South Africa still grapples with the monster of unemployment

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South Africa’s unemployment sits round 25.5 per cent (which will soon be about the same of our interest rate!), which is slighter higher than another leading African economy – Nigeria.

We can probably be thankful we are not Zimbabwe that sits around 80 or even 90 per cent!

Addressing unemployment is becoming absolutely critical.

After all, it is widely rumoured, debated and argued that unemployment is at the root of SA’s racism storm and the crime wave that terrorises communities.

In this country, if you face poverty and you sit with little education, then a life as a criminal could seem like a good idea.

Sadly, there are many vacancies open judging by the constant activity of drug dealers and gangsters within the Boksburg borders (as long as there is a demand then the supply will run riot).

Crime will thus never be addressed or effectively countered in our land of the spluttering Rand and high food prices if unemployment is not tackled.

Education is thus one of the detergents to a life on the street or becoming a criminal.

For this reason the storms over university fees go unabated like the super storm Sandy that hit New York a while ago.

But then again, constantly disrupting classes and destroying tertiary infrastructure is about as productive as President Zuma attending the World Economic Forum in Davos.

And while speaking of Davos, spare a brief thought for our Finance Minister Pravin Gordhan (who knows for how long you will sit in this chair) who has been tasked with the herculean task of putting out the raging fires of SA’s economic uncertainties.

By the way, regarding the drought (and thank you to all those who are contributing to providing water), we might soon be importing maize from Mexico.

Only difference is that we might be eating yellow pap. Ah well, that is the price you pay for firing and hiring three Finance Ministers within a week.

And what about racism? Despite the society clearly going over the deep end when it comes to political correctness, there remains a mad scramble to find work among all ethnic groups.

Naturally, with work being rather scarce equal to AB de Villiers trying to buy a run, tension continues to rise as some ethnic groups feel they are being discriminated against with jobs being handed to the former disadvantaged to correct the inequalities of the past.

The fact remains South Africa needs to address unemployment and address it quickly because more people continue to seek to greener pastures overseas, to countries like Australia where unemployment rates are low.

This then leads to the continuing brain drain scenario (the educated) and the continuing loss of skills.

Despite the government telling the people of South Africa there is a plan to address the economic instability, you have to wonder if the government truly has a plan to address unemployment.

The opposition party of course does not think the government can address the matter. They are already drumming up support by playing the unemployment card.

And why not? The reality is that economy is hardly growing, few jobs are being created and so the frustration on the streets continue to spike.

But to address unemployment will take a monumental effort, because the global economy has entered a new period combining slower growth, widening inequalities and turbulence.

Here is something to chew on – it is estimated that by 2019, more than 212 million people will be out of work worldwide, which will be up from the current 201 million.

This is according to to a new International Labour Organisation report.

While employment situation has improved in the United States and Japan, two regions, South Asia and Sub-Saharan Africa (which includes SA), account for three quarters of the world’s vulnerable employment.

If you thinking to relocate, consider East Asia which is among the regions that are likely to make the biggest dent in vulnerable employment, which is expected to be reduced in the region from 50.2 per cent in 2007 to 38.9 per cent in 2019.

Back home, sad but true that the employment situation has not improved much in Sub-Saharan Africa, despite better economic growth performance.

Growing and persistent inequality and uncertain prospects for enterprise investment, the report explains, has made it difficult for countries to rebound from the crisis.

The report also indicated income inequality will continue to widen, with the richest 10 per cent earning 30 to 40 per cent of total income while the poorest 10 per cent will earn between 2 and 7 per cent of total income.

To sum it it all, the new analysis shows that the global job crisis is not likely to end especially in emerging economies.

Therefore, Gordhan has one heck of a task ahead if he wishes to correct unemployment because he will then have to turn a tide of Titanic proportions as seen playing out on a global platform.