POLOKWANE – This was revealed during the 2016 Community Survey hand-over.
Review consulted local economist, Glen Steyn, regarding how poverty affects the province and what can be done to lower poverty levels. We wanted to know if the poverty headcount would decrease if more job opportunities were created.
According to Steyn, the balance between job creation and the poverty headcount is very complex.
It is true that more work will allow for more income however, the availability of jobs in the province is the challenge.
He said the biggest problem is that the gaps in the market cannot be filled with the current hands available, due to either lack of knowledge or experience.
Despite the seemingly low 1,4% increase, the actual poverty rate is actually much higher because of high unemployment levels.
“It must be understood that the type of job opportunities created must be equal to the qualifications available in a specific area,” Steyn explained.
He further said jobs could be created in the tourism, agricultural and mining sectors.
“Job opportunities in tourism, such as cleaning, is available to inexperienced unemployed people, as it does not require any qualifications,” he explained.
He said many job opportunities are available in agriculture but because of the country’s unstable land reform policy, it causes hesitation among farmers to expand their farms and in doing so, creating more job opportunities.
“Agricultural job opportunities can see as much as a 50% increase, were it not for the strict land reform policy. Another factor that hinders job creation in this sector is the advancement of farming technology and equipment which requires skilled individuals to operate the systems,” he explained.
In the area of mining, Steyn said Limpopo is a very rich province with diamonds, coal, and platinum being mined.
According to Steyn, the increase in poverty levels in Limpopo can lead to an increase in crime.
“Breadwinners who are unable to find work and support their families face psychological challenges which could lead to them turning to crime in order to provide for their families. This will further affect the economy negatively,” he explained.
