Youth employment barriers in the Emfuleni and Metsimaholo local municipal areas

Abstract

Significantly high youth unemployment rates have become a prominent economic and social feature around the globe. Young work seekers undertaking the transition to the labour market are faced by prolonged spells of joblessness which have increasingly been associated with the discouragement among the cohort, the deterioration of skill sets and ultimately the loss of valuable future resources that can assist towards a much needed improved global economic outlook. The situation from a South African perspective has reached critical stages. Youth unemployment in the country is among the highest around the world contributing to already excessively high poverty and inequality rates that have come to characterise the current South African socio-economic landscape. As such, the situation has become one of the leading concerns for policymakers. However, despite the recognition of the severity of the issue, the comprehension of the factors contributing to the youths’ difficulties in securing decent employment has proven complex. This has been evident even more so from local perspectives, owing to the context specific nature of unemployment and the unique intricacies inherent in South African labour markets. The study had the primary objective to determine the main employment barriers faced by the youth in the Emfuleni and Metsimaholo local municipal areas. This involved identifying and determining the impact of various socio-economic factors affecting their employment outcomes, the identification of the key skills among both the employed and unemployed participants and to compare the job search behaviour among these groups. Moreover, the study analysed the perceptions among the employed and unemployed youth, firstly regarding the barriers young people face in securing wage employment and secondly regarding the factors affecting the youths’ entrepreneurial inclination as a means of being self-employed. A descriptive cross sectional research design was utilised, while a combination of purposive and convenience sampling techniques were used to select the sample participants. A sample size of 400 was selected. Data were collected through the use of self-structured questionnaires which were administered through four trained fieldworkers. A total of 361 questionnaires were returned to which 339 were deemed usable. The sample was evenly composed out of employed (176) and unemployed (163) participants. The statistical techniques employed in analysing the data included the use of frequency distributions, cross tabulations, a one-way ANOVA analysis, logistic regression and a principal components analysis. The results from the study showed that on average young work seekers were in an unemployed state for 30 months which pointed to the structural nature of their difficulties in finding work. The descriptive analysis revealed that for those that did successfully secure employment compared to the unemployed were more likely to be White or Indian, were living in small households where more members were employed and not receiving any form of social welfare. Furthermore, these results showed that employed participants had higher levels of education and were willing to accept work with much lower associated starting wages than those who failed to secure employment. The identification of the key skills of both groups indicated that employed individuals overall had better personal (soft) workplace skills while the unemployed participants’ technical and cognitive competencies were more informally based. The comparison among the job search behaviour showed the importance of having additional social networks and access to more modern search methods which assists significantly towards improving the search process, possibly providing more accurate information and improving employer-employee matches. Results from the logistic regression analysis identified race, marital status, household size, number of employed individuals living in the household, level of education, the presence of social welfare and the participants’ reservation wages as significant predictors on the likelihood of being employed. From the perspectives of the participants, not having the necessary education and skills, as well as the general lack of available job opportuities and the lack of the necessary labour market information were perceived as the most challenging obstacles for young people to find work. The unemployed and employed participants had differencing views regarding the impact of the lack of access to quality education and familial responsibilities suggesting the presence additional geographical barriers for the unemployed participants. In respect to the factors affecting their entrepreneurial intent unemployed did not perceive the associated risk to deter their entrepreneurial inclination while employed participants disagreed that that there were not enough market opportunities available. Overall this study found the employment among the participants to be intertwined with an array of factors which attests the intricate nature of youth unemployment. The struggle to acquire work emanates among others from inadequate skills sets and education levels, lacking the needed labour market information together with the use of ineffective and misdirected job search strategies. Furthermore, the impact of labour market inequalities such as the lack of social capital as well as the lack of knowledge on how to best conduct search processes is evident. In addressing these concerns especially from a local level requires an integrated approach, involving all stakeholders, including local policymakers, businesses, educational institutions and the youth themselves. However in recognising their importance, any improvement in the cohorts employment levels even if only on local levels necessitates a sustainable and inclusive growth path primarily directed at the creation of decent employment opportunities