The population of working age, the rate of unemployment, rate of participation of the workforce

and the workforce rate of employment are key aspects of analysing unemployment. In South
Africa, there are two definitions of unemployment, namely the strict definition and the broad
definition. This essay aims to discuss both definitions in detail. This essay aims to give a critical
discussion on the Youth unemployment in South Africa from 2010 and 2022.

The population of working age is defined as the total quantity of individuals in the citizens of a
country that are deemed as being able to work. (Majaski, 2021) The working-age population is
made up of the work force and economically inactive individuals. Employed and unemployed
individuals are part of the work force and the individuals who do not contribute to the economy
are economically inactive.

The rate of unemployment is the ratio of workers in the workforce who do not have jobs but are
actively looking for jobs. (Piccardo,2023) A high unemployment rate suggests that the economy
lacks job opportunities or that an economic recession is upon the economy. (ChatGPT, 2023)
When workers lose their jobs they relinquish their purchasing power in the economy, the
disposable income of families is impacted negatively, and the output of the economy decreases
which increases the unemployment rate. (Piccardo,2023)

The workforce rate of participation is the labour force in an economy divided by the population
of working age. When the rate of participation of the workforce and unemployment are high, it
means that there is a large group of individuals who are competing for limited employment
opportunities which highlights an unhealthy job market. (ChatGPT, 2023)

The workforce rate of employment is the percentage of the population of working age that is
employed. (Moody’s Analytics, 2023) An economy is in a healthy position if the labour
absorption rate is high because a high absorption rate contributes to low rates of unemployment
and economic stability. (ChatGPT, 2023) A low absorption rate suggests a lack of job creation
and a rise in unemployment levels in the economy. (ChatGPT, 2023)

The Strict Definition of Unemployment analyses the individuals who are actively looking for
jobs but cannot find jobs. The expanded Definition of Unemployment analyses those who are
actively seeking employment but cannot find jobs and those who have lost hope of finding one.
In a country like South Africa, it is vital to focus on both rates of unemployment because
historically South Africa has had prominent levels of unemployment.

A focus on the Strict Unemployment Rate results in a prompt and targeted way to combat
unemployment. (ChatGPT, 2023) To reduce the Strict Unemployment Rate, the government
introduces job training programs, job placement services and methods that generate employment
opportunities. (ChatGPT, 2023)

Emphasis on the Broad Unemployment Rate results in the recognition of existing structural
issues regarding unemployment. (ChatGPT, 2023) This includes the lack of skills in the labour
market and the absence of methods that address unemployment, underemployment, and
discouraged workers. (ChatGPT, 2023) The policies that may be implemented include
investment in education and training, reforms of the labour market, ways of promoting the
creation of jobs in a variety of industries and combating informal employment. (ChatGPT 2023)
FIGURE 1: Labour Market in South Africa, 2012-2022

45 000

40 000

35 000

30 000

25 000
POPULATION

20 000

15 000

10 000

5 000

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r 20 20 r 20 20 r 20 20 r 20 20 r 20 20 r 20 20 r 20 20 r 20 20 r 20 20 r 20 20 r 20 20
a ep a ep a ep a ep a ep a ep a ep a ep a ep a ep a ep
n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S n-M ul-S
Ja J Ja J Ja J Ja J Ja J Ja J Ja J Ja J Ja J Ja J Ja J

Quarters

Working age Population 15-64 yrs Labour Force Employed

Unemployed Not economically active

(Source: School of Economics)

The population of working age steadily increases from January-March 2012 to July-September
2022. The Labour Force increases steadily during the period Jan-Mar 2012 to Jan-Mar 2020.
During Jan-Mar 2020 to Jul-Sep 2020, there is a drastic decline in the Labour Force, Employed
and Unemployed and a drastic increase in the Discouraged workers. This is due to the Covid-19
pandemic that causes a huge economic decline in South Africa because of the lockdown
restrictions that the government puts in place to curb the spread of the virus. The decrease in
Unemployed and the Labour Force is not due to an increase in employment but due to
individuals in South Africa losing hope of finding any jobs due to the lockdown restrictions.
From Jan-Mar 2021 to Jul-Sep 2022, the market conditions go back to normal as the lockdown
restrictions of the Covid-19 pandemic are relaxed and the Employed, Unemployed, Labour Force
and discouraged workers go back to pre-pandemic levels.

Youth Unemployment is the scenario when individuals of ages 15-34 years are actively looking
for employment but cannot find employment opportunities. (Lauren Graham, Ariane De Lannoy,
Leila Patel & Murray Leibbrandt, 2018:2) South Africa lacks innovation from the government
when it comes to addressing the shortcomings of basic education and the lack of skills in the
youth. (Lauren Graham, Ariane De Lannoy, Leila Patel & Murray Leibbrandt, 2018:3) A
substantial number of young individuals from disadvantaged backgrounds lack basic numeracy
skills and are illiterate which puts them at a disadvantage when it comes to applying for
employment opportunities. (Lauren Graham, Ariane De Lannoy, Leila Patel & Murray
Leibbrandt, 2018:3)

The quality of school-leaving results in Republic of South Africa is poor. (Lauren Graham,
Ariane De Lannoy, Leila Patel & Murray Leibbrandt, 2018:4) Employers are often wary of
hiring young individuals because the poor school-leaving results suggests a lack of critical
thinking skills in the youth. (Lauren Graham, Ariane De Lannoy, Leila Patel & Murray
Leibbrandt, 2018:4) There is technological advancement in many industries which means that
even for entry-level jobs, an individual needs to have basic computer skills. This is an issue that
contributes to youth unemployment schools in poor communities cannot provide students with
access to computers. There is a lack of connection between the youth that is actively seeking
employment and employers which contributes to youth unemployment. (Lauren Graham, Ariane
De Lannoy, Leila Patel & Murray Leibbrandt, 2018:4)
 Chart Title
60.00

50.00

40.00
YOUTH UNEMPLOYMENT (%)

30.00

20.00

10.00

0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Years

Figure 1: Youth Unemployment Rates in South Africa 2010-2022 (Accessed from Statista.com)

Youth unemployment rises between 2010-2015 as in 2011, the youth unemployment rate is
39.74% and in 2014 it is 43.96%. This increase is due to an increase in discouraged workers as
young individuals give up job searches and are discouraged to look for jobs because of the high
rates of unemployment. (Lauren Graham, Ariane De Lannoy, Leila Patel & Murray Leibbrandt,
2018:3) The youth unemployment increases steadily from 42% in 2015 to 43.76% in 2018. There
is drastic increase in 2019 as youth unemployment reaches 47.41%. This is due to the volatility
and decline of the Gross Domestic Product of South Africa in 2019. (Asiya Maskaeva & Mgeni
Msafiri, 2021:3) The Unemployment rate increases from 47.41% in 2019 to 49.86% in 2021. The
economic downturn of the Covid-19 crisis is the cause of this increase in unemployment. The
youth unemployment increases to 51.52% in 2022 due to the loss of business caused by the
power cuts in South Africa.

Improving the quality of education is key to reducing youth unemployment. Investment in

renewable energy can address the loss of jobs due to power cuts. Providing the youth with skills
development facilities can reduce the youth unemployment rate because it will allow employers
to feel at ease with hiring the youth. Tougher sanctions on the corruption that occurs within the
South African government may reduce the occurrence of the fraud that takes place and convince
foreign investors that investing in South Africa is not risky which can provide employment
opportunities.

The population of working age, the employment rate, unemployment rate and the workforce rate
of participation are key elements of analysing the Labour Market in the Republic of South
Africa. Analysing the strict and expanded unemployment rates is the key to finding solutions to
reduce unemployment in the Republic of South Africa. Youth Unemployment in the Republic of
South Africa is astronomically high and addressing the problem of youth unemployment is key
to improving the economic forecast of South Africa.
 Reference List

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Africa. 3: 96-97. Available: https://sa-tied.wider.unu.edu/sites/default/files/SA-TIED-
WP159_0.pdf

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https://chat.openai.com/share/c96c9134-5f13-4ef4-8e96-0e4fd2527fe7 [2023, September
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Youth Unemployment and what interventions help? A systematic overview of the

evidence and a theory of change. 3-4:94-144 Available: youth-unemployment-exec-

summary-final-interactive.pdf

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7. Moody’s Analytics, 2023. South Africa Labour Force. Available:

https://www.economy.com/south-africa/labor-force
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https://www.investopedia.com/articles/economics/10/unemployment-rate-get-real.asp
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9. Statista, 2023. South Africa: Youth Unemployment rate from 2003 to 2022. Available:
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10. Studocu, 2023. Examples of the key implications of Strict and Broad Unemployment
Rate. Available: https://www.studocu.com/en-za/messages/question/3364280/examples-
of-the-implications-of-strict-and-broad-unemployment-from-a-measurement-and-policy
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