According to the report only 41% of South Africans aged 16 to 64 have any kind of a job, while in China the figure is 70% and in high-growth developing nations like Indonesia and Brazil is around 65%.
The research behind the report found that South Africa’s stringent labour market regulations made it expensive to employ people and that mostly skilled and experienced people were employed. Thus the country is sinking deeper into unemployment. The report calls for allowing young, unskilled and inexperienced people to be employed at lower wages, something current labour legislation prohibits, while labour costs were driving up unemployment.
And, Richard Pike, CEO of one of South Africa’s biggest employment services groups, Adcorp, says militant trade union activism is one of the major contributing factors to South Africa’s high unemployment rates. He also defended the contract employment of 3.9 million workers, saying rising contract employment was not unique to South Africa.
via Labour watch