Answer to Question #208531 in Macroeconomics for sinentlahla

Question

according to the theory of the labor market mechanisms of supply and demand will naturally move towards equilibrium, where unemployment will be at its natural rate. S.A's unemployment for 25 years in S.A's unemployment rate have been among the highest in the world. using knowledge of the South African labor market as well as the theory of the firm examine why South Africa if faced with such high unemployment (80)

Answer 1

South Africa is faced has the high rate of unemployment because of the slow economic growth and general lack of interest in entrepreneurship by the citizens. The country also have poor education and training , and mismatch of skills with the labor demand.