Unemployment in South Africa : How do you fix it?

By David Lisbonne

Unemployment. What is it? It is not simply the number of people without a job, that would just be a revised census. No, unemployment is a disease, and it presents itself in many forms with only a small fraction of the population truly understanding it. The two most common forms of unemployment are Structural Unemployment and Cyclical Unemployment. Structural unemployment revolves around open job offers requiring skill levels unseen in the majority of the population. There are open jobs however the people searching for jobs are not qualified for these positions and thus remain unemployed. Cyclical unemployment arises as a result of a downturn in Aggregate Demand. Without delving too deep into macroeconomics, aggregate demand is essentially the overall demand of the economy as a whole (Khan Academy). Due to a lower demand, the frequency of production for the final products will decrease and companies will not need as many employees to fulfill the level of demand. Unfortunately, South Africa suffers from both forms of the disease that is unemployment; what is the antibiotic?

A staggering 24.3% of civilians in South Africa are unemployed (Statistics South Africa), a major cause for concern. The structural unemployment in South Africa affects a significant portion of the population and growing the economy, a commonly thought of remedy, will not solve the issue in full. The civilians in South Africa lack proper education in turn leaving them empty-handed when job hunting arrives. As the majority of the inhabitants have no skills to help them get decently paying jobs, they do not have any excess money thus preventing them to pay for a good education. This repeats every year, claiming more victims as more people are searching for jobs, hoping to claw their way out of the dark depths that is poverty.

South Africa is also plagued by cyclical unemployment as a result of the structural unemployment. Lack of skilled workers in industries more people to live in poverty, lowering the demand for final goods. In turn the need for workers decreases, illustrating cyclical unemployment as well.

As the virus of unemployment continues its ruthless trudge through South Africa’s civilian population, a solution is desperately needed. But what is it?

In order to combat the cyclical unemployment, the aggregate demand, has to increase. As the DA’s spokeswoman on economic development said, “South Africa is battling around 2 percent [growth]”. If the demand for goods increases, the need for laborers will rise as well, giving more people a steady income and job. The matter of structural unemployment is not as simply solved. It cannot be solved by growing the economy, and must be changed by altering the mindset of youth looking for work.

Frequently, young males and females decide to stop their education to get a job, hoping it will support their family. This mindset is the root of the structural unemployment issue; continuing one’s education to procure a higher paying job is more lucrative in the long run as opposed to dropping out of school, hoping to find a job. This falsely validated thought is the epicenter of the issue, and must change in order to ameliorate South Africa’s civilian unemployment.

Works Cited

"'Economic Growth the Only Way Out' - DA." Post [South Africa] 25 Feb. 2015: 21. Global Issues In 

Context. Web. 13 Mar. 2015.

Khan, Sal. "Aggregate Demand." Khan Academy. Khan Academy, 2011. Web. 13 Mar. 2015.

"Work & Labour Force." Statistics South Africa. Statistics South Africa, 2014. Web. 12 Mar. 2015.