The SA narrow unemployment rate for Q2 2018 is 27.2%. This means that over 6 million people are unemployed.The broad rate of unemployment is even higher.

From a macro-economic point of view choose 5 of the options below that you consider will contribute most to sustainably reducing the unemployment rate into the future with reasons. Support your choice by identifying which major macroeconomics principles are relevant and briefly how they are applicable.

Natural Gas exploitation including Karoo shale gas

Nationalisation (i.e. government takes over ownership and management) of gold and platinum mines, the South African Reserve Bank.

Increased government spending on infrastructure projects

Introduction of a mandatory conscription to a work corps where school leavers spend a period of 12 months learning skills such as plumbing, bricklaying, electrician, etc. and build housing during this time.

Incentivise unemployed people to volunteer their services to improve their local community in return for increased social grants. Improvements could be the repair and maintenance of local roads, improved farming methods, infrastructure improvements, etc.

Ensuring an adequate supply of affordable electricity

Embarking on the build of nuclear power plants

Introducing more labour regulations and protections

Effectively encouraging and supporting the establishment and growth of small businesses.