South Africa has not always had high unemployment. Although it is - TopicsExpress

South Africa has not always had high unemployment. Although it is true that, prior to 1994, Black South Africans were not properly represented in official statistical surveys, the best available estimates suggest that South Africa’s unemployment rate increased from about 7% in the mid-1970s to 13% in the mid-1990s and 25% in the late 2000s. To the South African government this is an inconvenient fact, since it implies that current high levels of unemployment are largely a post-apartheid phenomenon and not, as many officials and academics would prefer it, a legacy of apartheid. Acceptance of this fact – and its implication that unemployment has current rather than historical causes – is the necessary first step in fixing the problem. So long as we cite historical causes, we live in a fantasy world where unemployment can only be addressed when the legacy of apartheid itself is finally addressed. Indeed, persistent belief in the faulty “structural unemployment” myth led the ANC government for many years to relegate education, labour and other policies to the sidelines when, in fact, they could have made an enormous difference. While we are debunking myths it is worth noting that, though South Africa’s unemployment rate is one of the highest in the world (in 2010 there were 8.5 million unemployed and under-employed people), this does not mean that millions of South Africans are destitute and starving. Our research shows that informal sector employment (i.e. employment that doesn’t necessarily involve a formal employment contract or membership of a pension fund or medical aid) is substantially underestimated in South Africa. If we fully account for informal employment, South Africa’s unemployment rate is closer to 8% than 25%. This suggests that many millions of enterprising South Africans make a living on a daily basis and, while that living may not be luxurious or even “decent”, many South Africans have been labelled as “unemployed” incorrectly. This, too, is an inconvenient fact: many millions of enterprising South Africans make a living on a daily basis and neither pay taxes nor adhere to labour laws.

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