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South Africa's youth unemployment crisis: Structural inequalities and urgent solutions
South Africa's youth unemployment crisis: Structural inequalities and urgent solutions

IOL News

time6 days ago

  • Business
  • IOL News

South Africa's youth unemployment crisis: Structural inequalities and urgent solutions

Organisations speak on how the system has failed the youth as many are left jobless and have to fend for themselves. Image: Freepik Youth unemployment in South Africa has surged to 46.1% in the first quarter of 2025, marking a 9.2 percentage point increase over the past decade. Oliver Meth, communications manager at Black Sash, said this is a national crisis. 'The latest Quarterly Labour Force Survey revealing an expanded unemployment rate of 56.3% among youth aged 18–34 is a devastating indictment of the country's failure to secure the future of its young people. 'This figure is not only alarmingly high, it reflects chronic structural inequality, policy inaction, and a growing disconnect between the promises of democracy and the lived reality of many young South Africans.' Meth added: 'The government is failing its youth by underinvesting in inclusive economic development and failing to deliver on targeted, sustained, and accountable youth employment strategies. Initiatives such as the Presidential Youth Employment Intervention have been poorly coordinated, underfunded, and disconnected from grassroots realities. 'Moreover, there is insufficient political will to address corruption and inefficiency that diverts public funds from critical job-creation initiatives. The social grant system, while vital, is not being fully leveraged as a developmental tool for youth.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Siyabulela Monakali, spokesperson for advocacy group Ilitha Labantu, said the crisis reflects a 'structural lockout,' not a lack of education or ambition. 'This is not a skills gap. Even education no longer guarantees employment,' the organisation stated. 'Most of those affected are black youth from townships and rural areas, where access to opportunity remains severely limited.' The organisation added that many unemployed youth have matric, TVET qualifications, or university degrees but remain outside the formal job market. They argue that the education system continues to produce paper qualifications with little real-world value, particularly in under-resourced schools. According to the organisation, over half of young South Africans do not complete matric. Those who do often lack digital, critical thinking, or entrepreneurial skills relevant to the modern economy. 'South Africa remains a country where your birthplace often determines your outcome,' said the organisation. 'Beyond the classroom, young people face a second layer of exclusion: limited access to mentorship, transport, the internet, and guidance on how to apply for jobs, bursaries, or skills programmes. 'Without these basics, even the best-intentioned policies remain out of reach for many. 'Without mentors, there is no one to show the way. Without training, there is no confidence to step forward. Without resources, the concept of 'opportunity' becomes abstract.' The youth of 2025 are facing several challenges, from high unemployment rates to substance abuse. Image: File Ilitha Labantu also criticised the private sector, saying most companies have failed to transform their leadership and are not doing enough to create pathways for youth. 'Corporate South Africa continues to hold the country at ransom. Most companies remain white-owned, with white-dominated leadership that bears no resemblance to the nation's demographics or aspirations.' The group said the most effective job creation sectors, care work, green energy, construction, agro-processing, digital services and creative industries, remain out of reach without proper investment and training infrastructure. 'There is high demand for skills in coding, solar installation, caregiving and data analysis, but access to this training is limited,' it said. It called for urgent improvements to TVET colleges, including updated curricula, reliable infrastructure, and stronger links to local employers. Ilitha Labantu drew a direct connection between unemployment and youth crime, particularly gang activity. In areas with few job prospects, gangs are often the only available source of income and belonging. 'It is easier to make R200 a day through crime than to spend six months applying for jobs that do not exist,' the group said. The fear and distrust of law enforcement were also raised. 'For many, fear of the police rivals fear of criminals,' the group stated, calling for trauma-informed policing and collaboration with social workers and NGOs. Long-term youth unemployment, they argue, is not just an economic issue, it is a threat to national stability. 'The longer we leave youth excluded, the more likely they will turn to alternatives that offer what the state has failed to: a sense of identity, control and power.' Abigail Moyo, spokesperson for the trade union United Association of South Africa (UASA), also raised concerns about exclusion in government policy discussions. Responding to President Cyril Ramaphosa's recent National Dialogue initiative, Moyo asked: 'Where are the young people who face the daily challenges of unemployment and inequality? We want to see the young unemployed youth contributing to these dialogues.' She called for the establishment of forums that include graduates and job seekers, saying the most practical solutions often come from those directly affected. Meanwhile, employment platform Lulaway's CEO Jake Willis said South Africa is confronting 'a national emergency that threatens the future of an entire generation'. Lulaway has connected thousands of young job seekers to employers through a mix of technology, work readiness training, and mentorship. Business Partners Limited, a major financier of small businesses, said the country's future may lie in youth-led entrepreneurship. Area Manager Lawrance Ramotala said SMEs are playing a critical role in creating jobs, transferring skills, and mentoring first-time entrepreneurs. 'In many cases, SMEs are the first to take a chance on young people,' he said. 'What we're seeing is a groundswell of youth entrepreneurship rooted in community enterprise.' Ramotala said young entrepreneurs are not just surviving, but building businesses that tackle social issues, from education to mental health. But he warned that without support, these efforts are at risk. 'It's not enough to encourage youth to start businesses. They need support to stay the course, particularly in the early stages when failures can be discouraging and resources are limited.' He added that many young business owners are creating peer-to-peer support systems that go beyond what large companies can offer, using their platforms to share opportunities, funding, and mentorship. 'If we want to build a more inclusive, sustainable economy, we must invest in our youth, not just as jobseekers but as job creators. By backing youth entrepreneurship, we're not only building businesses, we're building futures.' Cape Argus

Tackling the youth unemployment crisis in South Africa
Tackling the youth unemployment crisis in South Africa

IOL News

time6 days ago

  • Business
  • IOL News

Tackling the youth unemployment crisis in South Africa

Organisations speak on how the system has failed the youth as many are left jobless and have to fend for themselves. Image: File As youth unemployment rises to 46.1% in the first quarter of 2025, a 9.2% point increase over the past decade, organisations working with young people warn that a generation is being systematically excluded from the economy, despite meeting educational requirements. Oliver Meth, communications manager at Black Sash, said this is a national crisis. 'The latest Quarterly Labour Force Survey revealing an expanded unemployment rate of 56.3% among youth aged 18–34 is a devastating indictment of the country's failure to secure the future of its young people. 'This figure is not only alarmingly high, it reflects chronic structural inequality, policy inaction, and a growing disconnect between the promises of democracy and the lived reality of many young South Africans.' Meth added: 'The government is failing its youth by underinvesting in inclusive economic development and failing to deliver on targeted, sustained, and accountable youth employment strategies. Initiatives such as the Presidential Youth Employment Intervention have been poorly coordinated, underfunded, and disconnected from grassroots realities. 'Moreover, there is insufficient political will to address corruption and inefficiency that diverts public funds from critical job-creation initiatives. The social grant system, while vital, is not being fully leveraged as a developmental tool for youth.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Siyabulela Monakali, spokesperson for advocacy group Ilitha Labantu, said the crisis reflects a 'structural lockout,' not a lack of education or ambition. 'This is not a skills gap. Even education no longer guarantees employment,' the organisation stated. 'Most of those affected are black youth from townships and rural areas, where access to opportunity remains severely limited.' The organisation added that many unemployed youth have matric, TVET qualifications, or university degrees but remain outside the formal job market. They argue that the education system continues to produce paper qualifications with little real-world value, particularly in under-resourced schools. According to the organisation, over half of young South Africans do not complete matric. Those who do often lack digital, critical thinking, or entrepreneurial skills relevant to the modern economy. 'South Africa remains a country where your birthplace often determines your outcome,' said the organisation. 'Beyond the classroom, young people face a second layer of exclusion: limited access to mentorship, transport, the internet, and guidance on how to apply for jobs, bursaries, or skills programmes. 'Without these basics, even the best-intentioned policies remain out of reach for many. 'Without mentors, there is no one to show the way. Without training, there is no confidence to step forward. Without resources, the concept of 'opportunity' becomes abstract.' The youth of 2025 are facing several challenges, from high unemployment rates to substance abuse. Image: File Ilitha Labantu also criticised the private sector, saying most companies have failed to transform their leadership and are not doing enough to create pathways for youth. 'Corporate South Africa continues to hold the country at ransom. Most companies remain white-owned, with white-dominated leadership that bears no resemblance to the nation's demographics or aspirations.' The group said the most effective job creation sectors, care work, green energy, construction, agro-processing, digital services and creative industries, remain out of reach without proper investment and training infrastructure. 'There is high demand for skills in coding, solar installation, caregiving and data analysis, but access to this training is limited,' it said. It called for urgent improvements to TVET colleges, including updated curricula, reliable infrastructure, and stronger links to local employers. Ilitha Labantu drew a direct connection between unemployment and youth crime, particularly gang activity. In areas with few job prospects, gangs are often the only available source of income and belonging. 'It is easier to make R200 a day through crime than to spend six months applying for jobs that do not exist,' the group said. The fear and distrust of law enforcement were also raised. 'For many, fear of the police rivals fear of criminals,' the group stated, calling for trauma-informed policing and collaboration with social workers and NGOs. Long-term youth unemployment, they argue, is not just an economic issue, it is a threat to national stability. 'The longer we leave youth excluded, the more likely they will turn to alternatives that offer what the state has failed to: a sense of identity, control and power.' Abigail Moyo, spokesperson for the trade union United Association of South Africa (UASA), also raised concerns about exclusion in government policy discussions. Responding to President Cyril Ramaphosa's recent National Dialogue initiative, Moyo asked: 'Where are the young people who face the daily challenges of unemployment and inequality? We want to see the young unemployed youth contributing to these dialogues.' She called for the establishment of forums that include graduates and job seekers, saying the most practical solutions often come from those directly affected. Meanwhile, employment platform Lulaway's CEO Jake Willis said South Africa is confronting 'a national emergency that threatens the future of an entire generation'. Lulaway has connected thousands of young job seekers to employers through a mix of technology, work readiness training, and mentorship. Business Partners Limited, a major financier of small businesses, said the country's future may lie in youth-led entrepreneurship. Area Manager Lawrance Ramotala said SMEs are playing a critical role in creating jobs, transferring skills, and mentoring first-time entrepreneurs. 'In many cases, SMEs are the first to take a chance on young people,' he said. 'What we're seeing is a groundswell of youth entrepreneurship rooted in community enterprise.' Ramotala said young entrepreneurs are not just surviving, but building businesses that tackle social issues, from education to mental health. But he warned that without support, these efforts are at risk. 'It's not enough to encourage youth to start businesses. They need support to stay the course, particularly in the early stages when failures can be discouraging and resources are limited.' He added that many young business owners are creating peer-to-peer support systems that go beyond what large companies can offer, using their platforms to share opportunities, funding, and mentorship. 'If we want to build a more inclusive, sustainable economy, we must invest in our youth, not just as jobseekers but as job creators. By backing youth entrepreneurship, we're not only building businesses, we're building futures.'

ActionSA writes to President Ramaphosa demanding dismissal of employment minister
ActionSA writes to President Ramaphosa demanding dismissal of employment minister

The Star

time26-05-2025

  • Business
  • The Star

ActionSA writes to President Ramaphosa demanding dismissal of employment minister

ActionSA has written to President Ramaphosa, requesting that he dismiss the Minister of Employment and Labour, Nomakhosazana Meth, for her clear failure to arrest the deepening unemployment crisis that continues to erode hope, dignity and opportunity for millions of South Africans. The latest Quarterly Labour Force Survey (QLFS), Q1:2025, paints a dire picture: The official unemployment rate rose to 32.9%, up from 31.9% the previous quarter. A staggering 8.2 million South Africans are now unemployed, with an additional 3.5 million discouraged work-seekers. 291 000 jobs were lost in the first quarter alone – the first such Q1 contraction since 2021. This equates to more than 24,000 jobs lost each week, and almost 5 000 each workday. The proportion of young South Africans aged 15–34 who are not in employment, education, or training (NEET) rose to 45.1% in Q1:2025 — a devastating indicator that nearly half of our youth have been left without opportunity, support or a path to a better future. There is a glaring absence of any meaningful strategy, either in planning or implementation and despite full awareness of South Africa's worsening unemployment crisis, Minister Meth has failed to present a coherent plan to stem job losses, support the informal economy or tackle the systemic barriers that keep young people out of the workforce. In November 2024, ActionSA asked Minister Meth whether she would resign should the country's distressing unemployment figures continue to rise. Her response was blunt and unapologetic: 'Unfortunately, I won't resign.' This laid bare a disturbing indifference to the suffering of millions of South Africans. It is an attitude that reflects the posture of an uncaring government that has grown comfortable with failure while ordinary citizens pay the price. Nearly a year into her tenure, Minister Meth has not demonstrated the urgency, capacity or leadership required to respond to this economic and social emergency. South Africa's working-age population cannot afford further stagnation under ineffective stewardship. The absence of meaningful performance management for GNU Ministers has created a culture where failure carries zero consequence. In any functional democracy, such dismal figures amid worsening socio-economic conditions would compel a Minister to take responsibility and step down. Sadly, this standard of accountability is sorely lacking in South Africa and glaringly absent in the Ramaphosa-led administrations. ActionSA believes that something has to give. Sitting on our hands while millions suffer is simply not an option. We are committed to using every available lever to ensure that South Africa's unemployment crisis is addressed with the urgency it demands. Alan Beesley MP, ActionSA Member of Parliament

ActionSA calls on Ramaphosa to fire Labour Minister Meth over worsening unemployment rate
ActionSA calls on Ramaphosa to fire Labour Minister Meth over worsening unemployment rate

Eyewitness News

time26-05-2025

  • Politics
  • Eyewitness News

ActionSA calls on Ramaphosa to fire Labour Minister Meth over worsening unemployment rate

CAPE TOWN - ActionSA has called on President Cyril Ramaphosa to fire Labour and Employment Minister Makhosazana Meth for the worsening unemployment rate. The party's Alan Beesley said that the party had written to Ramaphosa asking him to take action against Meth, saying that the latest Quarterly Labour Force Survey painted a dire picture. The latest numbers show how official unemployment has increased from 31.9% in the previous quarter to 32.9%, with 8.2 million South Africans unemployed. "Nearly one in every second youth is unemployed. Based on the latest quarterly numbers, 24,000 jobs are being lost a week, nearly 5,000 a day. There's clearly no strategy or accountability to turn around this unemployment crisis. The start of accountability is to remove Minister Meth."

ActionSA writes to President Ramaphosa demanding dismissal of employment minister
ActionSA writes to President Ramaphosa demanding dismissal of employment minister

IOL News

time26-05-2025

  • Politics
  • IOL News

ActionSA writes to President Ramaphosa demanding dismissal of employment minister

There is a glaring absence of any meaningful strategy, either in planning or implementation and despite full awareness of South Africa's worsening unemployment crisis, Minister Meth has failed to present a coherent plan to stem job losses, support the informal economy or tackle the systemic barriers that keep young people out of the workforce. ActionSA has written to President Ramaphosa, requesting that he dismiss the Minister of Employment and Labour, Nomakhosazana Meth, for her clear failure to arrest the deepening unemployment crisis that continues to erode hope, dignity and opportunity for millions of South Africans. In November 2024, ActionSA asked Minister Meth whether she would resign should the country's distressing unemployment figures continue to rise. Her response was blunt and unapologetic: 'Unfortunately, I won't resign.' This laid bare a disturbing indifference to the suffering of millions of South Africans. It is an attitude that reflects the posture of an uncaring government that has grown comfortable with failure while ordinary citizens pay the price. Nearly a year into her tenure, Minister Meth has not demonstrated the urgency, capacity or leadership required to respond to this economic and social emergency. South Africa's working-age population cannot afford further stagnation under ineffective stewardship. The absence of meaningful performance management for GNU Ministers has created a culture where failure carries zero consequence. In any functional democracy, such dismal figures amid worsening socio-economic conditions would compel a Minister to take responsibility and step down. Sadly, this standard of accountability is sorely lacking in South Africa and glaringly absent in the Ramaphosa-led administrations. ActionSA believes that something has to give. Sitting on our hands while millions suffer is simply not an option. We are committed to using every available lever to ensure that South Africa's unemployment crisis is addressed with the urgency it demands. Alan Beesley MP, ActionSA Member of Parliament

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