Answer to Question #237008 in Microeconomics for keetu

Question

As South Africa has a large contingent of unemployed and low skilled workers how do you
see the integration process affecting the mismatch between the demand and supply of
labour within the country?

Answer 1

The integration will reduce the barriers to demand and supply of labor. Effective integration will yield positive impact on the economy as it entails fully using their skills by the parties and realizing their economic potential. Through integration the skilled will interact with unskilled thereby equipping the unskilled with the necessary skills. Therefore, the supply of labor will increase till demand decreases.