Implementation of unemployment policies in South Africa

Abstract

This article examines an issue that is currently of particular importance in South Africa. The South African Government has just allocated R9 billion to address unemployment. A number of policies address unemployment in South Africa since the transition to democracy in 1994. Notwithstanding these policies, unemployment has about doubled since 1994. The challenge that all these policies should consider is how to define unemployment. The unemployment data is crucial in an effort to design a proper unemployment policy. It seems that unemployment is much higher for younger workers than older workers. Getting the first job, especially in the formal sector, is quite difficult for most young South Africans. This article will therefore focus on aspects like the reasons for the increase in unemployment, the role of labour legislation, the impact of the South Africa’s labour policies and towards the end some policy suggestions. The analysis of unemployment is mainly based on household surveys from 1995 to 2010. The article argues that if unemployment is to be addressed, it is crucial to realise that policies should focus on job-creation in South Africa. A concern should also be the interests of the unemployed and the informally employed poor who are largely beyond the reach of the labour institutions. The lack of appropriate data on the informally employed complicates the policy-making process. In conclusion, the article appreciates unemployment policies and programmes, like public works programmes and skills training against the background of a lack of local evidence. The question is really where future employment will be generated. In this instance sectors like trade, finance and tourism should be high on the list. It is critical to realise that substantial improvements in policies are needed to address unemployment.