Clotilde Angelucci, Acting Project Lead at Youth Capital says the government's current strategy to combat unemployment is not working. This is demonstrated by the high unemployment rates recorded in the country.
Young South Africans struggle to find work with the latest Stats SA data painting a bleak picture. The Quarterly Labour Force Survey for Q4 2024 shows nearly 60% of 15-24 year olds and 40% of 25-34 year olds are without jobs.
Earlier this month, Deputy Minister in The Presidency, Nonceba Mhlauli announced the government would continue the implementation of the Presidential Youth Employment Initiative (PYEI) to create jobs.
Youth Capital raised concerns ahead of the 2025 Budget Speech, which has seen a reduction in funding for public employment programmes and the cancellation of the Basic Education Employment Initiative.
The BEEI was one of the most successful PYEI programmes. It created employment opportunities for more than one million young people in schools across the country. Youth worked as teaching assistants and general school assistants.
These programmes are vital for providing young people with work experience and bridging the gap to employment.
Adequate and timely funding for public employment programmes to ensure young people can access meaningful and well-designed work opportunities
Youth Capital points out that the graduate employment rate shows a positive correlation between education and economic opportunities. However, access to higher education remains a challenge as universities cannot accommodate all qualifying students.
The organisation believes the ongoing struggles of students protesting at institutions around the country are mainly due to inefficiencies within the National Student Financial Aid Scheme (NSFAS) and deep budget cuts to higher education.
Youth Capital also criticised President Ramaphosa’s State of the Nation Address for failing to recognise the critical role of social investment in achieving economic recovery and inclusive growth.
Unemployment is a structural issue, driven by systemic challenges that young people face from the moment they start school. Continuing to cut spending at this time would be highly detrimental.
Angelucci says social welfare should guide government spending and not debt consolidation.
With South Africa having one of the highest youth unemployment rates globally and 30 million people living below the upper-bound poverty line, Youth Capital has called for long-term funding for public employment programmes. This includes the reinstatement of the Basic Education Employment Initiative and adequate funding for higher education.
"We can’t keep on doing the same thing and expect a different result. Youth unemployment is not just a challenge for young people; it’s a crisis that affects the entire country."
