Youth Employment Service CEO on how tackle SA’s jobs crisis

South Africa is facing a staggering youth unemployment crisis, with statistics showing that 54% of young people under the age of 25 are currently without jobs. The situation worsens when looking at those under 30, with an alarming 77% unemployment rate. Ravi Naidoo, the CEO of the Youth Employment Service (YES), joined CNBC Africa to discuss the pressing issue and propose solutions to tackle the job crisis. Naidoo highlighted that while some interventions have shown promise, a more comprehensive and collaborative effort is needed to address the deep-seated structural problems contributing to youth unemployment. The impact of the pandemic further exacerbated the situation, with 1.8 million jobs lost in sectors like manufacturing. Despite some positive economic growth projections, the benefits have not translated into increased employment opportunities for the youth, pointing to the need for more robust and targeted strategies. Naidoo emphasized the importance of driving youth employment through private sector partnerships, advocating for special incentives to encourage companies to hire young workers. The YES program has already injected 4.2 billion rand into the economy through youth salaries, showcasing the potential of such initiatives. Additionally, Naidoo underscored the significance of expanding existing programs like tax incentives for companies employing young people and exploring labor law reforms to facilitate youth recruitment by small businesses. By creating a more favorable environment for youth employment, Naidoo believes that millions of young South Africans could find meaningful job opportunities. While challenges persist, including low economic growth and education disparities, Naidoo remains optimistic about the impact of targeted interventions in alleviating the youth jobs crisis over the long term.