Economically Marginalised Groups (Grade 10 NSC Matric Economics): Revision Notes

Economically Marginalised Groups

Understanding economically marginalised groups

Economically marginalised groups consist of people who were historically excluded from participating in the economy. These groups face the greatest risk of unemployment and represent the majority of jobless South Africans. Their economic disadvantage stems largely from the apartheid system, which deliberately prevented certain population groups from accessing quality education and economic opportunities.

The key characteristics of economically marginalised groups include:

• Historical exclusion from economic participation due to apartheid policies
• Limited access to quality education, resulting in fewer marketable skills
• Higher vulnerability to unemployment compared to other population groups
• Being disproportionately represented among the unemployed in South Africa

Understanding these groups is essential because addressing their economic challenges is crucial for reducing overall unemployment and promoting inclusive economic growth in South Africa.

Government response to marginalisation

The South African government has recognised the need for targeted interventions to address unemployment among marginalised communities. Various projects and policies have been developed specifically to tackle this challenge and create pathways to economic participation for previously disadvantaged groups.

These government initiatives aim to correct historical injustices whilst building a more inclusive economy that provides opportunities for all South Africans, regardless of their background.

Skills development initiatives

The Skills Development Act

The government introduced the Skills Development Act as a cornerstone policy to improve the capabilities of marginalised South Africans. This legislation creates a framework for developing the skills needed in the modern economy.

Key features of the skills development system include:

• Employers must contribute a small percentage of their annual turnover to the Skills Development Fund
• This fund finances training programmes aimed at upskilling workers and unemployed individuals
• The system prioritises individuals from marginalised communities who need skills development most

Sectoral Education and Training Authorities (SETAs)

SETAs represent different economic sectors and play a vital role in connecting skills development with industry needs. These organisations work directly with employers to identify skills shortages and develop appropriate training programmes.

The SETA system ensures that skills development is:

• Relevant to actual job market demands
• Aligned with industry requirements
• Accessible to young people seeking to enter the workforce

Learnerships and practical training

Learnerships provide individuals with industry-specific skills and knowledge through structured programmes that combine theoretical learning with practical workplace experience. These programmes are particularly valuable because they:

• Give learners real-world experience in their chosen field
• Provide direct pathways to employment opportunities
• Address the skills gaps that prevent many marginalised individuals from finding work
• Create stronger connections between training and actual job placement

Correcting apartheid-era injustices

The government has implemented numerous policies and laws designed to address the historical disadvantages created by apartheid. These corrective measures recognise that achieving true equality requires active intervention to level the economic playing field.

One important policy direction involves government procurement practices. The state actively seeks to purchase products and services from Broad-based Black Economic Empowerment (BBBEE) companies whenever possible, creating market opportunities for businesses owned by previously disadvantaged individuals.

Employment Equity Act and affirmative action

The Employment Equity Act (EEA) represents a comprehensive approach to addressing workplace discrimination and promoting representivity. This legislation introduces affirmative action policies that aim to transform the composition of the workforce to better reflect South African demographics.

Under the EEA, employers must give preference to specific groups when recruiting workers:

• Black people (including African, Coloured, and Indian South Africans)
• Women across all racial groups
• People living with disabilities

These preferences apply to most businesses, with only very small enterprises being exempt from the full requirements. Where necessary, employers must actively prioritise hiring from these groups to ensure their workforce becomes more representative of the broader population.

Implementation across sectors

Both private and public sector employers must implement Affirmative Action (AA) policies when making appointments. This requirement ensures that corrective measures reach across all areas of the economy. Private companies that wish to conduct business with the government must demonstrate compliance with EEA requirements, creating additional incentives for transformation.

Broad-based Black Economic Empowerment (BBBEE)

BBBEE policies focus specifically on increasing black ownership of businesses as a means of redistributing economic power. These policies recognise that true economic transformation requires not just employment opportunities but also ownership and control of economic assets.

BBBEE initiatives work alongside other government policies to create multiple pathways for economic inclusion, from individual employment opportunities through skills development to business ownership and entrepreneurship.