By 2050, one in three young people worldwide will be of African origin, according to the “2024 Global Youth Employment Trends” report by the International Labour Organization (ILO).
This significant demographic shift positions African youth as key drivers in shaping global consumption, culture, and stability. However, this transformative potential is threatened by a lack of job opportunities across the continent.
According to estimations, by then Sub-Saharan Africa will need to create 72.6 million new jobs to accommodate the young people entering the labour market.
This scenario poses a critical challenge, as youth unemployment remains alarmingly high across the continent. If unaddressed, the ILO warns of a potential “youth earthquake,” where frustration and joblessness could spark widespread social movements, as seen recently in Kenya, where protests highlighted the impact and energy such a crisis can generate.
The concerning reality is that many African countries are not producing formal, quality jobs enough in order to meet young people’s basic needs or provide a decent standard of living.
The ILO report notes that youth unemployment in Sub-Saharan Africa stands at 8.9%, with only a small portion of young people accessing what could be considered “decent work.” Moreover, many of these jobs are in the informal economy, where workers lack social protection and job security.
Youth unemployment in Africa is a complex, large-scale problem
The economic crisis impacting many African nations has worsened job prospects, despite government efforts to launch initiatives to combat the issue.
However, the impact of these measures has been limited, partly due to rapid population growth. In response to this crisis, African leaders adopted a seven-point declaration in Dar es Salaam to tackle youth unemployment. Yet, effective implementation of these measures still faces numerous hurdles.
Unemployment is not limited to a single nation; it affects both large and small economies. For instance, South Africa, the continent’s most industrialized economy, reported a 32.1% unemployment rate, the highest in Africa during the fourth quarter of 2023. Other countries with alarming unemployment rates include Djibouti at 28% and Eswatini at 25%.
In South Africa, youth unemployment is particularly critical. Statistics South Africa shows that the unemployment rate among young people aged 15 to 24 reaches 49%, reflecting a widespread lack of opportunities. Both global and local factors contribute to these figures.
On one hand, changing global employment patterns have affected job availability in developing countries; on the other, the legacy of apartheid continues to shape South Africa’s economic and social landscape. Due to limited options, many turn to informal work, which is often precarious and does not guarantee a stable income.
In South Africa, youth unemployment hits young women especially hard, as they face greater obstacles in accessing decent employment compared to their male counterparts.
Statistics show that in 2024, the employment absorption rate among young men was 31.9%, compared to 24.2% among young women. Meanwhile, the unemployment rate for young women reached 49.4%, a significant increase from 46.1% in 2004.
Education is a key factor in improving youth employment prospects. Those with higher education are more likely to find employment than those without advanced studies. Nevertheless, access to education remains a challenge in many parts of the continent.
According to South Africa’s Quarterly Labour Force Survey for the first quarter of 2024, only 9.8% of employed young people are university graduates. This limited access to education, combined with economic and social difficulties, has left many young people neither studying nor working, a phenomenon known as NEET (Not in Education, Employment, or Training).
Labour market dynamics across South Africa’s nine provinces reveal significant diversity in employment trends, largely influenced by geographic location. Urban areas tend to offer better job opportunities compared to rural ones.
A clear example of this disparity is the Western Cape, which stands out for its higher employment absorption rates and lower unemployment levels compared to provinces like KwaZulu-Natal and the Eastern Cape.
The issue of discouraged job seekers is also notable, as only 2.8% of young people aged 15 to 34 in the Western Cape were classified as such, compared to 13.9% in Limpopo.
Over the past two decades, most provinces have seen a decrease in the proportion of discouraged youth, indicating an improvement in job opportunities, with the exception of the Northwest and KwaZulu-Natal.
Entrepreneurship in South Africa
Youth unemployment is a significant challenge in many countries, including South Africa. Given this reality, entrepreneurship emerges as a viable solution to help address this issue.
Academics recognize that fostering business creation can provide young people with not only a livelihood but also a way to contribute to the local economy. However, starting a business is no easy task, and many young people face significant obstacles on the path to entrepreneurship.
One of the main difficulties young entrepreneurs face is a lack of support and mentorship. Higher education in South Africa has begun implementing programs to facilitate students’ transition to the business world. However, the need for formal support is evident.
Many entrepreneurs report that while they have informal networks, these are not sufficient to address all the challenges that arise in starting a business. A lack of skills in key areas, such as financial management and networking, limits their ability to navigate the complex business world.
A study conducted in the city of Buffalo in the Eastern Cape province found that young entrepreneurs face a series of significant challenges when trying to establish their businesses. In this area, young people struggle not only with a lack of financial resources but also with the need for suitable physical spaces for their businesses.
As one participant noted, “The transition from being a student to starting my own business was difficult for me. There was a huge gap,” highlighting the lack of structural support for new entrepreneurs.
Despite these challenges, the resilience of young entrepreneurs is evident in their ability to leverage informal networks that help them overcome some of these barriers.
Research suggests that while the path to entrepreneurship is fraught with difficulties, community and personal connections can be a valuable source of support and resources.
It is crucial to increase support for young entrepreneurs through education and access to financial resources. The implementation of business development programs in universities is a positive step, but more funding and a more structured approach are needed to provide mentorship and assistance.
These initiatives could include workshops on business management, access to professional networks, and financing platforms.
Access to loans is a valuable tool for young entrepreneurs. Loans can provide the necessary capital to start a business, enabling young people to overcome the financial barriers they face.
With a solid business plan and a willingness to learn and adapt, loans can be the initial push needed to leap into the world of entrepreneurship. In this way, entrepreneurship becomes not only a response to youth unemployment but also a path toward self-sufficiency and personal development.
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