When you see figures and stats like these they mean absolutely nothing because when they say youth in your head you are thinking 18-21 years of age. That is what I thought anyway until someone pointed out youth represents 15-34 years of age. That changes things entirely ad fits is with wat I have been saying that South Africa's unemployment rate is over 50%.
The sugar coated figures for the overall employment rate are mot good, but less shocking because they are not the real figures.
I got onto this topic because the SA Parliament has increased salaries for it' employees that are not in line with the rest of the country. I will give you a good example being a cleaner wo has basic education is now earning more than a teacher who has a degree. There is something seriously wrong here and why many people are not employable.
In March this year the minimum wage was increased to R27.58 an hour which is double what I can remember paying not that long ago. You cannot keep pushing up salaries whilst taxing the companies harshly at the same time. This is inadvertently fueling more inflation and is unrealistic which is only going to end up with more job losses. The workers Unions are demanding more and more because they get paid from their people they represent, but those numbers are steadily dwindling and why they keep asking for more to maintain their revenue levels. This is financial suicide that is heading for total collapse.
The Government is totally out of sync with reality because they are not spending their own money which is sending the wrong message to those with degrees. Imagine being a teacher knowing that someone sweeping the floors is earing more than you are? yes many jobs in Parliament are no doubt family members of those in Parliament and this is seen as more of a racket.
The minimum wage is actually locking people out of finding work as businesses cannot afford to pay for what was once considered cheap labor. These workers are not worth the expense as many are uneducated and are limited in what they offer.
If you are a small business and can outsource work to other companies you will look for the most cost effective business practice. Instead of manufacturing an item it is far cheaper to import that product from somewhere else. Businesses that were once seen as the back bone for the unskilled workers are now moving to alternative methods like automated services.
When your workforce is uneducated and is expensive along with labor laws that protect them from being fired businesses have no alternative, but to do without and find another solution. Many companies used to have a cleaner and a tea lady and now they make their own coffee and outsource a cleaning service that will come in a few times a week and not every day.
South Africa has an open border policy and many workers are undocumented which allows them to offer their services below the minimum wage. This may be seen as illegal, but if anyone was being realistic at least they are working and they are making ends meet. They are not complaining because the alternative is unemployment and living on the streets.
South Africa has a big problem and unemployment is never going to improve as the labor is too expensive for no skills being on offer. If you can do the work yourself then there is no need to hire anyone. At home we have a house keeper wo earns more than the minimum wage, but if that was too increase we would have no choice, but to let her go and she would not find employment again.