Impact of job losses on youth-Mdladlana

The effect on youth of the global economic crisis that broke out in 2008 is so serious such that unless action is swiftly taken, the situation of youth unemployment can become unsustainable, putting social cohesion at risk, Labour Minister Membathisi Mdladlana said in reply to a parliamentary question, describing the problem as “a ticking time bomb”. 

The inaugural Organisation for Economic Co-operation and Development (OECD) Economic Survey of South Africa released last month, indicated that the country had the worst rate of unemployment amongst  the youth between the ages of 15 and 24 when compared to all the countries surveyed. Racial disparities were further compounding the matters, with 53,4% of all young black Africans between the ages of 15 and 24 being unemployed by the end of 2009, three times worse than the unemployment rate of 14,5% of young white South Africans. Young people who lack general or vocational education and work experience are especially vulnerable to the crisis. Many young people who are employed are “overqualified” for the jobs they perform. 

“As part of our intervention to alleviate youth unemployment, we introduced Apprentice, Learnerhips, Internship allowances as form of subsidies to learners whilst undergoing training under the Basic Conditions of Employment Act. The employers also received tax allowances under the Income Tax Act administered by the South African Revenue Services (SARS)”, Mdladlana said. He said these allowances had since been transferred to the Department of Higher Education and Training with the Skills Development Act functions.   

Issued by: Mzobanzi Jikazana

                 Ministerial Spokesperson

                 083 641 2355