We could learn from Germany on cutting youth unemployment

13 November 2015 - 02:08 By The Times Editorial

President Jacob Zuma would have done well on his trip to Germany this week to have sought advice on how to tackle our most pressing problem: unemployment, particularly among the young. There are significant differences between Europe's powerhouse economy and ours, but in a globalised world many of the forces that affect economic growth are experienced by most nations.The 2008 credit crunch, massive government spending to minimise its effects, subsequent tepid economic growth and, more recently, market volatility caused by slowing growth in China, the commodities rout and a strengthening dollar have affected economies across the globe.And yet, in Germany today, the unemployment rate is lower than before the credit crunch.Partly because of the strength and resilience of its economy, but also because of excellent policy making and tie-ups with the private sector to create successful vocational training or ''apprenticeship'' programmes, Germany has the lowest youth unemployment in Europe.Less than 8% of young people in Germany are unemployed; in South Africa, depending on whom you ask, around half of our young people are without a job.Our officials need to make an in-depth study of the German approach to vocational training, and not be afraid to ask for assistance in implementing a similar programme here.We already have the beginnings of such an approach. It was disclosed at the beginning of this year that 270 000 young people had found jobs in the previous 12 months as a result of the Employment Tax Incentive Act.The incentive, known as the youth wage subsidy, was controversial, and was roundly criticised by the ANC's alliance partner, Cosatu, but it is starting to show results.The government should investigate the possibility of scaling it up dramatically to create a full-blown vocational-training model in the German mould...

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