Page 54 - IRMSA Risk Report 2021

3.9
YOUTH UNDER INCREASING PRESSURE – THE LOST
GENERATION

Unemployment figures for the youth globally has been increasing since the 2008 Financial Crisis and is now deepening due to
the Covid-19 pandemic. The youth is under increasing pressure as they try to make ends meet through self-employment avenues,
such as casual labour, working for SMMEs and/or form part of the new GIG Economy.

SCENARIOS FLAGS SUCCESS STORIES
COUNTRY FLAGS C F
OWNING OUR FUTURE Professor Tawana Kupe, Vice Chancellor
1. LEADERSHIP and Principal of the University of Pretoria
talks about how the University addressed
2. INSTITUTIONAL CAPACITY
the digital inequality and lack of access
3. POLITICS among their students. “Thanks to their
ability to adapt, this generation of students
4. SOCIAL COHESION is rising to the challenges of online learning.
5. NATIONAL POLICY Because of this ability to adapt and flourish
in an ever-changing environment, they
6. SERVICE DELIVERY have managed to transition to the new way
7. INEQUALITY of studying, something that will from now
on be an integral part of tertiary education
8. ECONOMY worldwide.
PERPETUAL FAKE IT UNTIL WE
HANGOVER MAKE IT, OR NOT 9. GLOBAL TRENDS Source: “Ability of youth to adapt to and adopt new tech
is key to addressing unemployment”, By Professor Tawana
10. CLIMATE Kupe, Daily Maverick, Op-Ed, 11 June 2020.
C – CURRENT (2020/21) F – FUTURE (2030)

“A 2018 study showed that “the Great Recession” and its aftermath significantly widened the wealth gap between the young and old.
Just a decade after the 2008/2009 financial crisis, the Great Lockdown poses significant educational and employment challenges that
could bring about a second lost generation.”
Source: WEF Covid-19 Risk Outlook Insight Report, May 2020, in partnership with Marsh & McLennan and Zurich Insurance Group.

TOP 5 CHALLENGES TO ACHIEVING TOP 5 RISK TREATMENT OPTIONS AND
TARGETS OPPORTUNITIES
1. Increasing social challenges in the form of unrests, 1. The Economic Recovery Plan must include a significant
exposure to radical groupings or organised crime, investment in youth.
caused by rising youth unemployment. Step up delivery on the President’s Youth Employment
Intervention (Five Interventions programme).
2. Increase in drop-out rates due to plummeting household 2. Enabling environment to boost SMME recovery
and business incomes specifically in the SMME sector. and focussed effort to reduce bureaucracy
and improve ease of doing business.
Ensure that Covid-19 rescue packages reach the intended
recipients.
3. The Digital Divide: Lack of tools for online learning and 3. Fast track implementation of high demand spectrum.
inability to adapt educational spaces at home. Creative solutions to provide access to technology for
disenfranchised youth in our country.

4. The Urban/Rural Divide: Employability depends on Ivy/ 4. Equip township and rural institutions with an office
Non-Ivy league education caused by historical factors that drives employment of learners post qualifying.
and location of educational institutions. Corporate must step up internships to include a more
diversified cohort of qualified students for their internship
programmes.
5. Work Ready: Students struggle to make the transition 5. Institutions of higher education must include
from TVET/University life to a working life. “work ready” learning programmes as well as
additional courses such as critical thinking etc.
Organisations need to open workplaces for internship
programmes/on-the-job learning. Organisations need to
open workplaces for internship programmes/on-the-job
learning

FACTS AND FIGURES
YOUTH UNEMPLOYMENY – 1st QTR 2020
• Unemployment rate for youth aged 15-34 years equalled 43.1% and 59% for youth aged 15-24 years.
• The unemployment rate for graduates is 33.1% for youth aged 15-24 years. Education is key to young people prospects of
getting employed.
• 1.9 million young people without work were discouraged from looking for work, due to lack of skills and experience.
• 8.5 million of the youth aged 15-34 years were Not in Employment, Education or Training (NEET).
• Graduate unemployment is less than 10%. Unemployment rises as that level of education drops.

Source: WEF_COVID_19_Risks_Outlook_Special_Edition_Pages

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