Sayec is concerned that a disengaged youth population will have long-term negative impacts on the economy. File photo
South Africa’s youth unemployment rate eased slightly in the third quarter of 2024, but millions of young people remain unemployed in a tough economic environment
The South African Youth Economic Council (Sayec), responding to the quarterly Labour Force Survey (QLFS) released this week, warned that this is just not good enough.
“Youth unemployment is not just a social challenge, but an economic liability that undermines South Africa’s potential for growth and stability,” it said in a statement.
Statistics South Africa data showed the youth unemployment rate easing slightly from 46.6% in the second quarter of 2024 to 45.5% in the third quarter of 2024.
The total number of unemployed youth (age 15 – 34) fell by 171 000 to 4.8 million while employed youth increased by 66 000 to 5.8 million.
Despite these improvements, the economic outlook for young South Africans remains challenging.
“Vulnerable youth, comprising those aged 15-24, remain the most disadvantaged segment when it comes to finding sustainable employment in this subdued economy,” said Investec economist Lara Hodes. She noted that although the youth unemployment rate improved slightly, it remains critically elevated.
Hodes said, “Improving the level of and access to education is essential,” highlighting that unemployment among those with less than a matric certificate remains above 37%, while graduates face a lower, yet significant, unemployment rate of 9.8%.
Sayec is concerned that a disengaged youth population will have long-term negative impacts on the economy by limiting consumer spending, reducing tax revenue and increasing dependency on social support systems.
“Addressing this crisis strategically aligns with developmental objectives by fostering a productive, empowered generation, while ensuring economic viability by expanding the labour force and driving domestic consumption,” the council said.
It warned that persistent unemployment cycles lead to economic exclusion, eroding young people's skills, lowering their future employability, and worsening poverty.
“Addressing this requires immediate interventions, including targeted outreach programs, accessible skilling initiatives, and localised employment hubs that reignite hope and rebuild pathways to participation in the economy,” Sayec said. The council urged a “structured, multi-sectoral approach” to tackle the root causes of unemployment and discourage despondency.
Moreover, Sayec noted that a national agenda must prioritise sectors showing resilience and potential for job creation, particularly for youth.
It pointed to mining, with its 18% year-on-year employment growth, and construction, which is experiencing gains of approximately 11% quarter-to-quarter.
By integrating youth into these sectors, South Africa could simultaneously address unemployment and advance developmental objectives, such as closing infrastructure gaps and enhancing competitiveness, it said.
“Economically, youth participation in these industries increases productivity and injects innovation, fostering long-term sectoral sustainability and profitability,” it further said.
Youth Employment Service (YES) chief partnership officer Tsholo Mogotsi advised young job seekers to pursue skills assessments and consider reskilling to increase their competitiveness in a difficult job market.
YES, which operates as South Africa’s highest-impact youth employment initiative, aims to tackle youth unemployment through private-sector partnerships.
The official unemployment rate fell by 1.4 percentage points to 32.1% in the third quarter of 2024, down from a two-year high of 33.5% in the second quarter.
Nedbank economist Johannes (Matimba) Khosa said the outlook for the job market looked more promising.
“Employment will likely increase moderately as the economy recovers over the next 12 to 18 months. Trading conditions have already improved significantly, with load-shedding suspended and logistic networks slightly less clogged.
“While employment is forecast to increase, the pace of job creation will still be too slow to absorb new entrants into the labour market and reduce unemployment significantly. Consequently, the unemployment rate will likely remain high, easing only slightly and still leaving a large pool of discouraged workers.”
BUSINESS REPORT