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This article examines an issue that is currently of particular importance in South Africa. \nThe South African Government has just allocated R9 billion to address unemployment. \nA number of policies address unemployment in South Africa since the transition \nto democracy in 1994. Notwithstanding these policies, unemployment has about \ndoubled since 1994. The challenge that all these policies should consider is how to \ndefine unemployment. The unemployment data is crucial in an effort to design a \nproper unemployment policy. It seems that unemployment is much higher for younger \nworkers than older workers. Getting the first job, especially in the formal sector, is quite \ndifficult for most young South Africans. This article will therefore focus on aspects like \nthe reasons for the increase in unemployment, the role of labour legislation, the impact \nof the South Africa’s labour policies and towards the end some policy suggestions. The \nanalysis of unemployment is mainly based on household surveys from 1995 to 2010. \nThe article argues that if unemployment is to be addressed, it is crucial to realise that \npolicies should focus on job-creation in South Africa. A concern should also be the \ninterests of the unemployed and the informally employed poor who are largely beyond \nthe reach of the labour institutions. The lack of appropriate data on the informally \nemployed complicates the policy-making process. In conclusion, the article appreciates \nunemployment policies and programmes, like public works programmes and skills \ntraining against the background of a lack of local evidence. The question is really where \nfuture employment will be generated. In this instance sectors like trade, finance and \ntourism should be high on the list. It is critical to realise that substantial improvements \nin policies are needed to address unemployment.
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