Youth strongly encouraged to study further.
A TOUGH job market awaits the matric class of 2013 in the Eastern Cape against the backdrop of poor economic growth in the country.
Economist at Efficient Group, Merina Willemse, said the Employment Incentive Act (dubbed the youth wage subsidy) which came into effect on January 1, would not make a dent in employment in a weak economic environment.
Analyst Dr Somadoda Fikeni said matriculants wanting to join the job-seekers pool were in for a “shocking disappointment” in the face of a national economy that has shown weak growth of 0.7%, according to the latest measurement released by Statistics South Africa (StatsSA) in November.
This is the weakest economic growth since the recession in 2008-2009 and is said to have been fuelled by strikes in the automotive sector.
Fikeni said the impact of a weak economy would be more severe in the Eastern Cape, a province which has consistently had the second highest unemployment rates in the country in the past year, after only the Free State.
“The prospects of finding employment are defined by a generally poor economic ability to absorb those wishing for entry in the labour market.
“This is more acute in the Eastern Cape, where unemployment has always been high.
“Young people who leave school hoping to find a job are in for a shocking disappointment.
“The situation raises the question of whether we ought to focus on employment or should government, civil society and business encourage the start of small businesses for those people,” said Fikeni.
According to StatsSA, approximately 3.3 million of the 10.4 million between 15 to 24 years were not in employment, education or training in the third quarter of last year.
In the Eastern Cape, the youth unemployment rate is around 41% – but it shoots up to 72% when taking into account those who are neither employed nor actively seeking jobs.
While the matric class of 2013 celebrates what is said to be the highest pass rate in democratic South Africa, Willemse said the country’s weak economic growth does not bode well for employment.
“It’s a very difficult market for matriculants to come into.
“The unemployment rate was generally high to begin, but more so among the youth,” said Willemse.
The latest economic growth rate for the third quarter of 2013 came in at 0.7% from 3.2% in the previous quarter.
Department of economic development, environmental affairs and tourism (Dedeat) communication manager Sixolile Makaula conceded that the job market was tough for the youth, but said they should study beyond matric to better their chances of finding a job.
“The unemployment rate for a person in the Eastern Cape who has completed matric is 32% in comparison to 46% for lower levels of education and just 10% for post-matric qualifications,” said Makaula. —
Bleak jobs outlook for matric class of 2013
A TOUGH job market awaits the matric class of 2013 in the Eastern Cape against the backdrop of poor economic growth in the country.
Economist at Efficient Group, Merina Willemse, said the Employment Incentive Act (dubbed the youth wage subsidy) which came into effect on January 1, would not make a dent in employment in a weak economic environment.
Analyst Dr Somadoda Fikeni said matriculants wanting to join the job-seekers pool were in for a “shocking disappointment” in the face of a national economy that has shown weak growth of 0.7%, according to the latest measurement released by Statistics South Africa (StatsSA) in November.
This is the weakest economic growth since the recession in 2008-2009 and is said to have been fuelled by strikes in the automotive sector.
Fikeni said the impact of a weak economy would be more severe in the Eastern Cape, a province which has consistently had the second highest unemployment rates in the country in the past year, after only the Free State.
“The prospects of finding employment are defined by a generally poor economic ability to absorb those wishing for entry in the labour market.
“This is more acute in the Eastern Cape, where unemployment has always been high.
“Young people who leave school hoping to find a job are in for a shocking disappointment.
“The situation raises the question of whether we ought to focus on employment or should government, civil society and business encourage the start of small businesses for those people,” said Fikeni.
According to StatsSA, approximately 3.3 million of the 10.4 million between 15 to 24 years were not in employment, education or training in the third quarter of last year.
In the Eastern Cape, the youth unemployment rate is around 41% – but it shoots up to 72% when taking into account those who are neither employed nor actively seeking jobs.
While the matric class of 2013 celebrates what is said to be the highest pass rate in democratic South Africa, Willemse said the country’s weak economic growth does not bode well for employment.
“It’s a very difficult market for matriculants to come into.
“The unemployment rate was generally high to begin, but more so among the youth,” said Willemse.
The latest economic growth rate for the third quarter of 2013 came in at 0.7% from 3.2% in the previous quarter.
Department of economic development, environmental affairs and tourism (Dedeat) communication manager Sixolile Makaula conceded that the job market was tough for the youth, but said they should study beyond matric to better their chances of finding a job.
“The unemployment rate for a person in the Eastern Cape who has completed matric is 32% in comparison to 46% for lower levels of education and just 10% for post-matric qualifications,” said Makaula. —
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