The State of Small BusinessYo School Magazine

The Unemployment situation in Cosmo City

By Mzukona Mantshontsho

We live in a country where the latest unemployment statistics from Statistics South Africa suggested that the unemployment rate was at a staggering 32.7% South Africans. This figure was reduced by the increase in informal businesses in our communities. With two thirds of the population in South Africa being the youth, the youth is mostly affected by unemployment.

Youth unemployment has been high for many years in South Africa and is one of the country’s major socio-economic challenges. Cross-country comparisons regularly affirm that South Africa’s unemployment rates are among the highest in the world.

Roughly 30% of male youth and 36% of female youth are disconnected from both the labour market and opportunities that promote future employability. Unemployed youth are characterised by their lack of employability resulting from a range of socio-economic factors. They often have low levels of education, have dropped out of school and invariably do not have the literacy, numeracy and communication skills needed in the labour market. They also have little work experience, which is a particularly undesirable characteristic for employers.

These young people lack strong networks or social capital that allow them to source job opportunities and tend not to have sufficient financial resources to enable mobility to areas where there is demand for labour. Of those who do have resources available as a result of their family support or network, they often have unrealistically high reservation wages, thereby resulting in relatively long periods of unsuccessful searching. These socio-economic factors have resulted in a gap between productivity and entry-level wages for young workers, which is a constraint on job creation.

Prospects of Employment in Cosmo City

Within the same taxi rank is 40 informal trader stalls which the residents could be using to earn a living and support their families, sadly those stalls are all not being used. This begs the question, how long is the status quo going to go on for, nine years down the line of the handing-over of the R15 million facility.

The Under-utilised Taxi Raxi in Cosmo City!

 

Mzukona

Mzukona Mantshontsho is the founder of Nyakaza Media Solutions. Nyakaza Media Solutions is an organisation that was established to help community organisations, business entities, and schools to research, write, document, report, analyse, edit, publish newsletters or bulletins in hard-copy, on-line and maintain websites with the relevant content as per the editorial policy of that organisation, school or entity. Nyakaza Media Solutions has a vision to promote and bring dialogue to communities, businesses and schools about issues that affect them. Nyakaza Media Solutions is on a mission to develop and encourage communities, businesses and learners to celebrate the good, applaud excellence, welcome growth, strive to be better individuals, businesses and communities, want more knowledge, discourage bad and counter-productive behaviour as well as communities, businesses and learners that want to be great SOUTH AFRICANS. Nyakaza Media Solutions is making use of Yo School Magazine as a platform that learners in all schools to make use of to write their stories.

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