Initiatives under way to give youth jobs, and hope
JOB creation initiatives in South Africa don’t usually get good press. Alarming figures from Statistics S, show unemployment is around 36%, the majority of the unemployed being youth.
South Africa leads the way in Africa on unemployment, followed by Djibouti (28%) and eswatini (26%). At 8%, the website www.statista.com shows, Niger and Benin have the lowest unemployment rates on the continent.
Over the past year, the youth unemployment rate in Africa averaged around 13%, but it was worst in Djibouti at 80% – the highest in Africa.
Youth unemployment in South Africa is at around 64%. Annually, that figure escalates by an estimated 400 000 as matriculants enter the system.
The Quarterly Labour Force Survey (QLFS) for the first quarter of 2022, showed the unemployment rate was 63.9% for those aged 15-24 years and 42.1% for t 25-34, while the current official national rate stands at 34.5%.
South Africa has more than 10 million young people aged 15-24 years, but only 2.5 million are in the labour force, either employed or unemployed. The largest share (7.7 million or 75.1%) are out of the labour force (i.e. inactive).
The main reason for their being passive is discouragement – they have given up on finding a job.
While the outlook does not look bright, even a glimmer of hope ought to be celebrated. One of the few training bodies not tarnished by scandal, is the Chemical Industries Sector Education Training Authority (Chieta).
Chieta, in partnership with the University of Johannesburg Business School and Chemin, the not-for-profit South African technology incubator, held its first graduation ceremony for small businesses that completed their inaugural entrepreneurship programme on November 10.
The impactful initiative represents a R2 million investment in the programme and is part of Chieta’s long-term vision to fund 2 000 young entrepreneurs by 2025. While the R2m is a drop in the ocean, if it succeeds in churning out 100 small businesses, the multiplier effect regarding job creation would be immense. Imagine the impact of 2 000 entrepreneurs
Yershin Pillay, the Chieta chief executive, said the training authority had long been the principal agent in assisting SMMES in the chemical sector. In past years it had supported and sponsored Chemin with more than R2m for skills development and a further R1m for the Small Business Enrichment Programme, in partnership with UJ’S Johannesburg Business School Centre for Entrepreneurship.
This is a small initiative. But, in the bigger picture of national industry under the banner of The Jobs Fund, something positive is happening. An estimated R13.5 billion – even more – has been spent on initiatives and publicprivate partnerships, which have led to 280 000 jobs in its first decade with success stories in township economies, farming and health care, education.
The Jobs Fund was established in 2011 with a R9 billion allocation from the National Treasury, offering targeted support for labour market interventions leading towards job creation.
An example is the R600 million Hortin Fund grant to help reduce the cost of capital for emerging farmers and SMMES. Two initiatives are opening the door to self-employment – the Columba Leadership programme, for pupils to help them develop 21st-century workplace skills; and Smartstart to improve access to early learning in the most vulnerable areas in South Africa.
The private sector has been critical in achieving the fund’s goals. The Automotive Industry Development Centre by Japanese car-maker Nissan is an incubation hub that supports artisans and black-owned automotive component suppliers. As for 4IR, the fund is playing a pivotal role in developing skills via CCI Careerbox, a job creation tool.
It’s easy to become despondent, accepting the narrative that the youth have no future in South Africa. But change is happening, albeit slowly. If like-minded people replicate these successes, the dent in unemployment would be more significant. All hail to those giving the youth in South Africa and on the continent hope.