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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 refers to work that is not regulated by the government or registered with official labor entities like the Department of Labour or the South African Revenue Service (SARS). Such jobs often exist outside the formal economy, typically lacking employment protections and benefits.
Informal jobs are considered innovative in countering unemployment as they:
- Empower individuals to become entrepreneurs, allowing them to create self-sustaining businesses.
- Provide opportunities for earning income without heavy bureaucratic overhead, helping to lift people out of poverty, especially during economic downturns.
- Display flexibility and adaptability, making them suitable job options in volatile economic conditions.
Step 2
Discuss THREE challenges that people in informal jobs may experience.
Answer
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Lack of Employment Security: Individuals in informal jobs often face precarious employment conditions with no guaranteed income or job stability.
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Absence of Basic Benefits: Many individuals do not receive essential benefits such as health insurance or pension contributions, leaving them vulnerable during health crises or old age.
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Legal and Financial Risks: Informal workers may face legal issues and financial risks, as they often operate outside the protection of labor laws and have limited access to funding or resources.
Step 3
Propose THREE strategies that local businesses can employ to help young people sustain informal jobs in communities.
Answer
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Offer Training and Workshops: Local businesses can provide training sessions on entrepreneurship and skill development, empowering young individuals to start and sustain their own informal enterprises.
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Engage in Networking Opportunities: Establishing platforms for informal workers to network can foster collaborations, leading to stronger community ties and shared resources.
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Provide Microfinance Options: Local businesses can introduce microfinance schemes that offer small loans or grants to young entrepreneurs looking to invest in their informal ventures.