Speaker, young people have been disproportionately affected by the global crisis that broke out in 2008. Its effect is so serious that, unless action is taken, the situation of youth unemployment can become untenable and put social cohesion at risk. In some circles this problem is often colloquially referred to as the greatest ticking time bomb.
According to the latest Quarterly Labour Force Survey, the country's unemployment rate increased from 25,2% to 25,3% in the second quarter of 2010. This means that about 4,31 million people are officially out of work. The situation is even more serious if one takes into account that some unemployed people have simply given up trying to find work, and are referred to as discouraged work seekers.
The Organisation for Economic Co-operation and Development's inaugural economic survey of South Africa, which was released on 18 July 2010, indicates that the country has the worst rate of unemployment amongst youth between the ages of 15 and 24 when compared to all the countries surveyed. Racial disparities further compounded the matter, with 53,4% of all young black Africans between the ages of 15 and 24 being unemployed by the end of 2009. This is three times worse than the unemployment rate of 14,5% for young white South Africans.
Young people who lack general or vocational education and work experience are especially vulnerable to the crisis, and many young people who are employed are overqualified for the jobs they perform.
As part of our intervention to alleviate youth unemployment, we introduced apprentice learnerships and internship allowances as a means of subsidising learners while they undergo training under the Basic Conditions of Employment Act. The employers also received tax allowances under the Income Tax Act administered by Sars. People who participated in the training of unemployed people also received a daily allowance. These allowances have since been transferred to the Department of Higher Education and Training with the Skills Development Act functions.
To the last question, my answer is no, because the tax system falls under Treasury, not under the Department of Labour. Thank you.