There is currently an overflow of unskilled workers in South Africa as opposed to a critical shortage of skilled workers. Our Previous blog article on this high skilled shortage can be read here… http://bit.ly/1pHuaoS

Presently there is not enough job creation for the growing numbers of unskilled labour. This could be due to many contributing factors …

– South Africa has been affected by the Global recession and an ongoing mining strike which has impacted on our GDP and increased our rate of employment.

– Some experts believe that the cost of producing goods and services locally has risen too quickly and the rates for unskilled wages has increased twice as much as in wealthier countries. Skilled workers and management are however often underpaid.

– There has been a fall in employment in the manufacturing and construction sectors.

– The output of exports has not grown fast enough

– It has been reported that South Africa has more civil servants than those employed in the mining and manufacturing sectors.

– More people are receiving an income from welfare as opposed to employment.

– Trade unions, minimum wage and affirmative action may also have an effect on job losses.

–  Many unskilled workers affected by unemployment have not yet completed secondary school.

– Companies are more likely to employ workers with work experience. This poses a difficulty to many  young job seekers who have recently  matriculated with no skilled work experience. It is estimated that around one young adult in eight is employed in South Africa compared to other emerging countries in which two in five were employed.

– According to a paper released by the Centre for Development and Enterprise “high unemployment is at least partially caused by South Africa’s labour market institutions and regulations”.

– There are fewer new low-skill jobs being created and a high demand for skilled and experienced labour.

– There is a shortage of “entrepreneurial” or self-employed small businesses being created which could stimulate job creation. This shortage could be due to legislation regulations and the lack of available finance.

It is Governments aim to create 6 million job opportunities by creating an environment that promotes economic growth. There is encouragement needed for new entrants such as SMME’s to enter into the market. There is a general consensus that job creation especially for low skilled workers is desperately needed and hopefully sooner than later.