There are two major components to the concept, Narrow and Expanded unemployment. Overview of Youth Unemployment in South Africa. 3. The literature consulted concludes that the roots of this crisis are: 'aggregate demand, youth wages, the size of the youth labour force, and the lack of skills amongst the youth' (Mlatsheni 2002; Altman 2007; Bhorat 2001; ILO 2006). Cooperatives overcome location related market failures thriving in rural and urban settings. Further, improving the road network often translates into a reduction of transport costs as young people go out in search of work. At the very least a youth wage subsidy will allow young people that fall beneath the minimum skill bar an opportunity to be absorbed into the labour force. Therefore, risk patterns that reinforce inaccessibility of the labour market should be the starting point of any policy formulation process. While social grants in South Africa have had the impact of alleviating poverty for this part of the population they have had no contribution towards reducing inequality. It is extremely difficult for people to look for work and finding ways to get there. South Africa's triple challenge of unemployment, poverty and, inequality The financing of a wage subsidy programme has obvious implications for the national budget. 7.4 Location-related market failure Further to this the unemployment crisis has been singled out the toughest test to date over the past 20years for the democratic government. However each policy discussion to address this issue has encountered firm oppositions from various stakeholders. There is a large need for a vocational stream of education in the country. Most importantly, the higher the rate of youth unemployment, the higher the probability that large numbers of workers will become discouraged ultimately disengaging from the labour force altogether (Burns et al, 2010). Training systems failures occurs when young workers and job seekers are unaware of the skills required by the expanding sectors of the economy. The Umsobomvu Youth Fund (UYF) is an example of a government intervention to address this problem. As of July 2019, the overall unemployment rate in South Africa is at 29%, jumping from 27% in the first quarter. Figure 3 In the South African economy, low levels of education, the lack of job creation and insufficient social protection means that many youth are also under-employed, engaged in low-income self-employment, informal jobs or unpaid work. In the period between 2008 and 2013; the lowest level of unemployment was in the fourth quarter of 2008 observing 3.9 million unemployed people and the highest was observed in the second quarter of 2013 recording 4.7 million unemployed people (Stats SA Quarterly Labour Force Survey). Figure1 Structurally, the paper seeks to achieve four objectives in four sections. Inevitably, this has added to the unemployment crisis. The chart included below shows the main problems experienced by learners in public school, by province, in the 2018 school year. The risk patterns that emanate from the labour market are discussed in the section below. 8.2 Youth Cooperatives: an under-exploited option? Department of Monitoring and Evaluation: 20year review In addition to these changes, South Africa's post-Apartheid labour market coincides with an era where economic growth has been comparatively poorer. The state of Penang in Malaysia is one of the regions that has seen substantial employment benefit through SEZs, attracting large investments into the high-tech manufacturing industry. The survey concludes that in the period 1994-1998, across 22 participating countries, people with higher levels of reading literacy are more likely to be employed and on average have higher wages than those with lower literacy levels. Stricter employment protection laws lead to lower wages and lower employment rates for young people. When the cost of dismissing employees from work is high and thus reducing the number of layoffs in a firm, this has the effect of locking out new firms from that industry and reduces access to entry into the labour market for new young entrants. Labour market failure arises from poor information about the type of work available to young people and the related wage returns associated with such opportunities. Research has shown that the deliberate exclusion of black people from the educational system and skilled occupations, has greatly contributed to the high rates of unemployment. Unfortunately, the UYF has become a defunct organisation due to the high degree of corruption and maladministration. In the same vein, if left unabated, the swelling population of unemployed youth can erode most, if not all, of the gains of the past 20years. International Studies The faculties that show that their qualifications lead to fewer job opportunities are the fine arts and humanities, social sciences and health sciences. The youth unemployment crisis in South Africa is the country's tipping point ' solving this crisis could catapult the country economically and enhance global competitiveness. The graph below extracted from the World Bank's World Development Indicators confirms this. Unemployment is detrimental to peoples livelihood and self-worth and it should be top priority of not only the South African government but of employers, business owners and communities as well. Table 1 However, the failures of the NSFAS to not negate the need for institutions that are established to finance individual skill acquisition. We turn to the labour market and youth unemployment next. It is important to note at this juncture that despite political rhetoric that argues that South Africa is characterized by 'jobless growth', this is in effect not true. Structure of Labor Market in South Africa. Established in 2001, the UYF is primarily focused on providing finance for start-up business and the expansion of existing youth-owned businesses. Granted, it may not be the ideal intervention for sustainable employment, but it does capture a notable number of young people that improve their chances of becoming economically active citizens. Governmental activity in housing policy would also combat the issue. At a national level the Extended Public Works Programme (EPWP) is perhaps the prime example of a government intervention to take youth unemployment. The important contribution that cooperatives can make is the facilitation of the work-to-school transition providing on-the-job training and the requisite skills to increase their attractiveness to employers (ILO, 2006). The proposal for a youth wage subsidy in South Africa is not new and has in fact garnered significant political attention and debate amongst its supporters and detractors.