Youth employment programmes need better monitoring and coordination to tackle the South African youth unemployment crisis

South Africa faces a crisis of youth unemployment. More than half of young South Africans entering the labour market are either unemployed, or lack education or training, with rates ranging between 45% and 65% over the past decade. This situation is exacerbated by slow economic growth, regulatory burdens, lack of experience, wage bargaining issues and poor monitoring and coordination, among others, and demands urgent interventions.

Government policies aim to address structural barriers to employment

A significant hurdle is the structural nature of unemployment in South Africa. Supply-side challenges, such as poor-quality education, limited entrepreneurial education and adverse social conditions like teenage pregnancy and substance abuse, severely hinder young people’s ability to secure and maintain employment. On the demand side, the economy’s sluggish growth and limited entrepreneurial activity result in insufficient job opportunities for young job seekers. Moreover, market misalignments, including a mismatch between the skills of youth and available job opportunities, further complicate the situation.

To address the low rate of employment, the government has implemented several youth employment programmes (YEPs), which provide education, training (to strengthen young people’s digital skills so they may access opportunities within the digital economy, among other programmes) and public employment, and feature entrepreneurship and job placement initiatives. The effectiveness of these programmes remains unproven, and youth unemployment rates continue to soar. This stark reality calls for a reassessment of current strategies to enhance opportunities for dignified and fulfilling work for youth, especially young women, and ensure a prosperous future for South Africa.

There is a glimmer of hope, with the Presidential Youth Employment Intervention (PYEI) set to address these challenges. It aims to coordinate the strengths of various government institutions and partners, using digital technology to drive scale, facilitate transparency and eliminate the risk of corruption. This new approach has shown promise, with programmes such as the Basic Education Employment Initiative and partnerships with private sector entities like Harambee yielding positive results. Indeed, the collaborative efforts of the Youth Empowerment Scheme for the Youth (Yes4Youth) programme and other initiatives highlight the potential for public-private partnerships to make a significant impact.

New research identifies policy flaws 

Nevertheless, optimism must be tempered with realism. These programmes are at a nascent stage and their long-term effectiveness remains uncertain. Researchers from the University of Pretoria’s (UP) Faculty of Economic and Management Sciences, Sol Plaatje University, Teesside University International Business School and Hand in Hand Southern Africa are conducting a research project supported by the Partnership for Economic Policy (PEP) in partnership with the Mastercard Foundation as part of the ongoing What Works for Youth Employment in Africa initiative.

The research project – titled ‘Youth employment policies and their impact in South Africa’ – was presented at the 2024 PEP Annual Conference. The research methodology uses a combination of complementary methods, including desk reviews, focus group discussions and key informant interviews. The findings paint a sobering picture of our efforts thus far. Despite substantial funding and numerous initiatives, youth unemployment remains alarmingly high. The findings highlight several crucial issues, such as inadequate monitoring and evaluation, budget inadequacy, lack of coordination, bureaucratic hurdles, corruption, and challenges in fund utilisation.

More recent YEPs have benefitted from innovations in design and implementation, thanks to technology and digital solutions driving real-time data insights through the effective use of data and artificial intelligence. Despite these advancements, our findings demonstrate a strong sentiment that the programmes do not integrate multiple interventions and are not specific to sector and localised value chains, and therefore, have not succeeded because they are unable to respond to the different needs of beneficiaries. These systemic problems undermine the effectiveness of YEPs, amounting to wasted resources and opportunities.

Call for urgent, coordinated action to address the youth unemployment crisis

YEPs must be more effectively funded, implemented and enhanced, and comprehensive impact evaluations must be undertaken to determine their reliability and sustainability. Moreover, addressing youth unemployment requires a multifaceted approach that goes beyond immediate job creation to include systemic changes in education, economic policies and social development. In this regard, South Africa must also focus on reducing bureaucratic red tape that stifles informal businesses and hinders self-employment. Enhanced connectivity, public infrastructure and market access are crucial enablers for youth entrepreneurship. Additionally, there must be a concerted effort to address geographic disparities and ensure that marginalised groups receive targeted support. The private sector plays a pivotal role in this fight. Stronger relationships between the government and private businesses can drive more effective skills development and create meaningful employment opportunities for youth.

The youth unemployment crisis is a national emergency that demands urgent, coordinated and sustained action. While recent initiatives show promise, the journey ahead is long and arduous. It requires the collective effort of the government, the private sector and civil society to create a future where youth are empowered, employed and equipped to drive the country’s economic growth. The time for action is now; it is imperative that accountability is taken to assist South Africa’s young people, who represent the future of our nation.

Disclaimer

This blog was produced in the context of the What Works for Youth Employment in Africa: A review of existing policies and empirical analysis PEP research initiative in partnership with the Mastercard Foundation. This three-year initiative ran from 2021 to 2024 to create a knowledge base of youth employment and related social development policies to inform policy and practices.

The views expressed do not necessarily represent those of PEP, the Mastercard Foundation, their staff, or their Boards of Directors.