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Youth Unemployment in South Africa

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Submitted By heath96
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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, to start their own businesses thus creating more jobs for themselves and others. To reduce the youth unemployment will take a long time as it is still rising and the population is ever-increasing.

References:
Brookings-http://www.brookings.edu/blogs/africa-in-focus/posts/2014/08/15-youth-unemployment-south-africa-oosthuizen
SARS-http://www.sars.gov.za/Media/MediaReleases/Pages/19-December-2013---President-Jacob-Zuma-signs-the-Employment-Tax-Incentive-Bill-into-law.aspx
Statssa-https://www.statssa.gov.za/Publications/P02112/P021122010.pdf
United Nations-http://www.un.org/africarenewal/magazine/may-2013/africa%E2%80%99s-youth-%E2%80%9Cticking-time-bomb%E2%80%9D-or-opportunity
World Bank-http://data.worldbank.org/indicator/SL.UEM.1524.ZS

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