Abstract
One of the main and most dynamic challenges confronting South Africa is the high
unemployment rate, which has been increasing more rapidly than the country’s
economic growth. The unemployment rate increased from 9.8% in 1980 to 26.1% in
2010 after the 2008/09 financial crisis as the South African economy experienced a
drastic recession and close to million jobs were lost. Currently, the unemployment rate
in South Africa is calculated to be 34,4%, which is the highest unemployment rate
experienced since the 1980s.
In 2012, the National Planning Commission (NPC) implemented a new long-term
strategy, the National Development Plan Vision 2030 (NDP), which is set over an 18-
year period (2012 to 2030). The NDP was introduced to meet the government’s
objectives, which include economic growth, reducing triple challenges
(unemployment, poverty and inequality) and improving service delivery. Specifically,
the unemployment reduction targets include reducing unemployment to 20% by year
2015, to 14% by 2020 and to 6% or achieve (as close as) full employment by end of
2030.
The main aim of the research was thus to assess the progress of the unemployment
reduction targets set by the NDP, as well as recommend strategies that can be
implemented to attain the unemployment reduction target and reduce unemployment
to (under) 6%. The research objectives were achieved by addressing the research
questions/objectives that includes, assessing the progress in achieving unemployment
reduction targets set by NDP; determine possible governmental challenges in
achieving full employment or reducing unemployment to 6% by the end of 2030; and
determine possible measures that government can implement to achieve full
employment and the objectives of NDP.
The study employed a qualitative research method and a case study research design.
Unobtrusive (secondary) data collection methods were employed to collect data and
thus includes previous researchers, budget reviews, the Public Finance Management
Act (PFMA), constitutions, press releases from international capital markets
(International Monetary Fund and World Bank), official government documents,
academic/scholarly newspapers and relevant legislation. Content analysis methods
were utilised to achieve the research objectives. Thus, the unemployment rate in South Africa was supposed to be less than 14% by
2020. Research found that none of the unemployment targets that were set have been
achieved between 2012 to 2020. Instead, the unemployment rate increased drastically
from 25% to 34.4% in 2021. The research also found that unemployment is a major
challenge that cannot be resolved or addressed with short-term strategies, as it needs
long-term strategies such as investment, changes to the education system, skills
development and youth empowerment programmes and addressing labour market
inequality. These solutions then need to be monitored and evaluated. The research
also found that many factors hinder or impede the government from achieving its
objectives, such as slow economic growth, the impact of Covid-19 on the labour
market, skills gap and mismatch, the education system in South Africa and a severe
lack of entrepreneurship.