
The fatal flaw with minimum wage policies
The JSEC would allow job seekers to exempt themselves from certain labour regulations, including the minimum wage.
The JSEC would allow job seekers to exempt themselves from certain labour regulations, including the minimum wage.
A minimum wage is a privilege of a society which does not have disastrously high unemployment and endemic skills shortages.
In a country with a relatively low unemployment rate, a minimum wage does not inflict visible harm. However, in a country like South Africa the harm caused is devastating.
Education is not the root cause of our unemployment. Rather, SA lacks the necessary policy frameworks and institutions to truly harness our youthful population, or our pre-existing industries and infrastructure.
Government’s responsibility is to create an environment that will increase employment opportunities, reduce unemployment, and reduce poverty.
The solution indeed lies in deregulation and limiting the state’s role in people’s economic affairs.
The Job Seekers Exemption Certificate (JSEC) is a mechanism that could grant relief to people who have been unemployed for six months or more and cannot find jobs that pay minimum wage.
Removing the causes of mass youth unemployment in SA would have multiple positive consequences for jobseekers.
The FMF’s pro-small business recommendations for the labour environment.