Navigate the NEET market with our insights! NEETs are people “not in employment, nor in education and training.” The statistics describing the NEET market composition can assist organisations with improving their strategies.
Navigating the NEET Market: Strategies for South African Businesses
In the dynamic landscape of South African business, understanding and addressing the NEET market is crucial for sustainable growth. NEET, an acronym for “Not in Education, Employment, or Training,” refers to a significant portion of the youth population facing unemployment and disengagement. In this blog post, we’ll explore what the NEET market is, why it matters to South African businesses, and strategies employed by other governments to tackle this issue.
10 NEET Market Facts
- 40.3% about 15 million persons aged 15-64 years were NEET in South Africa in 2016
- NEET rates are significantly higher for women than men across all the age groups
- the gap in the NEET rates between men and women widens with age
- approximately 2.7 million home-makers were NEET
- 7.1 million the highest number of NEETs recorded among adults aged 35-64 years
- 2.5 million were discouraged job-seekers
- 6.6 million NEETs whose highest level of education attainment was less than Grade 12
- There were 3.8 million NEETs with Grade 12
- 2.6 million have an education level at primary or less, 1.8 million or 69.9% were 35-64 years old,
- Close to half of the youth is not employed and not in education and training
These facts were extracted from the DHET’s FACT SHEET ON “NEETs.”
Understanding the NEET Market
The NEET market comprises young individuals who are neither pursuing education nor actively involved in the workforce. In South Africa, this demographic poses both challenges and opportunities for businesses. High NEET rates can contribute to economic stagnation while tapping into this untapped potential can lead to innovation and increased productivity.
Why the NEET Market Matters to South African Businesses
- Workforce Potential: NEET youth represent a pool of untapped talent. Businesses can benefit from investing in programs that provide skills development and training, creating a skilled and motivated workforce.
- Consumer Base: Engaging the NEET market can expand the consumer base. By targeting this demographic with tailored products and services, businesses can tap into new markets and drive economic growth.
Strategies for Addressing NEET Youth: Lessons from Other Governments
- Education and Training Initiatives: Governments worldwide have successfully implemented education and training programs to upskill NEET youth. South African businesses can collaborate with educational institutions to design programs that align with industry needs.
- Apprenticeship Programs: Apprenticeships offer a hands-on approach to skill development. Establishing apprenticeship programs can bridge the gap between education and employment, providing practical experience for NEET youth.
- Government-Industry Partnerships: Collaborations between the government and private sector can lead to innovative solutions. Governments often provide incentives for businesses to hire NEET youth, fostering a symbiotic relationship that benefits both parties.
- Entrepreneurship Support: Encouraging entrepreneurship among NEET youth can drive economic growth. Governments have launched initiatives that provide funding, mentorship, and resources to aspiring entrepreneurs, fostering innovation and job creation.
18.2 Learnerships to Address the NEETs
Learnerships offer lucrative benefits to employers who offer training opportunities to unemployed youth. Businesses obtain BEE points and tax rebates as a result of facilitating youth development.
Leonie Hall is a development economist, social activist and seasoned leader with over 25 years of operation and project management experience in the education, social change and youth development sectors. A former high school teacher and an HRD specialist with a proven track record of working with government agencies, civil society organisations, communities and grassroots movements, she can provide unique insights for capacitating youth and unemployed markets.