‘South Africa’s unemployment crisis crippling the economy’
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The unemployment crisis that South Africa faces does not only threaten the future of millions of young people but also the stability and economic prospects of the country.
This is according to Chartered Accountant at Momentum Insurance, Dumo Mbethe, who was addressing the Youth Unemployment Seminar in Johannesburg yesterday, which seeks to find solutions to youth unemployment.
Momentum Insurance says its impact study has shown that the unemployment crisis cannot be solved by one organisation but through partnerships between corporates, government and civil society.
Youth unemployment stats
Youth unemployment is described as one of the most critical challenges facing South Africa.
The official unemployment rate is at 32.6%, however, over 44% of young people between the ages of 15 and 34 are not in jobs, education or training.
The aim of the programme is to link young people with placement opportunities and skills; and to support entrepreneurship amongst the youth.
Mbethe says: “It is one of the most critical challenges facing our country. We are dedicated to assisting young people find jobs and opportunities to generate income, because we know that when young people succeed, SA will have a more bright and stable future.”
Economic analyst Khaya Sithole says the odds are against young people as they compete in an environment where jobs are limited and they are competing with experienced older people.
Harambee Youth Employment Accelerator CEO Kasthuri Soni told delegates that young people face challenges while battling to enter the job market.
Review of the education system
Deputy Minister of Employment and Labour, Jomo Sibiya, says a review is needed for education programmes funded by the National Student Financial Aid Scheme (NSFAS) to be more strategic in taking the country’s skills needs forward.
Sibiya says this would help solve the problem of an education system that is producing skills that are not usable in the economy.
