South Africa\u2019s concerningly high youth unemployment rate is a ticking time bomb that only economic growth can defuse. <\/p>\n\n\n\n
This is according to the Institute of Race Relations (IRR) CEO John Endres, who said the country\u2019s huge youth unemployment rate could threaten the country\u2019s social and political stability if not addressed urgently.<\/p>\n\n\n\n
Endres explained that South Africa\u2019s joblessness crisis is particularly alarming among the youth, where unemployment rates far exceed the national average. <\/p>\n\n\n\n
\u201cAbout three-fifths of all unemployed people in South Africa are long-term unemployed,\u201d he said. \u201cThey\u2019ve been without a job for longer than a year, and the longer you\u2019ve been out of the job market, the harder it is to get back in.\u201d<\/p>\n\n\n\n
He warned that this deep and sustained exclusion of young people from the economy cannot continue indefinitely without consequences. <\/p>\n\n\n\n
\u201cIt\u2019s a huge ticking time bomb, a huge problem. And there\u2019s no way to solve this except through fast economic growth,\u201d Endres said. <\/p>\n\n\n\n
According to Endres, almost every challenge facing South Africa\u2014from its fiscal deficit to its rising debt burden and social instability\u2014ultimately ties back to the same underlying issue, which is weak economic growth. <\/p>\n\n\n\n
\u201cThe answers keep coming back to that. Whether it\u2019s debt, the deficit, or unemployment; economic growth is the only way to fix it,\u201d he said. <\/p>\n\n\n\n
However, Endres argued that the policies currently being pursued by the government are actively working against this goal. \u201cYou have a tax on capital and a tax on meritocracy. The way we\u2019re going about it at the moment is not too clever,\u201d he said. <\/p>\n\n\n\n
He cautioned that if the current trajectory continues, the consequences could be severe. With so many young South Africans locked out of the economy, disillusionment and anger could grow to a point where social unrest becomes unavoidable.<\/p>\n\n\n\n
Drawing on global examples, Endres recalled hearing from Nobel Peace Prize winner Muhammad Yunus about how frustrated young people in Bangladesh helped topple their government. <\/p>\n\n\n\n
He stressed that South Africa could face similar risks if its \u201csafety valves\u201d of democracy and free expression ever closed.<\/p>\n\n\n\n
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