The biggest risk facing the youth today is unemployment. Figures provided by Stanlib economist Kevin Lings show that only around 26 percent of South Africans younger than 25 are employed.
While there may be an explanation for a certain level of youth unemployment, such as young people choosing to study for longer, an increase in foreign travel, and the popularity of ‘gap’ years, this does not explain a level as low as 26 percent. By comparison, the amount of people under the age of 25 who are working in the US is around 55 percent – double the rate of South Africa’s youth.
Statistics from the Institute of Race Relations (SAIRR) show, however, that a tertiary education substantially increases a young person’s chance of employment. Unemployment levels for those with tertiary education fall dramatically to just under 10%, while the unemployment rate for those without is around 27 percent.
What these figures tell us is that we need to be able to provide our children with not only decent schooling, but with opportunities for them to study further. For parents, high youth unemployment has direct financial implications – unemployed children may be dependent on you for longer, possibly well into your retirement. This is certainly not part of anyone’s retirement plan. It could be argued, then, that ensuring your child has a good education, and therefore making them employable, is in many ways part of a holistic retirement strategy.