Tag: youth unemployment

South Africa’s youth unemployment rate stands at an alarming 44.6% for individuals aged 15-34. This sobering statistic reflects challenges such as limited work experience, educational gaps and economic hurdles.

What are the actual job prospects for young South Africans once they have matriculated? To what extent are recent matriculants finding jobs or transitioning into post-school education and training (PSET) opportunities? These are the critical questions explored in a new report titled “School completion, the matric and post-school transitions in South Africa”.

With increasing alacrity, businesses must recognise the crucial need to transform their organisational structures. This is necessary to keep pace with the rapidly evolving digital landscape. However, it’s equally important for organisations to consider the associated risks. This will ensure long-term resilience.

In a significant move to strengthen the integrity of the Employment Tax Incentive (ETI) scheme, the government has proposed amendments to Sections 1(1) and 5(3) of the Employment Tax Incentive Act, No. 26 of 2013. The ETI, introduced in 2013, aims to encourage employers to hire young job seekers by reducing the cost of employment through a government-supported cost-sharing mechanism.

The solution to youth unemployment and the skills crisis lies in upskilling and empowering youth with future digital skills. Relevant digital skills should be developed before they enter the workplace. ICT certifications alone are not enough to meet the rate of change in the workplace. They also cannot secure sustainable job creation. South African companies hiring young people with practical skills will succeed. These skills should meet current and future business demands.

Much has been written about the digital skills shortage. This is not a problem that will be solved overnight. As technology evolves, the demand for specific skills outpaces their availability. And as more people gain these sought-after competencies, there may be a temporary oversaturation of the market. Once parity is reached, new advancements shift the landscape again, and so the cycle continues.

As South Africa continues to grapple with its massive youth (15-34 years) unemployment rate of 4.7 million individuals (Q4 2023), there is a critical need for innovative approaches to skills development and employability. I view learnerships as an excellent platform for creative training methodologies thereby, paving the way for a more agile and adaptable workforce.

A recent roundtable discussion we co-hosted with Microsoft sparked a debate whether SA’s unemployment challenges are truly about job availability rather than a mismatch in skills demand and supply.

We are working towards developing a new breed of entrepreneurs, one that’s future fit, disruptive, and geared to solving the challenges of an increasingly complex world. As South Africa considers the challenges and opportunities facing our youth, there has never been a greater need for inclusive entrepreneurship.

Daring to dream is the greatest skill that a learnership can teach. South Africa faces a unique dilemma – we have the highest youth unemployment in the world, yet there is a shortage of skilled people to fill positions in many sectors. Businesses want workers who can hit the ground running, yet matriculants don’t have the skills or the understanding of the work environment to make the required impact.