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Read the extract below and answer the questions that follow - NSC Life Orientation - Question 6 - 2015 - Paper 1
Question 6
Read the extract below and answer the questions that follow. INFORMAL JOBS Informal jobs are common in developing countries. The business belongs to its owner and ... show full transcript
Worked Solution & Example Answer:Read the extract below and answer the questions that follow - NSC Life Orientation - Question 6 - 2015 - Paper 1
Step 1
Define an informal job and explain how it is an innovative way to counteract unemployment in the country.
Answer
An informal job is defined as one that is not registered with the Department of Labour or the South African Revenue Service (SARS). This includes work that falls outside the formal economy, such as street vendors or unregistered taxi drivers. These jobs provide individuals an opportunity to earn an income without the constraints of formal employment regulations.
The innovation lies in the empowerment it provides, allowing individuals to become entrepreneurs and create their own income streams. This flexibility aids in absorbing additional labour when the economy is low, thus reducing poverty and potentially creating more jobs.
Step 2
Discuss THREE challenges that people in informal jobs may experience.
Answer
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Lack of Employment Security: Individuals engaged in informal jobs do not have job security. They face uncertainty regarding their income and employment continuity, which can lead to financial instability.
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Absence of Benefits: Many informal workers do not have access to basic benefits such as health insurance or pensions. This lack of protection can leave them vulnerable to financial hardships when facing health issues or retirement.
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Exposure to Risk: Informal jobs often expose workers to adverse weather conditions and criminal activities. These risks can hinder their ability to operate their businesses successfully, impacting their income.
Step 3
Propose THREE strategies that local businesses can employ to help young people sustain informal jobs in communities.
Answer
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Training and Workshops: Local businesses can organize workshops that equip young people with skills essential for managing informal businesses. This includes financial literacy, marketing strategies, and operational management.
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Partnerships with Informal Workers: Businesses can collaborate with informal sectors by providing resources or platforms for them to sell their products, creating a supportive ecosystem that benefits both sides.
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Access to Microloans: Providing access to small loans can help young entrepreneurs initiate or expand their informal businesses, enabling them to manage cash flow and sustain operations effectively.