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The Citizen
4 days ago
- Business
- The Citizen
SA youth not unemployed, rather under-employed
Can we still depend on Statistics SA's data on unemployment or should we change how we look at people who are not formally employed? South Africa's youth are not so much unemployed as underemployed and uncounted, according to a news report that states Generation Z is far from inactive. According to the results of the Quarterly Labour Force Survey conducted by Statistics SA, the official unemployment rate for the first quarter was 32.9%. For the youth, defined as people between the ages of 15 and 34, the total number of unemployed increased by 151 000 to 4.8 million, while employed youth recorded a decrease of 153 000 to 5.7 million. As a result, the youth unemployment rate increased from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of 2025. These figures caused an outcry yet again, with many organisations expressing their dismay at this high rate of unemployment. However, it seems that the youth unemployment rate tells only part of the story. Emerging data, including the newly released Gen Z Economy Report, suggests that this generation is far from inactive. They are not unemployed but rather under-employed, Ronen Aires, CEO of Student Village, says. Student Village, in partnership with futurist, economist and business trends analyst, Bronwyn Williams of Flux Trends, released The Gen Z Economy Report: Cash, Culture and Clout, earlier this month. ALSO READ: The dark picture of youth unemployment in South Africa Youth are not unemployed, just not formally employed This research report shows that Gen Z is not idle. 'They are hustling in the shadows of a broken system that fails to count them, let alone support them. Only 16.6% of Gen Zs identify as unemployed. They are participating in the economy, just not in the conventional ways captured by official data.' The report is based on responses from more than 900 South Africans between the ages of 18 and 30 and paints a picture of a generation shaped by financial pressure and economic uncertainty but defined by grit and ingenuity, Williams says. 'Young South Africans operate outside the boundaries of formal employment today. They are creators, freelancers, micro-entrepreneurs, influencers, digital editors, crypto traders, tutors and resellers, blending education with gig work, supporting themselves through multiple income streams and carving out economic agency in an environment where traditional pathways are shrinking.' Yet, Willaims points out, the metrics still label them as 'NEETs' (not in education, employment or training). She says this narrative is not only outdated but also misleading. ALSO READ: Improvement in unemployment rate, but SA still needs almost 8 million jobs Employment data misses the nuance and leaves an incomplete picture Aires says when data misses the nuance, policies and strategies do too 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 include: Side hustles are the main income source for Gen Z at 21.7%, followed by parental support (20%) and Nsfas grants (17.5%). Most Gen Zs are earning below R5 000 per month, yet 90.5% are saving regularly, despite low-income levels. Savings go primarily toward emergencies (25.75%) and education (19.83%), signalling both anxiety about the future and strong aspirational intent. Gen Z places high value on financial independence, ethical alignment and personalised, digital-first experiences. Nearly 30% are already exploring cryptocurrency and alternative investment platforms, reflecting a mindset that is cautious as well as forward-thinking. ALSO READ: Economy sheds jobs again in first quarter, unemployment worse than year ago Do not underestimate Gen Z Aires says for sectors like banking, retail, telecoms, alcohol and personal care goods, this report should serve as a clear wake-up call as it shows that this generation wants authentic value, mutual respect and long-term relevance. 'Stereotypes about disinterest or irresponsibility do not hold up under scrutiny, as Gen Z is financially literate and looking for meaningful engagement and value from businesses and brands. Young South Africans are navigating a shrinking economy with grit, creativity and pragmatism. 'If we continue to underestimate them, we squander one of our most powerful engines for inclusive economic recovery.' The formal employment outlook may be bleak, but South Africa's youth economy is active, adaptive and growing in influence, Williams says. 'It is time to move beyond outdated narratives and start building real opportunities that reflect the reality on the ground.' ALSO READ: Is South Africa's unemployment rate really only 10%? Capitec CEO also wonders about who is really unemployed The Gen Z report is not the only one to doubt the unemployment data. Gerrie Fourie, CEO of Capitec, said last week that Statistics SA should rethink how it measures unemployment, arguing that when the vast informal sector is considered, the unemployment rate of 32.9% could be closer to 10%. 'We talk about an unemployment rate of 32%, but Statistics SA does not count self-employed people. I think that is an area we must correct. The unemployment rate is probably actually 10%. Just go look at the number of people in the township informal market who sell all sorts of stuff and have a turnover of R1 000 per day. 'To grow South Africa, we must understand what is happening in the informal market. If we really had a 32% unemployment rate, we would have unrest. If you go to the townships, most people have back rooms to rent out; everyone is doing something. If we talk about job creation, let's go out and encourage these entrepreneurs.' NOW READ: Minister agrees unemployment statistics should include work in informal sector
IOL News
5 days ago
- Business
- IOL News
South Africa's job market crisis: 95,000 jobs lost
March 2025 saw South Africa lose 95,000 jobs, primarily in construction and trade, while the manufacturing sector surprisingly gained 2,000 jobs. This stark decline highlights the ongoing struggles of the South African economy. Image: Henk Kruger/Independent Newspapers March 2025 was not a good month for South Africans as another 95 000 jobs were lost between this year and last year, with many of those who are now without gainful employment having worked in the construction, mining, community services, and trade. A surprise in the figures was a net gain of 2 000 in jobs in the manufacturing sector, which has been a declining sector for several year. Employment in the transport industry remain unchanged. Casey Sprake, economist at Anchor, noted that formal sector employment, stripping out excluding agriculture, declined by 0.7% in the first quarter of 2025, shedding 74,000 jobs. This, she says, is 'a stark indicator of an economy still struggling to gain traction'. Statistics South Africa's Quarterly Labour Force Survey, released on Tuesday, also showed that total wage earnings dropped by R47.3 billion (4.6% down), which Sprake said underlines 'both subdued business activity and constrained household purchasing power'. Dr Elna Moolman, Standard Bank Group head of South Africa Macroeconomic Research added that there was 'such severe pressure on bonus payments that total income didn't even keep pace with low inflation' Sprake said that six out of eight industries recording job losses, with the largest of these being on trade, and indication of seasonal hiring. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Moolman said there was a decline in government employment and also relatively broad-based declines in the private sector. Sprake added 'this labour market softness mirrors broader economic stagnation - GDP growth was just 0.1% quarter-on-quarter in the first quarter - amid persistently weak business confidence, policy uncertainty, and low fixed investment.' Structural reforms, especially those under the newly launched Operation Vulindlela II, 'must urgently gain traction if South Africa is to shift from stagnation to inclusive, job-rich growth,' said Sprake. Lara Hodes, Investec economist, concurred the outcome of Statistics South Africa's was 'indicative of a lacklustre economy'. She noted that 'the economy continues to face a number of challenges, with business confidence weak, weighing on investment potential'. 'Part of the weakness in the economy in the first quarter of the year is of course attributable to severe political and policy uncertainty both globally and domestically, and this unfortunately hardly improved in the second quarter of the year. We are looking for some improvement in the economy in the second half of the year, and that should be followed by a recovery in the labour market in due course,' said Moolman. IOL Business
TimesLIVE
6 days ago
- Politics
- TimesLIVE
When it comes to stats, businessmen and politicians must know their place
As the world teeters towards World War 3, with its epicentre being the Middle East, and as back home in South Africa those empowered to guide government policy through observation of statistics now throwing rotten eggs at particularly the Quarterly Labour Force Survey, I pen this article to remind ourselves globally and locally that statistics as a conduit of trust has helped ensure that the spectre of a war fails to arise in almost eight decades. Yet signs are clear that we face the barrel of this spectre...
IOL News
17-06-2025
- Politics
- IOL News
HOW GNU WORSENED YOUTH'S PLIGHT
PROBLEM: Youth unemployment crisis in South Africa Image: Ron Lach/Pexels THE 46.1% unemployment rate among young people, the worst in the world, is proof that the Government of National Unity (GNU) has no plans to address the crisis, say political analysts. Monday marked 49 years since the 1976 Soweto Uprising where scores of youth protested against Afrikaans being enforced as the exclusive medium of instruction in African schools. Unemployment among young people dominated Monday's commemoration, with questions being raised about the effectiveness of the GNU since its establishment about a year ago following the May 2024 elections. Young people between the ages of 15 and 34 make up just over half of South Africa's working-age population, about 20.9 million people. The latest data from the Quarterly Labour Force Survey shows that more than half of young people aged between 18 and 34 are unemployed. Deputy President Paul Mashatile conceded on Monday that this is one of the highest levels the country has ever seen, and it is of grave concern University of the Free State politics lecturer, Sanet Solomons said unemployment and access to quality education remained a challenge as hundreds of schools remain understaffed and under-resourced. 'This is detrimental to those that show promise as their environmental challenges will overshadow their capabilities, leaving them stuck in a cycle of poverty. To date thousands of graduates still have not managed to access the workforce; while some earn a minimum wage that can barely cover their household expenses amid the rising cost of living. Thus, reinforcing the sentiment that very few opportunities exist for this segment of society. Many expected a different outcome or better opportunities under a government of national unity, but these hopes have been dashed as the youth still struggles decades later. As the country commemorates this day, it should be mindful of those who live in poverty with limited access to opportunities. Better needs to be done for them," she said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Political analyst professor Sipho Seepe said the GNU had prioritised 'nothing beyond spending an inordinate amount of time trying to justify its existence'. 'Last year was all about internecine bickering. This stems from major flaws in foundations. The ANC's share of the vote declined by a humongous 17 percent in one electoral cycle. This is a damning statement than Ramaphosa's version that says the voters wanted political parties to work together. On the other hand, the DA is on record in ensuring that the demise of the ANC happens pretty soon. There is no love lost between the ANC and the DA. Under the ANC-DA coalition, unemployment among the youth continues to skyrocket to unmanageable levels.' He said the ANC of Ramaphosa has not only failed but has reversed whatever gains were made in the last 30 years. 'So there is nothing that the youth should expect from it beyond revolutionary sounding statements signifying nothing,' said Seepe. Addressing the National Youth Day commemoration, in Potchefstroom, North West on Monday, Mashatile said was also deeply worrying was the growing number of young people who are not in education, employment, or training. 'The current figure stands at about 3.8 million. Among 15–24-year-olds, 37.1% fall into this category, with young women being slightly more affected than young men. If we look at the wider age group of 15–34 years, the rate is even higher at 45.1%. Even our graduates are struggling, with nearly 1 in 4 graduates (23.9%) struggling to gain employment. This is more than just an economic issue. It is a moral emergency. We must fix the structural challenges in our economy to address inequality and skills mismatch between education and what the job market needs.'
eNCA
16-06-2025
- Business
- eNCA
Youth unemployment soars: A call for urgent action
JOHANNESBURG - As we celebrate Youth Month, young people are asking for more chances to find jobs. This is because the unemployment rate in the country keeps getting worse. The Department of Labour recently released new statistics showing that the youth unemployment rate is now at a shocking 46.1 percent. Many young people are not just looking for jobs; they are also trying to gain skills and knowledge for the careers they want to pursue. The country is sitting with thousands of graduates who are unemployed because they lack work experience. But how can they get experience if they are not given a chance to work and learn? According to the Quarterly Labour Force Survey by Statistics South Africa for the first quarter of 2025: - The number of unemployed youth increased by 151,000, reaching 4.8 million. - Employed youth decreased by 153,000, now totalling 5.7 million. - The youth unemployment rate went up from 44.6 percent at the end of 2024 to 46.1 percent in the first quarter of 2025. Looking at the overall labour market: - The total number of employed people fell by 291,000, now at 16.8 million. - The number of unemployed people increased by 237,000, reaching 8.2 million. - The total labour force decreased by 54,000 during this period. Additionally: - Discouraged work-seekers (people who want jobs but have given up looking) increased slightly by 7,000. - The number of people not working for reasons other than discouragement rose by 177,000, making the total not economically active population grow by 184,000 to 16.7 million. by Tshenolo Khaile
