Abstracts

56 Introduction Worldwide, young workers are a crucial population group for boosting a country’s economy. However, South African youth are the most vulnerable in that country’s labor market, with a strikingly high unemployment rate. This article addresses current conditions of the labor market, focusing on issues related to the high youth unemployment rate and presenting an analysis of the vocational education system as a core element of the problem. After summarizing these key issues, successful case studies from countries with low youth unemployment are discussed and key components of their successful education and vocational training system highlighted. Finally, this article outlines recommendations along with specific implementation strategies to address the economic impact of unemployment and underemployment with an emphasis on youth. Current Employment Problems in South Africa Hitting an all-time high of 56.4% in the second quarter of 2019, South Africa, considered an upper middle-income country, has the highest youth (ages 15–24 years) unemployment rate in the world (“Youth Unemployment Rate,” 2019). Youth are the most vulnerable subgroup within the South African labor market, accounting for more than 60% of the total number of the unemployed. What makes the situation even worse is that there also has been a decline in the labor force participation rate (the sum of all employed or actively seeking employment divided by the total working-age population as opposed to the unemployment rate, which counts only individuals who are seeking employment), according to the Quarterly Labour Force Survey released in 2019 (Department of Statistics South Africa, 2019). As the South Africa National Treasury (2019) VOCATIONAL EDUCATION IN SOUTH AFRICA Xiaming Jin South African youth are the most vulnerable in that country’s labor market, with a strikingly high unemployment rate. This article addresses the vocational education system in South Africa and offers recommendations and implementation strategies to address the impact of youth unemployment transformation. Current challenges and capacities in the South African labor force are analyzed and appropriate measures to mitigate the effect of technological change are suggested. Perspectives on Business and Economics, Vol. 38, 2020