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Showing posts from June, 2025

Reasons for South Africa's persistently high unemployment

The following explanation for South Africa's persistently high unemployment was posted on Reddit/AskSocialScience substack by a University of Cape Town MPhil PPE student. It's one of the more cogent I've encountered and unlike the trite reasons offered by government, media and mainstream analysts: This is a bit of a simplification, but essentially, the problem boils down to one of labour absorption: the private sector in SA is too small to employ the entire South African labour force.  The reason for this can be traced back to the early development of the South African economy, specifically during the colonial and subsequent Apartheid era.  Early industry in SA (here meaning mining) was developed around the exploitation of African labour, which was used as a readily available source of cheap labour to man a labour-intensive industry. Subsequent government policy largely backed this approach, setting up institutions like the homelands system as a means to provide a ready sou...

Fact-checking Alan Winde's Western Cape employment claims

Politicians take credit for the good news they're not responsible for, but don't take blame when they are.  So it is that periodically the DA takes credit for the Western Cape having a lower unemployment rate than SA as a whole https://www.da.org.za/2024/05/western-cape-and-cape-town-have-the-best-jobs-and-service-delivery-record-in-south-africa-statssa. Misinterpreting the job data, they take credit for the number of employed persons that increased between their arbitrary reference periods (I suspect cherry picking when the data is favourable). They claim they are responsible for "new jobs" being "created" (https://www.gov.za/news/media-statements/western-cape-stats-sa-quarterly-labour-force-survey-30-oct-2018) and the province's or Cape Town's "upward economic trajectory" and so on.  These claims are unprovable, specious and even false. At best it's a chronic misunderstanding of how the economy works, which SA's politicians don...