Unemployment in South Africa

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The unemployment rate is the number of people actively looking for employment divided by the labour force. The labour includes adults over the age of 16 who are employed or actively looking for work. The unemployment rate fluctuates because the previously unemployed people start looking for work, people who were employed lose their jobs and others stop looking for jobs. South Africa’s unemployment rate at the moment is 25.2%; the number of unemployed people is 4526 divided by the labour force of 17948 multiplied by 100%. There are three types of unemployment namely; structural, cyclical and seasonal unemployment. Firstly, structural unemployment is associated with the incompatibility of jobs and workers due to the lack of skills or no desire for the area of work. Structural unemployment depends on the social needs of the economy and dynamic changes in the economy. Advances in technology and changes in market conditions may make certain skills useless and no longer needed; this typically increases the unemployment rate. For example, labourers who worked on cotton fields found their jobs obsolete with Eli Whitney's patenting of the cotton gin. Similarly, with the rise of computers, many jobs in manual book keeping have been replaced by highly efficient software. Workers who find themselves in this situation find that they need to acquire new skills in order to obtain a new job. Frictional Unemployment is always present in the economy, resulting from temporary changes made by workers and employers or from workers and employers having unreliable or incomplete information. This type of unemployment is closely related to structural unemployment due to its dependence on the changing aspects of the economy. It is caused because unemployed workers may not always take the first job offer they receive because of the wages and necessary skills. This type of unemployment is also caused by failing firms, poor job performance, or outdated skills. This may also be caused by...
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