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PROJECT: THE UNRELENTING STRUGGLE IN SOUTH AFRICA - UNEMPLOYMENT

 

Specialised Security Services is fully committed to addressing the pressing issue of increasing crime rates in South Africa. As a leading security service provider, we recognize that one of the major contributing factors to this problem is the alarmingly high unemployment rate in the country.

Therefore, we are taking a proactive approach to highlight this complex issue and implementing measures to ensure the safety and security of our clients and their properties. South Africa finds itself grappling with an escalating unemployment crisis, emerging as the global leader in joblessness.


The recently released data for the fourth quarter of 2023 paints a grim picture, with 11.6 million South Africans now unemployed, marking a disturbing trajectory.

It is important to understand the multifaceted factors contributing to South Africa's soaring unemployment rates and to delve into the urgent need for strategic interventions to reverse this perilous trend.


 

The Quarterly Labour Force Survey (QLFS) for the fourth quarter of 2023 has just been released, highlighting the persistent and challenging nature of South Africa's unemployment crisis.

The national unemployment rate has risen to 32.1%, which is a cause for concern. Moreover, when considering the expanded definition of unemployment, the rate stands above 41%.

 

CONTRIBUTING FACTORS TO UNEMPLOYMENT IN SOUTH AFRICA:


Political Implications and Governance:

  • The dire unemployment figures underscore the need for a critical examination of the governance landscape.

  • The correlation between rising unemployment and the current continued governance becomes apparent, as the country braces for upcoming elections.


Youth Unemployment:

  • A closer analysis of the data reveals a stark reality for South Africa's youth.

  • With 69.1% of individuals aged 15 to 24 unable to contribute meaningfully to the economy, the prospects for this demographic appear bleak.

Economic Sectors and Job Losses:

  • The Quarterly Labour Force Survey highlights substantial job losses in crucial sectors like community and social services, construction, agriculture, trade, and manufacturing.

  • The consequences of these losses ripple through the economy, exacerbating the unemployment crisis.


Decade-Long Trends:

  • The data underscores a decade-long trend of increasing unemployment, a clear signal of the country's economic malaise.

  • The COVID-19 pandemic acted as an accelerant, causing a significant setback with over two million job losses in the second quarter of 2020.

Challenges in Business Environment:

  • South African businesses currently grapple not only with the aftermath of the pandemic but also with the persistent challenges of load-shedding.

  • These issues create a hostile environment, impeding economic growth and exacerbating the unemployment dilemma.

  • The ongoing power cuts in South Africa negatively impact the challenges faced by businesses.

  • Industries such as manufacturing, mining, and services, which are sensitive to electricity availability, may experience job losses during periods of load shedding.

  • Reduced production and operational constraints lead to downsizing and retrenchments.


• Reform and Intervention Strategies:

  • To address the crisis, urgent and targeted reforms are imperative.

  • These include comprehensive labour market reforms to facilitate easier hiring for businesses, sectoral support for industries with long-term growth potential, and a focused effort on improving economic infrastructure, including water systems, electricity, roads, and communication networks.


 

The high levels of unemployment in South Africa have a range of social, economic, and political consequences. Some of the notable results of unemployment in South Africa include:


Reduced Consumer Spending:

  • Unemployed individuals have limited disposable income, leading to decreased consumer spending.

  • This, in turn, can hamper economic growth and negatively impact businesses, particularly in retail and service sectors.


Lower Tax Revenues:

  • With fewer people employed, the government faces challenges in collecting income taxes, which can strain public finances and limit the resources available for essential services and infrastructure development.

  • The South African government has proposed that all formally employed individuals contribute R1,500 per month through a payroll tax to meet the Department of Health's funding requirements.

  • If this proposal is not implemented, the government may resort to increasing VAT by 22% or income tax by 30% or more.

  • This would further worsen the current challenges faced by the middle and lower classes in South Africa.


Social Inequality and Poverty:

  • High unemployment exacerbates income inequality, creating a more divided society.

  • Those without jobs often face poverty, while a small portion of the population may accumulate wealth, deepening social disparities.


Increased Poverty Rates:

  • Unemployment is a key driver of poverty.

  • Without a steady income, individuals and families struggle to meet basic needs such as food, housing, and healthcare.


Increased Demand for Social Grants:

  • Unemployment contributes to a larger population facing financial hardship, increasing the demand for government social grants.

  • Individuals without income from employment often rely on these grants as a primary or supplementary source of support.


The strain on Social Welfare Systems:

  • The government's social welfare systems, including programs like the Child Support Grant, Old Age

  • Pension, and Disability Grant, face increased pressure due to the growing number of individuals seeking assistance.

  • This strain can limit the government's ability to provide adequate support to all those in need.


Social Unrest and Crime:


Social Unrest:

  • Persistent unemployment can contribute to social unrest as frustrated and disenfranchised individuals may express their discontent through protests or other forms of civil unrest.


Crime Rates:

  • Unemployment is an undeniable link to higher crime rates as individuals facing economic hardships may turn to illegal activities as a means of survival.


Youth Disengagement:


Education Challenges:

  • High youth unemployment rates can discourage young people from pursuing education and skills development, perpetuating a cycle of limited opportunities and economic marginalisation.


Social Disengagement:

  • Young people without job prospects may become disengaged from societal structures, potentially leading to social issues such as substance abuse and involvement in illicit activities.


Health Impacts:


Mental Health:

  • Unemployment is associated with increased stress, anxiety, and depression.

  • The mental health of individuals facing long-term unemployment can deteriorate, further straining healthcare resources.


Reduced Access to Healthcare:

  • Unemployed individuals may face challenges in accessing healthcare services due to financial constraints, leading to potential health disparities.


Political Implications:


Political Instability:

  • High unemployment rates can contribute to political instability.


Policy Challenges:

  • Addressing unemployment becomes a significant political challenge, requiring effective policies and interventions to stimulate job creation and economic growth.


Demographic Challenges:


Ageing Population:

  • Unemployment can lead to demographic challenges, with an ageing workforce facing difficulties in retirement planning and increased reliance on social welfare programs.


 

REFERENCES:


 
Specialised Security Services invites the public to the Mike Bolhuis Daily Projects WhatsApp Group. This group is important in delivering insights into the latest crime trends, awareness, warnings and the exposure of criminals.

HOW TO JOIN THE MIKE BOLHUIS DAILY PROJECTS WHATSAPP GROUP:

• Follow the link to our WhatsApp group:

• "JOIN" to ensure you never miss our daily updates.

• You will receive automatic notifications as soon as a new project is posted.

 
CONTACT MR MIKE BOLHUIS FOR SAFETY AND SECURITY MEASURES, PROTECTION, OR AN INVESTIGATION IF NEEDED.

ALL INFORMATION RECEIVED WILL BE TREATED IN THE STRICTEST CONFIDENTIALITY AND EVERY IDENTITY WILL BE PROTECTED.
 

Regards,

Mike Bolhuis

Specialist Investigators into

Serious Violent, Serious Economic Crimes & Serious Cybercrimes

PSIRA Reg. 1590364/421949

Mobile: +27 82 447 6116

Fax: 086 585 4924

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EXTREMELY IMPORTANT: All potential clients need to be aware that owing to the nature of our work as specialist investigators there are people who have been caught on the wrong side of the law - who are trying to discredit me - Mike Bolhuis and my organisation Specialised Security Services - to get themselves off the hook. This retaliation happens on social media and creates doubt about our integrity and ability. Doubt created on social media platforms is both unwarranted and untrue. We strongly recommend that you make up your minds concerning me and our organisation only after considering all the factual information - to the exclusion of hearsay and assumptions. Furthermore, you are welcome to address your concerns directly with me should you still be unsatisfied with your conclusions. While the internet provides a lot of valuable information, it is also a platform that distributes a lot of false information. The distribution of false information, fake news, slander and hate speech constitutes a crime that can be prosecuted by law. Your own research discretion and discernment are imperative when choosing what and what not to believe.


STANDARD RULES APPLY: Upon appointment, we require a formal mandate with detailed instructions. Please take note that should you not make use of our services – you may not under any circumstance use my name or the name of my organisation as a means to achieve whatever end.


POPI ACT 4 of 2013 South Africa: Mike Bolhuis' "Specialised Security Services" falls under Section 6 of the act. Read more here:

 
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Mike Bolhuis Specialised Security Services

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Pretoria, Gauteng 0039

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