of the job vacancy by strengthening economy
of the country, the government level has failed to achieve. The education system that has
been the primary means for preparing the young people for future and their education
literature clearly reveals that the government takes no turn to improve the situation by
creating a skilled human resource by utilising the young generation.
Now the most disturbing trend is that more and more people have started to become
demotivated. According to data published by The Conversation from 2008 to 2015, the
number of youths in South African region have increased by 8%. In the other countries the
students of the high schools and colleges start to find their job even before they complete
their education but in this case, the people of 26 to 29 years also not willing to find job
because they know that the government will not be able to create scope of job for them.
Contextualisation:
In contextualizing unemployment among young people it can be started that the
problems of unemployment of the youth in the country of South Africa has become such an
issue that has not been solved for thirty years. This threat has been growing as the population
of the country is going over the safe level. Several studies have associated the gaps in the
unemployment rate between migrant and the non-migrant youth population and the other
adults for their points of view regarding job specifications. The problem also lies with the fact
that there is no presence of strong and impeccable network for obtaining information about
the job vacancy, specifications and opportunities.
In addition to this, the inability of the human workforce for coping with the studies,
meeting the needs of the technological skills and the other productive skills expected by the
multinational companies operating in the South African region. Some of the young job

3UNEMPLOYMENT DATA IN SOUTH AFRICA
seekers are relatively inexperienced and some are mostly nonperforming during their
internship. These are the reasons why the economic development on the basis of corporate
business are not being developed.
Unemployment issue and Thabo Mbeki:
As mentioned before, the issues of unemployment has been affecting the economy of
South Africa for more than three decades. Starting from the independence of South Africa in
1994 and during the rule of four presidents. Most shockingly, the percentage of
unemployment in South Africa is constantly growing. The unemployment of this country has
reached to 8.2 million by 2016 and now it has been sharply growing. During the rule, of the
first president Nelson Mandel, the youth unemployment rate was 16.7%. Now during the rule
of Thabo Mbeki it grew abruptly to 22.5%.
Thabo Mbeki had ruled for two terms or ten long years. The data published by
Zobin.co.za (2016), it has been seen that the term of Mbeki started in 1999 just after Mandela
when the unemployment rate was 23.346%. This reduced in 2000 by 23%. In the next year,
the unemployment rate of youth population of South Africa became 25.95%. The next two
years that are 2002 and 2003, the rate of unemployment was 27.8% and 27.65%
consecutively. These were the highest unemployment rate of all that South Africa had faced
till date. However, from 2004, the rate has started to decrease from 25.15% in 2004, 24.65%
in 2005, 23.55% in 2006, 23% in 2007 and 22.525% in 2008. During the ten years tenacity,
the average unemployment rate is 24.8% which was the highest among all the presidents
ruled South Africa. Therefore, the rule of Mbeki has been termed failure to reduce poverty in
the country.
The free economic policies of Thabo Mbeki had proved to be disastrous because he
lost the sight of concerns aiming to the eradication of poverty and strengthening of the

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economy of the country. During the rule of Thabo Mbeki the labour law of the country had
unintended consequences. The firing of the no brainer were stopped and hiring was headache
for the government. The centralised collective bargain allowed the large companies as well as
the trade unions to agree on the pay and work conditions and they impose the standards on
the small firms in the same industry. However, the problem revolved round the intention of
the government officials and the ministers to consider the unemployment problems to be the
reason of low economic growth of the country for a long. They failed to understand theta the
social, economic, geographical barriers of poverty
Statistics on youth unemployment in South Africa:
According to the statistics revealed by Tradingeconomics.com (2019), the
unemployment rate in the country has increased to 29 per cent as measured in September
2019. This has been the highest in these three decades. 29 per cent has been grown from the
second quarter of this current year from 27.6 in the previous period (see figure 1.). This has
been the highest jobless rate since the first quarter of 2003 and the number of unemployment
rose by 455 thousand to 6.65 million and employment rose by 21 thousand to 16.31 million.
By genders the jobless rate advanced for both the women and men. Also the youth
unemployment rate continued to rise to 56.4% to 55.2% in the prior period. In the previous
year the rate of the jobless people were lower than 27.2 per cent.

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Figure1. Unemployment rate in South Africa
(Source: Tradingeconomics.com, 2019)
Unemployment as national agenda:
Now making the issue of unemployment as national agenda of the poor as well as
unemployment has become necessary for solving the economic issues in the country, if the
young generation of South Africa is not empowered then the reviving possibility from the
poverty issues and low GDP will not be overcome. In this regard the solution will be thought
from other perspectives than that of the ministers corrupting the ministries and depriving the
youth of the country from their deserving empowerment. With the unemployment rate of
29%, South Africa is one of the most affected country in terms of poverty and exploitation.
This is the reason why the combining force of both the job seekers and the business need to
get first priority (Von Schnitzler, 2016). The government policies regarding the growth of the
youth in this country will only be possible if they are placed in the particular organisations
and aid according to their educational qualifications.

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In this regard, the change in the education policies are mandatory where the youths
will get proper knowledge about the operation of the business organisation. It needs to make
a skill full human resource pool for which the business organostions will be attracted to
invest in the business in the country’s market. Just like the cheap yet skilled labours in China
have attracted the business organisations from different parts of the world to invest in the
Chines market, these companies ware opening their manufacturing unit in the market.
Similarly, the huge population of the country can be used properly by the government by
increasing the skills and competitiveness (Alden, 2019). In this regard, the change in the
policies of the government to create scope for the foreign investment is necessary so that the
jobs are created properly.
The process of investing in the education process and creating a knowledgeable
human resource pool, the government can use the path of wealth tax. As it is known to all that
the geological aspects of this country enables it to have huge excavation of valuable ores,
metals and other minerals. This process of exploiting this strength can also attract the foreign
companies to collect their raw materials for the end products. This can be attractive to the
construction companies, automobile, and any other manufacturing companies to create their
manufacturing unit in this oat of the world. While exploring the mineral resources, the
companies will be needing a large groups of human resource who will be employed in these
manufacturing companies. Thus the unemployment problems of this country will partially be
solved (Tomlinson, 2017). Comparison can also be made with the country like Japan where
the mineral resources has been utilised by the government of the country to build huge
industries of all types by themselves and create jobs for the human resource of the country
(Oluwajodu et al., 2015). The forest resources is also found abundant in South Africa which
can allow the government to invests and build industries like Canada. In Canada, the

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government has developed industries based on the forest resources and become one of the
most important market of products manufactures of wood and other forest grown resources.
It is well-known fact that the wealth creation leads to development when it is
distributed well. Unfortunately ten out of nineteen countries most unequal countries are
situated in the South Africa. In Africa, the new report from the United Nations Development
Programme has revealed that the new wealth which is being created are constantly being
concentrated in few hands. This is the reason why the mention of corruption in the society
has been mentioned before. Here the economic inequality has referred to the income
inequality. This is the unequal distribution of the wealth in the society. The situation is so
grave that the most developed economies of this continents namely Botswana, Zambia and
Namibia are among the 19 more unequal countries of the world.
The problem of unequal society of South Africa is not only limited to the wealth
distribution but also social growth. The dominating problem of racial segregation and cultural
problems in the society of South Africa have affected the economic growth of the society.
The racial issues have affected the education system through which the unskilled young
generation will be developing their skills to match the expectations of the companies
operating in the market of South Africa (Idahosa & Van Dijk, 2015). The urban bias of the
public policy include gender inequalities, ethnic issues and unacceptance of complexion.
Based on this, the government of the country had issued apartheid policy that governed
relations between the white minority and the non-white majority of South Africa. This
government policy also included the racial segregation as well as economic and political
discrimination against the non-whites. The implementation of the apartheid policy had
created separation among the residents of the country in one hand and reduced the scope for
the minorities to take part in the national political (Baldry, 2016). Social and economic
aspects. Through separation of the laws for restricting each are to the certain types of jobs

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and curtailing the non-white participation along with their labour unions by suppressing the
human rights within the country.
These unequal treatment of the residents of the country has effectively closed proper
utilisation of the human resource in the country. This systematic racial segregation has
however remained in the South African society and working beneath the all government
policies afterwards. However, the government of the country has been trying hard to
overcome this issues of inequality in the society (Tomlinson, 2017). This will be beneficial
for the government to gain the support of the youths in one hand and solve the unemployment
issues in the other.
According to the Hofstede cultural dimensions, the national culture of South Africa is
much more collective than the other countries of Europe. This influence the decision making
of the groups effectively and encourage them to overcome social problems. Collective
morality refers to the maintenance of the relationship with the friends, family, neighbours
and the co-workers. As this refers to the arrangements for addressing widespread harm and
wrongdoing associated with the actions of the groups, the government can get help from the
communities to solve the issue of unemployment. The role of resonance and international
moral norms also manipulative to the group decision making. The things one understood by
the groups will not be amended by any one of the group members. Hence making these
groups understand the educational policies supporting skills development to get employed is
difficult. However, the labour unions can be helpful in solving this issue. Finally, the need of
getting proper scope for the employment is expected and proper collaboration between the
common people along with the government can sole this problem.

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Conclusion:
Therefore, it can be concluded that the percentage of unemployment in South Africa
is constantly growing for which changes in the perspective and policies are to be changed.
The free economic policies of Thabo Mbeki had not solved the concerns aiming to the
eradication of poverty and strengthening of the economy of the country. The corruption level
is well connected with the poverty in South Africa which can only be possible if the young
generation is placed in the particular organisations and aid according to their educational
qualifications. In order to solve this unemployment issue, the process of proper utilisation of
the mineral and forest resources can attract the foreign companies to collect their raw
materials for the end products. Such industries create scope for job creation leading to reduce
the problem of unemployment. Gender inequalities, wealth gap, ethnic issues and
unacceptance of non-white people has negatively affected the growth of the country but if
overcome can support the national agenda against unemployment issue.
Dole system in welfare states:
Countries Criteria Amount of benefit
France  Only salaried persons are entitled
with unemployment benefit
 One cannot leave the job
voluntarily
 One has to work for at least 4
months
 Has to be registered job seeker
 Physical capability to work
 Actively searching for job
 No scope for full state retirement
pension
 salaries journalier de
reference is
calculated from
previous salary
 €55 per day but
cannot exceed by
€248 per day
Sweden  Registration in Swedish Public
Employment Service
 Having membership in
unemployment insurance fund
 Previous work requirement
 Submission of personal action
plan to Swedish Public
Employment Service
 Frist 1 to 200 days
80% of the salary
 201 to 300 days 70%
of salary
 Maximum 910 for
100 days and 760 for
remaining days

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Norway  One has to have working
experience and salary at least 1.5
G at current basic amount in the
country
 Genuine job seeker
 Cannot refuse to take suitable job
 Has to attend NAV office when
asked
 Actively looking for work
 62.4% of previous
income
 Highest figure will
be within 6 G.
Denmark  Membership in unemployment
insurance fund
 Registration with Public
Employment Service
 90% wage
reimbursement per
month for three years
maximum.
United Kingdom  Age 18 years and over
 Capability of working
 Availability of work
 Actively seeking work
 Working less than 16 hours a
week
 up to £57.90 up to
age 24
 up to £73.10 for the
age of 25 and over
 Up to £ 114.85 for
the couples over the
age 18.
How this scheme can work:
This particular scheme for the welfare of the unemployed youth in the South African
region needs to be implemented properly. In this regard, the criteria of the stakeholders of
this scheme has to be reached properly.
 In this regard the registration for any type of counselling and training has to be take
place. The unemployed youths have to be 18 years and more. They must have
completed school education and must know to read and write in the national language.
 The scheme will be setting up the counselling services so that the monetary help does
not get wasted in the youths. The counselling process will include the analysis of the
educational and family background so that the capabilities of the workers are properly
identified.

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 This scheme may include the training programs that will develop the youths
matching the needs and expectation standards of the companies. These trainings will
include communication process, mechanical trainings and technological skills.
 The other benefits for young job seekers will include monthly remuneration of 500
South African Rand.
How to fund it through a wealth tax:
As mentioned before, the situation of the South African government is not very
positive. The economic situation is not very stable sue to low GDP and other income. In this
regard, the corporate wealth tax can help the goevrenment to solve the issue of
unemployemnet. As mentioned before, that the country possess huge natural resources but to
excavate and explotre them are impossible for the government. This is due to the fact that the
government of the country cannot invest in this sector hence the big corporates need to come
forward. The process of privatisation of these mines can help the government to collect cash
for arranging trainings and remuneration for these unemployed youths.
Five countries that have a wealth tax:
The countries that have a wealth tax imposed upon the corporates and the individuals
having more than standard of wealth. These countries are Canada, France, Norway, Italy,
Netherlands and Spain.
Countries Process
Canada  The tax has been imposed on the regular property worth more
than $3 million.
 This tax is 0.2% on first million above $ 3 million and 0.4% on
the value above.
Spain  The wealth tax of this country is progressive from 0.2 to 3.75% of
net assets above the threshold of €700,000 after €300,000 primary
residence allowance

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Norway  The wealth tax in this country is 0.7% for municipal and 0.15%
for national levied on the net assets that exceeds 1,480,000 kr.
Italy  There are two wealth taxes levied on the residents of Italy.
 IVIE is imposed on the real assets for holding outside the country.
That is 0.76%
 IVAFE is 0.15% levied on the financial assets within the country.
Argentina  In 2018fiscal year, the rate of wealth tax above ARS 800,000 was
0.25% but now it has raised to 0.75% in 2019.
Utility of dole system:
The dole system in South Africa will be helping the government to get investment on
the education and training process of the youths. As the country has the most number of
unemployed youths, the dole system will attract the willing youths to get placed or at least
encourage them to seek job created by the big corporation. This will effectively eliminate the
problem of unemployment in the country and enhance economic growth.
Diagram by the United Nations on the top 10 most unequal nations in the world:
South Africa
Namibia
Botswana
Zambia
Central African Republic
Lesotho
Swaziland
Brazil
Colombia
Panama
0 10 20 30 40 50 60 70
63
61
61
57
56
54
52
51
51
51
Top ten unequal countries
Column2 Column1 Series 1
Figure 1. Top ten unequal countries

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(Source: Npr.org. 2019)

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References:
Alden, C. (2019). South Africa's Post Apartheid Foreign Policy: From Reconciliation to
Revival?. Routledge.
Baldry, K. (2016). Graduate unemployment in South Africa: social inequality
reproduced. Journal of Education and work, 29(7), 788-812.
Idahosa, L., & Van Dijk, J. (2015). South Africa: Freedom for whom? Inequality,
unemployment and the elderly. Development, 58(1), 96-102.
Jobin.co.za. (2019). Jobs, search jobs, find employees in South Africa. Retrieved 20
September 2019, from https://www.jobin.co.za
Npr.org. (2019). NPR Choice page. Retrieved 27 September 2019, from
https://www.npr.org/sections/goatsandsoda/2018/04/02/598864666/the-country-with-
the-worlds-worst-inequality-is
Oluwajodu, F., Greyling, L., Blaauw, D., & Kleynhans, E. P. (2015). Graduate
unemployment in South Africa: Perspectives from the banking sector. SA Journal of
Human Resource Management, 13(1), 1-9.
Theconversation.com. (2019). What South Africa can do about youth unemployment in the
short run. Retrieved 20 September 2019, from https://theconversation.com/what-
south-africa-can-do-about-youth-unemployment-in-the-short-run-71904
Tomlinson, R. (2017). Urbanization in post-apartheid South Africa. Routledge.
Tomlinson, R. (2017). Urbanization in post-apartheid South Africa. Routledge.

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Tradingeconomics.com. (2019). South Africa Unemployment Rate | 2019 | Data | Chart |
Calendar | Forecast. Retrieved 20 September 2019, from
https://tradingeconomics.com/south-africa/unemployment-rate
Von Schnitzler, A. (2016). Democracy's infrastructure: Techno-politics and protest after
apartheid (Vol. 9). Princeton University Press.