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Assessing the Causes of Youth Unemployment in Durban Townships: the Case of Cato Manor

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Assessing the Causes of Youth Unemployment in Durban Townships: the Case of Cato Manor Assessing the causes of youth unemployment in Durban Townships: The case of Cato Manor Sibusiso Blessing Ntshiza 210509972 A dissertation submitted in fulfilment of the requirements for the degree of Master of Social Science in Public Policy School of Social Sciences Faculty of Humanities University of KwaZulu-Natal Howard College Campus Durban Supervisor: Dr. Nokuthula Cele April 2018 Declaration on Plagiarism 1. I declare that this dissertation is my own work and does not involve any form of plagiarism. 2. I also declare that all citations, references and borrowed ideas have been correctly acknowledged. 3. I am aware that using others’ work without proper acknowledgement is a criminal offence. Student Name: Student Number: Signature: Date: Supervisor’s Name: Signature: Date: i Acknowledgements First and foremost, I would like to thank God with whom none of this would have been successful. My sincere gratitude to my supervisor Dr Nokuthula Cele for her support, dedication and encouragement; this thesis would not have been a success without your valuable contribution. It was really an honour to be supervised by you. I have learned a lot under your supervision. I would also like to thank my family, especially my late mother Khansphi (Machagwe) Ntshiza; she would have been very proud of my hard work, and my father Nicholas Ntshiza, my siblings; Sibongiseni, Kwanele, Sbahle and Siyanda Ntshiza for their support of keeping me strong in spite of the challenges that I have experienced: Dlangamandla omuhle, Zulu, Mngwenyankomo, isandla sedlula ikhanda. I would also like to thank Thandeka Mbatha for all the support she gave me. Special thanks to my research participants; the young people from Cato Manor for their contribution to the study; their role is really appreciated. I would like to thank the ward 29 Councillor, M Mthembu, for granting me the permission to conduct the research in the area. I would like to acknowledge the School of Social Sciences for all the teachings and exposure they have provided me throughout my studies. Last but not least, I would like to show my sincerest gratitude to the National Research Foundation (NRF) Scholarship and the entire team that made this dream possible. Your support is highly appreciated. ii Abstract This study has been conducted to examine the causes and the impact of youth unemployment in Durban townships in South Africa with a specific focus on Cato Manor Township. Through the use qualitative and quantitative research methods, the study aims to find out why youth unemployment persists to pose a challenge, especially in township areas despite the fact that the South African government has implemented a number of programmes, measures and strategies to address it. Data collection techniques such as personal interviews, focus group interviews and observation as well as questionnaires have been used to collect data from three group categories: unemployed young people without matriculation; unemployed young people with matriculation as well as unemployed young people with tertiary qualifications aged 18 to 34 years. This study has discovered that lack of relevant skills and qualifications; lack of relevant previous work experience; high rate of corruption, nepotism and connections in the labour market are some of the major factors that increase unemployment among the youth especially in townships. This makes it hard for the companies (private companies) and government to create more job opportunities. Findings reveal that youth unemployment is not just a threat on its own; it also has a bearing on other problems such as poverty, crime and drugs abuse. As most young people find it hard to meet their basic needs such as food, shelter and clothes due to unemployment, they end up committing crime in attempt to meet such needs. This study then calls for skills development on different categories in order to address the issue of youth unemployment in Durban townships. This will help in closing the gaps between the skills needed by the employers and the skills possessed by most young people. The companies (private companies) and the government must also ensure that only the qualified and deserving people are employed into job positions in order to avoid the cases of nepotism, favouritism and cronyism in the recruitment sphere. This can be achieved through ensuring that the employment procedures and processes are being monitored accordingly and transparently. Key words: Youth Unemployment, Government, Durban Townships, Unemployment Reduction Programmes, South Africa. iii Table of Contents Declaration on Plagiarism ........................................................................................................................ i Acknowledgements ................................................................................................................................. ii Abstract .................................................................................................................................................. iii List of Tables ........................................................................................................................................ viii List of Figures ......................................................................................................................................... ix List of Acronyms and Abbreviations ....................................................................................................... x Chapter 1: Introduction .......................................................................................................................... 1 1.1. Background of the study ............................................................................................................ 1 1.2. Preliminary literature of the study and reason for choosing the topic .................................. 2 1.3. Research Problem ...................................................................................................................... 5 1.4. The purpose of the study ........................................................................................................... 6 1.5. Study area ................................................................................................................................... 6 1.6. Research Objectives ................................................................................................................... 8 1.7. Research Questions .................................................................................................................... 8 1.8. Significance of study ................................................................................................................... 9 1.9. Structure of dissertation ............................................................................................................ 9 1.9.1. Chapter one .......................................................................................................................... 9 1.9.2. Chapter two .......................................................................................................................... 9 1.9.3. Chapter three ....................................................................................................................... 9 1.9.4. Chapter four ......................................................................................................................... 9 1.9.5. Chapter five ........................................................................................................................ 10 1.9.6. Chapter six ......................................................................................................................... 10 Chapter 2: Literature Review ............................................................................................................. 11 2.1. Introduction .............................................................................................................................. 11 2.2. Defining unemployment .......................................................................................................... 11 2.3. Categories of the unemployed (Barker 2003) ....................................................................... 12 2.4. Types of Unemployment .......................................................................................................... 12 2.4.1. Casual and Seasonal Unemployment ............................................................................... 12 2.4.2. Frictional Unemployment ................................................................................................. 12 2.4.3. Structural Unemployment ................................................................................................ 13 2.4.4. Cyclical Unemployment .................................................................................................... 14 2.5. Theoretical frameworks .......................................................................................................... 14 2.5.1. Classical economic theory ................................................................................................. 14 iv 2.5.2. Cyclical or Keynesian unemployment .............................................................................. 15 2.5.3. Imperfect labour market ................................................................................................... 16 2.6. Causes of youth unemployment in South Africa ...................................................................
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