Labour expert says companies are not investing in job creation

Labor studies expert Professor Lucian van der Walt, believes the country’s high youth unemployment rate reflects the existing economy’s inability to invest in providing possibilities.

He observes that, while the country’s economy is designed to have its residents labor for salaries in employment produced by employers, this is not happening.

The professor claims that not enough employers are investing in generating jobs for young people.

“There are many reasons and one of them is that employers, including the state, simply are not investing in creating jobs and/or facilities that which require more employment,” says Prof. van der Walt.

Professor Lucien was weighing in on the country’s latest Youth Unemployment figures, which have climbed up to 46.1 percent, from 36.9 percent in the first quarter of 2015, this is a decade in review.

According to stats SA’s, youth unemployment has remained persistently high over the past decade, with the situation more pronounced amongst young jobseekers between the ages of 15-25.

It has also reported that young people aged 15 to 34 make up around 50.2% of South Africa’s working age population, representing 10.3 million individuals.

🧵#ZAunemployment || The official unemployment rate increased by 1,0 percentage point to 32,9% in Q1:2025 compared to Q4:2024.

Read more here: https://t.co/lO8z2dejxE#StatsSA #ZAemployment #GovZAUpdates pic.twitter.com/919oKigqaO

— Statistics South Africa (Stats SA) (@StatsSA) May 13, 2025

According to Professor van der Walt, the most basic thing that can be done to reduce the country’s high youth unemployment rates is to provide a large number of long-term job opportunities.

“Fundamentally it require re-industrialisation of the country’s economy. It’s not possible to simply keep creating government jobs, weather permanent or relief schemes, because the state simply doesn’t have enough money and the money is also running out,” says Prof. van der Walt.

He also questions why the private sector is so willing to engage in capital-intensive projects that fundamentally generate few chances for job creation.

He also suggests that the government should urge the necessary forces to focus on addressing the country’s employment creation crisis.

“What the government doesn’t have is popular pressure forcing it to look at measures like re-industrialization and having policies which are more effective and simultaneously, pro-people,” says Prof. van der Walt.

Professor van der Walts says that in order to relieve many jobseekers’ general depression and immobility caused by burnout while job hunting, society should engage in self-sustaining activities.

He believes that the government should not be seen as the only method to achieve chances.

“Although not that easy, people need to find ways to be active in their communities. Find ways to work with neighbors, find ways to rebuild social cohesion across all races, and especially in marginalised communities,” says Professor van der Walt.

Written by: Odirile Rabalao