Youth must take the lead in driving economic growth, says Paul Mashatile

Young people should take the lead in driving economic growth and employment, and the government is committed to helping draw more youth into the economy, says Deputy President Paul Mashatile. 

“On our end as government, we have created a favourable environment to support youth to become successful entrepreneurs with flourishing businesses,” Mashatile said at the National Youth Development Agency’s second investment roundtable held in Kempton Park on Thursday. 

The roundtable is aimed at accelerating investments across various industries for the benefit of young people on a national, regional and international level.  

“In today’s rapidly evolving and extremely competitive global economy, we believe investing in our youth is a key to a prosperous and sustainable future,” Mashatile said. 

The deputy president said the country was faced with challenges ranging from an ongoing energy crisis to high unemployment rates, dwindling investor confidence and an economy that was not growing fast enough to meet development goals.  

He said according to Stats SA, the youth unemployment rate reached 62.1% in the first quarter of 2023.

“Nearly two-thirds of young people are not engaged in any form of viable employment; this is a ticking time bomb, and this imminent crisis requires immediate and unwavering attention from all of us.”  

Mashatile said the government and other stakeholders needed to make sure that young people received the kind of education and training needed to adapt quickly to the workplace of the future.  

“We urge business leaders to work with the government to develop skill-based initiatives that can meet the urgent needs of the economy.” 

Mashatile said the government cannot do this alone; its role was to ensure there was an enabling environment for the private sector and other actors to create employment.  

“We should all be expanding initiatives that provide work experience for young people and offer support, finance and market opportunities for young entrepreneurs.” 

Mashatile said grants provided by the government must ensure they are attached to long-term outcomes, such as employment, sustained growth and skills development.

Statistician-general Risenga Maluleke expanded on the 62.1% youth unemployment figures provided by Mashatile. 

He said the country had 16.2-million employed people and 7.9-million unemployed at the end of the first quarter of 2023.

“Out of the 7.9-million, the majority are young people, sitting at 4.88-million, and adults from 35 to 64 are 3.046-million.”

Maluleke said though youth aged 15 to 34 accounted for 46 to 56% of the working age across provinces, only 31 to 40% of them were employed. 

He also said unemployment affected young women the most: “Women are in the majority, but when it comes to share of opportunities they do not get such opportunities.” 

He said unemployment for young men was at 42.9% and young women at 50.7%. 

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