The quality for the bottom 80% of schools is terrible and over 60% of children cannot read after 4 years of education. Burns et al (2010) captures the benefits of a youth wage subsidies in three simple arguments. 'The manifest we release today is a manifesto for jobs' ' Helen Zille, Leader of opposition Democratic Alliance. Therefore, risk patterns that reinforce inaccessibility of the labour market should be the starting point of any policy formulation process. Investment in and building of transport infrastructure in themselves are not youth specific interventions, but do contribute significantly to integrating young people into the labour market. 8.1 Enterprise Finance for Youth Entrepreneurship This is not an example of the work produced by our Essay Writing Service. As indicated, the focus of this paper will be narrowed down to the challenge of youth unemployment. South Africa is not exception in this scenario with a comparatively higher rate of unemployment amongst young people, as argued earlier by Mlatsheni (2002) and supported by Altman (2007). The World Bank also supports this view noting that 'high firing costs reduce layoffs, as well job creation in firms, making access to employment difficult for new young entrants to the job market' (McCarthy, 2008). Bell & Blanchflower (2010) propose that South Africa look to the Scandinavian countries as an alternative example where broad labour market deregulation is considered a politically impossible or unpopular move. In addition to these changes, South Africa's post-Apartheid labour market coincides with an era where economic growth has been comparatively poorer.

Additional revenue is likely to create additional taxation. 25 - 54 yrs 27.0 26.9 26.4 25.8 25.8 0.0 -1.2 Bernstein (2008) goes as far as arguing that the only fact that improves the employment prospects for young people is age, in other words, getting old. But this growth ground to a halt in the mid-1970s when the gold boom burst and effectively lost its luster. Twenty years after democracy, it is still the election-dominating card, and the priority of national, provincial and municipal card. Although inequality remains high, the democratic government has made some progress towards alleviating poverty. Policy reform and the support of more small businesses would aid in the rehabilitation of the unemployment market. The paper concludes that amongst other factors, entry restrictions, employment protection legislation, and the collective bargaining framework all contribute to the misalignment between real wages and labour productivity (Blumenfeld 2012). There are a number of considerations that must be made when taking on the youth unemployment crisis in South Africa. What is certain is that being such a politically visible and contentious issue, the government would need to be bold enough to legislate into law policies that although have the potential to change the structure of the labour market, may at best be unpopular with business, unions, and other political parties. Non-degree necessary career paths such as plumbing, electrical, and labor are in high demand in South Africa. The effect of this is not only on the increased competition in the market amongst training providers but young people can effectively buy the skills that would improve their employability (Meth 2011; September, 2007). In addition, they should advance loans to enterprises to develop training programs. According to the ILO (2006) it estimated that cooperatives account for up to 100 million jobs world-wide. South Africa aches with a chronic case of youth unemployment. DEVELOPMENT FINANCE INTERVENTIONS Young adults do not have a sufficient network to obtain job opportunity information or access to financial resources or the mobility to seek work or relocate closer to the places where those career opportunities exist. South Africa's National Youth Policy (2009-2014) defines the youth age group as being between the ages of 15 and 35 years old. What the government can do is to consider another development finance intervention that has the potential to counteract market failure as it relates to training. 8. Definitions aside; South Africa has a youth unemployment crisis. The chart included below shows the main problems experienced by learners in public school, by province, in the 2018 school year. Obtaining a grade 12 or Matriculation certificate falls sharply from being any sort of guarantee of a place in the job market. The financial sector is home to dozens of domestic and foreign institutions providing a wide range of services from commercial and merchant banking to mortgage lending and insurance. Concisely, FETs face multiple challenges such as a lack of clarity on the most effective programmes, funding, weaknesses in institutional governance, and an inability to equip trainees with direct links to the work place. For example, between 1995 and 2002: 1.6million jobs were created. Young people are most often the first casualties of such actions.

Research has shown that the deliberate exclusion of black people from the educational system and skilled occupations, has greatly contributed to the high rates of unemployment. As with other kinds of market failure, the absence of information is the primary reason for asymmetry. Continuing to improve the education system would help to control the problem from the ground up. In the South African economy, low levels of education, the lack of job creation and insufficient social protection means that many youth are also under-employed, engaged in low-income self-employment, informal jobs or unpaid work. 7.4 Location-related market failure By the late 1970s unemployment had taken hold such that by 1994, one third of the African labour force was simply unable to find work. Development driven by gold revenues and foreign capital ensured a consistent flow of labour away from traditional agriculture in favour of rapid urbanization (Nattrass 1996:46; Stander 1996). Free resources to assist you with your university studies! figure 5. Youth unemployment is not a neglected area of concern in South Africa. Privacy policy | Website terms of use | XML sitemap, South Africa’s Triple Challenge Of Unemployment, Poverty And, Inequality, High school aged individuals feel that the only way to be “successful” in life is through attending university and that discourages any other pathways.

These numbers are best reflected in the inequality that exists amongst wage earners.

Simply put, unless demand or labour broadly is on the rise, interventions to increase youth employment are unlikely to be effective either. The legislative environment does not lend itself to cooperatives either.

In the same vein, if left unabated, the swelling population of unemployed youth can erode most, if not all, of the gains of the past 20years.