Reasons for unemployment in south africa?
why do we have unemployement in south Africa is it lack of education
- 7 years agoFavorite Answer
a sampling of reasons comes the web page (below) provides: The Reasons for Unemployment in South Africa and Globally
Trade Unions: A small increase in wages for unskilled labourers/workers may result in a bigger decrease in the demand for unskilled labour.
Labour Laws: Current labour laws are very rigid, thus preventing employment especially in small enterprises. Eg: Domestic Workers Law: R1250 per month plus fringe benefits.
Labour Laws in South Africa also make it very difficult to dismiss or retrench workers. Also hiring of workers has to comply with racial and gender quotas. Most workers are also pressured to join a trade union. To solve these problems many workers are employed by businesses as "self-employed contractors". They are then like any other supplier of goods or services and an employer can simply cease using them for any reason. Many self-employed contractors do not register as employed and don't register for tax. They are shown as "unemployed" in the system.
Lower Productivity: The production output by workers has decreased significantly since 2003, but the cost of production has increased. Eg: Retrenchment – many businesses will/have retrench/retrenched skilled labourers to cope with costs.
Cheap Imports: Local textile manufacturers cannot compete with cheap Asian countries. Eg: China , and this leads to losses and retrenchments of workers. Many south African businesses have closed down.
HIV/AIDS: AIDS sufferers are often absent or unemployed. People cannot take their places because they are not properly skilled to do the job.
Stronger Rand: The stronger rand makes exports more expensive, leading to liquidation and unemployment. Businesses will earn less foreign currency. Overseas buyers will find other suppliers because the rand is strong. They will pay more. The businesses will close down, leading to unemployment.
Just like any other country the causes are almost in general terms: lack of education, poverty, squalid living conditions and corruption from the top(in government) and lastly influx from foreigners
to read the remaining portion, one must register at the account; the above should be sufficient
- Anonymous7 years ago
There are many factors which lead to unemployment in South Africa. The most notable causes include:
1. During the Apartheid era many people were uneducated. Today those people cannot get jobs. The same people who were uneducated and poor back then are too poor now to afford a good education and healthy lifestyle for their kids who thus will not get jobs.
2. South Africa has a growing industry. The key term is growing also known as developing. Since it is sitll in the developing stages, it does not have many vacancies available in the industry.
3. Like the rest of the world, the availability of machines and other technology has led to an increase in the unemployment.
4. The cost of living is high in South Africa. Due to this, South Africans need large sums of money from their earnings. This has raised the price of labour.
News South Africa - http://www.thesanews.co.za
- vanweyLv 44 years ago
The Manufacturing sector warned the federal government about 15 years in the past that its insurance policies were not a excellent proposal and that eventually would crush the South African Manufacturing industry causing broad unfold unemployment. They had been watching at possible choices to BEE structure that will improvement all. Nonetheless they had been overlooked and as anticipated we've a fraction of a producing sector that we would have. BEE features are elegant for your companies Turnover. A corporation that does consulting may have very low overheads and it GP (Gross revenue) is significant. As a result 32 Million can be close to utterly profit and they are able to simply have the funds for the BEE principles. A producing organization tends to have colossal turnover and really low GP. Even a small manufacturing facility making plastic bottles would flip over 100Million however they may most effective have a GP of 5%. However when you consider that the turnover is so excessive they need to abide to the identical BEE principles because the rewarding consulting manufacturer. This makes almost all foreign buyers shy away from South Africa. Import obligations are a better deal then BEE. Thus the manufacturing sector suffers and what will have to be millions upon thousands of jobs don't exist. We do need some sort of BEE/AA but it surely wants to be though out and structured in a method that every body advantages. The current units was created through bankers for bankers. It wants to be revisited.
- SimonLv 57 years ago
Dear Lerato, legayi.
It is my opinion that it is because of a shortage of skills and education, and also the absence of what used to be known as the Protestant work ethic.
When socieities/countries/economies are highly-skilled they are able to produce more goods, creating greater wealth, in turn creating more taxes to be spent on developing the country's capacity to generate even more industry and wealth (through better roads, rail, healthier and more productive workers, ports, bureaucracy, Cuustoms and Excise processing, and so on, and so forth, ad infinitum).
But there is another factor which counts. Most of the successful economies of the world today exist in countries where people have worked damn hard for centuries. That work ethic does not come about evernight. We are still learning it, whether we like to admit it or not.
Do you know that up until less than one hundred years ago it was legal across most of Europe for employers to demand that employees work six days a week twelve hours a day??????? Did you know that? Less than one hundred years ago is just four generations!!!!! Just imagine! So, for hundreds of years those conomies have been building strong foundations upon which they can construct even better and stronger economies, if you see what I mean.
Many people will reply to your question talking about AIDS and corruption and this-and-that. Those things do count, but they are not the foundation. There was EXTENSIVE corruption and nepotism in monarchical Europe during the middle ages and right up until the seventeenth century, and AIDS has not killed as great a portion of the South African population as the Black Death did in Europe; and even Spanish flu and the Irish potato famine were so severe that, if the problem was just a health issue (such as AIDS) then the European economy would have been completely destroyed many times over. I think that you should look more deeply that that.
Quite simply, we have severe unemployment because our society has not yet developed itself to the point that it can create an economy which becomes self-increasing.