Youth unemployment crisis worsens as AI redefines global labour markets

Matriculants face systemic barriers to entering high-growth fields like AI,
despite global opportunities in the tech-driven economy.

Matriculants face systemic barriers to entering high-growth fields like AI, despite global opportunities in the tech-driven economy.

Published 11h ago

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As artificial intelligence (AI) and automation reshape global labour markets, the World Economic Forum (WEF) Future of Jobs Report predicts a paradoxical outcome: AI will replace nearly 85 million jobs worldwide by 2025 but create 97 million new opportunities in fields like big data, cybersecurity, and green technology.

For South Africa’s 2024 matriculants, this presents both promise and peril. The country’s education and labour systems are not equipped to support school leavers in pursuing these high-growth careers.

Umesh Ramnarain, director at the University of Johannesburg’s Centre for Advanced Learning Technologies in Science, Technology, Engineering, Arts, and Mathematics (CALTSTEAM),stressed that AI-related careers are diversifying as the technology becomes more advanced.

“The need for skilled AI personnel cuts across all industries—finance, retail, healthcare, education, and government,” he said.

These careers include roles such as AI engineers, cybersecurity experts, robotics engineers, and quantum computing specialists. Ramnarain highlighted that AI engineers are among the highest-paying professions globally.

Joel Perry, academic manager at iFundi, echoed this sentiment, recommending AI-driven qualifications for matriculants. He advised that fields like computer science, environmental and software engineering, and digital marketing intersect technology, business, and sustainability, making them ideal for school leavers.

“Young people can also branch into non-degree programmes that develop AI skills,” Perry said.

This pathway is especially critical for South African matriculants, many of whom lack the academic results or financial means to pursue traditional university degrees.

Yet, South Africa’s education system continues to underperform. Despite an official matric pass rate of 87.3% in 2024, the real pass rate is just over 50% when considering the 1.22 million students who started Grade 1 in 2013. Minimal pass requirements - a mere 30% in three subjects and 40% in three others - leave many graduates unprepared for higher education or employment.

As South Africa faces a youth unemployment rate exceeding 45,5%, alternative career paths are gaining traction. Perry noted that social media content creation is emerging as a viable profession, particularly as platforms like TikTok explore monetisation for South African creators.

“With a high followership, creators can earn income through brand partnerships, ad revenue, and platform incentives,” he explained. Digital marketing, video editing, and storytelling are among the skills needed to succeed in this burgeoning field.

Stats SA reported that 915,000 South Africans moved abroad in 2020, with 64% considering emigration by 2022 due to the saturated job market. Many South Africans are finding work abroad in high-demand sectors like IT, healthcare, and engineering.

While global opportunities abound, Ramnarain cautioned against the economic impact of brain drain.

“Encouraging youth to gain global experience and eventually return to contribute locally can balance this trend,” he said.

Both he and Perry emphasised the importance of government and private initiatives to create competitive job markets in South Africa to reduce emigration.

The rapid evolution of AI and technology highlights the failures of South Africa’s education and labour systems. Labour laws that make hiring unskilled school leavers costly and risky further exacerbate the issue. The Job Seekers Exemption Certificate (JSEC), proposed by the Free Market Foundation, offers a potential solution.

By allowing first-time job seekers to negotiate directly with employers, the JSEC could reduce barriers for young, inexperienced workers, giving businesses the freedom to create entry-level opportunities.

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