South African Unemployment: Walking through the fires of success without getting burnt in a post-pandemic society

Unemployment is in the face of a man who was just told that his interview was unsuccessful despite the efforts of using his last source of money to print out his referrals. Unemployment is in the face of a graduate who walked out from college doors wearing a Cum Laude achievement like a fitted crown only to be told the delay that comes with the success of getting a job is just as prolonged for the person who had never matriculated.?

Many of us have been unemployed at some stage in our lives, and many of us have remained in the same predicament for a few days, weeks, months, or even years later but who is to blame? COVID-19 has changed the name of the game and not for the better.?

According to the Quarterly Labour Force Survey for Stats SA (Q1:2021), the current unemployment rate is a staggering 32.6%. However, what many are unfamiliar with is our standard definition of unemployment which includes those who have given up looking for a job. This rate painfully sits at 43.2%. The number of discouraged workers increased by a staggering 201,000. In contrast, those who were not active within the labour market for other reasons besides discouragement decreased by 38,000, resulting in a net increase of 164,000 of those who were not economically active.

The Quarterly Labour Force Stats SA defines general unemployment as those persons (aged 15-64 years old) who were not employed but had taken steps to look for a job and are willing and actively seeking employment. The reasons for unemployment vary according to age, location, and even gender. Still, the one commonality shared by all in the country is that this social ill has a devastating effect on our lives.

The youth are a dominant generation finding themselves in the clutches of an unjust reality. The youth unemployment rate saw the numbers skyrocket to 46.3% in Q1:2021 within the 15-34 age group. This is a cause for concern, and a crisis that comes with a heavy price as this means 1.3 million youth within the above age group have sat without work for at least three months.

???The below graph illustrates the unemployment rate from the year 1994 to 2018.

According to Stats SA, within 1994, the unemployment rate was 20% with 8.9 million people employed at the time even though the data provided excludes the black majority and the Bantustans. In total, there were 40 million South Africans in that same year, of which those who were employed fell under the 21% rate.

Stats SA, as cited under the ‘25 years of Democracy’ review, continued to illustrate that over the years, the unemployment rate had continuously made its mark in the country due to the inability for job creations as well as skills mismatch, which are few of the reasons why structural unemployment has been a lingering concern facing the country over the years. The current unemployment rate that bears the present marking of 32.3% is one of the highest official ratings the country has endured for the past 16 years.

The South African government has taken measures to tackle this dreadful phenomenon; however, such initiatives have not made a long-lasting impact thus far. For instance, ETI, or the Employment Tax Incentive, cited by Business Tech (2019), was intended to stimulate demand for young workers. The Expanded Public Works Program was meant to target young people and women.

How then do we tame this leviathan monster called unemployment without finding ourselves being caught in its tentacles that accompany crime, poverty, inequality, corruption, and political mishaps? These tribulations have been a grey cloud hovering over the country for the past 25 years of Democracy.

‘’Quicquid Capit”, as I would say. A Latin motto that I live by when translated into English means “Whatever It Takes.”

As much as the statistics of our unemployment rates have illustrated an uncomfortable reality that positions us into lives driven by uncertainty and fear, the world is moving towards a global revolution where innovation is the new gateway to success and self-exploration is the latest employment market, especially during post-pandemic times. We witness entrepreneurship evolving into a dynamic industry where unemployment is no longer a hindrance but rather an opportunity to self-assess a valuable factor that you can bring to economic growth and stability.?

As I leave you with nuggets of wisdom that were voiced by Arijit Dutta, Managing Director of Priya Entertainment, “We need to find solutions to tackle unemployment and close the skills mismatch which needs to be shared, replicated and scaled to solve the employment and skills equation. Traditional education systems can be restructured to nurture talent for the market’s needs adequately and the process of learning must continue during employment. Entrepreneurship or business ownership is a significant source of employment and economic growth. This gains greater significance in the context of newly developing business models, the displacement of traditional jobs, and new business opportunities. The divide between education and employment, complex labour markets, along with changes in demographic patterns, migration, and urbanization, are factors to match the supply of talent with demand for it.” He added.

Whatever you do, walk through the fires of success, Quicquid Capcit.

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