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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
4 days ago
- Business
- IOL News
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. 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 ✕ Ad Loading 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.
Mail & Guardian
17-06-2025
- Business
- Mail & Guardian
Gen Z South Africans make ends meet through hustle and pragmatism
Despite earning less than R5 000 a month, more than half of South Africa's Generation Z are somehow saving up to R1 800 a month. Despite earning less than R5 000 a month, more than half of South Africa's Generation Z are somehow saving up to R1 800 a month. This is according to the Drawing from 932 interviews with 18 to 30-year-olds across the country, the report refutes long-standing myths of Only 16.6% of the surveyed cohort said they were unemployed — a figure that sharply contrasts with the national The report urges policymakers and brands alike to reframe these youth not as 'This generation isn't broke, they're building,' said Ronen Aires, the chief executive of Student Village. 'Despite limited income, Gen Z is navigating the financial system on their own terms. They're side-hustling, saving, skipping the debt trap and making intentional, values-led purchases. They're redefining what it means to be a consumer, a customer and a contributor to the economy.' Food dominates monthly expenses, averaging R2 330 — more than half of the average Gen Z income. In a context where rent and clothing follow close behind, the report found that food has become more than a necessity, but a status symbol. 'Social visibility, often through what you wear and where you eat, is treated as currency — a way to build personal brand and, potentially, attract opportunity,' it said. 'In fact, Gen Zers spend almost as much on clothes as on rent, not out of frivolity, but because style is seen as an investment in influence — both online and offline.' Income, for this generation, is rarely an individual affair. Money is pooled and supplemented by parents (20%), romantic partners or state support such as the According to the report's economist and business trend analyst, Bronwen Williams, a blend of community and entrepreneurship reflects a uniquely South African expression of ubuntu, where familial obligation and entrepreneurial spirit coexist. 'This clearly illustrates that South Africa, unlike its northern peers, does not subscribe to the European idea of independence, but rather lives out the ideal of ubuntu — shared existence and community support,' she said. Despite their 'Brands eyeing this market must think beyond commerce — the mall is not just a store, but a third space for identity, belonging and interaction,' the report noted. Although electronics are popular in e-commerce, they are less of a priority in physical stores, showing a division in shopping behaviour. Generation Z is also overwhelmingly direct-to-consumer, preferring brand websites (71.3%) over third-party platforms such as Takealot and Amazon. Although about 99% of Gen Z respondents are signed up for loyalty programmes — Shoprite's Xtra Savings and Pick n Pay's Smart Shopper among the most popular — brand loyalty itself is scarce. 'These programmes are viewed as transactional tools to get the best deal, not indicators of emotional allegiance,' said the report. This echoes their banking behaviour: 54% have more than one bank account, often to shield themselves from fees, fraud or debt recovery. Despite a growing number of financial technology options, cash remains king. Nearly 80% still use it for everyday transactions — not out of resistance to digital tools, but because card fees add up quickly in a low-income context. According to the report, only 15.8% of those surveyed own a credit card, and fewer than 10% have student or personal loans from formal financial institutions. This reluctance stems from both exclusion and experience — many have seen the damage of debt traps up close. Yet nearly 30% have invested in cryptocurrency, and sports betting is also seen as a viable side hustle. Regarding Generation Z's financial goals, 60.9% of the respondents want to be financially prepared for the future, 52.6% dream of living comfortably and 44.5% aspire to be debt-free. Only 11.1% define success as becoming a millionaire. Their aspirations are grounded in survival, not extravagance, the report said. The report concludes that young people in South Africa need help in making money and banks should consider becoming job creators, side-hustle enablers and digital skills trainers. 'Gen Z is not asking for handouts — they're asking for tools,'it notes.
IOL News
17-06-2025
- Business
- IOL News
New study reveals the hustle, habits and hidden power of SA's young consumers
New research into the spending habits of South Africa's youth reveals that 80% still use cash regularly, not because they reject digital but because fees, access and trust gaps persist. Cash is king, credit is hard to come by and side hustles often bring in more than 9-to-5 jobs. That's life for many young South Africans. But Gen Zs are not sitting back waiting for a break. They're making a plan and figuring things out for themselves. Youth specialists 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 — new research unveiling how young people in South Africa earn, spend, save and think about money. Based on responses from over 900 South Africans aged 18 to 30, the report shows a generation shaped by financial pressure and economic uncertainty, but full of grit. It reveals how Gen Z is rethinking what it means to earn, spend and save, and why brands need to start paying closer attention.
eNCA
14-06-2025
- Business
- eNCA
How young South Africans survive tough times
JOHANNESBURG - South Africa's youth have been negotiating tough economic conditions for decades. WATCH | Jobs emergency | Tackling youth unemployment Some survive with side hustles, digital tools and new financial behaviours. A new Gen Z Economy Report, released by Student Village and Flux Trends sheds light on how this generation is earning, spending and saving.
