Context

Living Way is based in Cape Town, South Africa. We have launched our programmes in the same communities in which Living Hope is operating.

Employment rates: South Africa has a population of 48 million people. This figure is ever-escalating as there is a huge influx of refugees and immigrants from other African nations. Of the 48m, there are 20.4m people of working age. The official employment rate statistics states that 12.8m people are currently employed. This leaves South Africa with 7.6 million people who are officially unemployed. This leaves our broad unemployment rate at 38% (this includes people who are unemployed and do not want employment). Many of these people are discouraged and have given up hope of ever finding work. The strict unemployment rate - which measures the percentage of employable people who are seeking work and are not employed currently stands at 26%.  By comparison, during the Great Depression of the 1930's, America's broad unemployment rate peaked at 25%. Township scene

Inequality: Added to this, South Africa has one of the highest Gini coefficients in the world. The measure of the unequal wealth distribution between the rich and the poor tends to skew the per capita income figures as the rich are exceptionally rich and the poor are extremely poor. In looking at the average income, 50% of the employed earn less than R1500 per month. This is less than $2600 per year.

Entrepreneurship: The entrepreneurship rate in South Africa also gives little hope. In comparison to developed nations as well as developing nations, South Africa is poorly rated. For a variety of reasons, our country does not naturally produce entrepreneurs who go on to succeed.

Our Micro-context: Specifically within Cape Town, Living Way is working in the South Peninsula. The Living Way Skills Training Campus is strategically positioned adjacent to Masiphumelele and within walking distance of Ocean View - two of our primary catchment areas.  We will also be working with the communities of Red Hill and Capricorn Park.

We have hope, however, that by breaking the poverty cycle one family at a time will have a great impact on the communities in which we work. Similarly, with the efforts of other organizations, we believe the creation of new jobs is possible.

Sources:
Altman, M. 2006. Setting targets for unemployment reduction and employment creation. Human Sciences Research Council.
Valodia, I, Lebani, L & Skinner, C. 2005. A review of Labour markets in South Africa: Low waged and informal employment in South Africa. Human Sciences Research Council.