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Five Reasons for the High rate of Unemployment in South Africa

Five Reasons for the High rate of Unemployment in South Africa The high unemployment rate in South Africa is a constant worry. We might be able to find a solution if we pinpoint the causes of such a high unemployment rate. On this page, we go over five causes of South Africa’s high unemployment rate.

Before we look at the traditional reasons for unemployment in any given nation, it’s important to note that South Africa faces some pretty unusual unemployment difficulties. Where do jobs originate? The largest query that appears to baffle the majority of South Africans, many of whom believe that the government provides jobs. Hence, in order for jobs to exist, they must be generated by everyone, not just the government. When someone notices a hole in the way services are provided and tries to close it, a job is created. We produce and provide value to the people by recognizing the service gap in a society. Many jobs are created while the need for services continues to rise when we add that value by providing a service.

As long as there is a value addition to society, jobs can be produced by anyone providing a service (in a lawful manner, of course). Regrettably, a large number of South Africans are unnecessarily jobless because they were unable to spot the service gap, where they could have started giving so much value to other citizens and creating jobs for both themselves and others. Indeed, the government must consider the following:

empowering people through influencing policies that encourage entrepreneurship and regulate the private sector,
business funding, and hiring people to offer public services.

But, the reality is that the majority of the jobs may still be created by regular South Africans. The enormous corporations with thousands of employees are born from little little companies in people’s back yards.

List of Five Reasons for the High rate of Unemployment in South Africa

Apart from the reasons mentioned above, lets look at some of the existing realities that cause high rate of unemployment in South AFrica:

Companies are hiring less and less people because of technology and cost cutting
There is a great skill shortage (to take on new jobs opportunities) in the ever changing world of work influenced by digital technology that cause many South Africans to be irrelevant in the corporate world.
Retrenchment fuels the rise of job loss in South Africa
In the era of digital technology and the global economy, buyers of products look for cheap imports and local people lose jobs as factories close down using the internet.
Less people are creating jobs, which leads to higher demand than supply; meaning there are more job applicants than jobs available.

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Five Reasons for the High rate of Unemployment in South Africa