Words like "grey listing", "basis points" and "interest rate" seem like jargon to someone who has never had to pay bills before, making it confusing for the youth to see how and where they fit into the economy.
It is important for the youth to understand how the economy works, says client engagement and team lead at Metropolitan GetUp, Liezel Gordon.
She said the South African youth were facing many challenges and that the country was complex with many factors impacting and influencing the economy.
Gordon explained that South Africa has the highest Gini coefficient in the world – which is the disparity between the rich and poor, stemming from the history of apartheid. This has impacted on the distribution of wealth and economic imbalances.
Gordon explained that in addition, high unemployment rates – particularly among the youth – driven by limited job opportunities, skills shortages and mismatches, and a large informal sector present further economic challenge.
She said there is a significant skills gap in the labour market that makes it difficult for young people to find suitable employment opportunities.
"While the challenges facing the South African economy are significant, we should avoid painting young people solely as victims because this disempowers them.
“It’s certainly not all doom and gloom – many young individuals are actively engaged in finding solutions, pursuing entrepreneurship, and driving innovation in and outside of our country. While we may have a skills gap, we do not have a talent gap," she said.
President of the Durban Chamber of Commerce, Prasheen Maharaj, added that many entry level jobs in SA are being taken up by highly skilled foreign workers from other African countries who are willing to work for much lower salaries.
As a result, South African youth are not getting the opportunity to get experience and they remain unemployed.
Gordon offered the following tips to help the youth can thrive in a turbulent economy:
Invest in you – Pursue continuous learning, be it formal education, vocational training, or skills development programmes that align with the demands of the job market. South Africa is a country that is rich in raw materials – artisan skills can help us produce and refine these raw materials into products that boost economic growth. Education is not just about classroom training – the ability to use your hands and physical strength to do work is also a significant asset to yourself and to our economy. Whatever type of skilling you choose, this can increase your chances of securing meaningful employment or better equip you to start your own business.
Take advantage of available resources – There are many resources designed to support young entrepreneurs and job seekers, such as government programmes, incubators, and youth-focused initiatives. These resources often provide mentorship, funding, training, and networking opportunities. You can also find a mentor who is willing to share their knowledge and help you get a foot in the door.
Skills are critical but mindset and attitude are even more important – Your willingness to contribute, make a difference and do good for the country will go a long way towards helping you thrive.
IOL