Page 46 - IRMSA Risk Report 2023

7.4

EMPLOYMENT AND

LIVELIHOOD

CRISIS

South Africa’s unemployment rate ranks amongst the highest both in Africa and
the world. The resultant livelihood crisis due to high levels of unemployment,
low wages and a lack of job opportunities leads to an existential problem
whereby individuals and families become reliant on others to survive.

The current unemployment and livelihood crisis is a driving force or can be
seen as a compounding factor for other challenges that confront South Africa,
namely poverty and the huge inequality between the haves and the have nots.
There is an increase in the cost of living and a low-growth economy. There are
several challenges that face small businesses, impacting their ability to sustain
operations and effectively contribute to job creation and economic growth.
Unless effectively addressed, this risk leads to other risks that include spiralling
crime; a breakdown in the rule of law; social polarisation and unrest; and the
growth of illicit economic activities.

MPHUMELELI ZUNGU
RISK MANAGER
NATIONAL DEVELOPMENT AGENCY

46 IRMSA RISK REPORT 2023/24