| Overview : The South Africa Government has made commendable social and economic progress, with improvements in health care and increased access to education, particularly for the Black majority since the end of Apartheid in 1994. South Africa is now an upper middle-income country with a GNI per capita of US$13,300. However, daunting challenges persist. The National Development Plan (NDP), the South African Vision 2030, and the 2019 State of the Nation Address by the President outline the country’s development aspirations, which are aimed at addressing the triple development challenges: poverty, income inequality and unemployment. Forty (40%) of the population are at the lower bound poverty level of R647 per month - one of the highest among upper middle-income countries, and the index of income inequality (Gini of 0.68) remains one of the worst globally. While even 20 years ago the Government recognized the centrality of employment creation to South Africa’s sustained development, the reality, however, has been an increased unemployment rate over the period to an all-time high of 29% by December 2019. The unemployment rate for youth is even worryingly higher at 58.2%. Given the importance of stimulating employment and the crucial role employment plays in promoting inclusive growth and in reducing inequality, the UNDP has decided to prepare the 4th NHDR in South Africa on EMPLOYABILITY. The choice of employment, particularly youth employment, is the outcome of UNDP’s continuous and wide consultations with stakeholders including Government, academics and civil society since 2017 and the priority attaches to it in national development plans, strategies and the past two State of the National Address (SONA) of the President of the Republic of South Africa. Employment was selected on account of the criteria: (i) relevance, (ii) forward looking and solutions driven and, (iii) potential impact. This consultancy is one of several background papers that will delve deeper on a specific area or sector and will be used to inform the NHDR on Employability. The consultancy will provide a comprehensive document on A Macroeconomic and Sectoral Dimensions of Unemployment in South Africa |
