Why has unemployment increased drastically in south africa in the past two years?

Question: Why has unemployment increased drastically in south africa in the past two years?

There are a number of reasons why unemployment has increased drastically in South Africa in the past two years. These include:

• The COVID-19 pandemic: The COVID-19 pandemic has had a devastating impact on the South African economy, leading to widespread job losses. According to the National Treasury, the unemployment rate in South Africa increased from 27.6% in the fourth quarter of 2019 to 32.6% in the fourth quarter of 2021.
• The slow economic recovery: The South African economy is still recovering from the COVID-19 pandemic, and the pace of recovery has been slow. This has limited the number of jobs that have been created.
• The skills mismatch: There is a mismatch between the skills that employers are looking for and the skills that workers have. This is making it difficult for people to find jobs.
• The youth bulge: South Africa has a large youth population, and many young people are entering the workforce. This is putting pressure on the job market.
• The informal economy: A large number of people in South Africa are employed in the informal economy, which is not as well-regulated as the formal economy. This makes it more difficult for people to find secure jobs.

The South African government is taking steps to address the problem of unemployment, such as investing in skills development and job creation programs. However, it will take time to make a significant dent in the unemployment rate.

In addition to the factors mentioned above, some experts also believe that the following factors have contributed to the increase in unemployment in South Africa:

• The decline of manufacturing: The manufacturing sector has been declining in South Africa for a number of years, due to factors such as globalization and automation. This has led to job losses in the sector.
• The rise of the gig economy: The gig economy is characterized by short-term, contract-based work. This type of work is often not secure or well-paying, and it can make it difficult for people to make a living.
• The lack of investment in infrastructure: South Africa needs to invest in infrastructure, such as roads, bridges, and power plants. This would create jobs and boost the economy.
• The high cost of living: The cost of living in South Africa is relatively high, which makes it difficult for people to make ends meet. This can discourage people from looking for work.

The government is taking steps to address these factors, but it will take time to see the results.