Youth employment figures tell a different story of a hustling generation
Youth unemployment rates mask a generation of under-employed innovators
Image: File
As South Africa grapples with staggering employment statistics, the latest Q1 2025 Quarterly Employment Statistics (QES) from StatsSA paints a grim picture.
Full-time employment decreased by 0.6% quarter-on-quarter, but the alarming 44.6% youth unemployment rate conveys only part of a much larger narrative.
Emerging data, notably the newly released Gen Z Economy Report, indicates that this generation is not idle; they're thriving within an underemployment reality.
Student Village, in collaboration with futurist and economist Bronwyn Williams of Flux Trends, recently released 'The Gen Z Economy Report: Cash, Culture and Clout,' shedding light on the dynamic activities of South Africa's young workforce.
Rather than falling victim to the traditional labels of unemployment, young South Africans are tapping into their creativity and resourcefulness to redefine what it means to participate in the economy.
'Only 16.6% of Gen Zs identify as unemployed,' says Ronen Aires, CEO of Student Village.
'They are participating in the economy — just not in the conventional ways captured by official data.'
Based on responses from over 900 South Africans aged 18 to 30, the report draws attention to a generation marked by financial pressures yet defined by impressive grit and determination.
Instead of traditional job roles, today's youth are steering their careers in fresh directions.
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From creators and freelancers to micro-entrepreneurs and influencers, they are blending learning with gig work to build diverse income streams, thus crafting economic agency in an environment that increasingly narrows traditional pathways.
Yet, outdated metrics continue to label them as 'NEETs' (not in education, employment or training)—a narrative that is misleadingly simplistic.
'When data misses the nuance, policies and strategies do too,' Aires asserts. 'And when businesses, employers, and institutions rely on incomplete pictures, they risk missing out on one of the most agile and driven generations yet.'
Key findings from the Gen Z Economy Report reveal: Side hustles are the main income source for 21.7%, followed closely by parental support (20%) and NSFAS grants (17.5%).
Most Gen Zs earn below R5,000 per month, yet 90.5% are saving regularly, indicating a strong desire for financial security despite low income.
Emergency savings (25.75%) and education (19.83%) dominate their saving habits, reflecting both uncertainty and aspiration.
This generation prioritises financial independence, ethical values, and seeks personalised, digital-first experiences from businesses.
Nearly 30% are exploring cryptocurrency and alternative investments, showing a cautious yet innovative approach to finance.
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