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Q: 6 causes of unemployment in south africa and globally
A: It is found that unemployment is very inequitably distributed in South Africa and certain groups are much more likely to enter it, and to stay in it, than others (Table below). [ Young uneducated Africans living in homelands and remote areas are most vulnerable to unemployment. There are two particularly striking features of South African unemployment: firstly, the fact that rural unemployment
rates are higher than urban rates is atypical among countries and is explained by historical policies restricting mobility. Secondly, the majority (62%) of the unemployed have never held a job before, i.e., they entered unemployment from the time of entering the labour force. The very long duration of unemployment (>1 year) among a high proportion (68%) of the unemployed suggests that the demand-side of the labour market is responsible for a good part of the unemployment. ............ The analysis tells us the characteristics of the unfortunate people who are liable to be at the end of the queue for employment. Improving their characteristics may improve their place in the queue, but it will not necessarily reduce unemployment. In the African group - the group that suffers such catastrophically high unemployment rates - human capital characteristics such as education and employment experience dramatically reduce the chances of unemployment. However, a policy prescription that African education and skills should therefore be upgraded may not solve the problem: unless there are more jobs in the economy, upgrading the education of Africans will at best change the composition of employment in their favour. Of course, it is possible that expanding education and skills will reduce overall unemployment. The mechanism might be to increase the supply of skilled labour, for which there is market clearing, and to decrease the supply of unskilled labour, for which the market fails to clear and there is a surplus of workers. ................ ]
sujaysen|Points 3780|
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Asked 2/26/2013 3:28:25 PM
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