Unemployment remains a concern for South Africans

The latest employment statistics in South Africa reflect a shockingly high unemployment rate that concerns both entrepreneurs and job seekers. The unemployment rate stood at 35.3% at the end of 2021 and is expected to rise more. The public and private sector have been urged to step in and find solutions to combat the rising unemployment numbers. 

Professor Derick Blaauw, an expert in economics at NWU, said, “the causes of unemployment in South Africa are complex, multifaceted and have a long history. From an economic perspective we distinguish between causes of unemployment in the short run versus long-term unemployment.”

He said, ”short-run unemployment is referred to as cyclical unemployment and this is mainly due to a decline in economic activity. A recession is a decline in economic activity, and the most recent drop in economic activity was primarily due to the Covid-19 pandemic. When economic activity declines, unemployment rises because businesses produce less and lay off workers, while others close and workers lose their jobs. This type of unemployment can be seen as waves on an ocean of long-run unemployment,” Blaauw said.

Professor Andrea Saayman, economics and management professor at the NWU Potchefstroom campus, said, “job seekers should expect an extremely competitive labour market with limited opportunities and severe competition for the available job opportunities. This is especially true for new entrants into the labour market and even more so for unskilled and semi-skilled workers.”

She added that, “a large portion of South Africa’s unemployment is structural and long-term. This form of unemployment has existed for a long time and is difficult to overcome. It requires reskilling of the population,  labour-market policies conducive to employment, policies to enhance long-term economic growth. The most important thing to understand is that labour demand is a derived demand. Economic development is required but not sufficient for unemployment reduction.”

Zakhele Khanyi (31), South African entrepreneur, said , “the world has moved rapidly towards a more technology-infused work environment.” He said that this relates to remote working and systems and applications which lend themselves to this method. 

The impact of Covid-19 has wreaked havoc on a variety of sectors over the last four years. The war in Ukraine has also affected production capacity in some industries.

“Higher learning institutions need to conduct intense drives educating high school learners about careers required in South Africa. The current red tape associated with starting and running a business must be addressed by the government. Fast-tracking economic growth, which will boost employment levels, requires policy clarity for foreign direct investors,” Khanyi said.

Kgotso Seahloli (22), employed graduate, said that it wasn’t easy balancing the stress that comes from both final-year and job hunting. He applied to a number of different places and for various positions. He said that is the harsh reality of job hunting in a country with one of the highest jobless rates in history. “You accept the reality that even after sacrificing years to study, you might not even get a job after.”

He continued to say that certain occupations demand experience, which you can’t gain if you don’t have a job, and you can’t reasonably try to job shadow or be an unpaid intern due to poverty rates. 

While the statistics continue to rise, for some, the amount of experience on the job market in South Africa counts and is expected to be more recognised than the type of qualification one holds. 

Kamohello Mollo (22), unemployed bachelor’s degree graduate, said that she experienced a lot of frustration while seeking employment in her field of studies. “Our country has a high unemployment rate, and there is intense competition,” Mollo said. 

She said in her experience, a job seeker in South Africa is more likely to find executive positions open when they are looking for work than entry-level job posts. 

Mosa Ndlovu (21), NWU third-year student in marketing management with sales and brand management, said,  “I am expecting a rise in digitised job opportunities now that lockdown regulations have been eased. A lot of businesses have adapted and moved to remote-based work for their current and future employees and since we’re in the era of digital transformation. I anticipate this line of work will prevail.”