Marching for the youth wage subsidy : a critical assessment of the Democratic Alliance's Work and Skills programme in the Western Cape

Abstract

Youth unemployment in South Africa is a powder keg, and the discontent felt by youths as a result of joblessness could prove to be the spark that sets it off. The discourse around high unemployment has been about what to do about it, and one suggestion proposed is a youth wage subsidy. This study draws on an analysis of public discourse on the youth wage subsidy to assess how the policy is construed and justified within the public domain. In support of a youth wage subsidy, the Democratic Alliance (DA) argues that the labour market in the country is inflexible, and a wage subsidy is one of the tools which will prove to overcome this obstacle. Congress of South African Trade Unions (COSATU) on the other hand has been in opposition to a youth wage subsidy arguing that the labour market is already flexible and should be regulated. This study draws on documents to analyse the discourse at a national level, and at a provincial level it draws on a case of the Western Cape called the Work and Skills Programme (W & SP). Theoretical, the study draws inspiration from and is influenced by the work of Jamie Peck as well as the notion of decent work. Against the backdrop of the changing nature of work from typical to atypical, this study challenges the argument that high wages and labour market inflexibility are the main causes of unemployment. This study argues that the high wage argument advanced by business is a proxy argument for a skills development crisis of which employers are unwilling to shoulder some of the responsibility. The challenge for business is a balance between production and skills development, the former is a priority and the latter a secondary issue. A youth wage subsidy therefore symbolically represents a life jacket to be used to reach the employment boat. The central argument advanced is, in the absence of structural change and reform a youth wage subsidy will remain an ineffective life jacket. Moreover, this study argues that drastic deviation outside the Decent Work Agenda in the name of flexibility without adequate social security net could exacerbate poverty and inequality which are linked to unemployment.