Youth unemployment hysteresis in South Africa: Macro-micro analysis

Abstract

This study simulates the macro-micro economic impacts of the employment policy, focusing on hysteresis in youth unemployment in South Africa. Specifically, we apply a dynamic computable general equilibrium model to calibrate the 2015 South African Social Accounting Matrix to estimate, compare, and determine the impact of employment policy on youth unemployment as well as on aggregate economic outcomes. We simulate two scenarios where we reduce the import price of fuel by 20 per cent. Then, the total government savings from the reduced transport subsidy are reallocated to the education sector to support the unemployed youth. The research findings indicate that demand for youth labour increases in the long run, resulting in a decline in the unemployment rate. Moreover, the consumer price index decreased more than nominal income, thereby increasing household purchasing power and, potentially, easing poverty.

Hypertension perspectives and health behaviors of African youth: The effect of health education and employment

“…Our results suggest that investments into health education learnerships, would result in double duty benefits, addressing low education and employment levels in South Africa's young adults, where the NEET rate is among the highest globally. 29 In a context where healthy behaviors among young adults are frequently unobtainable in the absence of secure employment and career prospects. 61 Moreover, where NEET young adults are more vulnerable to risky health behavior, 27 and where poor health has been reported to further give rise to a NEET status.…”

“…In South Africa between 1998 and 2016, hypertension rates in young adults (15)(16)(17)(18)(19)(20)(21)(22)(23)(24)(25)(26)(27)(28)(29)(30)(31)(32)(33)(34) years) more than doubled calling for preventive interventions. However, with many youth unemployed, young adults struggle to prioritize health or implement healthy behaviors.…”

“…26 Young adults who are not in employment, education or training (NEET) are the most vulnerable in this regard and are most likely to engage in unhealthy behaviors such as substance abuse, poor diet and sedentary lifestyles, 27,28 as well as have worse mental and physical health. 27 South Africa currently has one of the highest rates of NEET youth globally, 29 with a range of youth training initiatives supported by government. 29 Health education particularly has shown some success in improving health behaviors and modifying CVD risk factors in other regions.…”

“…27 South Africa currently has one of the highest rates of NEET youth globally, 29 with a range of youth training initiatives supported by government. 29 Health education particularly has shown some success in improving health behaviors and modifying CVD risk factors in other regions. [30][31][32][33] Therefore, our aim was to compare HTN related beliefs and health behaviors between NEET youth and previously NEET youth undertaking a health-education training initiative (HETI).…”

“…South Africa currently has one of the highest rates of NEET youth globally, 29 with a range of youth training initiatives supported by government. 29 Health education particularly has shown some success in improving health behaviors and modifying CVD risk factors in other regions.…”