...Unemployment as a socio-economic challenge. Africa suffer from 60% of all people unemployed being aged between 15-24 (UN, 2013). South Africa in particular is suffering from a high level of youth unemployment which has been increasing. As this figure is increasing it becomes even more important for South Africa’s Government to intervene and reduce youth unemployment. Youth unemployment is at 52% (World Bank)which increases poverty as the median wage per month for people in South Africa ages between 15-24 is R2100 (Statssa, 2010). South Africa have many policies which aim to tackle youth unemployment such as using a wage subsidy to give firms an incentive to employ more youths. This has been announced by President Zuma in 2013 that will take effect as of 1st of January 2014 (SARS, 2013). This will reduce labour costs for businesses because the South African Government will pay certain portions of the wage depending on the wage itself (SARS, 2013). To be eligible for the wage subsidy the employee must be aged between 18 and 29 and to have been employed as of 1st October 2013. However the wage subsidy may not be cost effective for the South African government because of the vast amount of youths unemployed. 3.2 million South Africans aged between 15-24 are unemployed so the jobs created for youths due to the subsidy will only be a fraction of that figure (Brookings, 2013). The South African Government should use some subsidies but also influence entrepreneurship amongst youths...
Words: 376 - Pages: 2
...South Africa Strayer University SOC 300: Sociology of Developing Countries Professor T. Taylor August 31, 2015 South Africa South Africa is located at the southern tip of Africa. It is made up of a unique demographic, and is approximately twice the size of Texas (Cia.gov, 2015). The death rate in South Africa is the highest of any country (Cia.gov, 2015). AIDS is very prevalent, with South Africa having the fourth highest rate of any country in the world (Cia.gov, 2015). Economic growth is slow, and unemployment is around 25% (Cia.gov, 2015). While the economy of South Africa is experiencing slow growth, they still use the benefits of funding from banking institutions. It is important to understand whether funding from these banking institutions, as well as the general health of the population, affects the economy and politics of the country of South Africa. The World Bank and IMF have the potential to positively impact the economy in South Africa. According to Olawale and Garwe (2010), it is essential that more small and medium enterprises (SME’s) are started in South Africa. They posit this idea due to the high unemployment rate plaguing South Africa. While the World Bank is in full support of more SME’s being opened in South Africa, South Africans fear corruption will prevent them from beginning new SME’s. On the other hand, one could draw the conclusion that loans from the World Bank and IMF are allowing the corrupt South African government to continue thriving...
Words: 1059 - Pages: 5
...INTRODUCTION South Africa is currently known as the most advanced, broad-based economy on the continent (South Africa Info, 2015). While South Africa has been developing, it has become more stable than before with its stability. Consequently, this essay will examine the meaning of the strength of state and how the strength has been changed in South Africa since 2005. Furthermore, the discussion on the current state of the nation will be attempted to explore by looking at the various debates, such as the social issues, the State of the Nation Address, the Budget Speech and Fragile States Index. A brief historical overview on South Africa will be stated to establish a comprehensive understanding of the development of South Africa with the changes of its strength. HISTORICAL OVERVIEW ON SOUTH AFRICA The Republic of South Africa was established in 1961 and many presidents were elected by popular votes among white citizens only, under apartheid (SAHO, 2015). When apartheid was abolished in 1994, Nelson Mandela has elected as the president under the first democratic election (South African Government). South Africa, today, is classified as a democratic country and rises as one of the world’s fastest growing economies as it has joined in BRICS, an association for five major emerging national economies, since 2010 (South African Government). MEANING OF STRENGTH OF STATE Power is often defined as ability that one holds in order to influence or to control other people’s behaviour...
Words: 2269 - Pages: 10
...South Africa: Stuck in the Middle? | 2014 | 1. Why is South Africa stuck in the middle? 2. Please find at least three problems to answer the first question. 3. Give your opinion for solving each of the problems mentioned in second answer. | | Contents Africa is experiencing extraordinary growth 2 Challenges 2 Challenge #1 Education 2 Challenge #2 Unemployment 3 Challenge #3 South Africa's growth path is highly resource intensive and hence unsustainable 4 Solutions 4 Solution # 1 - Improve education form the bottom up 4 Solution # 2 – Address unemployment from a new angle and become More attractive to Global business and entrepreneurship 6 Solution # 3 - Reduce the need for commodities and Invest in technology and entrepreneurship 8 Conclusion 8 Africa is experiencing extraordinary growth, In fact this decade has seen more growth for Africa than any other time in history making it six in the world’s 10 rising economy’s. Life expectancy is improving and HIV rates are down almost 30%. Malaria is also down and despite SA having the highest concentration of HIV in the world, African children born today are increasing their life expectancy one year for every three years over the last a decade. Education rates are increasing 25%, and more young educated man are entering the South African workforce. Yet despite these growth factors South Africa, and the continent of Africa as a whole...
Words: 3939 - Pages: 16
...Question 2 Read the closing case “South Africa after the World Cup”. Discuss South Africa’s emergence on the world stage and the problems it has encountered during this emergence from the perspective of the following questions: (a) As an emerging market, South Africa was able to reap the benefits of the World Cup. How would you describe the World Cup effect on South Africa? Answer - Have boosted the country’s economy including hotel and tourism industry, retailing industry. - Have lowered the unemployment rate as the has created lots of job opportunities (e.g. rebuild the stadium, need more staff to serve the tourist, need more hostel for tourist to live in - Have draw foreign people’s attention on the country - From website: http://www.bbc.co.uk/news/10507663 World Cup 'rebrands' South African economy By Bill WilsonBusiness reporter, BBC News 'Reputational boost' "South Africans are very proud of what we have done here, it has been a fantastic event, from an economic and a unity perspective," says Lee-Anne Bac, director at Grant Thornton Strategic Solutions in Johannesburg. "Hosting the 2010 World Cup will radically alter the landscape for tourism in southern Africa. "There has also been a reputational boost for South Africa that can help bring inward investment and visitors. "South Africa has been rebranding as a tourist destination and as one based around the development of a global sports event business model." Experts believe the country...
Words: 1329 - Pages: 6
...Miracle or Mirage? pg. 1 The New Growth Path: Miracle or Mirage? The South African government has embarked on a series of economic programmes to achieve job growth and redistribution goals. The New Growth Path is the latest: it sets an ambitious target of creating five million jobs by 2020. The Path contains some good dimensions, but remains largely a set of slogans: “green economy;” “knowledge based economy.” It raises some scepticism as far as its workability unless some targeted policies are identified, prioritized and followed through including coordinated monetary and fiscal policies, skilled workforce development, and targeted sector development. Precisely how important the various elements are is not detailed. South Africa: the Unemployment, Inequality and Poverty Challenge South Africa’s unemployment rate is one of the highest in the world: according to the International Labour Organization, which adopts a narrow definition of unemployment being “decent work”, in 2006 South Africa’s unemployment rate was over 25%, close to double the highest unemployment rate of middle income economies which is Poland (13.8%) and much higher than many of its Latin American comparators such as Chile, Mexico and Argentina (ILO, 2008). Also noteworthy is that these unemployment rates differ greatly by age: the unemployment rate of African youth (15-34 years) stood at 52.7% in 2010 (Dimant et al., 2010). South Africa also registered an increase of income inequality as the Gini coefficient...
Words: 2642 - Pages: 11
...transitional year for South Africa’s economy. As stated in the Economist (2010) South Africa is the biggest economy in Africa; furthermore, the World Bank has ranked South Africa as an upper middle-income economy (which accounts for an income of $4,086 to $12,615 per annum) as like as Brazil and China. Additionally, taken several factors into account, the Heritage Foundation (2013) scores South Africa’s economic freedom as the 75th (out of 186) in the 2014 Index. To assess a country’s performance, one looks at its GDP development, or in particular the real GDP growth, as a main indicator for a countries performance. Figure X reveals South Africa had a substantial growth over the years except from 2009. Because of its global integrated economy, it has not been unaffected by the global crisis. Nevertheless, BRIC countries have been less affected, looking at the aggregated figures in Figure X. Figure X: Economic Indicators Source: OECD (2013) In Figure X2 you can see the diverse economy of South Africa and the key sectors roughly contributing to the GDP. Figure X2: Composition of South Africa’s Key Sectors contributing to GDP Source: Own Illustration, Statistics South Africa (2012) On the basis of the industrialization section in this paper, caused by South Africa’s de-industrialization, it failed to engage and develop the manufacturing industry as an accelerator for exporting. One of South Africa’s biggest economical challenges is the unemployment rate. The highest rate...
Words: 958 - Pages: 4
...INFORMAL LABOUR MARKETS AS A SOLUTION FOR UNEMPLOYMENT IN SOUTH AFRICA – A CASE STUDY OF CAR GUARDS IN BLOEMFONTEIN1. P F BLAAUW Department of Economics Rand Afrikaans University L J BOTHMA Independent Labour Economist ABSTRACT The car guard industry in South Africa evolved out of the plight of the unemployed. Very little research has been done on the industry in South Africa. The first objective of this paper is to address the lack of research and the second is to determine whether the car guard industry can provide a solution to the problem of unemployment. Car guards involved in this study were found to be generally low skilled, earning low income and working under harsh conditions for long hours. The majority of them held formal sector employment before becoming unemployed. Car guarding is not a solution to the plight of the unemployed. Training and skill development supplemented by accelerated economic growth are vital to bridge the gap between the formal and informal sectors. OPSOMMING Die motorwag-industrie in Suid Afrika het onstaan uit die lot van die massa werkloses in die land. Weinig navorsing is al oor die industrie gedoen. Die doelwit van die referaat is eerstens om die gebrek aan navorsing aan te vul en tweedens om te bepaal of die motorwagindustrie ‘n oplossing vir die probleem van werkloosheid kan bied. Motorwagte in die studie is oor die algemeen laag geskoold, swak besoldig en werksaam vir lang ure onder moeilike omstandighede. Die meeste het...
Words: 4514 - Pages: 19
...Amitha Doodnath Grade 11D Student Number 11050 Business Studies Assignment – Assessing the Problem of unemployment ------------------------------------------------- Unemployment is a cancer that creeps into the lives of the citizens of South Africa and cripples the nation. Unemployment is growing day by day and if we are unable to do anything to stop this disease from destroying our nation, it is almost certain that South Africa will end up as another Zimbabwe. Personally, I believe that this cancer can be cured as long as the government and the community work hand in hand to eradicate this problem. The government is often criticised for not delivering on its promises, however, if the citizens of the country sit back and do nothing to improve their standard of living or turn to crime as a way out, they will be just as much to blame for the country’s lack of progress with regard to economic development. If I was placed in the position where I was an unemployed youth in South Africa, I would not allow myself to be forced into a life of crime by my socio-economic background. The best way to earn a living is honestly. At almost every streetlight, the presence of an unemployed South African wielding a cardboard sheet asking for food or money makes your heart drop. These people are the result of South Africa’s discriminatory history, however, by standing at the street corner and begging they are doing no one any favours. They are not earning a sufficient income to meet their...
Words: 1060 - Pages: 5
...Challenges of South Africa and Policies That Could be Implemented | | John JH Scheffer 22770933 | | 14 April 2015 Class Participation Assignment for CCMM515 | Introduction Since the dawning of a new era in 1994 South Africa has faced many challenges. Naturally change brings a long a new frontier and as one would expect many rough terrains. South Africa has thus far been a colossal beast charging through the constant strife of these rough terrains despite the constant lashing of its riders ever since it received its independence, however many fear the last straw is about to be placed on this beasts back. Current affairs threaten the future economic viability of South Africa and although recent assertions have been made to ensure the economic growth, the governments have done little or nothing to achieve these goals. Whether because of sheer incompetence, narrow vision focused on the past or the lack of proper management is arguable however there is little to be achieved by discussing the shortcomings of the government. This essay focuses on a more challenging viewpoint where the current socio-economic challenges of South Africa will be discussed and the policies that could be implemented to resolve these issues. The propositions in this paper are proposals that would be suggested for implementation as policies to resolve socio-economic issues if I were president. The Unemployment Issue ...
Words: 2393 - Pages: 10
... 5 Reaction of other political parties… 6 Impact of the President’s proposals on the national budget… 6 How did the budget address these issues?.. 7 Conclusion… 8 INTRODUUCTION Unemployment occurs when people are without jobs and they have actively sought for work. In South Africa, unemployment is extremely high and it is seen as one of the most pressing socio-political problems facing the government. The has been a lively debate on the extent, nature and cures of unemployment in South Africa but the outcome has rather been inconclusive. Unemployment in South Africa is so widespread that it demands an explanation. Unemployment is potentially a matter of serious concern - for its effects on economic welfare, production, erosion of human capital, social exclusion, crime, and social instability. However, its potential costs depend on the nature of the beast. The question we address is this. Is unemployment in South Africa largely voluntary or involuntary? The answer has important ethical and policy implications. If unemployment is largely voluntary, its cure can be downgraded as a policy concern. Interest groups and ideologues have taken predictable stances but the issue has not been addressed rigorously in South Africa. Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function. It can be generally defined as the...
Words: 2051 - Pages: 9
...compounds this risk by adding factors of varying inflation rates, interest rates, exchange rates, and rates of unemployment. When making an international investment these factors must all be considered as well as the economic growth rates in both countries and also the economic outlook for the country to be invested in. economic cycles are often predictable and by taking a look at the trends over the last three years it is possible to make a reasonable prediction of how the economy will unfold in the following years. Despite all of this, it is impossible for exact predictions so when making a recommendation, the element of risk must always be made clear. Investment always poses a risk. International investment compounds this risk by adding factors of varying inflation rates, interest rates, exchange rates, and rates of unemployment. When making an international investment these factors must all be considered as well as the economic growth rates in both countries and also the economic outlook for the country to be invested in. economic cycles are often predictable and by taking a look at the trends over the last three years it is possible to make a reasonable prediction of how the economy will unfold in the following years. Despite all of this, it is impossible for exact predictions so when making a recommendation, the element of risk must always be made clear. Investing in a South African supermarket is a good idea. There are several factors that must be considered first of course...
Words: 1322 - Pages: 6
...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
Words: 2752 - Pages: 12
...Graduate Unemployment in Post-Apartheid South Africa: Nature and Possible Policy Responses Research Report Compiled for Business Leadership South Africa Funded by Standard Bank March 2006 Development Policy Research Unit School of Economics, University of Cape Town Private Bag, Rondebosch, 7701 http: //www.commerce.uct.ac.za/dpru/ Executive Summary Overview The Development Policy Research Unit (DPRU) has been commissioned by Business Leadership SA to undertake an analysis of the growing problem of unemployment among South African graduates at the request of Deputy-President Phumzile Mlambo-Ngcuka. The research was funded by Standard Bank. Research of this nature is both timely and important, especially w ithin the context of the Accelerated and Shared Growth in South Africa (ASGISA) programme and the Joint Initiative for Priority Skills Acquisition (JIPSA). The ASGISA initiative recognises skill shortages and the poor quality of education as binding constraints to accelerated growth in South Africa. The first phase of the project involved a detailed review of the South African literature on the subject of graduate unemployment and more broadly, youth unemployment, as well as empirical analyses of various Labour Force Surveys (Statistics South Africa). The second phase attempted to acquire more practical insight into the problem through a series of interviews with some of South Africa’s largest companies, across a range of different sectors. The interviews, broadly...
Words: 62216 - Pages: 249
...expand their flights to South Africa. Qantas is not manufacturing any products in South Africa, they only offering transportation services by airplane in order to help people travel to South Africa easier. In order to operate effectively, Qantas needs to have a skilled workforce and an advanced information technology. They need an advanced information technology to keep their data and online system on track, also a skilled workforce because Airline Company need to have employees that understand well about how airline system works. 2.0 Political Environment 2.1 Government stability South Africa corruption ranked was recorded at 64 out of 183 countries and at 4.1 score out of 10. South Africa corruption score was increase since 2008. Corruption watch stated that in 2008 South Africa corruption score is at 4.9 and increasing to 4.7 in 2009, 4.5 in 2010 and until 4.1 in 2010, 10 is the least corrupt and 0 the most (Corruption Watch). 2.2 Government and contribution ACSA has allocated R5.2-billion to an infrastructure expansion programme for the three main airports at Johannesburg, Cape Town and Durban International, as well as at seven smaller airports (Media Club South Africa). 2.3 Analysis Due to South Africa corruption scores increasing, it will damage country’s economic. This also could be a high risk for investment area particularly foreign company due to insecure of South Africa government stability. Furthermore...
Words: 1766 - Pages: 8
