SANISHA PACKIRISAMY: Why South Africa can’t afford to neglect its young people

Each year on June 16, South Africans honour the legacy of the 1976 Soweto Uprising, a defining moment when a brave generation rose against a system that denied young black people dignity and opportunity. Nearly 50 years later, young people are not facing teargas and truncheons but unemployment, poverty and marginalisation.

With one of the youngest populations globally, South Africa holds a demographic spark that could ignite the economy. Yet, this youthful flame risks being smothered by economic inertia, wasting a generation that could illuminate our future. 

According to Stats SA’s 2024 population estimates, the country’s median age stood at 28 — youthful against the 36-year average for upper-middle-income countries but older than many of its lower-income Sub-Saharan neighbours, where the median is closer to 18, according to UN data.

Experience must be built through apprenticeships and mentorship. Entrepreneurship should be promoted by improving access to finance, reducing red tape and building technical and business skills through targeted training

A youthful population can drive growth — the demographic dividend. But this dividend is not a given. It depends on young people being healthy, educated and employed. And in South Africa, this is far from reality. 

A significant number of young South Africans are classified as not in employment, education or training (Neet). This includes discouraged jobseekers and those in precarious jobs, with little upward mobility. The South African Neet rate for those aged 15 to 34 hovers at 45.1%, translating into 9.4-million individuals, or half the nation’s disengaged population. For those aged 25 to 34, the Neet rate climbs to 52.9%, as many exit education without entering work. 

Worldwide, Neet rates are also worrying. The International Labour Organisation estimates that about one in five young people are either Neet or trapped in poor-quality jobs. Global youth unemployment stood at 12.6% in 2024, more than double the overall unemployment rate. Slow growth, rigid labour markets and an education system that fails to produce job-ready skills fuel employer demands for experience and accelerate automation’s displacement of low-skill roles. In low- and middle-income countries, the informal sector absorbs young workers but offers little income security or social protection. 

In South Africa, apartheid’s scars — chronic unemployment and subpar education — magnify these challenges. While young people today are better educated than their parents — with the rate of secondary school completion doubling from 25% in 1996, according to Stats SA — this has not translated into better job prospects. Poor-quality basic education leaves gaps in literacy and numeracy. Many enter the workforce lacking foundational job-specific skills. Social isolation in high-unemployment communities further limits access to job networks for poorer youth. 

The post-schooling system remains fragmented. Universities cater to a small portion of the population, while technical and vocational education and training (TVET) colleges, meant to provide practical skills, suffer from underfunding, outdated curricula and social stigma, often being seen as second-best options. 

For many young South Africans, transitioning from education to employment is slow and uncertain. First-time jobseekers face a Catch-22: they need experience to get hired but can’t gain experience without jobs. Stats SA notes that young people with prior work experience are four times more likely to secure employment, transitioning at 12.3% against 7.4% for older workers, underscoring the scarcity of early opportunities. 

Spatial inequality traps many; young people who live far from economic hubs face high transport costs. In 2023, the World Bank estimated that the average job search cost for a young South African was $38, often exceeding the monthly income of food-insecure households. When geography and poverty collide, opportunity becomes inaccessible. 

The youth multidimensional poverty index, based on the 2011 census, shows that deprivation extends beyond income. Education and economic opportunity are the biggest factors in youth poverty, especially in former homeland areas, where 72% of multidimensionally poor youth lack adequate education. 

Poor mental health, substance abuse, gender barriers — especially for women facing caregiving burdens and discrimination — and limited digital access intensify the crisis. A connected world opens doors, but only for those online. 

To turn the tide, South Africa must treat youth disengagement as an economic emergency, starting with education reform. Vocational pathways need expansion, modernisation and better funding to align TVET offerings with labour market needs. Public-private partnerships should create structured internships and part-time work for students. Experience must be built through apprenticeships and mentorship.

Entrepreneurship should be promoted by improving access to finance, reducing red tape and building technical and business skills through targeted training. Finally, youth voices must shape policymaking, with better co-ordination between education, labour and social protection systems, especially for young black women facing gendered and racial inequities. 

South Africa’s youth bulge makes the stakes high. As we commemorate Youth Day in 2025, the nation must not just honour its young people but empower them to enable faster growth and broaden the tax base. The spark of 9.4-million young dreams waits to blaze — South Africa cannot let it fade.

Packirisamy is chief economist at Momentum Investments