Why does Africa's biggest economy struggle to employ its young people?
DEMOCRACY & POLITICS
The politics of South Africa are important to the youth's employment opportunities. In 2022, 61.5% of the youth in the 15-24 age group were unemployed, the highest in the world. In the 25-34 age group, 40.9% were unemployed. The majority of the population is made up of young people which is an advantage for the country's economic development if the majority of them were employed.
However, the government has payed little attention to the potential of employing young people. South Africa is the most unequal country in the world, with a small number of the political and business elite benefiting from large industries and controlling most of the economy. This elite also has influence in politics, which are dominated by older generations. This leaves little to no room for the youth to advocate for their needs in the political space.
Political leadership requires party loyalists and over time, state appointments in South Africa are more based on loyalty and less on competence. This not only leads to poor governance, but reduces the chances of young people having any significant representation in politics. Many programs and policies have been developed to promote entrepreneurship among the youth but lacked coordination or clear agendas. It is also difficult to know the exact impact of these programs on young people and whether or not they have been successful. However, in 2022, 35.2% of the youth were not in education, employment or training, and the majority were black Africans.
ECONOMY
As the largest economy of Africa, South Africa has struggled to maintain economic growth for over three decades. In 2020, the COVID-19 pandemic created supply chain disruptions and the economy suffered a recession with a decrease in real GDP growth of more than 5%.
The economy has managed to recover from the pandemic with an increase of about 5% in real GDP between 2020 and 2022. But since then, South Africa's GDP has decreased and only grew by about 1% in 2024, well below the 3% average in Africa as a whole. Overall, this slow growth does not create enough jobs.