South Africa’s recent fall in the global markets to over R10 to the US Dollar and a national growth rate of just 0.9% has caused an increase in the official national unemployment rate, which has gone from 24.9% to 25.2%, as well as an increase in the percentage of the unemployed that have given up on looking for a job (now at just under 38%).
These factors have all weighed down on the youth job market and the number and range of opportunities available to both high school and university graduates.
The blame for the increase cannot necessarily be placed on one part of the economic process, whether its unions and wage increase disputes or profit margins and cuts higher up in the chain.
Each part of the process is responsible for a part of the blame, and in order to fix it, the entire system, as well as the capitalization and unfair profit distribution should be addressed.
While workers unions like COSATU are disputing wage increases, looking for rates much higher than the national inflation rate, causes difficulty for new employees looking to get into the industries at an entry level with a fair wage, profit margins and exploitation of agriculture and high product price markups create an imbalance at a higher level.
However, the use of apprenticeship and internship programs may help drive the youth employment rate up while developing much needed skills and workforce competency in the long run.
The apprentice system, much like the one used in Germany (a country where the unemployment rate is the lowest in the destabilized European Union at around 7.6%) provides young employees with skills development and career options after they have left school and are looking at specializing in a certain field.
Apprenticeships are typically used in manual labor-intensive industries such as automotive, mechanics, etc., whereas internships provide skills development and career opportunities in other areas.
These systems are most successful when interns and apprentices are utilized for more than just grunt work, allowing them to get used to practical work systems and pressures while learning from more experienced employees.
This kind of employment system is not necessarily an answer to all of our economic problems, as the jobs typically given to young people in these positions are not very high-paying, it provides a some alleviation to the increasing unemployment rate and promotes career growth for the foreseeable future.
Written by: Wesley Geyer
Creative writer at ATKA SA
