President Cyril Ramaphosa has urged companies to do away with the need for prior work experience when hiring new employees in an effort to increase the employability of South Africa’s youth.
The president stated in his weekly message to the people that thousands of newly graduated students would be continuing their studies at various postsecondary institutions as a result of the nation’s matriculation class of 2023’s unprecedented accomplishment.
He did, however, note that many people will also enter the workforce with just their high school diploma and urged “all of society” to expand their employment options.
He said, “As a government, we have called on businesses to invest in the future of our country by hiring more young people and, whenever possible, eliminating the need for prior work experience.”
In order to promote more young employment, Ramaphosa stated that the government has made tax incentives accessible to businesses. He advised them to take advantage of this opportunity to guarantee that job seekers may find work.
“I encourage companies to use the Employee Tax Incentive to hire more young job seekers, to make more training and mentorship opportunities available, and to sign up with the Youth Employment Service and other initiatives being rolled out in partnership with the government.”
With a pass percentage of 82.9% nationwide, South Africa’s 2023 matriculants broke all previous records, marking the greatest pass rate since the National Senior Certificate was instituted in 2008.
Graduates who choose not to pursue postsecondary education will find themselves in a very challenging labor market with persistently high rates of unemployment.
The national unemployment rate improved to 31.9% in the third quarter of 2023, according to the Quarterly Labour Force Survey (QLFS), and 41.2% when the extended definition—which includes discouraged workers—was applied.
However, the rates of youth unemployment are concerning.
The young of the nation—those between the ages of 15 and 34 who are not enrolled in school or training—remain susceptible in the job market, according to Stats SA.
Although the QLFS data indicated that there were 4.6 million jobless youngsters overall during the quarter—a 174,000 decrease—the segment’s overall unemployment rate remains at 43.4%.
South Africa has one of the highest rates of young unemployment in the world, with figures from the World Bank placing it even higher at 51.5%.