South Africa’s youth is one of our country’s greatest challenges – and biggest opportunities. Our youth (typically defined as individuals between the ages of 15 and 35) make up a significant percentage of our population. Compared to countries in Europe and Asia, where ever-increasing numbers of retirees are relying on a decreasing number of working-age people to support them, South Africa has a wealth of potential young talent able to enter the workforce.

Except many of them are not doing so, and therein lies the great challenge. South Africa has the highest youth unemployment rate in the world. According to Statistics South Africa, 61% of people ages 15 to 24 are unemployed, and the overall unemployment rate is 33%.

Where are things going wrong, and how can they be reversed? Our industries have a need for skills, our population requires jobs, and yet the youth struggle to enter the market.

These are the questions that the South Africa National Human Development Report 2022 (SANHDR): Harnessing the Employability of South Africa’s Youth set out to answer.

The SANHDR underscores the significance of youth employment not only for economic vitality but also for the broader spectrum of human progress. Gainful employment contributes more than just monetary stability; it cultivates a sense of worth and self-efficacy, enabling individuals to hone their capabilities, take charge of their destinies, and make a positive impact within their communities.

Securing high-quality employment is therefore a cornerstone of promoting inclusive economic expansion and the sustained accumulation of human capital. Young individuals who encounter delays in securing quality employment are at a disadvantage in terms of skill accumulation compared to peers who start gaining work experience early. This shortfall in skill development tends to manifest in reduced lifetime earnings, and prolonged periods of unemployment or underemployment, which may lead to a decline in skills and a diminishing connection to the labour market. No one wins in this situation: not our youth, our businesses or our economic sector.

The report identifies five key strategic approaches to enhance the employability of South Africa’s youth:

• There is a critical need for immediate and increased public investment in education and skill formation, coupled with an expansion of successful programmes that boost the active economic involvement of young people. Innovative teaching methods, high-quality educators, state-of-the-art equipment, and ample learning resources are essential components of this overhaul. Achieving and sustaining this transformation will require that financial commitments to education and skills development be maintained and progressively increased.

• The creation of integrated job centres that consolidate existing resources and services is essential. South Africa must channel resources into employment service programmes offering job search assistance, labour market insights, career guidance, placement services, and financial support for job seekers. Presently, there exists a notable disconnection between the methods young job seekers employ and the channels favoured by employers for hiring. The prevalent reliance of youth on their personal and familial networks when job hunting points to a broader issue of inequity in job market access. Effective employment services can bridge this gap, aiding young individuals in finding employment that matches their skills and ambitions more swiftly.

• Nurturing youth entrepreneurship is vital. Organisations and governmental bodies should support start-ups and the social entrepreneurial ventures of the youth. Opening pathways for investments through means such as crowdfunding platforms, impact investment funds, and the engagement of venture capital can support these ventures. However, it is essential to provide comprehensive business development support as well.

• To further the progress toward greater economic empowerment for women, it is essential to continue evolving gender norms. These norms have a significant impact on women’s economic roles by shaping societal expectations about the roles and responsibilities of men and women, whether within domestic settings or in the broader economic context.

• Strengthening the National Youth Service can serve as a vital conduit for young individuals transitioning from education to employment. Such a scheme provides eager young individuals with practical on-the-job training and enriching work experience, thereby enhancing their skill set. Nations that have implemented National Youth Service Schemes recognise their substantial contribution to equipping youth with the necessary tools to navigate the professional environment and ignite their career paths with a purposeful outlook.

The role of training and development

This is not a problem that any single organisation or body can solve, however, at PMI, we believe that training and development are foundational elements in promoting sustainable employment. Our goal is not only to ensure that South Africa’s youth are prepared for the jobs of today but are also equipped to adapt to the changing demands of the future labour market.

One of the biggest challenges school leavers face is how they can gain experience and become ‘work ready’. According to Statistics South Africa, 35% of high school matriculants are unemployed. On-the-job training, learnerships and career development are just one of the successful strategies opening avenues of employment for our youth.

Realising South Africa’s youth potential requires a concerted effort from the government, civil society, and the private sector. Businesses that invest in youth will not only bring new skills into their organisations, but future-proof the entire economy from a lack of skills because our youth are struggling to enter the workforce. It all begins with a focus on skills acquisition and training.

Speak to our team at PMI about how we can support your organisation’s youth skills development programme.