Unemployment rate by age group
%
64.9
48.6
33.7
27.4
15-19y
20-24y
25-29y
30-34y
24
35-39y
21.2
40-44y
20.1
45-49y
17.4
15.8
50-54y
55-59y
13.2
60-64y
Source: Stats_SA, Census 2012
During the period under review, the government has intensified its focus on measures aimed
at job creation and reduction of unemployment. In November 2010, the government released
the Framework of the NGP aimed at enhancing growth, employment creation and equity.
The policy’s main target is the creation of five million jobs over the next ten years. The NGP
reflects government’s renewed commitment to prioritising employment creation in all
economic policies. In order to grow employment by five million jobs by 2020, the NGP
identifies areas that have the potential to create jobs on a large scale and absorb the
unemployed. These areas have been termed ‘job drivers’ and are as follows: infrastructure
development, agriculture, mining and beneficiation, the green economy, manufacturing
sectors as well as tourism.
There are two main factors that will affect the attainment of the target of five million new jobs.
These factors are the rate of economic growth and the employment intensity of that growth.
Employment intensity refers to the rate of growth in employment relative to the rate of growth
in GDP. In order for the target to be met, it will be imperative to not only maximise growth but
also to ensure that growth generates more employment, particularly in the private sector.
Therefore, the employment intensity of growth must be kept between 0, 5 and 0, 8, while the
rate of growth in GDP should rise to between 4% and 7% per annum in order to meet the
target. Supporting the jobs drivers through appropriate measures is important to encourage
more employment-intensive growth. Furthermore, the NDP released in 2012 proposes the
creation of eleven million more jobs by 2030, among others by expanding the public works
programme, lowering the cost of doing business and help match unemployed workers to
jobs.
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