With youth unemployment at a staggering 63.9% for those aged 15 to 24, according to the Quarterly Labour Force Survey (QLFS), South Africa could face cataclysmic levels of unrest.
These could be the result of young people protesting or even rioting for the chance of getting employment. How could the issue of such a high unemployment rate be addressed to prevent such events?
For economist Dawie Roodt, the answer is simple: it is not economic but political. ‘’You just need a competent government. You cannot allow for a corrupt government to rule. You must protect private property rights. You must allow for free trade and more.
‘’What we have in South Africa is a political problem because we have a government that is standing in the way of progress. There are many reasons for high unemployment rates such as weak skill sets and more. But, the only crucial reason for high unemployment is because the economy is not growing,’’ he said.
Roodt cited South Korea as having had a high unemployment rate not too long ago but managed to change the situation. He also said Singapore succeeded in achieving the same goal.
For futurist Belinda Silbert, these high unemployment rates, especially those among the youth, pose a significant threat to the country.
“This makes for a particularly explosive situation. High unemployment rates have been persistent. What happens in such cases is that there is reduced productivity, lower consumer spending and increased dependence on social welfare.
“I foresee a danger in this because this affects the country’s economic growth. In the worst case scenario, there could be social unrest,” said Silbert.
However, she said this could be mitigated to optimise the country’s future as we have reached a tipping point. She said it is crucial to lower youth unemployment and through this the future can be changed and calamities can be avoided.
“We have to find ways to reduce this feeling of marginalisation as the youth feel they are excluded from the job market. It is also important to push the agenda of entrepreneurship and innovation right now.
“There are many young people who have the drive for betterment and we have to address along this those who have given up and feel depressed,’’ she said.
IOL Business