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Final Ecos on youth unemployment Essay Labour Economics Unemployment

 
YOUTH UNEMPLOYMENT IN THE SOUTH AFRICAN CONTEXT: THE CAUSES,
EFFECTS AND POLICY OPTIONS
Youth (15-24 years) unemployment is not only a South African problem, but a global
 phenomenon. In most countries, youth unemployment is much higher than that of adults
(O’Higgins, 2001).
According to a study run by the International Labour Organization(ILO),
the youth makes up nearly half of the worlds unemployed (Lam
et al 
, 2007). With the current
global economic situation, unemployment has worsened, with the youth being
disproportionately represented in some types of temporary jobs, which turn out to be a dead-
end rather than a stepping stone to better prospects (ILO, 2012). South Africa has had a
 problem with youth unemployment for the past forty years and because of that, makes a very
important case study (Lam, Leibbrandt and Mlatsheni, 2008). B. Clarke and H. Summers, the
authors of 
The Dynamics Of Youth Unemployment,
state that youth unemployment can be
explained by two different ways, that is, the problem of job availability or lack of and
secondly, employment instability. This paper will look at Unemployment in South Africa, the
causes, effects and policy options that are available.
Unemployment is not only an economic challenge but also social as it leads to cases of crime,
drug use, violence in schoo
s which mostly affect a concentrated group, namely young black 
youth (Freeman
et al 
, 1982).
As a result, South Africa’s
National Planning Commission
(NPC) recognises the fact that education, training and innovation have a critical role to play
when it comes to economic growth
and the country’s long term development objectives. The
 NPC thus released a draft of the National Development Plan (NDP) which engages with a
number of issues that have been raised when it comes to the education system in South Africa
which is crucial in the development of the skills of the South African youth (Nyoka, 2011).
This paper thus concludes that aggregate demand and lack of skills are the main factors that
contribute towards youth unemployment. As a result, active market labour policies are
regarded as crucial and urgently needed in South Africa.
Causes of Unemployment
An examination of the causes of youth unemployment boils down to aggregate demand, lack 
of skills
and the size of the youth labour force (O’Higgins, 2001).
The decline in aggregate
demand, associated with the recent recession, has negatively impacted employment of both
the old and the young. However the youth have been affected disproportionally as their 
employment prospects are more sensitive compared to that of adults
. From the employer’s