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.
