Youth unemployment will have devastating impact on economy, society if state does not act soon

People queueing outside the Post Office at Church Square as they want to check their Covid-19 Unemployment Relief Fund for the festive season.Picture: Oupa Mokoena/African News Agency(ANA)

People queueing outside the Post Office at Church Square as they want to check their Covid-19 Unemployment Relief Fund for the festive season.Picture: Oupa Mokoena/African News Agency(ANA)

Published Dec 22, 2020

Share

By Nyaniso Qwesha

As I write this letter, my son and other matric learners have just completed writing their exams. What next?

This is the biggest question being asked by every parent whose child had finished their exams or will be in matric in a few years. This year has seen many companies cut their headcount costs because of business challenges.

Yes, the virus has made a big hole in the job market.

Recent statistics are disheartening and scary. A recent report by Stats SA shows that youth between the ages of 15 and 24 are the most vulnerable, as they accounted for 43.2% of the unemployed in the first quarter of the year. The report further said that among the graduates in this age group, the unemployment was 31%, an increase of 8.5% compared with the same quarter last year.

How do we create sustainable jobs targeting this vulnerable group?

The government, unions and business need to have an open discussion on how to solve the situation. If left unattended, it can have a devastating impact on the economy and society.

The government can follow a two-pronged strategy. First, provide support to businesses owned by young people. Second, offer incentives to support young people’s employment within the private or public sector.

We can strengthen the efforts of learnership programmes, to ensure that their placement impacts successfully and sustains employment, specifically in this age group.

Revitalised state-owned entities can also help. Strengthening these companies will also ensure a reduction in bailouts and that the companies can nurture and enhance talent and skilled professionals.

There is a growing demand that opportunities be created for the young people and this country’s future.

The Star

Related Topics: