The youth unemployment crisis in South Africa and potential solutions

Unemployment is currently the most critical crisis in South Africa. More than 80 out of every 100 young people aged between 18-35, as well as 52 out of every 100 job seekers overall, are unable to find work to support their families and secure a better future. Even by the narrow definition of unemployment, which excludes those who have given up on finding a job, the percentage of jobless South Africans of working age has increased from 26% in 1992 to nearly 30% today.

The official unemployment rate in South Africa was 30.9% in the fourth quarter of 2023. According to the Quarterly Labour Force Survey (QLFS), the number of people with jobs increased by 359,000 to 16.7 million in the same period, compared to 16.7 million in the third quarter of 2023. Unemployment in South Africa is influenced by various factors.

South Africa’s economy is hindered by heavy reliance on mining and slow economic growth. Corruption, global economic factors, stringent labor laws, and a skills mismatch exacerbate unemployment. The legacy of apartheid perpetuates disparities and systemic barriers in the job market.

South Africa is confronted with a grave unemployment crisis impacting a substantial portion of its populace. To mitigate this challenge, the following strategies can be pursued:

1. Education and Skills Development: Direct investment into education and skills development programs tailored to meet the demands of the labor market. This encompasses vocational training, apprenticeships, and initiatives aimed at enhancing fundamental education outcomes, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields.

2. Job Creation Policies: Implementation of policies designed to bolster job creation, with a specific emphasis on sectors exhibiting high growth potential, such as renewable energy, manufacturing, tourism, and technology. This may involve the provision of tax incentives for enterprises, allocation of funds to infrastructure projects, and the facilitation of support for small and medium enterprises (SMEs).

3. Labor Market Reforms: Reforming labor market regulations to strike a judicious balance between safeguarding workers’ rights and cultivating an environment conducive to job creation. This may necessitate the review of minimum wage laws, the streamlining of bureaucratic processes for enterprises, and the promotion of adaptable work arrangements.

4. Support for Entrepreneurship: Cultivation of entrepreneurship and innovation through the provision of access to finance, business development support, and incubation programs. It is integral to instigate entrepreneurship amongst the youth and women, demographics that confront elevated unemployment rates.

5. Infrastructure Investment: Allocation of resources to infrastructure projects that generate employment opportunities and stimulate economic activity, encompassing transportation networks, energy infrastructure, and digital connectivity.

6. Promotion of Foreign Investment: Establishing an appealing investment climate by addressing corruption, enhancing governance, and offering incentives for foreign investors. Foreign direct investment holds the potential to significantly contribute to job creation and the transfer of skills and technology.

7. Social Safety Nets: Reinforcing social safety nets to provide assistance to those who are unemployed or underemployed. This necessitates the implementation of targeted cash transfer programs, unemployment insurance, and initiatives focused on skills retraining.

8. Public-Private Partnerships: Encouraging collaboration between the public and private sectors to identify and overcome barriers to job creation. Public-private partnerships stand to leverage resources and expertise to execute efficacious solutions.

The youth remain helpless in the labor market however, the fourth quarter of 2023 results show that the total number of unemployed youth (18–35 years) decreased by 168 000 to 4,3 million while there was an increase of 233 000 in the number of employed youth to 6,0 million.