Unemployment in South Africa under a critical situation
View pictures in App save up to 80% data. Unemployment in South Africa has been a pressing issue way before Apartheid had began. It is the number one cause of poverty and the large inequality in this country. In South Africa, unemployment is the highest number of people without jobs as the percentage of the total labor force. We are sitting now at a 27,8% unemployment rate as reported from Trading Economics that has affected the lives of the South Africans. The unemployment rate does not include 4 million people who have already given up finding work because they have tired many times and failed. In reality this mean there are 10.1 million South Africans who are unemployed or have given up in finding working in total.The impact of unemployment has never been easy to understand because of the history we have faced has also caused the poverty rate to increase in this country. Throughout the years we have been facing countless amounts of people with the lack of education that has made people commit crimes to build a source of income to provide for their families. View pictures in App save up to 80% data.
Unemployment is a major life event. It can have a devastating impact on people’s lives. It affects not just the unemployed person but also family members and the wider community. The impact of unemployment can be long-lasting. As unemployment becomes more long-term, its impact becomes more far reaching, often affecting living standards in retirement. The loss of income by the parents can damage the prospects of the next generation. Quite apart from the personal impact, unemployment is a loss of valuable productive resources to the economy. The impact of job loss in rural and regional areas flows through the local community damaging businesses as family expenditure is reduced. Further damage to local communities may result from people leaving in search of work. View pictures in App save up to 80% data.
It is difficult to understand why the employment rate is so high and what can be done about it because the causes are very complex. The important factor we have to put into consideration, is the mismatch between the skills distribution in our society and the skills distribution that our economy seems to need. In order to come up with a sustainable solution to our employment crisis. There needs to be a big improvement in our education system. But one of the best recommendations to save employment is to open the economy to create Free market economy with less government regulation and reduce the tax. The advantage of this Free Market is that individuals will be given tasks to create employment and the government will create a safe net for the poor, keep law and order in the free market and set living wage for everyone in the market. If the government creates a safety net for the poor, they will have access to skills and knowledge of employment to those who cannot access it. View pictures in App save up to 80% data.
Unemployment is a serious issue to our economy because it creates negative effects for the unemployed as they are jobless and can not provide for their loved ones. Unemployed people suffer from worse prospects to find a new job and those who are earning a wage feel less secure to keep their jobs for the coming future.