Clotilde Angelucci, Acting Project Lead at Youth Capital, asserts that the government's current approach to combating unemployment is failing, as evidenced by the persistently high unemployment rates. Recent data from Statistics South Africa's Quarterly Labour Force Survey for Q4 2024 reveals that nearly 60% of 15-24 year olds and 40% of 25-34 year olds are unemployed.
BEEI Proven Effective, Youth Capital Argues
The BEEI, a component of the Presidential Youth Employment Initiative (PYEI), was deemed one of the most successful programmes, providing employment opportunities for over one million young people as teaching and general school assistants.
Youth Capital stresses that such programmes are crucial for providing young people with essential work experience and bridging the gap to employment.
Their demands come after Deputy Minister in The Presidency, Nonceba Mhlauli, announced the government's continued implementation of the PYEI. Youth Capital expressed concerns ahead of the 2025 Budget Speech, which revealed reduced funding for public employment programmes and the cancellation of the BEEI.
Education Funding Cuts Condemned
Youth Capital highlights the correlation between education and economic opportunities, noting that graduate employment rates reflect this. However, they criticise the limited access to higher education, with universities unable to accommodate all qualified students.
The organisation attributes ongoing student protests to inefficiencies within the National Student Financial Aid Scheme (NSFAS) and significant budget cuts to higher education. They also criticised President Ramaphosa’s State of the Nation Address for neglecting the crucial role of social investment in economic recovery and inclusive growth.
Call for Long-Term Funding and Policy Shift
"We can’t keep on doing the same thing and expect a different result. Youth unemployment is not just a challenge for young people; it’s a crisis that affects the entire country," Angelucci stated.
Youth Capital argues that unemployment is a structural issue, rooted in systemic challenges faced by young people from their early education. They believe that further spending cuts would be detrimental. Angelucci advocates for social welfare to guide government spending over debt consolidation.
With South Africa facing one of the world's highest youth unemployment rates and 30 million people living below the upper-bound poverty line, Youth Capital demands long-term funding for public employment programmes, including the reinstatement of the BEEI and adequate funding for higher education.
