Anyone who has recently been on the job hunt will tell you that it’s tough out there.

Even a university qualification isn’t enough to ensure stable employment.

The unemployment rate in South Africa is one of the highest in the world. As it currently stands, 29% of the population is without work.

There are a number of reasons that have been put forward for why this is the case, from poor education and training to the legacy of apartheid, as well as the after-effects of the 2008 global recession.

Slow economic growth is also a factor, which is why the current administration is working so hard to increase foreign investment. They’ll also be capping the salaries of high ranking government officials and cutting down on their perks, but that’s another story.

BusinessTech looked into a recently published 25-year review that maps the progress made by South Africa since 1994.

The report covers areas such as rates of unemployment and paints an interesting picture of where we are now, compared to then.

Keep in mind that the unemployment stats from 1994 do not include the ‘Bantustans’ or the black majority.

“In 1994, there were 41 million South Africans, therefore the employed represented 21% of the population.

“By the end of 2018, the number of people employed had almost doubled to 16.5 million people, representing 28.5% of the population.

“Despite this, and as a consequence of an increasing population growth which surpassed the economic growth, the unemployment rate has increased to 27.1%.”

The unemployment rate was 27% in 2018. As mentioned earlier, it’s higher now, and the highest it’s been in a decade.

This graph sums it up:

BusinessTech

That’s a steady rise since 1995.

While the economy has grown by an average of 2,8% a year between 1994 and 2018, it hasn’t been strong enough to absorb the high numbers of people in need of employment.

The government has implemented a number of policies and plans, including providing incentives for companies to hire young people and women, in an attempt to remedy the situation, but so far it hasn’t been enough.

The NDP target of reducing unemployment to 6% by 2030 is highly unlikely to be met if things continue as they are.

President Ramaphosa claims that new investments in South Africa will create 412 000 direct jobs over the next five years.

While this won’t be enough to stop the problem in its tracks, it’s a start.

[source:businesstech]