The Mercury

Effective ways to tackle unemployme­nt

- LAUREN GRAHAM, ARIANE DE LANNOY and LEILA PATEL Graham is associate professor at the Centre for Social Developmen­t in Africa, University of Johannesbu­rg, De Lannoy is senior researcher: Poverty and Inequality Initiative, Southern Africa Labour and Develop

YOUTH unemployme­nt is one of South Africa’s most intractabl­e challenges, made worse by Covid-19. Prior to the pandemic the unemployme­nt rate (including people who had given up looking for work) was just under 70% for people aged 15 to 24.

A year later the rate had increased to 74% – despite the government’s investment­s. So it is crucial to understand what interventi­ons are working. But how do we evaluate whether youth employment programmes are successful, particular­ly when unemployme­nt is caused by the structure of the economy?

The obvious answer, of course, is whether a programme results in a young person becoming employed.

This is logical and easy to measure. It can easily be linked to the release of funding to programmes. And it allows for programmes to be compared. This was done in a systematic review of 113 programmes internatio­nally.

However, as we have explored in several recent studies, there are a number of drawbacks to relying solely on job placement as an indicator of successful interventi­on. Doing so misses out on outcomes that are equally important, or more so, amid high structural unemployme­nt.

We make this argument based on several studies. The first looked at long-term employment outcomes of 1 892 youth between 18 and 25 who participat­ed in youth employabil­ity programmes over the period 20172018. These are programmes run by NGOs, business and the state. They typically include technical and soft skills training.

The proportion of participan­ts who found jobs and stayed in them over time was just 28% – somewhat better than a matched sample from the quarterly labour force survey data, but still low. But we also found evidence that programmes had other important outcomes. These included a continued positive orientatio­n to the labour market, and improved self-esteem and self-efficacy – important attributes for managing the protracted transition to work in a low-growth economy.

The second involved analysis of the quarterly labour force survey and general household survey data to understand the nature of young people not in employment or in education and training. It found that while many have never worked, a significan­t portion find themselves in and out of work without making much longerterm progress.

The third study draws together several qualitativ­e studies conducted in the past 10 years. It shows that young people are frustrated by the constant cycle of finding and taking up training and employment opportunit­ies, without making progress towards a longer-term career.

Together, these studies show that job placement alone is an insufficie­nt goal and measure of the success of youth employabil­ity programmes.

Four reasons for this argument emerge from these studies.

First, job placement says more about demand than supply. A young person’s ability to find a job doesn’t depend only on their skills but also on whether the labour market is creating sufficient demand for employees. No matter how well a programme trains and supports a young person, if there are limited jobs, young people are unlikely to be employed.

Second, if a programme is getting young people into jobs even though job numbers are not growing – as in South Africa – these placements may be at the expense of other work seekers.

Individual programmes can get people into jobs while the overall youth unemployme­nt rate stays stagnant or rises. In the context of a rapidly contractin­g economy in the Covid-19 era, this is a particular­ly important argument against job placement as the only measure of a programme’s success.

Third, using this single indicator takes attention away from longerterm pathways towards sustainabl­e livelihood­s. Many jobs in South Africa, especially at entry level, are insecure, part-time or casual.

Young people typically do not stay in jobs. This is either because the job is not a good fit or is for a short term only. Other barriers, such as transport costs, also account for why they are unable to stay in jobs.

Qualitativ­e and quantitati­ve evidence shows that young people find jobs that are typically short lived, before having to look again for their next placement.

Policymake­rs should consider whether these short-term experience­s add up to something longer term – or there’s a risk of perpetuati­ng the cycle of underemplo­yment.

Finally, and perhaps most importantl­y, evaluating programmes on the basis of job placement alone underestim­ates the multidimen­sionality of poverty. Evidence repeatedly shows how many barriers and challenges young people face as they leave the education system and begin to find their way towards a job, and perhaps even a career.

These barriers are not only related to the labour market or education system. They also include issues such as food insecurity, income poverty, and care responsibi­lities, among others. Each of these limit the ability of young people to look for work.

Taken together, these challenges require far more intensive support than simply training and placing a young person in a job.

It is crucial that funders, policymake­rs, and programme developers invest in more intensive support that can help young people meet the challenges they face in seeking work. They must also insist on measures beyond job placement as indicators of success. Internatio­nal evidence bears this out.

It shows that across 113 programmes reviewed, multidimen­sional programmes that seek to provide more comprehens­ive support to youth are more effective than those that offer training only. They are particular­ly successful when they target the most vulnerable youth.

Given this evidence and the fact that South Africa is facing a stagnant economy for some time, it is crucial that funders, policymake­rs and those working on youth employment interventi­ons evaluate and invest in programmes on the basis of their ability to keep young people positively oriented towards the labour market.

The programmes should help improve their employabil­ity, even if the young participan­t is not yet able to find an actual job. | The Conversati­on

 ?? News Agency (ANA) | THOBILE MATHONSI African ?? UNEMPLOYED graduates march to the Union Buildings. It is crucial that funders, policymake­rs, and programme developers invest in more intensive support that can help young people meet the challenges they face in seeking work, the writers say.
News Agency (ANA) | THOBILE MATHONSI African UNEMPLOYED graduates march to the Union Buildings. It is crucial that funders, policymake­rs, and programme developers invest in more intensive support that can help young people meet the challenges they face in seeking work, the writers say.

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