Coping Strategies of the Unemployed

The South African labour market is characterised by a low growth in the demand for labour in relation to a high population growth rate. Typically, as in a developing country, there is an oversupply of unskilled workers, and a shortage of skilled workers in South Africa.

In line with global trends there is a movement away from labour-intensive to capital-intensive production processes, and from primary and secondary industries to tertiary or service sectors. This results in fewer employment opportunities, especially for unskilled workers. Furthermore - with no formal employment growth to replace job losses and accommodate new entrants to the labour market - unemployment is a growing problem, with South Africa ranking among the countries with the highest unemployment in the world.

The aim of the empirical part of this study was to find out how the unemployed person was expected to participate in the labour market. The responses of almost 2 000 unemployed individuals in South Africa were obtained in a survey conducted in six provinces. The results of this survey are supported by the findings of several local and international research projects on job creation. Strategies to optimise the impact of job creation efforts are also suggested in the report.