Youth Unemployment – A Pressing Issue for the GNU

Youth Unemployment – A Pressing Issue for the GNU

As the newly formed Government of National Unity gets to work, Business Development Manager Maanda Matambele argues it would do well to prioritise, amongst other matters, youth unemployment, which many have called ‘a ticking time bomb’ that threatens both economic stability and social cohesion.

The State of Youth after Three Decades of Freedom

This year we celebrate 30 years of Democracy in South Africa. However, for the most part, the youth of SA have little to celebrate. According to Stats SA, South Africa, like many countries globally, is grappling with the challenge of youth unemployment. In the first quarter of 2024, the unemployment rate amongst young individuals (those aged 15-34 years) stood at 45,5%, in contrast to the national average of 32,9%.

The challenge of youth unemployment in SA can be attributed to many factors, such as slow economic growth, structural inequality and education system mismatches. However, its cost to the economy is astronomical due to:

1. Lost productivity, as unemployed youth cannot contribute to economic output.
2. Reduced tax revenue, since those who can’t earn don’t pay income tax.
3. Increased government expenditure, as the state often must increase spending on social welfare programs and other forms of financial assistance to support the unemployed.
4. The often-hidden additional costs that arise through resulting crime and social instability.

The GNU – Stemming the bleed

With no outright winner in the recently held elections, political parties that constitute the government and the executive will have to strategically prioritise the following:

1. Enhancing Education Quality: Significant progress has been made in this area over the last 30 years. The number of children with no access to education has declined to just 6.9%, while the number completing Grade 12 has increased to 37.6% from a mere 16.3% in 1996. Despite this however, improving the quality of primary, secondary, and tertiary education remains crucial. This involves updating curricula to align with market needs, ensuring access to resources like technology, and improving teacher training. As we commit to leaving no one behind, the challenge for universities, government and other institutions is to find mechanisms to ensure broader access to quality and relevant education. 
2. Promoting Technical and Vocational Education and Training (TVET): TVET institutions play a vital role in equipping our youth with practical skills. Investing in these institutions, expanding their reach, and enhancing their relevance to industry needs can significantly bridge the skills and productivity gap.
3. Partnerships with Industry: Collaboration between educational institutions and industries can ensure that education programs are aligned with current market demands. Internship programs, apprenticeships, and industry placements can all provide practical experience and enhance employability.
4. Entrepreneurship Development: Encouraging entrepreneurship amongst our youth can create job opportunities and drive innovation. Providing support through mentorship, access to finance, and business development services can empower young entrepreneurs.
5. Digital Skills Development: In the modern age, proficiency in digital skills is essential. Introducing coding, digital literacy, and technology-focused courses and vocational training programs in schools can prepare the young for the jobs of the future.
6. Career Guidance and Counselling: Many young people struggle with making informed career choices. Providing career guidance services in schools and communities can help them understand the different career paths, requirements, and opportunities available to them.
7. Supporting Small and Medium Enterprises (SMEs): SMEs are major employers and drivers of economic growth. Policies that support SME growth, such as access to finance, market access, and business development support, can create more job opportunities for youth.
8. Youth Empowerment Programs: Programs that focus on leadership development, life skills, and personal development can empower young people to take charge of their futures and contribute positively to society.
9. Addressing Socio-economic Barriers: Socio-economic factors such as poverty, inequality, and a lack of infrastructure can hinder youth development. Addressing these issues through targeted policies and programs can create a more conducive environment for our youth to thrive.
10. Monitoring and Evaluation: Continuous monitoring and evaluation of policies and programs are essential to assess their impact and make necessary adjustments for effectiveness.

By implementing these strategies in a coordinated manner, South Africa can harness the potential of its youth, bridge the skills gap, and drive sustainable economic growth. Each strategy should be tailored to the specific needs and context of different regions within the country to ensure inclusivity and effectiveness.

At Prowess we believe that investing in youth will lead to better country outcomes in the long run.  We play our part in actively creating a pipeline of talent and have to date successfully trained and availed our resources to 19 graduates since our inception. Through our Prowess Foundation we aim to create more opportunities that will collaborate with youth organisation and provide both intellectual and financial support structures to advance transformation in our industry.