What are the main causes of high unemployment in Zimbabwe? How serious a problem is it? Will land resettlement and HIV-AIDS ease or worsen the situation? Give reasons.

1516 Words Sep 2nd, 2004 7 Pages
Introduction:

The unemployment rate is the proportion of the economically active population that is unemployed and actively looking for employment. In 1990, Zimbabwe embarked on a programme of Economic Reforms popularly known as Economic Structural Adjustment Programme (ESAP) and 1991-1992 saw one of the worst droughts. With close to 70% of the population living in the rural areas (CSO 1992) and dependent on agriculture for their livelihood, this constituted a major disaster. One result of these events was increased migration to the urban areas by people in search of employment. A further drought in 1995-1996 compounded the effect. Worsening economic conditions plus ever increasing corruption and crime have been the norm since 1995.
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During a business boom or upswing the supply of bonds rises. The investment climate in Zimbabwe is not sufficiently favorable to attract the type of Foreign Direct Investment needed to transform exports. There are so many regulations concerning capital repatriation and profit/dividend remittability. This discourages investment and hence at the same time increasing unemployment.

Population growth rate and age structure

The population in Zimbabwe has been increasing at a decreasing rate, but the fact that the population is increasing without a complimentary increase in job opportunities, this therefore means all the job candidates are jobless.

The growth path - reliance on primary products - is suboptimal

Zimbabwe has been relying mostly on the products which are just primary. Such dependence has had no joy being found for the thousands of youths in Zimbabwe who are looking for jobs.

Geography (proximity to South Africa, no direct access to the sea)

Zimbabwe is a landlocked country and has been relying mostly on its neighbours namely South Africa and Mozambique. This has placed the country in a state of disadvantage hence the employment creation rate going down.

Tertiary Education

A number of tertiary colleges have sprung up in Zimbabwe, and yet the existing infrastructure is unable to absorb the swelling numbers of youths seeking training opportunities. There is also a high mismatch of skills acquired from training on one hand and the labour market

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