Youth Unemployment: SA’s ongoing crisis and the path forward

Unemployed youths, who mostly have matric, still have the likelihood of learning new skills and least require state assistance. Picture: Supplied

Unemployed youths, who mostly have matric, still have the likelihood of learning new skills and least require state assistance. Picture: Supplied

Published Sep 1, 2024

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By Dr Linda Meyer

SOUTH Africa stands at a critical juncture, of grappling with the persistent and deep-rooted challenge of youth unemployment. Outcries from unemployed youth, and numerous opposition parties on the effectiveness of government’s initiatives in addressing this scourge have become a regular feature playing out within the media space.

Addressing this challenge, however, needs to move past being a mere numbers game but rather a holistic approach that focuses on education, work experience, and regional disparities, if the country is to have any hopes of gradually turning the tide.

The numbers speak volumes. As of the second quarter of 2024, the unemployment rate among young South Africans aged 15 to 34 has soared to an alarming 46.1%, starkly overshadowing the national unemployment rate of 33.5%.

Unemployed South Africans increased by 158,00, reaching 8.4 million, marking the highest unemployment figure since 2008. I think this data does not just reflect economic hardship; it highlights a looming social crisis that threatens the fabric of our society.

The exclusion of our youth from the labour market is not merely a statistic but a pressing call to action. The approach to resolving youth unemployment must be innovative and grounded in empirical evidence.

The Labour Market Dynamics in South Africa (LMDSA) report for 2022 provides a crucial insight that should guide our strategies. It reveals a significant disparity in employment outcomes between youth with work experience and those without.

Notably, persons with a higher level of education stand a better chance of being employed. I want to emphasise that education remains a key driver in curbing youth unemployment, as according to the Quarterly Labour Force Survey (QLFS) for the 2nd Quarter of 2024 and StatsSA, most unemployed individuals had an education level below grade 12, while those who had finished their grade 12 year represented around 34%. Graduates had the lowest share of unemployment at 10,7%.

The implications of this data are profound. It underscores the critical need for experiential learning, leadership, internships, apprenticeships, and workplace exposure programmes. These interventions are not just beneficial—they are essential.

The reality is that youth with experience are much more likely to secure employment than their inexperienced peers, making it evident that such programmes must be at the core of our efforts to combat youth unemployment.

Transformative power of education

Education is frequently hailed as the great equaliser, yet the current state of youth employment starkly reveals the substantial barriers to accessing higher education. These challenges are exacerbated by the limited availability of first-year spaces at public universities and the government's restrictions on NSFAS grants, which are only available to students who secure admission to a public university or TVET College.

This is problematic, students should receive a bursary and be afforded the opportunity to select where and what they want to study. As graduates, no matter where students studied, they contribute knowledge and skills to the South African economy.

The data further reveals that individuals with tertiary education are significantly more successful in transitioning from unemployment or inactivity into employment than those without a matric certificate.

This highlights the transformative power of education in shaping employment outcomes. However, it is crucial to acknowledge that young women face additional, often insurmountable, barriers. The unemployment rate among young women reached 50.1% in the second quarter of 2024, exacerbating already existing gender disparities within the labour market.

These challenges are not isolated; they are systemic. Young women are hindered by lower absorption rates and labour force participation due to additional family responsibilities, which limit their educational attainment and career progression. Addressing these disparities requires policy intervention and a cultural shift that values and supports the role of women in the workforce.

A tale of two South Africas

South Africa’s provinces present a mosaic of labour market dynamics, each telling its own story. Urban areas, by and large, offer better employment prospects than their rural counterparts. For example, the Western Cape outperforms provinces like KwaZulu-Natal and the Eastern Cape with higher absorption rates and lower unemployment levels.

A critical and often overlooked aspect of this issue is the phenomenon of discouraged youth — those who are available for work but are not actively seeking it. The variation across provinces is striking. In 2024, only 2.8% of young people in the Western Cape were categorised as discouraged, compared to 14.5% in Limpopo. This disparity speaks to the uneven distribution of opportunities across our country, a challenge that requires localised, rather than blanket, solutions.

Over the past two decades, we have seen a decline in the proportion of discouraged youth in most provinces, with the Northern Cape showing the most significant reduction. However, this progress has not been uniform. Provinces like the Northwest and KwaZulu-Natal have witnessed increased discouraged youth, underscoring the need for tailored, region-specific strategies.

A collaborative path forward

The youth unemployment crisis in South Africa is not just an economic issue but a moral one. It demands a comprehensive, multi-faceted approach, including education reform, skills development initiatives, and targeted employment programmes.

But beyond these strategies, we must foster a collaborative environment where the government, private sector, and civil society work together to create sustainable employment opportunities for our youth.

Policies that promote entrepreneurship and small business development are vital. They empower young people to take control of their destinies, reducing their reliance on traditional employment avenues. Moreover, these policies can drive innovation and economic growth, contributing to a more resilient economy.

Addressing youth unemployment is about more than just numbers as we move forward. It is about building a society that values and invests in its future — its youth. By focusing on education, work experience, and regional disparities, we can unlock the potential of South Africa's next generation, ensuring a more inclusive and prosperous future for all.

* Dr Linda Meyer is the managing director of the Independent Institute of Education’s Rosebank College. The views expressed here are her own.