Youth Employment Trends in South Africa 2023

Introduction

South Africa continues to have one of the highest youth unemployment rates in the world. Long term youth unemployment has led to an increase in youth discouraged from work, and represents a threat to social stability. High youth unemployment largely reflects poor education outcomes and a skills mismatch, and more than a decade and a half of low economic growth. Experts say youth unemployment could be reduced by providing soft skills, career guidance and entrepreneurship support. While private initiatives have had some success, their impact is marginal in addressing the youth unemployment crisis.

Opportunities

Emigration could provide youth with more skills and new ideas. New technologies can create more employment through remote and gig work. Privately-run youth employment initiatives. Proposed procurement set-asides for youth.

Outlook

The outlook for youth employment in South Africa remains grim, and youth unemployment is expected to rise unless there are interventions, including fixing the education system. As it will take time to improve education outcomes, public employment programmes and entrepreneurship support can play an important role. A question hangs over the continuation of public programmes given government’s spending challenges.

Report Coverage

This report on trends in youth employment is one in a series of trends reports that also include trends in areas such as mining, FMCG, agribusiness, fintech and transport and logistics. The trends in youth employment report includes information on youth population, education and employment, labour force participation, business sectors employing youth, causes of unemployment and government and private sector interventions.

Strengths

Government and the private sector initiatives to increase youth employment. Young employees bring new ideas and practices to companies and organisations.

Threats

Government spending challenges could limit the expansion of public employment programmes. Low economic growth which will not create sufficient demand for companies to employ youth. More youth could emigrate leading to a possible reduction in skilled people. The youth unemployment crisis could fuel crime and social instability.

Weaknesses

High youth unemployment rate. Lack of career counselling. Low number of youth-owned businesses. Low success of the Employment Tax Incentive. Poor education and training outcomes. Public youth employment initiatives are not well co-ordinated. Skills mismatch.