Highlights
- Youth Capital contends that monetary support alone is inadequate without an economic boost to create new jobs
- Youth Capital feels the budget falls short of initiating a genuine dialogue on sustainable revenue paths
- As the discourse on youth unemployment continues, the hope is for more comprehensive approaches that address both economic performance and systemic barriers
In a pointed critique of Finance Minister Enoch Godongwana’s recent budget proposal, Youth Capital, a prominent youth advocacy group, has denounced the planned jobseeker allowance as insufficient to address South Africa’s escalating youth unemployment crisis. The revised 2025 budget includes this provision as part of broader labor market reforms, yet Youth Capital argues it fails to tackle the underlying structural issues.
According to the latest Quarterly Labour Force Survey, the youth unemployment rate has surged by 10% over the past decade, with nearly half of the young demographic (ages 15 to 35) currently unemployed. Alarmingly, of the 291,000 jobs lost in the most recent quarter, a staggering 76.6% were surrendered by the youth. Clotilde Angelucci, representing Youth Capital, highlighted the severity of this trend, stressing that 60% of unemployed young people have never even held a job, pointing to a long-term structural crisis.
While acknowledging the financial hardships associated with job hunting, Youth Capital contends that monetary support alone is inadequate without an economic boost to create new jobs. Angelucci succinctly stated, “You can’t incentivize job seeking if there are no jobs to seek.” Additionally, the group expressed concerns regarding the proposed increase in the general fuel levy, which may further strain those seeking employment, particularly in rural and peri-urban areas.
The finance minister’s address, which was anticipated to outline job creation initiatives, instead leaned heavily towards structural reforms and fostering public-private partnerships to drive economic recovery. Despite a record number of public submissions to the finance committee, Youth Capital feels the budget falls short of initiating a genuine dialogue on sustainable revenue paths. The group advocates for a more targeted strategy in creating employment opportunities.
Looking ahead, the 2026 budget is expected to suggest new tax measures to bridge a R20 billion deficit. In response, Youth Capital is calling for systemic reforms that offer scalable employment opportunities, to ensure that the next generation does not face similar challenges.
As the discourse on youth unemployment continues, the hope is for more comprehensive approaches that address both economic performance and systemic barriers. Without such measures, the prospects for South Africa’s young jobseekers remain bleak, signaling an urgent need for policies that foster substantial and inclusive economic growth.
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