Young People Navigating the Labour Market Issues facing young people in accessing the labour market

1. Introduction

As a new year begins, the job market is flooded with young new entrants into the labour market. Many of them did not achieve what they originally set out to do – graduate from School, College, Technikon or University etc. Some of these plans are hindered by poor results, others by economic constraints and pressure to start earning an income.

It is these young people who bear the brunt of the economic climate: while there are high national unemployment rates, the rates are even higher among young people. In the context of downturns within the economy those with the least experience – and therefore the youngest – are the first to go and are the group that finds it hardest to access the labour market at all. This also holds true for those with a matric and even more so for those without mathematics and physical science.
This brings with it a further challenge: young people are marginalised from the labour market and so are not able to acquire the experience and skills that will contribute to their future productivity (Levinsohn, 2008). In addition, this exclusion also means that the self worth of the young person is eroded (Bodibe & Nkungu, 2010).
A great deal is known about why young people find it so difficult to enter the labour market, and we have learnt more about why the plethora of interventions implemented over the past twenty years, which were intended to change the situation, have had little impact on the problem. While this paper re-visits the reasons for the problem, and the weaknesses in some of the interventions, its real purpose is to highlight those, which have been effective, with a view to enabling more institutions in the public, private and civil society sectors, to improve their own programmes and services.
This paper begins by outlining the context of young people in South Africa and then describes the ways in which these young people try and navigate the transition from education to the labour market. The paper then highlights some of the key policies that frame the opportunities that may be available for young people, and are considered critical in shaping the interventions that could be put in place for these young people. The paper then explores the programmes and interventions that are currently in place and provides an analysis of the learning emanating from these programmes (these are described in more depth in the vignettes that were developed as part of this research. These are available as a separate document to this paper). The paper also considers global experiences and the extent to which these resonate with the South African experience as well as offers additional insights that can be harnessed. Finally the paper concludes by pointing to options that could be pursued by the partners in taking forward the work completed thus far.

2. Who are the ‘young people’ struggling to access the labour market?

This section looks at the demographic profile of young people in South Africa. The main source of data is from three Censuses (1996, 2001 and 2011): it focuses on people in defined age groups who are ‘not employed and not in education and training’ or NEETs. The section looks at the picture for both 15 to 24 year olds and then disaggregates this specifically for 18 to 24 year olds, showing that the challenges faced by young people in accessing employment, education or training significantly increase when they reach 18. The section then goes on to look in more detail at challenges specifically related to progress through the basic education system in South Africa.

Table : Number of persons aged 15-24 and 18 – 24 years who are not employed and are not in education and training as a percentage of the population¹

	1996		2001		2011
	15-24	18-24	15-24	18-24	15-24	18-24
Total NEET	2 049 740	1 809 327	3 155 553	2 794 774	3 198 335	2 945 015
NEET % of the population	26.2%	33.9%	34.0%	44.7%	30.9%	39.7%

Source: Statistics SA, Census Supercross, downloaded 09 April 2013
The table above shows that in 2011, close to 3.2 million people aged 15 to 24 years old, or about 31% of the 15 to 24 year old population, are NEET. Although the total number for NEETs in the 18 – 24 population is lower, at just less than 3 million, the percentage of the total population is much higher, at nearly 40%.
The diagram below shows the percentage of NEETs of the total population of the two age categories over time:
Figure : NEETs as a % of the Age Population, over time
Source: Statistics SA, Census Supercross, downloaded 09 April 2013

As the diagram shows, although there was a slight drop in the percentage of NEETs in both age categories between 2001 and 2011, the problems for those in the 18–24 category continue to remain more acute.

In relation to the geographical location of NEETs, the census figures show that in 2011, the highest proportion of NEETs were in KZN, followed closely by Gauteng, as shown in the diagram below:
Figure : NEETs by Province, 2011 Census

Source: Statistics SA, Census Supercross, downloaded 09 April 2013
When looking at the highest education achievement of the population as a whole, the diagram below shows the high number of young people who have an incomplete secondary education or a matric as their highest qualification. This is of particular concern for the 25–34 year old category as the younger age group may still be completing: where-as this cohort is less likely to still be completing their schooling. Interestingly though, whilst this is a concern it can be seen that there appears to be an improvement in education levels, as compared to the older cohorts.
Figure : Highest Educational Achievement Levels of Population as whole
Source: StatsSA, Quarterly Labour Force Survey, Quarter 4, 2012

In relation to the educational profile of the NEETs specifically, the table below shows the highest level of education attained by NEETs in both age categories over three censuses (1996, 2001 and 2011). It can be seen in the 2011 census report that the majority of persons who are NEET (in the 15 to 24 year age group) have either (a) secondary education less than Grade 10 as their highest level of education attainment, or (b) have Grade 12 as their highest level of education attainment. This profile is critical to consider as it raises the real concern that for many young people there is no indication that matric will enable a transition into the labour market: and this may act as a disincentive to young people completing their matric.

Table : Number of persons aged 15-24 years and 18 – 24 years who are not employed and not in education and training by level of education attainment

	1996		2001		2011
	15-24	18-24	15-24	18-24	15-24	18-24
No schooling	289 965	220 383	379 616	311 878	109 637	92 458
Unspecified	45 327	38 224	0	0	0	0
Primary or less	563 587	467 799	661 031	505 271	413 736	326 503
Sec education less than Gr 10	388 867	343 869	592 301	503 985	1 481 593	1 343 003
Grade 12/Std 10	339 873	322 116	660 242	621 537	1 102 117	1 092 315
Certificated with grade 12	398 691	393 636	773 253	763 603	37 267	37 267
Diploma with grade 12	6 128	6 088	44 048	43 644	22 895	22 895
Higher diploma	10 341	10 291	35 694	35 490	13 407	13 407
Bachelor’s degree	2 306	2 289	5 833	5 833	7 236	7 236
Bachelor’s degree and post-grad dip	145	144	1 735	1 735	1 455	1 455
Honours	158	158	1 367	1 367	1 849	1 849
Higher degree (Masters /PhD)	107	104	431	431	697	697
Other	4245	4 227	0	0	6 443	5 930
Total	2 049 740	1 809 328	3 155 553	2 794 774	3 198 335	2 945 015

Source: Statistics SA, Census Supercross, downloaded 09 April 2013

Further, this table also shows that the number of persons who have a Bachelors degree and above, and who are NEET, has increased significantly since 1996. Further analysis has to be undertaken to understand this phenomenon.

The following diagram shows only the data regarding highest level of education achievement for NEETs from the 2011 data in the table above, as a percentage of the total NEETs in the two age categories. The diagram shows that young people with a secondary education less than Grade 12 are most likely to be NEET, followed by those with a Grade 12 only.

Figure : Highest Education Level of NEETs, 2011 Census

Source: Statistics SA, Census Supercross, downloaded 09 April 2013
The education profile of NEETs shown in the diagram above is a consequence of the fractured pathway that many young people take through the education system in South Africa. Research by the Joint Education Trust (JET) shows the key points of delay for young people as they move through the basic education system:
The graphic above show the high levels of ‘repeat’, particularly between Grades 8 and 11. This problem is examined further in the table below, also based on JET research, which shows the number of learners by grade in public ordinary schools between 1995 and 2012.
Table : No of Learners in Ordinary Public Schools, by Grade


Figures from this table for the 2012 Grade 12 cohort (i.e. learners who entered Grade 1 in 2001 – in pink in the table above) have been used to develop the graph below, which shows the key points of repetition and drop out by looking at the percentage of the initial Grade 1 group at the various levels:
Figure : % of initial Grade 1 Learner group in each Grade, 2012 Gr 12 Cohort

The diagram shows that, from Grade 7, learners are increasingly likely to repeat, with a major logjam in Grade 10, after which there is a very steep drop-out rate.

2.