South Africa is facing a dire unemployment crisis, with experts warning that the record-high rate of nearly 33% could lead to severe political instability. The United Nations and other organizations have raised concerns about the impact of widespread joblessness, particularly among young people, on poverty, inequality, and social issues such as crime and drug abuse.
Addressing this urgent issue, South Africa has been urged to implement immediate interventions to transform its economy and prevent the unemployment rate from soaring to nearly 40% by 2030. Across the country, qualified graduates find themselves in low-skilled jobs, while others resort to recycling as a means of earning a living. The COVID-19 pandemic has aggravated the situation, resulting in the loss of over 2 million jobs.
Themba Khumalo, a former machine operator who lost his job in 2017, exemplifies the struggles faced by many. To support his family, Khumalo now collects scrap metal and plastic containers for bulk recycling. Frustrated by the lack of government support, Khumalo contemplates leaving the country to seek opportunities elsewhere, lamenting the meager $18 monthly unemployment benefit he receives.
Unemployment has emerged as a pressing issue alongside South Africa’s electricity crisis, which has caused frequent power blackouts. Political parties will be compelled to address these challenges as they prepare for the upcoming 2024 general elections.
In Pretoria, Lebohang Mphuthi, a 26-year-old with a diploma in analytical chemistry, is employed as a student assistant at a public school. Despite her qualifications, Mphuthi’s responsibilities primarily involve supervising children during lunch breaks and assisting teachers. Her monthly income of $265 is considered relatively fortunate in a country where official unemployment statistics fail to account for those who have given up on finding work. In reality, analysts estimate that nearly 42% of South Africa’s working-age population is unemployed.
The World Bank identifies South Africa as having the highest unemployment rate globally, surpassing Gaza and the West Bank, Djibouti, and Kosovo. The youth unemployment rate is particularly alarming, standing at 61% among 15- to 24-year-olds according to official figures, and a staggering 71% when accounting for those who have discontinued their job search.
The government has implemented initiatives to support young entrepreneurs in establishing their businesses. However, according to Pearl Pillay from the Youth Lab think-tank, these efforts are falling short. With an economy that lacks growth and insufficient support for entrepreneurship, Pillay emphasizes the challenge of absorbing the growing number of young individuals entering the labor market.
South Africa’s unemployment crisis has been exacerbated by the COVID-19 pandemic, which swiftly eliminated another 2 million jobs. The desperation among the unemployed is palpable, as evidenced by the overwhelming response to job opportunities. In Gauteng, the economic hub province, over 40,000 people queued in freezing temperatures, vying for 6,000 available positions, resulting in the rejection of more than 30,000 applicants.
The UN’s warning of a potential “time bomb” regarding South Africa’s unemployment crisis resonates strongly. In 2021, the country experienced devastating riots and looting, claiming the lives of over 350 people and marking the worst violence since the end of apartheid.
According to financial analyst Duma Gqubule, South Africa must achieve an annual GDP growth rate of 6% to generate enough jobs for the 700,000 individuals entering the workforce each year. However, the country’s economic growth has consistently fallen short of this target for over a decade. Despite a modest 2% growth in 2020, South Africa’s economy is projected to expand by less than 1% this year and between 1% and 2% over the next five years.
As South Africa grapples with the ramifications of its record unemployment rate, urgent and substantial measures are required to revitalize the economy, create jobs, and provide hope for its struggling population. Failure to address this crisis could have dire consequences for the country’s stability and social fabric.
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