Youth unemployment is an economic timebomb SA can't ignore
Some 10 million South Africans face the highest barriers to entering the workforce, with unemployment figures significantly outpacing that of older youth.
Image: Henk Kruger
Some 10 million South Africans – the younger generation of between 15 and 24 years of age – face the 'highest barriers to entering the workforce, with unemployment figures significantly outpacing that of older youth,' with dire consequences for South Africa's economic growth.
'For many young South Africans, landing a job is more than just a milestone, it is a crucial step toward economic independence and inclusion. Yet for millions, this first step remains out of reach,' Statistics South Africa said in a data print released this week.
Veteran business commentator, Adrian Schofield, told IOL that the 'growth in the proportion of unemployed young people is a direct obstacle to growth in the country's economy'. He added that this sort of situation led to more crime, which would also dissuade investment.
Recent research by Statistics South Africa, which further breaks down its Quarterly Labour Force Survey released on Tuesday, showed that half of all those between 15 and 24 were unemployed in 2015. Ten years later, and this number has jumped to 62.4%.
South Africans can legally start working at 15 years of age.
For all youngsters aged 25 to 34, the rate increased from 31.4% to 40.4% over the same period, the agency said. In 2015, the unemployment rate for youth aged 15 to 34 was 36.9%. A decade later, it had jumped 9.2 percentage points, which Statistics South Africa said is an 'increase that highlights deteriorating prospects for millions'.
Schofield added that the 'gross lack of attention to technical, engineering and maths skills in the education pipeline condemns the majority of matriculants to low-skilled or service occupations (with low incomes), if they can find any employment'.
Where youth do have jobs, these are generally in areas such as retail, wholesale, and hospitality, which accounts for a quarter of those with jobs, said Statistics South Africa. 'These numbers paint a clear picture: many young workers are clustered in low-skilled, or service-based occupations,' it said.
Of those who were unemployed, almost 60% have no previous work experience, said Statistics South Africa. 'That means nearly six in ten unemployed young people are still waiting for their first opportunity to enter the job market. Without experience, youth struggle to get hired – yet without being hired, they cannot gain experience,' said Statistics South Africa.
It added that 'this cycle of exclusion continues to fuel long-term unemployment and stalls skills development at a critical stage of life'.
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 ✕
The unemployment rate also reflects entrenched gender inequalities, with women continuing to face greater barriers to employment, particularly among the youth. Some 37.5% of women between 15 and 24 are in the category Statistics South Africa calls Not in Employment, Education or Training.
This disparity is worse in the 15 to 34 age group, at 45.1% overall – women at 48.1% compared with 42.2% of men. This, Statistics South Africa said, highlights 'a persistent gender gap in access to work and skills development'.
The agency said: 'The challenges facing young South Africans in the employment space are not new, but they are trending negatively in many cases. Over the past ten years, youth unemployment has remained persistently high,' said Statistics South Africa.
By comparison, the overall unemployment rate is 32.9%, up from the last three months of 2024 when it was 31.9%. Including discouraged job seekers, a more accurate measure of the job situation, the rate went from 41.9% to 43.1% over the same quarter-on-quarter analysis, Statistics South Africa said on Tuesday.
The plight of the youth is more dire in the North West and the Eastern Cape provinces, where it deepens into economic exclusion. The first quarter of 2025 saw North West record a youth unemployment rate of 58.8%.
'In the Eastern Cape, the picture is similarly serious. With an unemployment rate of 54.3% and the lowest youth labour force participation rate nationally at 39.8%, fewer than four in ten young people are either employed or looking for work,' said Statistics South Africa.
IOL
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
SowetanLIVE
3 hours ago
- SowetanLIVE
Joshco bridges housing gap for missing middle residents
Construction is under way on what will become the largest phase of the Johannesburg Social Housing Company's (Joshco) Riverside View project in Diepsloot, which will add more than 700 new units to the growing social housing development. During an oversight visit, Nhlamulo Shikwambana, Joshco's acting COO, said 'the development has already completed three phases, with tenants living in over 300 units, and construction of phase 4 now under way'. 'Once complete, phase 4 will add over 700 more units. This is going to be our biggest build in the area. The plan is to reach over 1,000 units in Diepsloot' Shikwambana said the project is specifically aimed at South Africans in the 'missing middle', those who earn too much to qualify for RDP houses but too little to afford bonded homes. 'We are closing the gap for people who fall through the cracks. Most of our residents come from informal areas. We want them to feel safe and comfortable without being financially overstretched,' added Shikwambana.
The Citizen
4 hours ago
- The Citizen
Welcome to adulting: what to do with your first pay check
With the right habits, a first pay check is not just income but a launchpad to financial freedom for young people. When you get your first pay check it could feel like you are an adult now. That also means that you must treat your money like an adult, but not all young people know how to manage their money wisely. Debra Slabber, director and portfolio specialist at Morningstar Investment Management South Africa, shares her own early financial experiences and four practical lessons she wishes she knew when starting out: #1: Understand the basics of money Financial literacy is often overlooked in our school system and rarely discussed openly at home. Learn to budget, spend wisely and grow your wealth. Just a little effort up front can make a big difference later. The goal is financial confidence, not perfection. ALSO READ: How to use your pay cheque to get financial freedom #2: Spend less than you earn This is the golden rule of personal finance, although it is often ignored in the early years. 'There is no shame in living frugally while you build a foundation. Avoid using debt to fund your lifestyle. Loans should support long-term goals such as buying a house, not short-term gratification.' #3: Start investing no matter how small Investing even R250 a month can make a meaningful difference when invested consistently over time. 'Time is your biggest financial advantage. Harness the power of compounding now, and your future self will thank you.' ALSO READ: How to make the most of your first salary #4: Enjoy the process of building wealth Building wealth is not about depriving yourself but about empowerment. 'There is joy in taking control of your finances and seeing your progress over time. Learn about the different tools available, track your growth and celebrate the small wins with your first paycheck.' Slabber's advice is clear: the earlier young South Africans start making smart money choices, the better positioned they will be for long-term success.
The Citizen
6 hours ago
- The Citizen
The importance of teaching money lessons early in life
The earlier young people learn money lessons, the better equipped they will be to make smart, confident financial decisions. It is important to start teaching your children money lessons early in their lives, starting with understanding the concept of financial risk. But understanding risk is definitely not for adults only. June is youth month in South Africa, a time to celebrate young people and reflect on how to help them build a brighter, more inclusive future, says Sarah Nicholson, operations manager of a platform that helps South Africans make good money choices. 'Understanding the concept of financial risk is a key skill that helps young people avoid money pitfalls and thrive later in life. 'Just as we teach children to cross the road safely, we should also help them to recognise and navigate financial dangers, such as impulse spending, scams, debt and a lack of savings. ALSO READ: Educate your children about money – here's how Understanding financial risk is important money lesson 'Understanding financial risk is a life skill, not just an adult concern. We often think of financial risk as something adults face, such as defaulting on a loan or losing an investment. But the truth is that young people are often exposed to money decisions early on.' Whether it is peer pressure to have the latest gadget, being targeted by online scammers, or taking on a student loan without budgeting for repayments, the choices you make when you are young can have lasting consequences, she says. 'Youth Month offers the perfect opportunity to talk about financial wellbeing as a family. It is not about having all the answers but about starting the conversation, making learning practical and fun and showing young people that money is a tool they can learn to use with confidence.' Teaching young people how to manage money can begin with everyday chats at the dinner table, at the till, or when discussing family expenses. Money lessons work best when they are practical, relatable and suited to your child's stage of development. This is how: ASLSO READ: Thanks for the money lessons, mom! Money lesson for young children: start with the basics – needs versus wants and the power of saving Children as young as five can begin learning the difference between what they need (food and school shoes) and what they want (sweets or a toy). You can make this lesson real by involving them in a shopping trip. Before heading out, show them a list: 'We need bread, milk and fruit. We do not need coffee today, and it is not on the list.' To encourage saving, use a clear jar or a labelled tin and let your kids contribute coins towards something small they want, such as a colouring book. Seeing the coins grow over time helps them grasp delayed gratification, a valuable lesson in today's instant-gratification culture. ALSO READ: Financial literacy at an early age is key for success later Money lesson for tweens and teens: Introduce budgeting and responsible spending As children grow older, they can start earning a small allowance or pocket money and learn how to manage it. For example, parents might agree to give their child R150 a month. Instead of spending it all on fast food, the teen learns to divide up the money: R50 for weekend treats, R50 saved towards a phone cover, and R50 to put aside. Letting teens help plan a family purchase also builds confidence. For instance, ask your 14-year-old to help research and compare prices for a new TV or family computer. Discuss quality versus price, warranties and delivery costs. ALSO READ: Start early, succeed big: Teaching kids the value of money This is a good time to go deeper into concepts like credit, interest, debt and scams. If your 17-year-old is applying for tertiary education, use the opportunity to walk through a student loan agreement and explain repayment terms and interest. Introduce compound interest with a simple example: 'If you invest R1 000 at 10% interest, you will have R1 100 after a year. But if you leave it there, you will earn interest on the R1,100 the next year, and that is compound growth.' You can also teach them how to spot common scams by reviewing typical examples that circulate via WhatsApp or social media. For example, a teen might see a TikTok ad for a 'work from home, R3,000/week' job and be asked to pay R150 to secure a spot. The scammer then disappears with the money. 'Even if money is tight, these conversations can be powerful opportunities to build understanding and resilience and can protect youngsters from serious financial harm later. Explaining why you say no to a purchase, how interest works with debt, and the importance of saving for emergencies can leave a lasting impression. 'Equipping the next generation with financial skills strengthens not only individual households, but entire communities. 'When young people understand how to manage money, avoid risk and plan for the future, they are more likely to reach their potential, build wealth and contribute to a more financially stable South Africa.'
